Why Is Equifax (EFX) Up 1% Since Last Earnings Report?

A month has gone by since the last earnings report for Equifax (EFX). Shares have added about 1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Equifax due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Equifax Beats on Q2 Earnings

Equifax has reported impressive second-quarter 2025 results, wherein earnings and revenues outpaced the Zacks Consensus Estimate.

EFX’s adjusted earnings were $2 per share, surpassing the Zacks Consensus Estimate by 4.2% and increasing 9.9% from the year-ago quarter. Total revenues of $1.5 billion beat the consensus estimate by 1.5% and increased 7.4% on a year-over-year basis.

Segmental Level Information For EFX

Revenues in the Workforce Solutions segment totaled $662.1 million, rising 8% from the year-ago quarter. The metric surpassed our estimation of $652.8 million. Within the segment, Verification Services’ revenues of $567.1 million increased 10% from the year-ago quarter. Employer Services’ revenues of $95 million dropped 2% on a year-over-year basis.

The USIS segment’s revenues were $521.5 million, up 9% from the year-ago quarter and beat our estimated figure of $509.2 million. Within the segment, Online Information Solutions’ revenues of $457.8 million rose 9% year over year. Financial Marketing Services’ revenues were $63.7 million, increasing 6% from the year-ago quarter.

Revenues in the International division amounted to $353.4 million, up 4% and 6% year over year on a reported and local-currency basis, respectively. The metric missed our estimation of $361.3 million.

Latin America’s revenues of $99.6 million increased 2% from the year-ago quarter on a reported basis and 11% on a local-currency basis. Revenues from Europe amounted to $99.2 million, up 12% on a reported basis and 6% on a local-currency basis. Revenues from the Asia Pacific were $85.3 million, increasing 1% from the year-ago quarter on a reported basis and 4% on a local-currency basis. Canada’s revenues of $69.3 million were flat with the year-ago quarter on a reported basis and gained 1% on a local-currency basis.

Equifax’s Operating Results

Adjusted EBITDA in the second quarter of 2025 amounted to $499.3 million, indicating 9.1% growth on a year-over-year basis. The adjusted EBITDA margin was 32.5%, up 50 basis points from the year-ago quarter.

Workforce Solutions’ adjusted EBITDA margin was 53.3% compared with 52.8% in the year-ago quarter. The adjusted EBITDA margin for the USIS division was 35% compared with 33.2% in the second quarter of 2024. The adjusted EBITDA margin for the international segment was 26.4% in comparison with 25.6% in the year-ago quarter.

EFX’s Balance Sheet & Cash Flow

Equifax exited the second quarter with cash and cash equivalents of $189 million compared with $195.2 million at the end of the first quarter of 2025. The company has a long-term debt of $4.1 billion compared with $4.3 billion in the preceding quarter.

Cash generated by operating activities amounted to $361.1 million, whereas capital expenditure totaled $122.2 million. The company distributed $62 million as dividends in the quarter.

Equifax's Q3 and 2025 Outlook

For the third quarter of 2025, the company raised its revenue expectation to $1.505-$1.535 billion from the preceding quarter’s view of $1.495-$1.525 billion. EFX hiked the adjusted EPS outlook to $1.87-$1.97 from the preceding quarter’s view of $1.85-$1.95. 

For 2025, Equifax has raised its revenue guidance to $5.97-$6.04 billion from the preceding quarter’s view of $5.91-$6.03 billion. The company raised adjusted EPS to $7.33-$7.67 from $7.25-$7.65 provided in the preceding quarter.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Equifax has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Equifax has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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