TransUnion

Good morning and welcome to the TransUnion 2026 Second Quarter 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 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. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Greg Bardi, Senior Vice President, Investor Relations. Please go ahead, sir.

Good morning and thank you for attending today. Joining me on the call are Chris Cartwright, President and Chief Executive Officer, and Todd Cello, 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 SEC. We do not undertake any duty to update any forward-looking statement. With that, let me turn it over to Chris.

Thank you Greg and good morning everyone and welcome to our Q2 earnings call. Let me outline the agenda for this morning. So first I'm going to review our second quarter results and the increased guidance for full year 2026. Then we'll get into an example of how we are driving innovation-led, diversified, and scalable growth across the business using U.S. financial services as an example of this strategy in action. Then I'll hand it over to Todd who will go into the details on Q2, provide the third quarter guide, and also the full year 26 guide. So turning into the second quarter, again we delivered strong results exceeding our guidance for revenue, adjusted EBITDA, and adjusted diluted earnings per share. Our organic constant currency revenue grew 10% above our 8% to 9% guidance, which marks our 10th straight quarter of at least high single-digit growth. And if you exclude FICO mortgage royalties, the organic revenue grew 7%, which is also above our expectations. Now, in U.S. markets, revenue increased 11%. Financial services, again, led the way, up 18%. or 10% excluding FICO mortgage royalties. We delivered broad-based growth across lending types, driven by sales momentum across credit and non-credit solutions, alongside some modest volume growth and pricing actions. Now, emerging verticals grew 9% in the quarter, led by double-digit growth in insurance, as well as high single-digit growth in technology, retail and e-commerce. International revenues accelerated to 6% organically, driven by our largest markets. Canada again posted strong results at 10%, and India and the UK also grew high single digits. In India, strong new business wins and a gradually improving credit volumes drove a return to growth. And additionally, our recently acquired bureau in Mexico continues to track well ahead of our acquisition case on both revenue and adjusted EBITDA. Revenue growth translated into 13% adjusted diluted earnings per share growth, and we increased our share repurchases in the second quarter and through July, bringing our year-to-date total to roughly $150 million. We retain ample capacity for additional repurchases in the second half of the year under our billion-dollar authorization, and we also reduced our leverage ratio to 2.6 times in the quarter due to strong adjusted EBITDA growth. Now our strong first half performance has allowed us to raise our full year guidance. We now expect 8 to 9% organic constant currency revenue growth, 10 to 11% adjusted EBITDA growth and 11 to 12% adjusted diluted earnings per share growth. are 11% to 12% adjusted diluted earnings per share growth. That guide represents an increase from our prior 9% to 11% assumption. So our guidance balances operating overperformance in the first half and constructive ongoing trends in the market with appropriate conservatism given it's still an uncertain macro environment. Across our markets, we continue to experience Consumer resilience and broadly stable market volumes. Specific to the U.S., lenders are cautiously optimistic and anticipate modest loan growth, which is supported by strong consumer credit performance. Now, we continue to monitor inflation levels and interest rates and their potential impacts on consumer behavior and loan demand. The 10-year Treasury yield is now approaching 4.7%. That's up roughly 50 basis points from the start of the year. And while this has modestly pressured mortgage activity, impacts across the remainder of our portfolio have been limited. If the current trends continue, we expect performance to be at or slightly above the high end of our guidance. At the same time, our range is designed to absorb a reasonable level of market softening. and Todd's going to provide more details on this in the guidance assumptions later. Our strong results in guidance reflect consistent execution against the growth strategy we outlined in February, unlocking the full potential of one true platform and accelerating innovation in AI-enabled solutions and translating these capabilities into commercial momentum across our portfolio. So let me highlight the milestones against each of these priorities. So first on the platform modernization, we continue to make really good progress. We have materially increased U.S. credit customer migrations to One True during the quarter. At this point, roughly 60% of our U.S. batch activity and 30% of online customers are now running on One True. That's over 4,000 U.S. credit customers now migrated. And we continue to convert the most complex activity first but maintain an emphasis on minimizing customer disruption. We expect to complete the US migrations by the end of this year. Additionally, we continue to extend the One True platform and solutions internationally. We have now deployed One True instances in Canada, the UK and India to support the launch of our True IQ analytics platform. We also launched True Validate, our fraud solution in the UK and Trusted Call Solutions in Canada and India, creating new local market