Executive Summary / Key Takeaways

• Robust Performance & Raised Outlook: TransUnion delivered its seventh consecutive quarter of high single-digit organic revenue growth in Q3 2025, with revenue increasing 11% organically (excluding a prior-year breach win). This strong performance led to a raised full-year 2025 guidance, projecting 8% organic constant currency revenue growth and 9% adjusted EBITDA and diluted EPS growth.
• Technology Modernization & AI Leadership: The OneTru platform is central to TransUnion's strategy, enabling faster processing (over 50% faster for U.S. credit customers), accelerated model development (from 10 hours to under one hour for FinTech clients), and enhanced fraud detection (162% increase in fraud capture rates for a major financial institution). AI tools like OneTrue Assist are boosting developer productivity by 20% to 50%.
• Strategic Capital Allocation: With a leverage ratio declining to 2.7 times and a long-term target of under 2.5 times, TransUnion is accelerating capital returns, having repurchased $160 million in shares in Q3 and October 2025, and increasing its share repurchase authorization to $1 billion. Free cash flow conversion is expected to improve significantly to over 90% by 2026.
• Competitive Edge in Mortgage & Diversified Growth: TransUnion is strategically leveraging VantageScore 4.0 and its unique 30 months of trended credit data to offer competitive pricing and expand financial access in the mortgage market, aiming to redistribute economic value towards data providers. Diversified growth is evident across Financial Services (19% growth in Q3 2025), Emerging Verticals (7.5% growth), and key international markets.
• Resilient Business Model: Despite macroeconomic uncertainties, including tariffs impacting India and ongoing regulatory scrutiny, TransUnion's diversified portfolio across solutions, verticals, and geographies, coupled with its transformation initiatives, underpins its ability to deliver consistent growth and profitability.

The Information for Good Story: A Global Data Powerhouse

TransUnion, founded in 1968, has evolved from a credit reporting agency into a global information and insights company, dedicated to making trust possible between businesses and consumers. The company's core business revolves around providing critical data and analytics services that support functions like credit reporting, fraud prevention, and marketing. This foundational role in the financial ecosystem is increasingly vital as companies worldwide recognize the benefits of data and analytics-based decision-making.

The company's journey has been marked by strategic evolution, including a "change in control transaction" in 2012 and its official renaming in 2015. Key acquisitions, such as Neustar, have significantly bolstered its technological capabilities, exceeding initial cost synergy targets by achieving $100 million in integration synergies. This history underscores TransUnion's commitment to expanding its data breadth and depth, strengthening analytics, and building out its geographic portfolio.

TransUnion operates in a concentrated market, primarily competing with two other major credit reporting agencies, Experian (EXPGY) and Equifax (EFX), often referred to as the 'Big Three' credit bureaus in the U.S. These firms offer similar core credit reporting and risk management solutions globally, leading to fierce competition for market share and client contracts. TransUnion also competes with specialized players like FICO (FICO) in predictive analytics and Dun & Bradstreet (DNB) in commercial data. Its market share in the U.S. Consumer Financial Services Industry stood at 34.72% in Q1 2025, reflecting a strong competitive standing.

OneTru: The Technological Engine of Innovation

At the heart of TransUnion's competitive differentiation is its OneTru platform, a cloud-based, AI-powered solution designed to manage, govern, analyze, and deliver data and insights. This platform unifies previously siloed data and analytic assets for credit risk, marketing, and fraud prevention into a single, layered environment. OneTru's architecture enables a more accurate, complete, and compliant picture of consumers across various use cases.

The tangible benefits of OneTru are significant and quantifiable. For U.S. credit customers, the platform enables over 50% faster processing speeds. A major financial institution utilizing TruValidate fraud solutions, powered by OneTru, saw a 162% increase in fraud capture rates, while reducing manual reviews and false positives. Furthermore, FinTech clients have leveraged the TruIQ Analytics Studio on OneTru to build lending models in near real-time, reducing development time from 10 hours to under one hour. A U.S. credit card issuer also cut its offer timeline from 45 to 21 days using TruIQ Data Enrichment.

TransUnion's R&D initiatives are deeply integrated with OneTru and AI. The company has launched proprietary AI-powered tools like OneTrue Assist, which leverages advanced language models to auto-generate repetitive code, convert code between languages, and identify security vulnerabilities, leading to a 20% to 50% lift in developer productivity. OneTrue AI Studio provides low-code and no-code AI workflow solutions for broader non-engineering use cases. These advancements support autonomous decision-making, adaptive learning, and proactive execution, with stated goals to enhance audience segmentation, predictive scoring, and identity resolution. The company's augmented identity graph, integrated with public records, delivers better fraud signals and is crucial for new synthetic fraud models and credit washing solutions.

