AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 28/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Payroll-record scale, approximately 4.9 million contributing employers and explicit NCTUE operating exclusivity establish a meaningful current information-asset advantage. The employment-status indicator illustrates a commercial application. Comparative superiority and the claim that only Equifax can deliver that product remain issuer assertions; network effects are not demonstrated.
durability · 2/4 · Record growth and contributor relationships support persistence, while exclusive NCTUE rights provide a contractual barrier. Their duration is absent. Low verification entry barriers, direct employer alternatives, terminable customer contracts and periodically renewed licensed inputs limit confidence in a long protection period.
customer dependency · 2/4 · Long-standing relationships, workflow-specific employment information and Verification Services growth support continuing usefulness. Government wins and renewals provide additional demand evidence, although they are bundled and principally benefit future periods. Dependency is assessed indirectly: termination rights remain broad, and migration costs or customer reliance on an irreplaceable service are not quantified.
erosion resilience · 2/4 · Database expansion, verification growth and third-quarter revenue growth show that competitive pressure has not eliminated demand. Historical unit-price declines and low entry barriers remain offsets. The coding-issue settlement demonstrates an actual quality-related economic cost; the separate CFPB investigation remains unresolved rather than evidence of an established violation.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Management attributes first-half mortgage growth partly to product pricing and partly to higher volumes, supporting a positive pricing contribution without isolating its size. Historical per-unit declines in certain key products establish adverse outcomes elsewhere. The $1 mortgage-score offer documents price positioning, but its realized sales impact is undisclosed.
retention · 2/4 · Long-standing relationships, verification revenue growth and disclosed government renewals support repeat demand. This assessment uses indirect operating evidence and an aggregate of wins and renewals, not a retention rate. Customer convenience-termination rights and the absence of a renewal breakdown prevent a stronger conclusion.
margin resilience · 2/4 · Nine-month consolidated operating margin improved to 19.0% from 17.9%, reversing first-half compression. However, the quarterly comparison benefits from a $43.9 million prior-year restructuring charge. First-half USIS royalty pressure and the coding-issue settlement show imperfect cost protection. These outcomes support mixed resilience without inferring a moat from margin levels.
contractual freedom · 1/4 · Many material customers may terminate for convenience on limited notice, creating an explicit renegotiation mechanism. Significant licensed-input dependence and fixed renewal terms further constrain discretion. The disclosed $1 score offering shows some price-setting ability, but protected escalators or broad unilateral repricing rights are not established.
Predictability96
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 2.08
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 5.88
- observedAnnualPeriods
- 5.00
Financial strength25
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 50.14
- netDebtEbitGrade
- 10.29
- interestCoverageGrade
- 37.81
- currentRatioGrade
- 0.00
- Debt / FCF (x)
- 4.49
- Net debt / operating income (x)
- 4.49
- Interest coverage (x)
- 5.16
- Current ratio (x)
- 0.60
Capital allocation84
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 10.52
- 3-year average dilution (%)
- 0.22
- 3-year average SBC / revenue (%)
- 1.36
- cashConversionGrade
- 100.00
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Nine-month operating cash flow of $1,142.1 million less $378.9 million cash capital expenditure left $763.2 million; buybacks and dividends consumed $851.4 million. Net debt proceeds were $116.9 million before issuance costs. Cash generation remained approximately flat. Cloud-investment returns and the pending $750 million acquisition’s returns are unproven, supporting a mixed assessment.
incentive alignment · 2/4 · Disclosed ownership requirements and actual compliance, three-year relative TSR awards, a negative-TSR payout cap and actual performance-share vesting support alignment. Adjusted EBITDA measures and the 2026 incentive-revenue adjustment insulating leaders from score-price differences complicate that conclusion. Adopted arrangements and completed vesting are distinguished from future performance.
execution · 2/4 · Record expansion, government wins and renewals, and nine-month revenue growth of 11% demonstrate operating progress. Operating income also increased, although prior-year restructuring improves the comparison. Approximately flat operating cash flow and the coding-issue settlement temper execution quality. Government contracts principally benefiting 2027 onward do not yet establish realized revenue.
governance · 2/4 · Independent standing committees, recurring cybersecurity oversight, an unqualified financial-reporting control opinion and adopted special-meeting reform support functioning governance. The 25% threshold retains a one-year ownership condition. The coding-issue settlement warrants scrutiny; unresolved CFPB proceedings do not establish misconduct. Financial-reporting control assurance does not establish effective product-data controls.
