Revenue Outperformance
Total revenue increased 14% year-over-year (11% organic constant currency), exceeding the high end of guidance by $41 million; excluding FICO mortgage royalties, organic growth was 7%.
TransUnion
· TRU
April 28th, 2026
Summary
- Earnings Call Date:
- 2026-04-28
- Change Since:
- -2.80%
- Next Earnings Date:
- 2026-07-28
Earnings Call Sentiment
PositiveThe call highlights strong top-line outperformance (14% reported, 11% organic), double-digit EPS and EBITDA growth, rapid AI-driven product innovation and customer wins, and strategic M&A and capital return activity. Offsetting headwinds are modest margin pressure from FICO royalties and acquisition accounting, near-term international softness in select markets (India, Asia Pacific), a temporary rise in leverage and higher interest expense tied to the Mexico acquisition, and macro/geopolitical uncertainty that prompted conservative guidance posture. Overall the positives (broad-based revenue growth, product/AI momentum, strengthened guidance framework and M&A that expands addressable markets) materially outweigh the contained negatives.
Company Guidance
TransUnion maintained its 2026 guidance while providing updated near‑term and full‑year metrics: Q2 revenue is guided to $1.271–$1.283B (up 12–13%) with organic constant‑currency growth of 8–9% (5–6% ex‑FICO) and ~4% contribution from acquisitions; Q2 adjusted EBITDA $439–$445M (34.5–34.7% margin) and adjusted diluted EPS $1.13–$1.15 (+4–6%). Full‑year revenue is $5.10–$5.135B (+11–12%) with organic growth 8–9% (5–6% ex‑FICO), acquisitions +3.5% and FX immaterial; mortgage revenue is expected +28% (6% ex‑FICO) vs. mid‑single‑digit inquiry declines and international growth mid‑single digits. Full‑year adjusted EBITDA is $1.796–$1.816B (+9–10%) implying a 35.2–35.4% margin (down 60–80 bps; underlying margin expansion +50–70 bps offset by ~90 bps FICO royalty headwind and ~40 bps M&A impact); adjusted diluted EPS is $4.68–$4.75 (+9–11%). Other guidance items: D&A ≈$640M (≈$320M ex step‑up), net interest ≈$245M (up $25M), adjusted tax rate ~25.5%, CapEx ≈6% of revenue, free cash‑flow conversion ≥90% of adjusted net income, Q1 leverage 2.8x with a long‑term target <2.5x, $25M repurchased YTD with a $1B buyback authorization; the increase to the high end of guidance primarily reflects consolidation of TransUnion Mexico (adds roughly $154M revenue, $39M adjusted EBITDA and ~$0.04 EPS).
Strong U.S. and Financial Services Growth
U.S. markets grew 14% organics; Financial Services revenue rose 24% reported (14% excluding FICO mortgage royalties), driven by credit, fraud, TruIQ, alternative data and trusted call solutions.
Mortgage Revenue Surge
Mortgage revenue grew 50% excluding FICO royalties (24% reported), supported by a short-lived refinance pickup during February rate moves and higher pricing/adoption of non‑tri-bureau solutions.
Profitability and EPS Expansion
Adjusted EBITDA increased 10% and adjusted diluted EPS rose 12% to $1.18 for the quarter, with adjusted diluted EPS guidance for full year raised to $4.68–$4.75 (up 9%–11%).
Product and AI Momentum Driving Data Consumption
AI-enabled adoption is expanding data usage: a fintech customer increased spend >60% from 2022 (~$15M in 2025) and a top-5 card issuer increased revenue >20% to $20M in 2025; new AI products (TruIQ, Analytics Orchestrator, marketing audiences, AI model factory) aim to industrialize analytics and increase data monetization.
Faster Model Delivery and Pipeline
AI model factory launched new fraud models 2–3x faster with 10 new models in the last 12 months, generating "tens of millions" in incremental pipeline (including credit washing and synthetic identity solutions).
Trusted Call Solutions Traction and TAM Growth
Trusted call solutions continue strong growth; management expects product expansion from $27M in 2021 to ~$200M in 2026 and ~$300M in 2028, and acquired RealNetworks' mobile division to add messaging capabilities.
Strategic Acquisitions and Capital Return
Completed two acquisitions (TransUnion Mexico and RealNetworks Mobile division) — MX consolidation adds to revenue — repurchased $25M of shares YTD with ample capacity under $1B repurchase authorization and plan to increase repurchases.
Maintained / Upgraded Guidance
Maintained full-year organic constant currency revenue guidance of 8%–9% and provided updated full-year revenue guidance of $5.1B–$5.135B (up 11%–12%); adjusted EBITDA guidance $1.796B–$1.816B (up 9%–10%).
Operator
Good day, and welcome to the TransUnion First Quarter 2026 Earnings Conference Call. [Operator Instructions] please note 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.
Gregory Bardi
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 release and 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 and 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...
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