TransUnion Reports Q2 Revenue Grew 9%

Key Points

• Adjusted EPS was $1.08, beating the $0.99 estimate and up 9.1% year over year.

• Revenue came in at $1.14 billion, and growing 9.5% year over year.

• Full-year 2025 guidance was raised, but management signaled continued caution amid market uncertainty.

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TransUnion (NYSE:TRU), a leading global provider of credit information and insights, reported its second-quarter results on July 24, 2025. The company surpassed analyst expectations with adjusted EPS of $1.08 against a $0.99 estimate, and revenue of $1.14 billion compared to the projected $1.1 billion. Both headline metrics marked year-over-year gains, with adjusted EPS up 9.1% and revenue up 9.5%.

TransUnion described the quarter as one of broad-based growth, led by its U.S. Financial Services segment, and updated its full-year 2025 outlook upward. However, the company also emphasized a balanced approach to forward guidance, noting persistent market uncertainties and regional challenges that temper its near-term optimism.

Source: TransUnion. Note: Analyst consensus estimates for the quarter provided by FactSet.

About TransUnion’s Business and Recent Strategy

TransUnion plays a vital role in the financial system, compiling and analyzing credit, financial, identity, and other data to provide risk and information solutions to businesses and consumers. Its offerings help lenders and other organizations assess risk, prevent fraud, and make data-driven decisions in areas like lending, insurance, and employment screening. TransUnion’s reach is global, serving over 13,000 employees across more than 30 countries.

The company’s recent focus has centered on enhancing its data and analytics capabilities, expanding its technological infrastructure, and deepening its international presence. Strategic acquisitions, such as its purchase of Neustar, Inc. and its ongoing integration of solutions like the OneTrue platform, have strengthened its core analytics offerings. TransUnion’s business is shaped by its ability to innovate with advanced technology, maintain regulatory compliance, and compete with established peers in an increasingly data-driven world.

Quarter Highlights: Business Performance and Developments

TransUnion’s quarter was marked by strong growth in its core U.S. Markets segment, with total segment revenue rising 10% year over year. The U.S. Financial Services business saw revenue reach $419.9 million, up 17.1%. Mortgage revenue grew 27% despite a roughly 10% decline in inquiry volumes, supported by price improvements and product mix. Emerging Verticals, which include insurance, tenant and employment screening, telecom, retail, and e-commerce, increased revenue by 4.9%, with ongoing progress in telecommunication solutions like Trusted Call Solutions; this product, which safeguards organizations from fraudulent or unwanted calls, is expected to reach $150 million in annual sales in 2025.

The Consumer Interactive segment, which provides consumer credit monitoring and identity protection solutions, delivered a modest 3.3% revenue increase as it rolled out its new freemium product. U.S. Markets recorded segment adjusted EBITDA of $337.2 million, up 7% from the prior year, but with a margin slightly lower at 37.9%, down from 39.0%.

International operations reported revenue growth of 7.4%, with total revenue reaching $252.9 million. The United Kingdom led with 19% reported growth, fueled by batch and online activity from major banks and the new Monevo addition. Canada reported 9% revenue growth and Africa reported 15% revenue growth, and India returned to higher growth as regulatory changes lifted constraints on non-bank lending. Some regions, such as Asia Pacific and Latin America, continued to face softness—Asia Pacific declined 6.8%, mainly due to comparison with prior-year consulting revenue, and Latin America dropped 1.0%. The International segment maintained an adjusted EBITDA margin of 42.7% (non-GAAP), nearly unchanged from the prior year.

On profitability measures, TransUnion's consolidated adjusted EBITDA rose 8% to $407 million, with the margin slipping by 0.5 percentage points to 35.7 %. The leverage ratio, a metric comparing net debt to Adjusted EBITDA, improved to 2.8 times for the trailing twelve months ended Q2 2025, reflecting strong progress on deleveraging. The company executed $47 million in share repurchases through mid-July 2025, marking its first repurchases since 2017, reflecting improved balance sheet flexibility.

Technology, Product, and Market Expansion Initiatives

TransUnion made notable advances in its technology transformation initiatives during the quarter. The migration of more than 90 U.S. Credit customers to its OneTrue cloud platform has achieved performance benefits, including processing speeds over 50% faster and improved cybersecurity. The internal OneTrue Assist tool, which leverages artificial intelligence (AI) to boost developer productivity, is driving measurable efficiency gains in software development. The company is planning to expand its OneTrue migrations to Canada, the UK, and the Philippines in 2026.

On the product front, TransUnion continued to build out its suite of data and analytics tools. The launch of the TrueIQ analytics suite and TruValidate, its fraud detection and identity verification product family, enhances its position in predictive analytics and fraud mitigation. The advanced acquisition and credit marketing suite further supports customers in targeting and acquiring new credit customers. New machine learning models for device risk management have shown progress in improving accuracy for account origination and login use cases.

Market expansion remained a central theme. Beyond the integration of Monevo, which strengthened UK operations and contributed to revenue growth, the company continued investing in international diversification. India, in particular, is expected to accelerate as lending activities recover following regulatory easing. The company’s commitment to acquiring TransUnion de Mexico, the largest Mexican credit bureau, marks another step toward increasing exposures in growth markets.

Effective management of regulatory compliance and data security was repeatedly highlighted, especially as global privacy standards evolve. Management noted that the company maintained its focus on cost control, operational standardization, and capital discipline as part of its long-standing approach to balancing growth with risk.

Outlook, Guidance, and Areas to Watch

Looking ahead, TransUnion raised its guidance for FY2025 across core metrics, now targeting full-year reported revenue between $4.432 billion and $4.472 billion, adjusted EBITDA between $1.58 billion and $1.61 billion, and adjusted EPS in the $4.03 to $4.14 range. The updated revenue guidance calls for 6% to 7% reported revenue growth for full year 2025. For the third quarter, the company expects revenue between $1.12 billion and $1.135 billion and adjusted EPS of approximately $1.08 for Q3 2025. Free cash flow conversion is forecast to reach around 70% for FY2025 and to improve to over 90% free cash flow conversion in 2026 as major transformation investments wind down. Capital expenditures, currently at about 7% to 8% of revenue (as reported for the first half of 2025), are expected to drop to 6% in 2026.

Although management expressed confidence in the company’s long-term outlook, it signaled continued vigilance about macroeconomic trends and competition, stating, “We are raising our 2025 guidance, reflecting strong results in the first half of the year and ongoing business momentum, balanced against continuing market uncertainty.” Areas flagged for monitoring include modest margin pressure in the near term, ongoing softness in Asia Pacific and Latin America, and the need to keep pace with competitive investments in advanced analytics and artificial intelligence, especially as peers like Equifax advance their own capabilities.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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