Evidence
Jeremypreviously served as Managing Director of Mandiant,part of Google Cloud, where he led hundredsof cyber engagements for Fortune 100 and 500companies with a focus on mitigating emergingthreats, scaling security operations throughautomation and AI, and enhancing cyber resilience.The Work Number database reached 209 millionactive records, up 11% from 2024, with over 800million total records.
2026 proxy, filed 2026-03-27: The Work Number record scale and growth · Filed 27/03/2026
We now have approximately4.9 million employers contributing payroll recordsto The Work Number database, and signed 16 newpartnership agreements that will drive additionalrecord growth in 2026.Our Security maturity level has outperformedall major industry benchmarks for the last sixyears, with a 2025 National Institute of StandardsTechnology (NIST) Cybersecurity Framework (CSF)score of 4.4 – an increase from last year’s score of 4.3.We were recognized in the TIME Magazinelist of America’s Best Midsize Companies fororganizations based in the U.S.
2026 proxy, filed 2026-03-27: payroll contributors and signed partnerships · Filed 27/03/2026
Equifax Industry Knowledge. Equifax has exclusive rights to operate and manage the NCTUE database of more than 430 million telecommunications, pay TV, internet, home security and utility account records.
2026 proxy, filed 2026-03-27: exclusive NCTUE operating rights · Filed 27/03/2026
6 2026 Proxy Statement Table of Contents Accelerate Innovation and New ProductsThe Work Number Report IndicatorThe Work Number Report Indicator empowersmortgage lenders by delivering a first-inmarketEquifax credit report with an indicatorof employment status earlier in the mortgagequalification process that only Equifax can deliver.The solution notifies mortgage lenders upfrontif an applicant has a verification of income andemployment (VOIE) record on The Work Numberdatabase.
2026 proxy, filed 2026-03-27: The Work Number Report Indicator · Filed 27/03/2026
•Competition in the Verification Services business is highly competitive with low barriers to entry and includes employers who manage verifications in-house, lenders who obtain verifications directly from employers, and numerous online and offline firms that provide verification services.
2025 Form 10-K, filed 2026-02-19: Verification Services competition · Filed 19/02/2026
Historically, certain of our key products have experienced declines in per unit pricing due to competitive factors and customer demand.
2025 Form 10-K, filed 2026-02-19: historical per-unit pricing declines · Filed 19/02/2026
We have long-standing relationships with a number of our customers and business partners, many of whom could unilaterally terminate their relationship with us or materially reduce the amount of business they conduct with us at any time.
2025 Form 10-K, filed 2026-02-19: long-standing customer and partner relationships · Filed 19/02/2026
Many of our material customer agreements can be terminated by the customer for convenience on limited advance written notice, which provides our customers with the opportunity to renegotiate their contracts with us or to award more business to our competitors.
2025 Form 10-K, filed 2026-02-19: customer termination and renegotiation rights · Filed 19/02/2026
In addition, a significant portion of our revenue is derived from products and services that incorporate intellectual property licensed from key business partners.
2025 Form 10-K, filed 2026-02-19: licensed intellectual-property dependence · Filed 19/02/2026
Our existing license agreements have fixed terms and are subject to periodic renewal.
2025 Form 10-K, filed 2026-02-19: fixed license terms and periodic renewal · Filed 19/02/2026
and key International segments of Australia, Canada and the U.K., includes employers who manage verifications in-house, lenders who obtain verifications directly from employers, and other online and offline verification companies, such as Experian, Thomas & Company and niche providers.
