TransUnion

Good day and welcome to the TransUnion first quarter 2026 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touch tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Greg Barty, Senior Vice President, 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 8-K that we filed this morning. Our earnings released in 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 the corresponding reconciliation 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 will also 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 statements 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, Forms 10-Q, and other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statements. With that, let me turn it over to Chris.

Thanks, Greg. And let me add my welcome and outline today's agenda. First, I will review our first quarter results and updated 2026 guidance. Second, I'll discuss how AI is accelerating innovation across TU and driving higher data usage among some clients. And then I'll pass to Todd, who will detail our first quarter results and provide second quarter and full year 2026 guidance. So we started the year very strong, exceeding our first quarter guidance for revenue, adjusted EBITDA, and adjusted diluted earnings per share. This is our ninth straight quarter of at least high single-digit organic constant currency revenue growth, with 11% growth versus our 8% to 9% guidance. Excluding FICO mortgage royalties, revenue grew 7%, which is also above our expectations. U.S. markets grew 14%. Financial services led the way, up 24%, or 14% excluding FICO mortgage royalties. We delivered broad-based strength across lending types, driven by modest volume growth, pricing actions, and sales momentum across both credit and non-credit solutions. Emerging verticals had another healthy quarter, growing more than 6%, led by insurance and public sector. International revenue was flat organically, as expected. Canada and the U.K. grew high single digits, and Africa grew 10%. India declined mid-single digit, slightly better than we'd expected, and we expect a gradual improvement throughout the course of the year. Now, strong revenue growth translated into 12% growth in adjusted diluted earnings per share. In line with our disciplined M&A approach, focused on highly strategic bolt-ons We recently completed two acquisitions. TransUnion to Mexico extends our global playbook into an attractive market where we now hold the leading position. The smaller acquisition of Real Network's mobile division adds complementary messaging capabilities to our leading trusted call solutions. And in addition to completing these acquisitions, we repurchased 25 million of shares year-to-date through April. We have ample capacity under our $1 billion repurchase authorization and expect to increase repurchases over the rest of the year. Our outperformance reflects consistent execution in a relatively stable operating environment. The strength of our diversified portfolio positions us to navigate potential changes in economic conditions. And as a reminder, our customers entered 2026 with cautious optimism. Lenders anticipated loan growth supported by their strong balance sheets, healthy consumer finances, and expectations for rate cuts throughout the year. In February, the conflict in Iran added uncertainty about inflation, interest rates, and the potential impact on consumers. The 10-year Treasury rate and the 30-year mortgage rate are currently 4.3% and 6.3% respectively. after briefly dipping below 4% and 6% in late February. We continue to monitor market dynamics and potential second-order impacts on consumers and customers. To date, we have not observed any change in customer behavior tied to these developments. Through mid-April, volume and revenue trends have remained at or ahead of our expectations. We saw a brief pickup in refi-driven mortgage activity during February's rate dip, followed by a March normalization to previous levels. U.S. non-mortgage lending remains healthy. Against this backdrop, we delivered another strong sales quarter, underscoring sustained demand and commercial momentum for our credit marketing and fraud solutions. An uncertain market underscores the importance of our durable growth strategy. we have the broadest, deepest, and most relevant solutions portfolio in our history. Our fastest growing products include trusted call solutions, true IQ, identity-based marketing, and next-gen fraud models, which address customer needs across economic cycles. Looking ahead, we expect our strongest ever cohort of new product launches and major enhancements in 2026. While our investments in and global AI-enabled platforms position us for cost efficiency and operating leverage. Against this backdrop, we are maintaining our full-year organic constant currency guidance, including revenue growth of 8% to 9%. We are balancing first quarter outperformance driven by healthy underlying trends against macro uncertainty and the need to maintain prudently conservative guidance. The increase to the high end of our guidance 154 million of revenue, 39 million of adjusted EBITDA, and 4 cents of adjusted diluted earnings per share primarily reflects the addition of TU to Mexico. Our guidance approach remains unchanged. If current trends continue, we expect to perform at or above the high end of our range. Alternatively, we expect that we could absorb a reasonable level of market softening within our guidance range. Todd will provide additional details on our guidance assumptions. At the high end of guidance, we