TransUnion

Good morning, and welcome to the TransUnion 2025 Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode for the duration of the call. And should you need any assistance, please signal a conference specialist by pressing the star key followed by zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. And to withdraw a question, you may press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Greg Barty, Vice President of Investor Relations. Please go ahead.

Good morning and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Sello, Executive Vice President and Chief Financial Officer. We posted our earnings release and slides to accompany this call on the TransUnion Investor Relations website this morning. and they can also be found in the current report on Form 8K that we filed this morning. Our earnings release and the accompanying slides include various schedules, which contain more detailed information about revenue, operating expenses, and other items, as well as certain non-GAAP disclosures and financial measures, along with their corresponding reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures. Today's call will be recorded, and a replay will be available on our website. We also will be making statements during this call that are forward-looking. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially from those described in the forward-looking statement because of factors discussed in today's earnings release, in the comments made during this conference call, and in our most recent Form 10-K, Form 10-Q, and other reports and filings with the SEC. We do not undertake any duties to update any forward-looking statement. With that, let me turn it over to Chris.

Thank you, Greg, and good morning and welcome everybody to the call. Kind of excited to share our fourth quarter results with you today. We had a really good quarter, as you can see, and it was a great capstone to another strong year of growth and profitability at TransUnion. So I'm going to start focusing on the fourth quarter results themselves and also provide an overview of our 2025 accomplishments. And then we'll get into the 2026 guide and our strategic priorities. And then I'll pass it over to Todd, who's going to give you the full financial details on Q4, as well as providing the first quarter guide and the full year 2026 guide. So 2025, we finished very strongly, again, exceeding revenue, adjusted EBITDA, and adjusted diluted EPS in the fourth quarter. In total, revenues increased 12% organically. And the U.S. market grew 16%. And both of these are some of our strongest underlying performance since 2021. We grew adjusted diluted EPS by 10% in the quarter. Actually, in the mid-teens, 14% if you exclude the impact from the tax rate reset this year. And with robust business fundamentals and strengthening cash flow, free cash flow, we continue to emphasize shareholder-centric capital deployment, particularly at the current valuation level. So we repurchased roughly 150 million of shares in the quarter for a total of 300 million over 2025. And of course, we retain ample capacity under our recently increased $1 billion repurchase authorization. And we also raised our quarterly dividend by 9% to 12.5 cents a share. Now, the fourth quarter results demonstrate continued execution against our growth strategy across our solutions, our market verticals, and our geographies. Within the U.S., financial services grew 19%, 11% excluding mortgage. Mortgage, consumer lending, and auto were all double-digit growers. Across all lending types, we outpaced volume growth through new business wins across our solution suites. Emerging verticals accelerated from 7% in the third quarter to 16% growth in the fourth, with insurance, media, tenant and employment screening, tech, retail, and e-commerce all growing double-digits. And across US markets, our core B2B solutions families grew double digits. Marketing and fraud grew 15% and 14% respectively. Now this is our best quarter of growth for both of these since the NuStar acquisition. Our results reflect the power of our streamlined product suites, the accelerated pace of innovation, and our improved go-to-market activities our innovative solutions are really resonating with our customers and they're driving new levels of growth for TransUnion. So internationally, we grew 2% on an organic constant currency basis. Canada and the UK are two most established markets. They both grew double digits and they continue to outperform their overall markets significantly. Our emerging markets continue to navigate some moderating economic conditions, and some credit volume, moderating credit volume conditions. India declined 4%, below expectations, in what we're viewing as a reset year for unsecured lending and for credit card originations in the Indian market. Now, we believe that we are experiencing a bottoming of unsecured lending in card volumes in 2025, and probably early into 26 as well. But we expect a slow and steady improvement in volumes over the course of 2026, supported by easing capital restrictions, and now with the U.S.-India trade agreement, a lot less uncertainty. We anticipate mid-single-digit growth in India in 26 and a return to double-digit growth thereafter. And again, India is an immense growth opportunity for us driven by their favorable economic and demographic trends and our unique market position and the coming deployment of all of our global products and IP into this marketplace. Todd's going to provide a more comprehensive review of India in our fourth quarter results shortly. So 2025 marked a milestone year for TransUnion. We delivered strong financial results. We accelerated the pace of our innovation. And we executed very well on our business transformation. So in 2025, we delivered our second straight year of high single-digit revenue growth and double-digit adjusted diluted EPS growth, or mid-teens, excluding the impact of the tax rate reset. We also expanded adjusted EBITDA margins by 50 basis points in the year, excluding the impact of FICO mortgage royalties. And this underscores the underlying operating leverage in our business. We significantly outperformed the high end of our initial guidance in February by 183 million on revenue and 56 million on adjusted EBITDA and 22 cents per share adjusted diluted EPS. Our strong earnings