2023 Form 10-K, filed 2024-02-22: named verification competitors; continuation of geographic scope · Filed 22/02/2024
Segment Financial Results Workforce Solutions Three Months Ended June 30, Change Six Months Ended June 30, Change Workforce Solutions 2026 2025 $ % 2026 2025 $ % (In millions) (In millions) Operating revenue: Verification Services $ 607.6 $ 567.1 $ 40.5 7 % $ 1,179.0 $ 1,069.3 $ 109.7 10 % Employer Services 97.8 95.0 2.8 3 % 209.5 211.4 (1.9) (1) % Total operating revenue $ 705.4 $ 662.1 $ 43.3 7 % $ 1,388.5 $ 1,280.7 $ 107.8 8 % % of consolidated revenue 41 % 43 % 41 % 43 % Total operating income $ 316.7 $ 307.3 $ 9.4 3 % $ 626.0 $ 571.4 $ 54.6 10 % Operating margin 44.9 % 46.4 % (1.5) pts 45.1 % 44.6 % 0.5 pts Workforce Solutions revenue increased by 7% and 8% for the second quarter and first six months of 2026, respectively, compared to the same periods in 2025.
June 2026 Form 10-Q, filed 2026-07-21: Workforce Solutions revenue and margins · Filed 21/07/2026
The increase for both periods is due to growth in Online Information Solutions, which is due to growth in mortgage revenue, primarily due to product pricing and higher volumes, as well as growth in diversified markets revenue.
June 2026 Form 10-Q, filed 2026-07-21: mortgage product pricing and volume contribution · Filed 21/07/2026
USIS Operating Margin USIS operating margin decreased to 22.5% for the second quarter of 2026 from 22.6% for the second quarter of 2025 and decreased to 21.4% for the first six months of 2026 from 21.9% for the first six months of 2025.
June 2026 Form 10-Q, filed 2026-07-21: USIS operating-margin comparisons · Filed 21/07/2026
The margin decrease for both periods is primarily due to an increase in mortgage related royalty costs, partially offset by the aforementioned increases in revenue.
June 2026 Form 10-Q, filed 2026-07-21: mortgage royalty-cost pressure · Filed 21/07/2026
The key performance indicators for the three and nine months ended September 30, 2026 and 2025 were as follows:
Key Performance Indicators
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(In millions, except per share data)
Operating revenue
$
1,692.5
$
1,544.9
$
5,041.5
$
4,523.9
Operating revenue change
10
%
7
%
11
%
6
%
Operating income
$
355.3
$
264.3
$
957.2
$
811.0
Operating margin
21.0
%
17.1
%
19.0
%
17.9
%
Net income attributable to Equifax
$
211.7
$
160.2
$
567.1
$
484.5
Diluted earnings per share
$
1.79
$
1.29
$
4.75
$
3.89
Cash provided by operating activities
$
560.4
$
559.9
$
1,142.1
$
1,144.9
Capital expenditures*
$
(127.2)
$
(125.8)
$
(373.7)
$
(349.1)
*Amounts include accruals for capital expenditures.