expect to deliver our third consecutive year of high single-digit organic constant currency revenue growth and double-digit adjusted diluted EPS growth. Now, this consistently strong financial performance underscores the strength and durability of our growth strategy. And as we highlighted throughout our Investor Day last month, AI can enhance that strength and fuel a new generation of growth. Our proprietary and differentiated data assets anchor our competitive advantage as we move into an AI future. Our contributory credit databases are sourced from thousands of institutions operating under demanding regulatory frameworks. Our industry-leading identity graph combines our proprietary data with billions of dynamic, disparate signals in near real time creating a network effect that powers our marketing and fraud solutions. We power our customers' complex, mission-critical workflows with governable, explainable data and deep domain expertise, delivering effective and deterministic outcomes. And these solutions are priced economically relative to the significant value that they provide. Instead, we believe AI is a growth accelerant. enabling us to activate our data to serve our customers more effectively. Already, AI drives tangible growth for TransUnion in two ways. First, by increasing demand for our data, and second, by accelerating our pace of innovation. Now, let me provide additional context for what we highlighted at Investor Day to explain how these dynamics are converging. From a demand perspective, AI models are only as good as the data they learn from. and customers are prioritizing the freshest, highest-quality signals. Our powerful and flexible one-true platform enables customers to integrate our best-in-class data directly into their AI environments. As AI-driven workflows scale, we see customers expand their use of TU's data, shifting from episodic transactions toward more embedded partnerships. For these reasons, our most AI-enabled customers are already consuming more data and adopting innovations faster. While most of our customers are early in their AI journey, let me share two examples of how TransUnion facilitated AI adoption for two lenders and then how we scaled our relationship as a result. Now, one of our most sophisticated FinTech customers has embedded AI across underwriting, portfolio management, customer service, marketing, and fraud prevention. As these AI-enabled programs scaled, the customer expanded their use of our credit, identity, and fraud signals within their workflows. Their AI underwriting models also refresh data more frequently, driving higher credit volumes. Their spending with TransUnion increased by more than 60% from 2022, approaching $15 million in revenue in 2025, and outpacing 50% loan growth in volumetric unit pricing. Also, a top five credit card issuer has embedded TU's data across its AI-enabled governance, risk management, servicing, and engagement workflows for its 50 million-plus accounts. These workflows support daily customer engagement and risk triggers rather than periodic checks. As a result, our relationship has evolved from a point-in-time transactional data vendor to a mission-critical, enterprise-wide partner under a multi-year subscription-based contract. TransUnion's revenue with this customer increased by over 20% from 2022 to $20 million in 2025, despite a decline in new accounts during that period. We see opportunity to deepen this relationship further by cross-selling additional credit and non-credit solutions. Now, our next-generation AI-powered products reflect, and drive increased demand for our data. During Investor Day, we highlighted three of these solutions, all built on the one true platform. These solutions enhance fast-growing products operating at scale, including true IQ, marketing audiences, and fraud analytics to enable continued growth. They industrialize in-demand customized analytics into scalable solutions that drive higher data usage and monetization across our portfolio. So first, TrueIQ Analytics Orchestrator uses Google's Gemini models to streamline advanced credit modeling with natural language prompts. Analytics Orchestrator scales the expertise typically delivered in highly effective but ad hoc innovation labs into self-service solutions. This enables customers to build models faster and more frequently with less reliance on our data science teams. We expect Analytics Orchestrator to increase data usage, drive new revenue streams, and enable stickier customer relationships. In marketing, we are transforming our static audience segments into curated and outcome-driven audiences by TransUnion, built off our identity backbones. We're also providing self-service search and discovery tools that accelerate activation and improve campaign performance. We expect improved efficiency and speed to drive increased consumption of our marketing audiences. And in fraud, our AI model factory unifies our identity data and advances analytic capabilities to respond to evolving fraud threat vectors. We're launching new fraud models at two to three times faster than previously possible, with 10 new models launched in the last 12 months, including our credit washing and synthetic identity solutions. We generated tens of millions of dollars of incremental pipeline from these new fraud models. So in summary, AI will continue to accelerate our pace of innovation and expand the ways customers consume data, supporting durable growth across our solution suites. Now, with that, I'll hand it over to Todd. Thanks, Chris.