NYSE:EFX
EQUIFAX INC
A leading global provider of critical business and consumer information services specializing in credit intelligence, identity verification, and fraud detection solutions.
Key Metrics
Investment Thesis
Bull Case
Equifax represents an attractive compounder with consistent revenue growth over the last five years and robust free cash flow generation that supports aggressive capital return programs including buybacks; The company benefits from secular tailwinds in digital identity verification and fintech adoption which are expanding its total addressable market beyond traditional credit scoring; High barriers to entry protect existing margins against new competitors while the shift to software-based revenue provides better visibility into long-term growth.
Bear Case
Valuation compression remains a concern as interest rate volatility impacts discount rates for long-duration cash flows associated with this data-intensive business; Persistent cybersecurity liabilities pose an existential threat given that any major breach could result in catastrophic fines, lawsuits, and loss of consumer trust; Regulatory uncertainty surrounding AI-driven credit scoring models and privacy legislation creates potential overhang that could materially impact future profitability.
About EQUIFAX INC
Equifax Inc (EFX) is a premier global provider of business and consumer information services, leveraging extensive data networks to deliver credit intelligence, identity verification, and fraud detection solutions. Operating primarily in the United States with significant international presence, the company serves financial institutions, insurers, government agencies, and other industries through its proprietary risk analytics platforms. Its core revenue streams include commercial client services, consumer reporting, and technology licensing for credit scoring.
Analysis
Management Discussion
The company demonstrated resilient financial performance in 2025 with revenue growing to $6.07B and net income reaching $664.3M, reflecting a consistent upward trend from $5.12B and $700.2M in 2022 respectively. Strong operating cash flow of $1.62B funded significant share repurchases of $927.5M and dividends of $232.8M while maintaining a healthy cash balance of $180.8M despite substantial investing outflows for acquisitions totaling $74.1M.
Industry Overview
The global information services industry is experiencing rapid digital transformation driven by the need for real-time risk assessment and fraud prevention in an increasingly interconnected financial ecosystem. While competition exists from emerging fintech startups and alternative data providers, incumbents like Equifax maintain dominance through deep historical datasets and regulatory compliance expertise. Industry consolidation trends favor established players who can integrate disparate data sources to offer comprehensive 360-degree consumer profiles.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.12B | $5.27B | $5.68B | $6.07B |
| Cost of Revenue | $2.18B | $2.34B | $2.52B | $2.65B |
| Gross Profit | $2.94B | $2.93B | $3.16B | $3.43B |
| Operating Expenses | $1.89B | $2.00B | $2.12B | $2.33B |
| Operating Income | $1.06B | $933.6M | $1.04B | $1.10B |
| G&A | $1.33B | $1.39B | $1.45B | $1.61B |
| Stock-Based Comp | $62.6M | $71.8M | $81.6M | $78.4M |
| D&A | $568.6M | $619.8M | $680.6M | $726.9M |
| Amortization | $236.7M | $250.7M | $261.1M | $250.2M |
| Other OpEx | $560.1M | $610.8M | $669.8M | $719.5M |
| Non-Operating Income | $-126.3M | $-215.7M | $-231.6M | $-200.3M |
| Interest Expense | $183.0M | $241.4M | — | — |
| Pre-Tax Income | $929.7M | $717.9M | $810.5M | $894.9M |
| Income Tax | $229.5M | $166.2M | $203.2M | $230.6M |