September 2026 Form 10-Q, filed 2026-10-20: quarterly and nine-month operating indicators · Filed 20/10/2026
Nine Months Ended September 30,
2026
2025
(In millions)
Operating activities:
Consolidated net income
$
571.8
$
487.9
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization
572.6
540.8
Stock-based compensation expense
74.5
63.9
Deferred income taxes
73.5
29.6
Gain on sale of equity investment
—
(0.8)
Changes in assets and liabilities, excluding effects of acquisitions:
Accounts receivable, net
(91.7)
(45.6)
Other assets, current and long-term
(95.7)
(10.3)
Current and long term liabilities, excluding debt
37.1
79.4
Cash provided by operating activities
1,142.1
1,144.9
Investing activities:
Capital expenditures
(378.9)
(351.4)
Cash received from divestitures
—
0.8
Cash used in investing activities
(378.9)
(350.6)
Financing activities:
Net short-term payments
(604.8)
(204.1)
Payments on long-term debt
(276.4)
—
Proceeds from issuance of long-term debt
998.1
1.7
Treasury stock purchases
(652.0)
(427.4)
Payment of share repurchase excise tax
(8.3)
—
Dividends paid to Equifax shareholders
(199.4)
(172.0)
Distributions paid to noncontrolling interests
(5.6)
(6.2)
Proceeds from exercise of stock options and employee stock purchase plan
23.8
38.1
Payment of taxes related to settlement of equity awards
(15.7)
(13.6)
Debt issuance costs
(7.9)
—
Cash used in financing activities
(748.2)
(783.5)
Effect of foreign currency exchange rates on cash and cash equivalents
(2.9)
September 2026 Form 10-Q, filed 2026-10-20: nine-month cash flows, capital expenditure and financing · Filed 20/10/2026
The Workforce Solutions Government team continues to execute well, signing new contract wins and renewals totaling about $300 million in annual contract value in the first half of 2026 that will principally benefit 2027 and beyond.
Second-quarter earnings release, filed 2026-07-21: government contract wins and renewals · Filed 21/07/2026
12
(8)During the second quarter of 2026, we recorded an accrual of $100.0 million, which, net of expected insurance proceeds of $60.0 million, resulted in a charge of $40.0 million ($30.2 million, net of tax), for a legal settlement associated with the resolution of claims related to a previously-disclosed coding issue.
Second-quarter earnings release, filed 2026-07-21: coding-issue settlement accrual and insurance offset · Filed 21/07/2026
In July 2023, we received a Civil Investigative Demand (a “CID”) from the Consumer Financial Protection Bureau (the “CFPB”) as part of its investigation into data accuracy and dispute handling at our Workforce Solutions business unit in order to determine whether we have followed the Fair Credit Reporting Act's requirements.
September 2026 Form 10-Q, filed 2026-10-20: Workforce Solutions CFPB investigation · Filed 20/10/2026
At this time, we are unable to predict the outcome of the CFPB's investigation, including whether the investigation will result in any actions or proceedings against us.
September 2026 Form 10-Q, filed 2026-10-20: investigation outcome remains uncertain · Filed 20/10/2026
(7)During the third quarter of 2025, we recorded $43.9 million ($32.8 million, net of tax) of restructuring charges for the realignment of resources and other costs, which predominantly related to the reduction of headcount to support the Company's global strategic objectives.
Third-quarter earnings release, filed 2026-10-20: prior-year restructuring charge affecting comparison · Filed 20/10/2026
As such, we maintain a formal stock ownership policy, under which our CEO and our other senior executives are required to acquire and hold Equifax common stock with a market value of six times base salary and three times base salary, respectively, within five years of assuming their respective positions.
2026 proxy, filed 2026-03-27: executive stock ownership requirements · Filed 27/03/2026
As of the most recent annual measurement date, all of our executive officers were in compliance with our stock ownership requirements.
2026 proxy, filed 2026-03-27: executive compliance with ownership requirements · Filed 27/03/2026
market-based and operational performance
Financial Performance Metrics
•
Performance shares tied to three-year cumulative TSR measuring our stock performance relative to companies in the S&P 500, providing a broad index for comparison and alignment with shareholder investment choices
2026 proxy, filed 2026-03-27: relative three-year TSR performance shares · Filed 27/03/2026
– If our cumulative three-year TSR is negative, the payout is capped at target (100%), regardless of our relative TSR percentile ranking
•
Performance shares tied to Adjusted EBITDA are earned based on our Adjusted EBITDA performance over a three-year period3
2026 proxy, filed 2026-03-27: negative-TSR payout cap and adjusted EBITDA performance period · Filed 27/03/2026
– If we fail to meet our threshold Adjusted EBITDA goals for any year during the three-year performance period, the payout for that year will be $0
Payouts Align With Performance
TSR and Adjusted EBITDA performance shares granted in 2023 vested in 2026 at 112% and 111% of target, respectively (see page 86)
1
Corporate Operating Revenue and Corporate Adjusted EPS, as used for corporate-level financial goals under the AIP, are non-GAAP measures.
