TRANSUNION | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.31 B

Revenue: As of FY2026 Q2, the actual value is USD 1.31 B, beating the estimate of USD 1.284 B.

EPS: As of FY2026 Q2, the actual value is USD 0.74, beating the estimate of USD 0.6739.

EBIT: As of FY2026 Q2, the actual value is USD 256.9 M.

Second Quarter 2026 Financial Highlights

TransUnion reported consolidated revenue of $1,310 million, representing a 15% year-over-year (Y/Y) change, with organic constant currency revenue increasing by 10% and 7% excluding FICO mortgage royalties. Adjusted EBITDA was $456 million, a 12% Y/Y change, resulting in an Adjusted EBITDA margin of 34.8%, which is a -90 basis point change Y/Y. The company repurchased approximately $150 million in shares year-to-date through July. The Leverage Ratio was reduced to 2.6x.

U.S. Markets Segment

U.S. Markets revenue was $993 million, an 11% reported Y/Y increase. Financial Services revenue grew 18% to $496 million, or 10% excluding FICO mortgage royalties. Within Financial Services, ex-mortgage revenue grew 8%, with Card & Banking, Consumer Lending, and Auto all increasing by 8%. Mortgage revenue increased by 37%, or 15% excluding FICO, despite a -7% decline in inquiries. Emerging Verticals revenue rose 9% to $354 million, while Consumer Interactive revenue decreased -3% to $142 million. Adjusted EBITDA for U.S. Markets was $361 million, up 7%.

International Segment

International revenue reached $321 million, a 27% reported Y/Y increase, with 6% organic constant currency growth. Segment revenues included Canada at $46 million (10% Y/Y), Latin America at $93 million (172% Y/Y, driven by 157% inorganic impact), and the U.K. at $73 million (9% Y/Y). Africa revenue was $21 million (16% Y/Y), India revenue was $65 million (-2% Y/Y, but 8% organic constant currency), and Asia Pacific revenue was $22 million (-10% Y/Y). International Adjusted EBITDA was $137 million, a 27% Y/Y increase.

Capital Deployment

TransUnion deployed approximately $660 million for an incremental 68% ownership of TransUnion de Mexico. Share repurchases totaled approximately $150 million year-to-date through July, contributing to a total of approximately $450 million since 2025. Dividends paid in the first half were approximately $50 million, or $0.125 quarterly per share.

Outlook and Guidance

Third Quarter 2026 Guidance

For the third quarter of 2026, TransUnion anticipates reported revenue between $1,292 million and $1,310 million, representing 11% to 12% growth. Organic constant currency revenue is projected to grow 6% to 8%, or 4% to 5.5% excluding FICO mortgage royalty, with Adjusted EBITDA expected to be between $455 million and $463 million. The Adjusted EBITDA margin is forecasted to be 35.2% to 35.4%.

Full-Year 2026 Guidance

TransUnion raised its full-year 2026 guidance, expecting reported revenue of $5,127 million to $5,162 million, an increase of 12% to 13%, and organic constant currency revenue growth of 8% to 9%, or 5% to 6% excluding FICO mortgage royalty. Adjusted EBITDA is anticipated to be between $1,807 million and $1,827 million, reflecting 10% to 11% growth, with an Adjusted EBITDA margin of 35.2% to 35.4%. The company expects an Adjusted Tax Rate of approximately 25.5%, CapEx around 6% of revenue, and Net Interest Expense of approximately $245 million, while also anticipating over 90% free cash flow conversion as a percentage of Adjusted Net Income and continued deleveraging towards a target Leverage Ratio of less than 2.5x.