opportunities for these global products. And One True is enabling us to increase our innovation velocity. Across the enterprise, we launched 40 new products and AI-powered enhancements in the first half alone, contributing significantly to our sales pipeline. And beyond this innovation, we're also deploying AI at scale internally to improve our productivity. We are already seeing gains by using these tools across key employee groups, including average gains over 25% for our software engineers and data scientists and an early experimentation more than 20% within our consumer support operations. These successes reinforce our confidence in the broader opportunity to drive AI efficiencies that can enhance our margins and fund future growth investments. Now, these platform and innovation investments are increasing commercial momentum across solutions and within verticals and geographies. In the first half of the year, core credit, excluding FICO mortgage royalties and fraud, each grew in the high single digits, driven by traction in TrueIQ alternative data and trusted call solutions. Marketing solutions also grew mid-single digits, supported by strong identity performance, with acceleration expected in the second half. So together, One True and our global solution strategy is increasing our innovation, expanding addressable opportunities, and supporting scalable revenue growth. So let's have a case study of this strategy in action, focusing on U.S. financial services where platform modernization, product innovation, and deeper customer engagement are translating into sustained outperformance. Within U.S. financial services, growth has consistently exceeded underlying market volumes. Excluding mortgage, financial services has grown at 9% compound annual growth rate, outpacing the roughly 2% average growth in U.S. consumer credit originations and real GDP growth over the same period. We've sustained this outperformance across multiple operating environments. U.S. financial services, excluding mortgage, has delivered high single-digit or greater growth, except for modest pullbacks during the pandemic and in the 23 and 2024 consumer lending slowdown. This track record reflects the strength of our U.S. credit data and expanded solution suite, which have enabled outperformance across market cycles. Growth is increasingly driven by share gains, pricing, and innovation, not simply underlying lending activity. Now one reason that we've been able to consistently outgrow the market is the increasing diversification of our financial services business. At almost two-thirds of financial services revenue, Core Credit remains the foundation of the franchise. We continue to grow our share on the strength of our leading trended data and attributes, as well as our differentiated and insight-led engagement model. Building from that foundation, More than one-third of revenue now comes from solutions outside traditional credit reports and scores. These newer revenue streams represent faster-growing opportunities that are often less directly tied to lending origination volumes. Roughly 12% of revenue comes from alternative data, like Factor Trust, as well as our True IQ Analytics enablement suite. These solutions serve lenders' increasing appetite for alternative data sets, and AI-enabled analytic tools to activate our data at scale. Another 24% of revenue comes from non-credit solutions, most notably trusted call solutions and our modernized marketing and fraud solutions. This intentional diversification has expanded our position beyond core credit to make us a broader partner for clients across the customer lifecycle. We help them reach the right consumers Improve engagement, mitigate fraud, manage portfolios, and make better decisions. This combination of core credit leadership and complementary adjacent growth opportunities is a real differentiator for TransUnion. The benefits of our diversified growth strategy are evident in our recent performance. Over the last two years, U.S. Financial Services, excluding mortgage, has grown at a roughly 10% compound annual growth rate. with contributions from across the product portfolio. CoreCredit is growing low double digits annually. This growth exceeds lending volume growth, reflecting customers' continued preference for our differentiated, trended data and analytics. Our alternative data and analytics are growing in the low teens annually, led by factor trust and new wins for our true IQ suite. The maturation of TrueIQ provides a new opportunity to further increase growth. Non-credit solutions is growing at a high single-digit annual rate with room for further acceleration. Trusted call solutions in particular has been a standout, growing over 50% annually within financial services. And we see increased revenue and bookings momentum within marketing and fraud. These solutions address a growing set of mission-critical use cases. Now, AI will increase demand for proprietary data, analytics, and decisioning capabilities, areas where we are well positioned. Over time, we expect increased AI sophistication to drive higher data consumption, stronger demand for true IQ analytics, and faster adoption of our marketing and fraud tools. Taken together, these trends position us to continue growing above underlying market volumes. Financial Services now benefits from multiple growth factors, a broader addressable market, and a more diversified revenue base than at any point in our history. So with that as context of how our strategy is driving commercial success, I'm going to pass it to Todd who will detail Q2 performance and our refreshed guidance. Todd?