TransUnion (NYSE:TRU) executives told investors the company finished 2025 “very strongly,” citing broad-based growth in U.S. Markets, continued product momentum across credit, fraud and marketing offerings, and improving cash flow that supported increased shareholder returns. Management also laid out 2026 guidance calling for continued organic revenue and earnings growth, while emphasizing a conservative posture to start the year.
Fourth-quarter results exceeded guidance
CEO Chris Cartwright said TransUnion exceeded revenue, adjusted EBITDA and adjusted diluted EPS expectations in the fourth quarter, describing the period as “a great capstone to another strong year.” CFO Todd Cello reported consolidated revenue increased 13% on a reported basis and 12% organically in constant currency, with the Monevo acquisition contributing 0.5 percentage points to growth. Mortgage contributed 3 points to total growth, and foreign currency impact was “immaterial.”
The company recorded $25 million of one-time transformation-related charges in the quarter, including $6 million for operating model optimization and $19 million for technology transformation. Cello said the fourth quarter marked the final quarter of one-time charges tied to the transformation program.
U.S. Markets led growth; Emerging Verticals accelerated
U.S. Markets revenue grew 16% organically in constant currency versus the prior year, with an adjusted EBITDA margin of 37.9%, according to Cello. Within the U.S., Financial Services revenue rose 19% (or 11% excluding mortgage), with Cartwright noting mortgage, consumer lending and auto all posted double-digit growth. He also said TransUnion outpaced underlying lending volume growth through new business wins across solution suites.
Cello described the lending environment as positive, pointing to sufficient lender capital, strong credit performance and consumer resilience supported by low unemployment and rising wages. In U.S. Financial Services, he highlighted:
- Credit Card and Banking up 3%, with demand for alternative data, fraud and marketing solutions.
- Consumer Lending up 21%, supported by fintech and personal lender activity; FactorTrust grew nearly 20% for the year.
- Auto up 12%, driven by volume growth, pricing and new wins.
- Mortgage revenue up 37% on inquiries up 4%, which Cello attributed to third-party scores pricing and non-tri-bureau revenue.
Emerging Verticals accelerated to 16% growth in the fourth quarter from 7% in the third quarter. Cello said that even excluding certain one-time project revenue, underlying growth was still over 10%, with insurance, tech, retail and e-commerce, media, and tenant and employment screening all growing double digits. He said insurance delivered its first $100 million revenue quarter, supported by consumer shopping activity and credit-based marketing.
Cartwright said U.S. Marketing and Fraud grew 15% and 14%, respectively, and called it the best quarter of growth for both solution families since the Neustar acquisition.
International results mixed; India described as a “reset year”
International revenue grew 2% organically in constant currency, and adjusted EBITDA margin was 43.1% as the company controlled expenses amid moderating growth, Cello said. Canada grew 13% and the U.K. grew 10%, marking a second straight quarter of double-digit growth in the U.K. Cello cited healthy volumes at large banking and fintech customers, new wins across verticals, and broader innovation-led gains in Canada.
Other regions were weaker. Latin America declined 3% due to softer economic and lending conditions; Asia Pacific declined 11%, with Hong Kong facing soft volumes and lapping prior-year one-time consulting revenue. Africa increased 3% on growth in banking, insurance and fintech.
India revenue declined 4% in the quarter and grew 2% for the full year. Management attributed softness to sluggish unsecured personal loan and credit card activity, tied to capital constraints and lender conservatism even as the Reserve Bank of India eased some restrictions. Cello said TransUnion expects mid-single-digit growth in India in 2026, but with “high single-digit declines” in the first quarter followed by improvement through the year. Cartwright said the company expects a “slow and steady improvement” in volumes across 2026 and reiterated longer-term confidence in India’s growth potential.
Transformation completion, capital deployment, and AI strategy
Executives said a multi-year transformation program is now complete. Cartwright said the fourth quarter marked the completion of transformation investments “on schedule” and “on budget,” with full target savings expected in 2026. Cello said the company completed the program within its $355 million to $375 million budget, delivered $200 million in free cash flow savings (including roughly $130 million of operating expense savings), and expects capital intensity to decline to about 6% of revenue starting in 2026. He also said TransUnion expects free cash flow conversion to be 90% or greater of adjusted net income in 2026 and beyond.
TransUnion emphasized shareholder returns, including repurchasing about $150 million of shares in the fourth quarter ($300 million for 2025) and increasing its quarterly dividend 9% to $0.125 per share. Cello said management views the current valuation as attractive and plans to remain active in repurchases during 2026, while also continuing to delever toward its long-term target of under 2.5x leverage.
The company also discussed acquisitions. It completed the Monevo acquisition in 2025 and expects to close its purchase of majority ownership of TransUnion de México in the first half of 2026. Based on current exchange rates, Cello said the purchase price is expected to be approximately $660 million, funded with cash and debt. Management noted the Mexico acquisition is not included in 2026 guidance and is expected to be modestly accretive in its first year after closing.
Cartwright spent a portion of the call addressing artificial intelligence, arguing AI is more likely to be an enabler than a commoditization threat for TransUnion because of the proprietary and regulated nature of its data assets and contributory networks. He also said TransUnion is applying AI internally to improve productivity, including through an AI-enabled analytics platform the company calls the “Analytics Orchestrator,” which management said will be showcased at an Investor Day on March 10 in New York.
2026 guidance: continued growth, with mortgage royalties complicating reported metrics
For 2026, management guided to 8% to 9% organic constant-currency revenue growth, 7% to 8% adjusted EBITDA growth, and 8% to 10% adjusted diluted EPS growth. Reported revenue guidance was $4.946 billion to $4.981 billion, which the company said equates to 8% to 9% organic growth in constant currency, or 5% to 6% excluding the impact of FICO mortgage royalties. Adjusted diluted EPS guidance was $4.63 to $4.71, and adjusted EBITDA guidance was $1.756 billion to $1.777 billion.
For the first quarter of 2026, revenue was guided to $1.195 billion to $1.205 billion, and adjusted EBITDA to $414 million to $420 million. The company guided adjusted diluted EPS to $1.08 to $1.10.
Executives repeatedly highlighted the impact of FICO mortgage royalty increases, saying the royalties increase reported revenue but do not affect profit. Cello said TransUnion expects 2026 reported mortgage revenue of $750 million (up 28%) inclusive of royalties, and $425 million excluding royalties (up roughly 6%). Management also said its guidance assumes no shift to FICO direct licensing and no VantageScore adoption, calling both potential sources of upside to profitability.
About TransUnion (NYSE:TRU)
TransUnion is a global information and insights company that helps businesses and consumers make critical decisions using data and analytics. As one of the three major credit bureaus in the United States, TransUnion collects and aggregates credit information on individuals and businesses, providing credit reports, risk scores and portfolio management tools to financial institutions, lenders, landlords and other decision makers. Its consumer-facing products enable individuals to monitor credit status, detect identity theft and access personalized financial insights.
The company’s offerings span credit risk assessment, identity management, fraud prevention and marketing solutions.