2026 proxy, filed 2026-03-27: EBITDA threshold and actual 2026 performance-share vesting · Filed 27/03/2026
In order to avoid penalizing our leaders for negative impacts on operating revenue growth, the Committee determined that, under the 2026 AIP, corporate operating revenue will be increased by an amount calculated based on the total number of VantageScore mortgage credit scores sold in 2026 multiplied by the difference between the average price charged by Equifax for a FICO mortgage credit score and a VantageScore mortgage credit score.
2026 proxy, filed 2026-03-27: incentive revenue adjustment for score-price differences · Filed 27/03/2026
All of our standing Committees are comprised solely of independent directors.
2026 proxy, filed 2026-03-27: standing committee independence · Filed 27/03/2026
In addition, the Audit and Technology Committees of the Board coordinate on risk management oversight with respect to cybersecurity, including through quarterly joint meetings that cover the following topics: •Regular reports from the internal audit department regarding the security and technology portions of the internal audit plan •Regular reports from our CISO and CTO regarding the cybersecurity control environment, including remediation updates, control posture analyses and other recurring items The Technology Committee of the Board oversees our information security program, including: •Reviewing with management our technology investments and infrastructure associated with risk management, including policies relating to information security, disaster recovery and business continuity •Receiving quarterly reports directly from our CISO, including updates on our enterprise cybersecurity threat level •Overseeing the engagement of outside advisors to review our cybersecurity program •Reviewing the results of our annual information security program maturity assessment performed by a third party •Reviewing the results of our annual security program risk assessment prepared by management The Audit Committee of the Board discusses with management our risk management policies and procedures, including: •Receiving regular quarterly reports from our Chief Risk, Privacy and Compliance Officer regarding our global privacy, risk management and compliance programs, which includes the results of second line testing of our security controls Management Oversight of Cybersecurity Risk Our information security program is managed through implementation, monitoring and continuous improvement of the security program with active participation of management as described below.
2025 Form 10-K, filed 2026-02-19: recurring cybersecurity and privacy oversight · Filed 19/02/2026
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 19, 2026 expressed an unqualified opinion thereon.
2025 Form 10-K, filed 2026-02-19: auditor opinion on internal control over financial reporting · Filed 19/02/2026
(the “Company”) approved amendments to the Company’s Amended and Restated Bylaws (the “Bylaws”), effective immediately.
Form 8-K, filed 2026-06-16: bylaw amendments effective immediately · Filed 16/06/2026
The amendments to the Bylaws revise the requirements for shareholders to request a special meeting by providing that a special meeting of the shareholders may be called by the Secretary of the Company upon the proper request of one or more shareholders owning at least 25% of the voting power of all shares of stock of the Company issued and outstanding for at least one year as of the date of the request, subject to compliance with the procedural requirements set forth in the amendments.
Form 8-K, filed 2026-06-16: adopted special-meeting threshold and holding-period requirements · Filed 16/06/2026
AI Governance Program Since 2018, we have invested approximately $3 billion in building the Equifax Cloud, our cloud-native security and technology infrastructure.
2026 proxy, filed 2026-03-27: cumulative Equifax Cloud investment · Filed 27/03/2026
•Signed a definitive agreement to acquire Círculo de Crédito, the fastest growing credit bureau in Mexico, for an enterprise value of $750 million.
Second-quarter earnings release, filed 2026-07-21: signed acquisition agreement and enterprise value · Filed 21/07/2026
Expect Círculo de Crédito acquisition to close in the fourth quarter.
Third-quarter earnings release, filed 2026-10-20: acquisition closing remains expected · Filed 20/10/2026
InMarch 2026, we made VantageScore® 4.0 mortgagecredit scores available for $1 – reducing loan acquisitioncosts for consumers to make the path to homeownershipmore affordable.
2026 proxy, filed 2026-03-27: announced mortgage credit-score price · Filed 27/03/2026
