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    TRU
    Earnings call· Jun 2026(Q2 FY26)

    TransUnion Q2 FY26 earnings call TRU

    Jul 28, 2026 Source

    Executive summary

    TransUnion Q2 FY26 — Strong Performance Drives Raised Full-Year Guidance

    TransUnion delivered strong Q2 FY26 results, surpassing revenue and EPS guidance, driven by robust U.S. financial services and accelerating international growth. The company raised its full-year outlook, balancing strong first-half performance with prudent conservatism for an uncertain macro environment. Strategic investments in the OneTru platform and AI-enabled solutions are fueling diversified growth and commercial momentum, positioning TransUnion for continued outperformance and increased capital returns.

    Highlights

    5

    • Organic constant currency revenue grew 10%, exceeding 8%-9% guidance.

    • Adjusted diluted EPS grew 13%, $0.08 ahead of guidance.

    • U.S. Financial Services revenue grew 18% (10% ex-FICO mortgage royalties).

    • International revenue accelerated to 6% organically, with Canada up 10% and India/U.K. high single digits.

    • Leverage ratio decreased to 2.6x due to strong adjusted EBITDA growth.

    Concerns

    3

    • Mortgage activity modestly pressured by 10-year treasury yield approaching 4.7% (up 50 bps from start of year).

    • Adjusted EBITDA margin down 90 basis points year-over-year due to FICO mortgage royalties.

    • Mortgage inquiry volumes expected to decline low double-digits in H2 FY26.

    Guidance & targets

    15
    CategoryTargetConfidence
    Full Year 2026 Organic Constant Currency Revenue Growth
    8% to 9%
    high materiality
    High
    Full Year 2026 Adjusted EBITDA Growth
    10% to 11%
    high materiality
    High
    Full Year 2026 Adjusted Diluted EPS Growth
    11% to 12%
    high materiality
    High
    Q3 2026 Revenue
    $1.292 billion and $1.310 billion
    high materiality
    High
    Q3 2026 Organic Growth (excluding FICO mortgage royalties)
    4% to 5.5%
    medium materiality
    Medium
    Q3 2026 Adjusted EBITDA
    $455 million to $463 million
    high materiality
    High
    Q3 2026 Adjusted Diluted EPS
    $1.18 and $1.21
    high materiality
    High
    Full Year 2026 Total Revenue
    $5.127 billion and $5.162 billion
    high materiality
    High
    Full Year 2026 Organic Constant Currency Revenue Growth (excluding FICO mortgage royalties)
    5% to 6%
    medium materiality
    Medium
    Full Year 2026 Mortgage Revenue Growth
    28%
    medium materiality
    Medium
    Full Year 2026 Mortgage Inquiry Declines
    Mid- to high single-digit
    medium materiality
    Medium
    Full Year 2026 Adjusted EBITDA
    $1.807 billion to $1.827 billion
    high materiality
    High
    Full Year 2026 Adjusted Diluted EPS
    $4.75 to $4.83
    high materiality
    High
    Pace of Second Half Share Repurchases
    At least comparable to the first half
    medium materiality
    Medium
    Leverage Ratio Target
    Under 2.5x
    medium materiality
    High

