EFX earnings analysis
What we found in EFX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Equifax delivered Q2 revenue of $1.7001 billion, up 11% year over year and about 3% sequentially, led by 17% USIS growth and growth across every reported segment. GAAP diluted EPS was essentially flat at $1.54, as operating margin contracted 170 basis points to 18.5% and net income declined 4% due principally to litigation expense and higher interest expense. Cash generation remained solid, but leverage increased to $5.4671 billion of net debt and the pending $750 million Círculo de Crédito acquisition adds funding and execution considerations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated to 11%
- Q2 operating revenue rose $163.1 million, or 11%, year over year to $1.7001 billion. Sequentially, revenue increased $51.1 million, or about 3%, from $1.649 billion in Q1 2026.
- USIS led segment expansion
- USIS was the principal growth engine, with revenue up $90.1 million, or 17%, to $611.6 million. Online Information Solutions grew $87.6 million, or 19%, driven by mortgage pricing and volumes plus diversified-market services.
- Broad-based reported segment growth
- All three reportable segments grew: Workforce Solutions rose $43.3 million, or 7%, to $705.4 million; International increased $29.7 million, or 8%, to $383.1 million; and USIS increased $90.1 million, or 17%, to $611.6 million.
- International margin and Asia-Pacific improved
- International operating margin improved 1.2 points to 12.1%, while operating income rose $7.7 million, or 20%, to $46.3 million. Asia Pacific was the fastest-growing international region, up $14.4 million, or 17%, to $99.7 million.
- EPS held despite lower net income
- Q2 diluted EPS was $1.54 versus $1.53 a year earlier, while weighted-average diluted shares declined to 119.2 million from 125.0 million. The company repurchased $300.0 million of stock during Q2 and had approximately $1.5 billion remaining under its authorization at June 30.
- Cash generation remains substantial
- Q2 operating cash flow was $339.8 million and capital expenditures were $129.8 million, implying approximately $210.0 million of free cash flow. Six-month operating cash flow remained substantial at $581.7 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margins compressed despite revenue growth
- Operating margin fell 1.7 percentage points year over year to 18.5% as operating expenses increased $159.7 million, or 13%, faster than $163.1 million of revenue growth. Management cites higher royalty/revenue-share costs, litigation expense, and software amortization.
- Litigation charge weighed on earnings
- Net income attributable to Equifax declined $7.4 million, or 4%, to $183.9 million, despite revenue growth. General corporate expense rose $33.5 million, or 22%, to $186.6 million, principally from a legal-settlement charge tied to the prior coding issue.
- Higher leverage and interest burden
- Net debt was $5.4671 billion at June 30, 2026, up $569.1 million, or 12%, from $4.8980 billion a year earlier; Q2 interest expense increased $6.7 million, or 13%, to $59.8 million. The company had $1.4 billion of commercial paper outstanding and only $0.6 billion of Revolver availability.
- Acquisition adds execution and funding risk
- The company signed an agreement to acquire Círculo de Crédito for $750 million enterprise value, comprising an $825 million purchase price less an estimated $75 million of acquired cash, with closing expected in Q4 2026 and subject to regulatory approval.
- Mortgage and macro sensitivity persists
- No material changes were made to the risk factors disclosed in the 2025 Form 10-K. However, management expects 2026 U.S. mortgage originations to be slightly below 2025 levels, and 77% of 2025 revenue was generated in the U.S., increasing sensitivity to domestic economic and rate conditions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.54
- Operating margin
- 18.5%
- Segment
- Workforce Solutions: $705.4 million, up $43.3 million / 7% year over year
- Segment
- U.S. Information Solutions: $611.6 million, up $90.1 million / 17% year over year
- Segment
- International: $383.1 million, up $29.7 million / 8% year over year
What they said about what is next.
The 10-Q provides no explicit quantitative revenue or EPS guidance. Management’s 2026 planning assumes U.S. GDP growth consistent with 2025, U.S. mortgage originations slightly below 2025 levels, and international GDP growth generally below 2025 rates; it notes these assumptions may change amid economic and market uncertainty.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 21, 2026
- Equifax reported a strong quarter with revenue rising 14% year-over-year to $1,648.9 million and diluted EPS increasing to $1.42 from $1.06 a year ago. Revenue growth was broad-based (notably Online Information…
- 10-K · February 19, 2026
- Equifax reiterates a cloud-first, data-asset driven growth strategy centered on a "custom single data fabric" and migration "to a public cloud environment" to accelerate AI/ML-enabled products and faster deployment. The…
- 10-Q · October 21, 2025
- Equifax reported quarterly revenue of $1,544.9 million and diluted EPS of $1.29 for the three months ended September 30, 2025, driven by higher revenue and margin expansion versus the prior-year quarter. Gross margin…
- 10-K · February 20, 2025
- Equifax positions itself as a global data, analytics and technology leader emphasizing a cloud-native transformation (a custom single data fabric and migration to a public cloud environment), expansion of differentiated…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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