For investors, OneTru represents a powerful competitive moat. It enhances TransUnion's ability to innovate rapidly, deliver superior performance to customers, and drive operational efficiencies. This technological leadership contributes directly to higher customer retention, increased cross-sell opportunities, and a stronger market position, particularly against competitors who may rely on more fragmented or legacy systems. The platform's ability to unify identity capabilities across marketing functions, for instance, creates a more cohesive view of consumer identity, a critical advantage in today's fragmented digital landscape.

Strategic Pillars and Operational Excellence

TransUnion's strategy is built on three pillars: optimizing its operating model, modernizing technology, and accelerating innovation. A comprehensive transformation plan, approved in November 2023, aims to optimize the operating model by eliminating roles, transitioning responsibilities to global capability centers (GCCs), and reducing its facility footprint. In 2024, over 1,000 roles were relocated to GCCs, enhancing workforce productivity. This initiative is expected to generate $120 million to $140 million in annual savings by 2026.

The technology modernization, with OneTru as its core, is progressing rapidly. The company completed the migration of its first U.S. credit customers in Q3 2025, a key milestone. By year-end 2025, OneTru is expected to power a critical mass of U.S. credit volume and revenue, with all U.S. migrations planned by mid-2026. This modernization will extend to international markets in 2026, with plans to migrate Canada, the UK, and the Philippines to OneTru, driving additional savings in 2027 and beyond.

Innovation is accelerating across TransUnion's solution families. FactorTrust, its short-term lending bureau, has delivered exceptional results with approximately 20% growth expected in 2025, driven by re-platforming on OneTru and enhanced analytics. Trusted Call Solutions (TCS) is a standout, growing from $50 million in revenue in 2022 to an expected $150 million in 2025, a 30% plus increase year-over-year. TCS covers 94% of U.S. wireless consumers through exclusive partnerships and is expanding globally. The marketing suite has been streamlined from 87 products across six platforms into a single integrated TruAudience platform on OneTru, accelerating growth in identity resolution and audience activation. The consumer business is also being reinvigorated with a new freemium offering and the acquisition of Monevo, a credit prequalification platform, aiming for mid-single-digit growth in the intermediate term.

Financial Performance: A Trajectory of Strength

TransUnion's financial performance in Q3 2025 demonstrated significant strength, exceeding all key guidance metrics. Total revenue for the quarter was $1,169.5 million, an 8% increase year-over-year. Excluding a large breach remediation win from the prior year, organic constant currency revenue growth was 11%, marking the strongest underlying performance since 2021. For the nine months ended September 30, 2025, revenue reached $3,405 million, up 8.2% from the same period in 2024.

The U.S. Markets segment, TransUnion's largest, generated $912.8 million in gross revenue in Q3 2025, a 7.6% increase. Financial Services revenue grew an impressive 19.3% to $438 million, or 12% excluding mortgage. Emerging Verticals accelerated to 7.5% growth, reaching $330.1 million in revenue. International gross revenue increased 7.7% to $260.1 million in Q3 2025, with Canada, the UK, and Africa all achieving double-digit growth.

Profitability metrics also showed improvement. Adjusted EBITDA for Q3 2025 was $425.1 million, up 8% year-over-year, with an Adjusted EBITDA margin of 36.3%. For the nine months ended September 30, 2025, Adjusted EBITDA was $1,229.2 million, up 8.9%, with a margin of 36.1%. Net income attributable to TransUnion for Q3 2025 was $96.6 million, a significant increase from $68 million in Q3 2024. Adjusted diluted earnings per share was $1.10, exceeding analyst expectations.

The company's liquidity position remains strong, with cash and cash equivalents totaling $749.9 million at September 30, 2025. The leverage ratio declined to 2.7 times, moving closer to its long-term target of under 2.5 times. Cash provided by operating activities increased to $668.1 million for the nine months ended September 30, 2025, driven by improved operating performance and lower interest expense. Capital expenditures for the nine-month period were $229.3 million, representing 6.70% of revenue.

Competitive Landscape: Differentiated Growth

TransUnion operates within a highly competitive landscape, primarily against Experian (EXPGY), Equifax (EFX), and FICO (FICO). While all three major credit bureaus offer similar core services, TransUnion differentiates itself through its extensive data assets, advanced analytics, and strategic focus on innovation across diverse verticals.

Compared to Experian, TransUnion's offerings emphasize comprehensive consumer insights and fraud mitigation, with a focus on integrated solutions for U.S.-based businesses. While Experian has a strong global presence, TransUnion's targeted approach in sectors like insurance and employment screening provides tailored insights. TransUnion's OneTru platform, with its "customer zero" approach to internal testing, allows for real-world feedback and fine-tuning of AI and data capabilities, potentially leading to faster processing for domestic credit reports.

Against Equifax, TransUnion's strength lies in its consumer-focused innovations and adaptability across diverse industry verticals. Equifax, with its broader international scale, remains a formidable competitor. However, TransUnion's consistent high single-digit organic growth, which management believes is "more than double that of what we see elsewhere in the market" when adjusted for mortgage, suggests it is gaining share through new innovation and product performance.