    Segment performance

    23
    SegmentRevenueYoYQoQMargin
    U.S. Markets
    Growth diversified across verticals, supported by strong first half bookings and retention, and continued demand for credit and noncredit solutions.
    		—11%——
    U.S. Financial Services
    Led the way in U.S. markets. Broad-based growth across lending types driven by sales momentum across credit and noncredit solutions, modest volume growth, and pricing actions. Excluding mortgage, grew at 9% CAGR over past two years.
    		—18%——
    U.S. Core Non-Mortgage Financial Services
    Healthy growth across lending types, reflecting a mix of healthy lending activity, pricing, new wins, and increasing adoption of broader solution set.
    		—8%——
    U.S. Financial Services - Credit Card and Banking
    Driven by lending volume growth and new wins from trusted call solutions.
    		—6%——
    U.S. Financial Services - Consumer Lending
    With strong fintech and sustained consumer demand.
    		—8%——
    U.S. Financial Services - Auto
    Driven by pricing and new wins across solutions. Outpaced declining industry volumes.
    		—8%——
    U.S. Financial Services - Mortgage
    Versus inquiries down 7%. Outperformance due to pricing actions and non tri-bureau revenues. Growth in line with expectations despite modestly lower volumes as rates increased.
    		—37%——
    U.S. Emerging Verticals
    Led by double-digit growth in insurance and high single-digit growth in technology, retail, and e-commerce. Accelerated growth.
    		—9%——
    U.S. Emerging Verticals - Insurance
    Eighth straight quarter of double-digit growth. Robust demand across solution suite, strengthening credit-based marketing, active consumer shopping, growth across CoreCredit, driving history, and trusted call solutions.
    		—Double-digit——
    U.S. Emerging Verticals - Tech, Retail, and E-commerce
    Significant portion of marketing and fraud revenue.
    		—High single-digit——
    U.S. Emerging Verticals - Public Sector and Media
    		—Mid-single-digits——
    U.S. Emerging Verticals - Tenant and Employment
    		—Returned to growth——
    U.S. Emerging Verticals - Telco
    		—Declined modestly——
    U.S. Consumer Interactive
    In line with expectations, as growth in indirect channel offset by declines in direct channel.
    		—-3%——
    International
    Accelerated from flat growth in Q1. Reflected strength in developed markets and improving trends across emerging markets.
    		—6%——
    International - Canada
    Reflecting healthy activity across financial services, strong growth in fintechs and insurance.
    		—10%——
    International - India
    Accelerated growth, slightly ahead of expectations. Experienced gradually improving volumes, supported by government-backed commercial lending program and very strong new wins.
    		—8%——
    International - U.K.
    		—High single-digits——
    International - Latin America
    Improved, with double-digit growth in Brazil and modest/improving growth in Colombia and other markets.
    		—5%——
    International - Brazil
    		—Double-digit——
    International - Colombia
    		—Modest and improving——
    International - Africa
    Broad-based growth across verticals and regions.
    		—5%——
    International - Asia Pacific
    Rate of decline improving versus Q1. Expected to return to growth in H2 FY26.
    		—-7%——

    Operational metrics

    32
    Organic Constant Currency Revenue Growth
    10%above 8% to 9% guidance
    Q2 FY26

    Marks tenth quarter of at least high single-digit growth.

    Organic Revenue Growth (excluding FICO mortgage royalties)
    7%above expectations
    Q2 FY26
    Adjusted EBITDA Margin
    34.8%down 90 bps YoY
    Q2 FY26

    Slightly better than guidance.

    Underlying Adjusted EBITDA Margin Expansion
    10up modestly YoY
    Q2 FY26

    M&A had a 10-point drag in the quarter.

    Share Repurchases
    $150 million
    YTD July 2026

    Increased in Q2 and through July. Ample capacity for additional repurchases under $1 billion authorization.

    Leverage Ratio
    2.6xdecreased
    Q2 FY26

    Due to strong adjusted EBITDA growth.

    10-Year Treasury Yield
    approaching 4.7%up roughly 50 bps from start of year
    Q2 FY26

    Modestly pressured mortgage activity, but impacts across remainder of portfolio limited.

    OneTru U.S. Credit Customer Migrations (Match Activity)
    60%
    Q2 FY26

    Materially increased. Expected to complete U.S. migrations by end of year.

    OneTru U.S. Credit Customer Migrations (Online Customers)
    30%
    Q2 FY26

    Materially increased. Over 4,000 U.S. credit customers migrated. Expected to complete U.S. migrations by end of year.

    New Products and AI-Powered Enhancements Launched
    40
    H1 FY26

    Contributing significantly to sales pipeline.

    AI Productivity Gains
    over 25%
    H1 FY26

    Average gains from using AI tools.

    AI Productivity Gains
    more than 20%
    H1 FY26

    From early experimentation with AI tools.

    Core Credit Growth (excluding FICO mortgage royalties)
    high single digits
    H1 FY26

    Driven by traction in TruIQ, alternative data, and trusted call solutions.

    Fraud Growth
    high single digits
    H1 FY26

    Driven by traction in TruIQ, alternative data, and trusted call solutions.

    Marketing Solutions Growth
    mid-single digits
    H1 FY26

    Supported by strong identity performance, with acceleration expected in H2.

