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- Exceeded first quarter 2025 financial guidance across all key financial metrics
- Delivered 8 percent organic constant currency revenue growth (7 percent reported) led by U.S. Financial Services, Emerging Verticals and International
- De-levered to 2.9x Leverage Ratio at quarter-end and repurchased $10 million shares through mid-April
- Maintaining organic constant currency revenue growth guidance of 4.5 to 6 percent (4 to 5.5 percent reported revenue growth)
CHICAGO, April 24, 2025 (GLOBE NEWSWIRE) -- TransUnion (NYSE: TRU) (the "Company”) today announced financial results for the quarter ended March 31, 2025.
First Quarter 2025 Results
Revenue:
- Total revenue for the quarter was $1,096 million, an increase of 7 percent (8 percent on a constant currency basis), compared with the first quarter of 2024.
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- Net income attributable to TransUnion was $148 million for the quarter, compared with $65 million for the first quarter of 2024 primarily due to a $56 million reduction of a previously established accrual for a lawsuit that was dismissed in the first quarter of 2025. Diluted earnings per share was $0.75, compared with $0.33 in the first quarter of 2024. Net income attributable to TransUnion margin was 13.5 percent, compared with 6 percent in the first quarter of 2024.
- Adjusted Net Income was $208 million for the quarter, compared with $179 million for the first quarter of 2024. Adjusted Diluted Earnings per Share was $1.05, compared with $0.92 in the first quarter of 2024.
- Adjusted EBITDA was $397 million for the quarter, compared with $358 million for the first quarter of 2024, an increase of 11 percent (12 percent on a constant currency basis). Adjusted EBITDA margin was 36.2 percent, compared with 35.1 percent in the first quarter of 2024.
"In the first quarter, TransUnion delivered strong results that again exceeded financial guidance,” said Chris Cartwright, President and CEO. "U.S. Markets revenue grew 9 percent against subdued market conditions, led by strong mortgage and accelerating non-mortgage Financial Services and Emerging Verticals growth. International grew 6 percent on a constant currency basis, with high-single digit growth across most markets and India up low-single digits as anticipated.”
"We are maintaining our 2025 organic constant currency revenue guidance of 4.5 to 6 percent, balancing strong outperformance in the first quarter against increasing market risks. We are actively monitoring conditions but to-date have not experienced softening volumes in our business.”
"We believe we are well-positioned to navigate potential economic softening. We have a proven track record of delivering revenue growth through economic cycles, supported by a diversified and high-growth portfolio across solutions, verticals and geographies. Should conditions deteriorate, we are prepared to prudently manage costs while prioritizing the completion of our business transformation to deliver structural cost savings and accelerate innovation.”
First Quarter 2025 Segment Results
Segment revenue and Adjusted EBITDA for the first quarter of 2025 and the related growth rates compared with the first quarter of 2024 were as follows:
| (in millions) | First Quarter 2025 | Reported
Growth Rate | Constant Currency Growth Rate | ||||||
| U.S. Markets: | |||||||||
| Financial Services | $ | 404 | 15 | % | 15 | % | |||
| Emerging Verticals | 315 | 6 | % | 6 | % | ||||
| Consumer Interactive | 138 | (1 | )% | (1 | )% | ||||
| Total U.S. Markets Revenue | $ | 857 | 9 | % | 9 | % | |||
| U.S. Markets Adjusted EBITDA | $ | 320 | 12 | % | 12 | % | |||
| International: | |||||||||
| Canada | $ | 38 | - | % | 7 | % | |||
| Latin America | 33 | - | % | 7 | % | ||||
| United Kingdom | 59 | 9 | % | 9 | % | ||||
| Africa | 17 | 12 | % | 10 | % | ||||
| India | 69 | (3 | )% | 1 | % | ||||
| Asia Pacific | 27 | 7 | % | 8 | % | ||||
| Total International Revenue | $ | 242 | 2 | % | 6 | % | |||
| International Adjusted EBITDA | $ | 110 | 3 | % | 7 | % | |||
Liquidity and Capital Resources
Cash and cash equivalents was $610 million at March 31, 2025 and $679 million at December 31, 2024.