| Continuing Ops | $700.2M | $551.7M | $607.3M | $664.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $700.2M | $551.7M | $607.3M | $664.3M |
| Minority Interest | $4.0M | $6.4M | $3.2M | $4.0M |
| Net to Common | $696.2M | $545.3M | $604.1M | $660.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.37B | $1.36B | $1.36B | $1.41B |
| Cash & Equivalents | $285.2M | $216.8M | $169.9M | $180.8M |
| Accounts Receivable | $857.7M | $908.2M | $957.6M | $1.01B |
| Other Current Assets | $227.6M | $231.3M | $233.1M | $218.7M |
| Long-Term Assets | $10.18B | $10.92B | $10.40B | $10.45B |
| PP&E (Net) | $1.59B | $1.83B | $1.89B | $1.93B |
| Goodwill | $6.38B | $6.83B | $6.55B | $6.75B |
| Other LT Assets | $2.21B | $2.26B | $1.96B | $1.77B |
| Total Assets | $11.55B | $12.28B | $11.76B | $11.86B |
| Current Liabilities | $2.02B | $2.02B | $1.81B | $2.34B |
| Accounts Payable | $250.8M | $197.6M | $138.2M | $206.4M |
| Deferred Revenue | $132.9M | $109.5M | $115.5M | $101.2M |
| Other Current Liab | $1.40B | $1.47B | $1.31B | $1.75B |
| Long-Term Liabilities | $5.56B | $5.57B | $5.03B | $4.79B |
| Long-Term Debt | $4.82B | $4.75B | $4.32B | $4.06B |
| Other LT Liab | $739.3M | $825.7M | $705.5M | $735.3M |
| Total Liabilities | $7.57B | $7.59B | $6.84B | $7.13B |
| Shareholders' Equity | $3.97B | $4.69B | $4.92B | $4.74B |
| Retained Earnings | $5.26B | $5.61B | $6.02B | $6.45B |
| AOCI | $-473.7M | $-431.2M | $-722.7M | $-517.1M |
| Treasury Stock | $2.65B | — | $2.64B | $3.58B |
| Total L&E | $11.55B | $12.28B | $11.76B | $11.86B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $700.2M | $551.7M | $607.3M | $664.3M |
| Non-Cash Adjustments | $-104.1M | $528.8M | $621.4M | $953.1M |
| Working Capital Changes | $161.0M | $36.3M | $95.8M | $-1.7M |
| Cash from Operations | $757.1M | $1.12B | $1.32B | $1.62B |
| Cash from Investing | $-959.5M | $-878.2M | $-511.5M | $-554.3M |
| Debt Issuances | $749.3M | $872.9M | $649.8M | $1.7M |
| Debt Repayments | $500.0M | $579.3M | $1.45B | $400.2M |
| Share Buybacks | $0 | $0 | — | $927.5M |
| Dividends Paid | $191.1M | $191.8M | $193.2M | $232.8M |
| Cash from Financing | $273.7M | $-306.2M | $-846.4M | $-1.06B |
| FX Effect | $-10.8M | $-800.0K | $-13.5M | $9.2M |
| Net Change in Cash | $60.5M | $-68.4M | $-46.9M | $10.9M |
| Beginning Cash | $224.7M | $285.2M | $216.8M | $169.9M |
| Ending Cash | $285.2M | $216.8M | $169.9M | $180.8M |
Frequently Asked Questions
How does EQUIFAX INC make money?
Commercial Client Services which delivers risk data to financial institutions and insurers; Consumer Reporting providing credit scores and reports to lenders and landlords; Technology Licensing offering credit scoring software to third-party providers; Identity Verification and Fraud Services protecting customers from synthetic identity theft and account takeover.
What are the main risks for EFX?
Regulatory headwinds including potential expansion of federal privacy laws like the CFPAs modernization which could impose costly compliance burdens or alter data usage models; Cybersecurity threats given the sensitive nature of stored consumer data requiring constant investment in defense against evolving state-sponsored and criminal attacks; Economic sensitivity as credit demand correlates with GDP growth, potentially impacting volume if recessionary pressures increase unemployment rates.
What is EFX's competitive advantage?
Unrivaled proprietary data network containing billions of consumer records that creates high switching costs for clients dependent on consistent risk intelligence; First-mover advantage in the U.S. market with deep integration into the financial infrastructure making it a dominant incumbent; Strong recurring revenue model driven by long-term contracts and SaaS transitions reducing customer churn.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.