and free cash flow enabled a thoughtful and accretive capital deployment throughout the year. We returned in total 390 million to shareholders through buybacks and dividends. We completed the acquisition of Monevo, our new credit offers engine, and we announced our agreement to acquire majority ownership of TransUnion de Mexico. Now moving to our solutions, you know, our complementary and scalable solutions have really powered diversified revenue growth that is very durable. We now generate roughly half of our U.S. market's revenue outside of core credit. And in international, we generate over a quarter of our revenue from non-credit solutions, but with expansive opportunity as we deploy fraud marketing and consumer solutions in our countries around the world. Slide 7 provides the 25-year breakdown by Solution Family. This is our second year providing this breakdown. And we simplified the reporting around four strategic solutions areas of credit, fraud, marketing, and consumer. Our communications products, which include trusted call solutions, are now largely reported within our fraud mitigation solutions. We also allocated our market-specific solutions, including our investigative tools, to these main solution families. So in 25, we drove accelerated innovation and growth across solutions. We launched over 30 major enhancements and new products, by far the largest cohort ever, and we have a significant pipeline and long-term revenue growth potential. In addition to driving strong new business, these solutions and enhanced go-to-market supported record retention rates and record new sales in U.S. markets. So to highlight our growth drivers in each solution family – So credit solutions grew 13%, driven by U.S. non-mortgage volumes, consistent pricing, sales acceleration in factor trust, and true IQ analytics. Marketing solutions accelerated from flat growth in 24 to 7% organic growth in 25, enabled by our tech replatforming, a integrated and simplified solution suite, as we've gone from over 90 products down to 30, and, of course, a strengthened leadership team. So we drove robust bookings in identity, increased sales and usage of our audiences, and strong retention in our measurement solutions, setting up marketing solutions for another strong year in 26. Fraud solutions grew 8%. Trusted call solutions, or TCS, led the way, growing by 40 million, or over 30% year-over-year to 160 million. We expect TCS revenue to exceed 200 million in 2026. And our recently announced tuck-in acquisition of the mobile division of Real Networks is expected to close in the first half of the year and only adds to this potential growth. The acquisition augments our TCS voice channel capabilities with highly complimentary messaging solutions to fight fraud and improve customer engagements. So our fraud and other products are poised for accelerating growth. with strong demand from our new AI-powered fraud models for synthetic fraud detection and credit washing. Finally, consumer solutions grew 6%, excluding the large breach win in 2024. Our indirect channel grew well, and direct-to-consumer freemium offerings continues to add users at a healthy pace. We also continue to see strong growth and demand for our consumer solutions across international markets. Our ambitious business transformation enabled us to accelerate our pace of innovation and growth. Through several years of investment and execution, we have built a truly scalable global technology and operating platform. In 25, we strengthened our global operating model with key talent additions and process improvements. So first, we added several new solutions and operations leaders throughout the year. Most recently, Francesca Nolli, who previously led Capital One's CreditWise product, has joined us as the head of consumer solutions. We also standardized our global product management best practices to better align our resources, streamline decisions, and enable a faster pace of product development and introductions. We significantly advanced our tech modernization in 25. We migrated over 100 US credit customers to One True, by year end, proving the platform's ability to deliver the most complex and sophisticated use cases. We augmented our underlying OneTrue capabilities, including integrating additional identity data, such as our public records, to strengthen our industry-leading coverage and density. We also implemented agentic AI across core processes, such as data onboarding, identity resolution, analytics, and delivery. And globally, we deployed key TrueIQ analytic capabilities into the Indian, Canadian, and UK markets. These achievements reflect the results of our disciplined multi-year investment. The fourth quarter marked the completion of our transformation investment program on schedule, on budget, and we're going to realize the full target savings in 2026. So in 26, we expect to deliver another year of strong financials. We anticipate growing 8% to 9% organically in constant currency for revenues, 7% to 8% adjusted EBITDA growth, and 8% to 10% adjusted diluted EPS growth. The high end of our guidance implies a third consecutive year of at least high single-digit revenue growth and double-digit adjusted EPS growth, and our guidance assumes continued healthy operating leverage with 70 basis points of adjusted EBITDA margin expansion when excluding the FICO mortgage royalty payments. So our initial guidance maintains our prudently conservative approach. We expect modest US lending growth, similar to recent quarters, and a gradual recovery in our international markets. Now, assuming a continuation of these current trends, We would again expect to deliver toward the high end of our range. Our strategic focus in 26 is to build on our momentum and to drive innovation-led and scalable growth. The priority is really turbocharging our innovation. We expect that the pace of major product enhancements and introductions will accelerate further in 26. Across our portfolio, we are launching new AI-powered solutions to boost product predictiveness and capture more value within a customer's workflow. In credit, we're embedding role-based AI agents in TrueIQ analytics for faster data exploration and easier accessibility. In fraud, advanced machine learning and AI already power our newest models and will support rapid development of customized models for