TransUnion’s fourth quarter was shaped by robust U.S. performance and broad-based growth across its solution segments, underscoring continued execution of its transformation strategy. Management attributed the quarter’s momentum to strong results in financial services, emerging verticals, and accelerated product innovation, with CEO Christopher Cartwright highlighting that U.S. financial services grew 19% and emerging verticals posted double-digit gains. Cartwright noted that the company’s streamlined go-to-market approach and the integration of new products contributed to record retention and new sales during the quarter.
Is now the time to buy TRU? Find out in our full research report (it’s free for active Edge members).
TransUnion (TRU) Q4 CY2025 Highlights:
- Revenue: $1.17 billion vs analyst estimates of $1.13 billion (13% year-on-year growth, 3.3% beat)
- Adjusted EPS: $1.07 vs analyst estimates of $1.03 (4.3% beat)
- Adjusted EBITDA: $416.7 million vs analyst estimates of $404.1 million (35.6% margin, 3.1% beat)
- Revenue Guidance for Q1 CY2026 is $1.2 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.67 at the midpoint, missing analyst estimates by 3.9%
- EBITDA guidance for the upcoming financial year 2026 is $1.77 billion at the midpoint, below analyst estimates of $1.80 billion
- Operating Margin: 17.4%, in line with the same quarter last year
- Market Capitalization: $14.57 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From TransUnion’s Q4 Earnings Call
- Jeffrey Meuler (Baird) asked about the outlook for U.S. emerging verticals given strong recent growth. CFO Todd Cello explained the cautious guidance reflects a prudent starting point and highlighted the potential for upside if current trends continue.
- Toni Kaplan (Morgan Stanley) inquired about competitive differentiation in AI, marketing, and fraud. CEO Christopher Cartwright detailed proprietary identity data assets and integrations as key barriers to entry, emphasizing the company's ability to deliver unique value.
- Andrew Steinerman (JPMorgan) questioned assumptions around mortgage revenue and VantageScore adoption. Cello stated that guidance assumes no shift to FICO direct licensing or VantageScore adoption, with any such moves representing potential upside to profit margins.
- Faiza Alwy (Deutsche Bank) asked about drivers of accelerated consumer lending growth. Cartwright attributed this to stable macro conditions, resilience in consumer credit, and the success of alternative data and analytics solutions like FactorTrust and TruIQ.
- Andrew Nicholas (William Blair) sought clarity on margin trajectory for the coming year. Cello responded that margin expansion will accelerate in the second half as onetime 2025 investments are lapped and automation efficiencies materialize.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) continued momentum in U.S. emerging verticals and the pace of AI-powered product adoption, (2) the stabilization and recovery of key international markets, particularly India and Latin America, and (3) the impact of regulatory shifts in the U.S. mortgage market and potential adoption of new credit scoring models. Execution on OneTru platform migrations and the integration of new acquisitions will also be key areas of focus.
TransUnion currently trades at $75.39, up from $71.78 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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