For the three months ended March 31, 2025, cash provided by operating activities was $53 million, compared with $54 million in 2024. The decrease in cash provided by operating activities was primarily due to the timing of accounts receivable collections and higher bonus payouts in 2025 compared with 2024, mostly offset by improved operating performance and lower interest expense. For the three months ended March 31, 2025, cash used in investing activities was $87 million, compared with $62 million in 2024. The increase in cash used in investing activities was primarily due to a current year investment in a note receivable and an increase in capital expenditures. For the three months ended March 31, 2025, capital expenditures were $68 million, compared with $62 million in 2024. Capital expenditures as a percent of revenue represented 6% for each of the three months ended March 31, 2025 and 2024. For the three months ended March 31, 2025, cash used in financing activities was $41 million, compared with $31 million in 2024. Cash used in financing activities was higher primarily due to stock buybacks in 2025.
Second Quarter and Full Year 2025 Outlook
Our guidance is based on a number of assumptions that are subject to change, many of which are outside of the control of the Company, including general macroeconomic conditions, interest rates and inflation. There are numerous evolving factors that we may not be able to accurately predict. There can be no assurance that the Company will achieve the results expressed by this guidance.
| Three Months Ended June 30, 2025 | Twelve Months Ended
December 31, 2025 | |||||||||||||||
| (in millions, except per share data) | Low | High | Low | High | ||||||||||||
| Revenue, as reported | $ | 1,076 | $ | 1,095 | $ | 4,358 | $ | 4,417 | ||||||||
| Revenue growth1: | ||||||||||||||||
| As reported | 3 | % | 5 | % | 4 | % | 5.5 | % | ||||||||
| Constant currency1, 2 | 4 | % | 6 | % | 5 | % | 6 | % | ||||||||
| Organic constant currency1, 3 | 3 | % | 5 | % | 4.5 | % | 6 | % | ||||||||
| Net income attributable to TransUnion | $ | 69 | $ | 77 | $ | 383 | $ | 411 | ||||||||
| Net income attributable to TransUnion growth | (18 | )% | (9 | )% | 35 | % | 44 | % | ||||||||
| Net income attributable to TransUnion margin | 6.5 | % | 7.1 | % | 8.8 | % | 9.3 | % | ||||||||
| Diluted Earnings per Share | $ | 0.35 | $ | 0.39 | $ | 1.92 | $ | 2.06 | ||||||||
| Diluted Earnings per Share growth | (20 | )% | (10 | )% | 33 | % | 43 | % | ||||||||
| Adjusted EBITDA, as reported5 | $ | 375 | $ | 386 | $ | 1,549 | $ | 1,590 | ||||||||
| Adjusted EBITDA growth, as reported4 | - | % | 3 | % | 3 | % | 6 | % | ||||||||
| Adjusted EBITDA margin | 34.8 | % | 35.3 | % | 35.6 | % | 36.0 | % | ||||||||
| Adjusted Diluted Earnings per Share5 | $ | 0.95 | $ | 0.99 | $ | 3.93 | $ | 4.08 | ||||||||
| Adjusted Diluted Earnings per Share growth | (4 | )% | - | % | - | % | 4 | % | ||||||||
- Additional revenue growth assumptions:
- The impact of changing exchange rates is expected to be approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
- The impact of the recent acquisition is expected to have approximately 1 point of benefit for Q2 2025 and less than 1 point of benefit for FY 2025.
- The impact of mortgage is expected to be approximately 2 points of benefit for Q2 2025 and 2 points of benefit for FY 2025.
- Constant currency growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
- Organic constant currency growth rates are constant currency growth excluding inorganic growth. Inorganic growth represents growth attributable to the first twelve months of activity for recent business acquisitions.
- Additional Adjusted EBITDA assumptions:
- The impact of changing foreign currency exchange rates is expected to have approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
- For a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to Schedule 7 of this Earnings Release. Earnings Webcast Details
In conjunction with this release, TransUnion will host a conference call and webcast today at 8:30 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session and the accompanying presentation materials may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® - and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
Availability of Information on TransUnion's Website
Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion's management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as "anticipate,” "expect,” "guidance,” "suggest,” "plan,” "believe,” "intend,” "estimate,” "target,” "project,” "should,” "could,” "would,” "may,” "will,” "forecast,” "outlook,” "potential,” "continues,” "seeks,” "predicts,” or the negatives of these words and other similar expressions.
Factors that could cause actual results to differ materially from those described in the forward-looking statements, or that could materially affect our financial results or such forward-looking statements include:
- macroeconomic effects and changes in market conditions, including the impact of tariffs, inflation, risk of recession, and industry trends and adverse developments in the debt, consumer credit and financial services markets, including the impact on the carrying value of
