[Management View]
Equifax reported record revenue of $1.54 billion, up 8% in constant currency and 7% as reported. Key initiatives driving growth included cloud-based technology penetration, expanded offerings using TWIN data, and an increased focus on integrated solutions across core segments.

[Outlook]
Equifax raised its full-year 2025 revenue midpoint by $35 million to about $6 billion and adjusted EPS by $0.03 to $7.48. Workforce Solutions revenue growth is now expected to be about 5%, down from 7% in April guidance. USIS revenue growth is updated to 7%, with mortgage revenue expected to rise about 13% and non-mortgage revenue over 4.5%. International revenue growth in constant currency is expected to remain at about 7%.

[Financial Performance]
- Revenue: $1.54 billion, up 8% in constant currency and 7% as reported.
- Adjusted EPS: $2.00, $0.10 above the midpoint of April guidance.
- Adjusted EBITDA Margin: 32.5%.
- Free Cash Flow: $239 million, up by more than $100 million YoY.

[Q&A Highlights]
Question 1: Can you give some more perspective on the Twin State Agency headwinds? (Line breaks here)
Answer: The headwinds are due to changes made by the Biden administration in 2024 around data reimbursements. States are dealing with contract timing and budget challenges, leading to some pressures in the near term. However, there is momentum in commercial discussions and potential growth from the new OBBBBA bill.

Question 2: What are the new mortgage prequal products driving strength or share in the quarter? (Line breaks here)
Answer: The twin indicator product has been in discussions for about six months and is embedded with some aggregators. The discussions are positive, and the product is expected to take hold in the second half of 2025 and 2026. The intention is to offer the twin indicator as part of the mortgage credit file at no incremental cost to drive share gain.

Question 3: What is mortgage revenue as a percentage of total revenue in the second quarter? (Line breaks here)
Answer: Mortgage revenue is 22% of total revenue.

Question 4: What are you seeing in terms of non-mortgage lender and consumer credit activity in the third quarter? (Line breaks here)
Answer: Auto remains relatively strong, and FI is expected to be stronger in the third quarter. Other businesses are also performing relatively well with some improvements across commercial and payment spaces.

Question 5: What changed in the government business assumptions for the second half of the year? (Line breaks here)
Answer: The changes are due to the dynamic and challenging nature of state budget responses to the prior administration's funding changes. States are dealing with budget deficits, leading to some volatility in government revenue growth.

Question 6: Can you elaborate on the shared shifts between background screeners in the talent segment? (Line breaks here)
Answer: One of the customers lost a large client to another background screener that does not use Equifax for court records. This resulted in a revenue impact but not a material operating profit impact.

Question 7: What are you expecting in terms of price competition in the mortgage market with VantageScore? (Line breaks here)
Answer: It is early to determine the impact of VantageScore on price competition. The focus is on supporting customers with solutions that help them, and the discussions will unfold in the second half of the year.

Question 8: Can you give more color on the litigation costs and if they might continue into 2026? (Line breaks here)
Answer: The litigation costs are related to resolving single plaintiff litigation cases and other litigation costs. The volume of small claims from individuals has increased, and these costs are expected to remain high for the second half of 2025.

Question 9: Can you give more color on the trends in the talent market and the impact on employer services revenue? (Line breaks here)
Answer: The hiring market has been weak due to corporate confidence and economic uncertainty. There was a slight weakening in June, and the outlook for the second half reflects a continued softer hiring environment.

Question 10: What is driving the strong growth in consumer lending revenue in EWS? (Line breaks here)
Answer: The growth is driven by penetration, new products, and new customers, particularly in personal loans where there is additional underwriting for larger ticket loans.

[Sentiment Analysis]
The tone of the management was cautiously optimistic, highlighting strong performance and strategic initiatives while acknowledging macroeconomic uncertainties and challenges in the government segment. Analysts' questions focused on understanding the drivers of growth and the impact of external factors on future performance.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 | Q2 2024 |
|-------------------------|---------------|---------------|---------------|
| Revenue | $1.54 billion | $1.48 billion | $1.44 billion |
| Adjusted EPS | $2.00 | $1.90 | $1.85 |
| Adjusted EBITDA Margin | 32.5% | 32.0% | 31.5% |
| Free Cash Flow | $239 million | $200 million | $139 million |

[Risks and Concerns]
- Elevated litigation expenses projected for the remainder of the year.
- Ongoing uncertainty and volatility in government-related revenue due to federal and state budget dynamics.
- Persistent weakness in the hiring environment affecting related business segments.
- Recent softening in transactional volumes driven by macroeconomic factors.

[Final Takeaway]
Equifax delivered record revenue in Q2 2025, driven by strong performance in both mortgage and non-mortgage segments. The company raised its full-year revenue and EPS guidance, reflecting confidence in its strategic initiatives and product innovations. However, challenges remain in the government segment due to state budget constraints and macroeconomic uncertainties affecting the hiring market. Management remains focused on leveraging cloud-based technology and expanding its product offerings to drive future growth.