clients at scale. In marketing, we're enhancing our robust identity data with AI models to create advanced consumer behavioral models. And in our international markets, we continue to deploy our fastest-growing U.S. solutions, including TrueIQ analytics and trusted call solutions, into target local markets. We believe our broader solution suite will enable continued outperformance in mature markets like Canada and the U.K., and adds to our growth potential across our attractive emerging markets. Our solutions portfolio is the strongest it's ever been, and it's only gaining momentum. And to ensure commercial momentum, we continue to sharpen our go-to-market approach and have added specialized sellers capable of selling our newest solutions. So we're unlocking the full potential of our global technology and operating platform to fuel these innovations and growth. We're on track to complete U.S. credit migrations onto OneTrue by mid-year. And further, we plan to migrate credit and analytic capabilities for Canada, the U.K., and the Philippines onto OneTrue over the course of 26. From an operating standpoint, we remain focused on continuous improvement, standardization, and automation. Scaling our technology and operating platform, we also anticipate ongoing cost savings that will boost margins and support future growth investments. And finally, I wanted to finish with a few thoughts on AI, given the recent noise in the information services and software space. So AI raises concerns about commoditization, especially for information services companies that manage more readily accessible and unregulated data. However, I believe that TransUnion's data assets are protected from this risk because they're broadly sourced, they're proprietary, they're highly regulated, and they're continuously enhanced by signal exhaust from providing services across our networks. And this creates a significant entry barrier. Now, with our market-leading identity resolution, we integrate all of this data to enable advanced analytics and deliver great predictions of credit and fraud risk to clients as well as marketing effectiveness. This helps our clients make smart decisions about their resource allocation. Also, AI can accelerate our growth by increasing the data consumption by our clients to improve their AI-enabled models, but also by substantially automating our internal analytic processes. And I'll remind you, that today our most AI-enabled clients also consume the most data. So we think we're in an advantageous position. We have a ton of domain-specific data and a position in our customer workflows that's gonna allow us to drive substantial value and be enabled by AI rather than eroded. So if I can double-click a bit, I'd start with our credit solutions and remind you that these are broadly sourced proprietary data. In the U.S. alone, at any point in time, we have 12,000 to 14,000 active lenders furnishing data. This represents individual contracts and individual ongoing supervision for each one of these data contributors. They can only contribute the data to authorized reporting agencies, and we can only use it for very specific and highly regulated purposes. Before we provide this information to a customer, we have to research them. They go through an elaborate credentialing process. They can only use the data for specific uses. We have to monitor their usage of the information on an ongoing basis. Credit information is deeply important to consumers. Each year, the bureaus handle millions of consumer inquiries and thousands of regulatory inquiries. And unfortunately, credit reporting is also one receives like the highest volume of litigation from consumers of any industry in the U.S. So obviously, the combination of The broad sourcing networks, the proprietary and highly regulated nature, and all of the challenges around selling this information and supporting its usage in the market create quite a barrier to entry. Our fraud and marketing solutions also leverage vast contributory networks of data and an industry-leading data craft. Most of this information is proprietary and sourced from industry consortiums. For instance, our fraud models use data from our device consortium, alongside with anomalies that we detect in credit files or from our public records business. This device consortium represents hundreds of corporations around the world and has engaged with over 14 billion devices over the last 15 years. In marketing, our measurement solutions capture information on consumer interactions with ads across hundreds of leading e-commerce entities. And this includes the walled gardens, streaming platforms, most of the prominent publishers out there. And these entities provide us with this data because we represent multi billions of dollars of brand spending from their consumers, rather from their customers. And they're looking to us for independent and trusted measures of advertising effectiveness. And so our marketing identity solutions, They take in all of this data input, plus they gather additional information from our client's range of internal systems, and they bring it all together to assess, to provide insights into the effectiveness of a client's marketing initiatives and just assess the probability that a prospect is going to convert within the marketing funnel. So we're also actively leveraging AI you know, internally, and we're seeing some enormous benefits, driving software development productivity, speed of product development, improving our customer experience and the consumer experience and operations, and just allowing us to do a lot more with less. AI is enhancing each phase of our analytic data to insight process within OneTrue, empowering our newest products. So NetNet I think AI is going to be a revenue and profit growth enabler for Transgenium. And I'll remind you that our most AI-enabled customers consume more data than our traditional customers and adopt our newer solutions more quickly. So increasingly, Transgenium can capture value with AI agents by performing the work that's done upstream, either by internal client teams or by encroaching on automation in workflow solutions that rest upon our data and analytics. So I'm sure we'll get some questions on this in the Q&A. I look forward to that. But now I'm going to hand it over to Todd for more depth on the financials.