FICO, a specialist in predictive analytics and credit scoring, presents a unique competitive dynamic. TransUnion is actively challenging FICO's entrenched position in the mortgage market by promoting VantageScore 4.0. TransUnion offers VantageScore 4.0 at $4, significantly below FICO's announced price hike to $10, and provides a free VantageScore 4.0 for mortgage customers who purchase a FICO score through 2026. This strategy aims to redistribute economic value towards data providers, leveraging TransUnion's proprietary 30 months of trended credit data, which creates a more complete picture of consumers and enables 5 million to 6 million more Americans to qualify for GSE-sponsored mortgages. Management expects these actions to preserve profitability in its mortgage vertical and drive incremental profit and margin opportunity over time as VantageScore adoption increases.

TransUnion's diversified portfolio, with less than 50% of U.S. revenue now credit-related, reduces dependency on any single product line, offering resilience against cyclical downturns in specific credit categories. This contrasts with more niche competitors and provides a broader base for growth.

Outlook and Guidance: Prudent Conservatism with Upside

TransUnion has raised its full-year 2025 guidance, reflecting strong Q3 2025 results, stable U.S. lending trends, and continued commercial momentum. The company now expects full-year 2025 revenue between $4.524 billion and $4.544 billion, representing 8% organic constant currency growth, an increase from prior guidance of 6% to 7%. Adjusted EBITDA is projected to be between $1.622 billion and $1.637 billion, up 8% to 9%, with an Adjusted EBITDA margin of 35.9% to 36%. Adjusted diluted earnings per share is guided to $4.19 to $4.25, up 7% to 9%.

This guidance maintains a "prudently conservative approach," implying potential upside if current lending conditions persist. Management explicitly states that the guidance does not assume any credit volume improvements from further interest rate reductions in 2025. The outlook for Q4 2025 includes revenue of $1.119 billion to $1.139 billion (up 7% to 9% organically) and adjusted diluted EPS of $0.97 to $1.02.

Key assumptions underpinning the outlook include stable U.S. lending conditions, characterized by modest GDP growth, strong employment, stable delinquencies, and manageable inflation. Mortgage is expected to contribute approximately two points of revenue benefit for the full year. India's growth is anticipated to be high single-digit in Q4 2025, despite recent tariff impacts, with a return to robust long-term growth expected.

Looking to 2026, TransUnion expects to deliver $35 million in operating expense savings and reduce capital expenditures to 6% of revenue, down from approximately 8% in 2025. This, combined with the cessation of technology-related one-time expense add-backs, is projected to drive free cash flow conversion to over 90% of adjusted net income. This enhanced financial flexibility will support a balanced capital allocation strategy, including an increased bias toward share repurchases, which management views as attractive at current valuations.

Risks and Challenges

Despite a strong outlook, TransUnion faces several risks. Macroeconomic conditions, including tariffs, inflation, and the risk of recession, can significantly impact revenues and operations. New U.S. tariffs on Indian imports have already tempered lending recovery in India, leading to growth slightly below outlook in Q3 2025. Ongoing trade negotiations and prolonged tariffs could further delay India's return to historical high-teens growth rates.

Regulatory scrutiny remains a persistent challenge. The CFPB is considering legal action related to TransUnion's dispute handling practices, with potential for material adverse effects on results and financial condition, though the company cannot reasonably estimate the potential loss. The company also operates in an industry heavily influenced by regulatory changes, which can impact operational flexibility and costs.

Competitive dynamics, particularly in the mortgage market, pose a risk. While TransUnion is aggressively promoting VantageScore 4.0, FICO's entrenched position and pricing strategies could challenge adoption. The complexity of FICO's direct licensing model, with its potential for increased cybersecurity investments and legal liabilities for resellers, adds uncertainty to the competitive landscape.

Conclusion

TransUnion's recent performance and strategic trajectory paint a compelling picture of a company leveraging its foundational strengths and technological prowess to drive sustainable, diversified growth. The strong Q3 2025 results, coupled with a raised 2025 guidance, underscore the effectiveness of its innovation-led strategy and prudent management in a dynamic market. The OneTru platform, with its AI-powered analytics and demonstrable operational efficiencies, is not merely a cost-saving initiative but a core differentiator that enhances product development, fraud detection, and customer value across its segments.

As TransUnion continues its technology modernization and expands its innovative solutions globally, it is well-positioned to capitalize on secular trends in data and analytics. The strategic push in the mortgage market with VantageScore 4.0, coupled with robust growth in emerging verticals and key international markets, highlights a resilient business model less dependent on traditional credit cycles. While macroeconomic headwinds and regulatory challenges persist, TransUnion's disciplined capital allocation, commitment to deleveraging, and increased shareholder returns signal confidence in its long-term value creation, driven by its leadership in data and technology.