    U.S. Financial Services (excluding mortgage) CAGR
    9%outpacing ~2% average growth in U.S. consumer credit originations and real GDP
    Past 2 years

    Sustained outperformance across multiple operating environments.

    U.S. Financial Services (excluding mortgage) Revenue Mix - CoreCredit
    almost 2/3
    Q2 FY26

    Foundation of the franchise.

    U.S. Financial Services (excluding mortgage) Revenue Mix - Alternative Data
    roughly 12%
    Q2 FY26

    Includes FactorTrust and TruIQ analytics enablement suite.

    U.S. Financial Services (excluding mortgage) Revenue Mix - Noncredit Solutions
    24%
    Q2 FY26

    Most notably trusted call solutions, modernized marketing and fraud solutions.

    U.S. Financial Services (excluding mortgage) CAGR
    roughly 10%
    Last 2 years

    With contributions from across the product portfolio.

    U.S. Financial Services (excluding mortgage) CoreCredit Annual Growth
    low double digits
    Annual

    Exceeds lending volume growth, reflecting preference for differentiated trended data and analytics.

    U.S. Financial Services (excluding mortgage) Alternative Data and Analytics Annual Growth
    low teens
    Annual

    Led by FactorTrust and new wins for TruIQ suite.

    U.S. Financial Services (excluding mortgage) Noncredit Solutions Annual Growth
    high single-digit
    Annual

    With room for further acceleration. Trusted call solutions growing over 50% annually within financial services.

    Mortgage Inquiries Decline
    7%
    Q2 FY26

    Versus mortgage revenue growth of 15% excluding FICO royalties.

    VantageScore Usage in Mortgage
    closer to 30%up from less than 5% at start of year
    Q2 FY26

    Most activity remains dual poles with VantageScore and FICO, but increasing VantageScore only usage.

    Total Debt
    $5.6 billion
    Q2 FY26
    Cash Balance
    $839 million
    Q2 FY26
    FX Impact on Full Year Guidance
    immaterial
    FY26
    Mortgage Rates
    above 6.5%moved back above
    Q2 FY26

    Derisked H2 assumptions.

    Adjusted EBITDA Margin
    35.2% to 35.4%down 60 to 80 bps
    FY26

    Underlying margins expected to expand by 50 to 70 basis points.

    Underlying Adjusted EBITDA Margin Expansion
    50 to 70
    FY26

    Offset by 90 bps drag from FICO royalties and 40 bps impact from acquisitions.

    Underlying Adjusted EBITDA Margin Expansion
    20 to 40
    Q3 FY26

    Offset by 80 bps drag from FICO royalties and 60 bps impact from acquisitions.

    Product announcements

    5
    ProductTypeDetails
    40 new products and AI-powered enhancementslaunch
    TruIQ analytics platformexpansion
    TruValidate fraud solutionlaunch
    Trusted Call Solutionslaunch
    Alternative credit attributes from FactorTrustupdate

    Deals & partnerships

    1
    Bureau in MexicoAcquisition of controlling interest in the leading credit bureau in Mexico, where TransUnion was a minority investor and tech provider for over 25 years.

    Plans to enhance data foundation, accelerate innovation by bringing global capabilities like TruIQ Analytics, TruValidate, and credit education tools, and enhance client engagement. Will eventually migrate Mexico to OneTru.

    Risks & headwinds

    4
    Uncertain macro environmentOngoing

    null

    Mitigation: Guidance balances operating overperformance with appropriate conservatism; range designed to absorb reasonable level of market softening.

    Inflation levels and interest rates impact on consumer behavior and loan demandOngoing

    10-year treasury yield approaching 4.7%, up roughly 50 bps from start of year.

    Mitigation: Monitoring levels; impacts across portfolio (excluding mortgage) have been limited. Conservative mortgage assumptions derisk H2.

    Mortgage activity pressure from rising interest ratesH2 FY26

    Mortgage rates moved back above 6.5%. Mortgage inquiry volumes down 7% in Q2, expected low double-digit declines in H2 FY26.

    Mitigation: Conservative assumptions provide flexibility to deliver growth rates even if rates increase modestly. Pricing actions and non tri-bureau revenues expected to drive outperformance versus underlying volumes.

    Competitive landscape in MexicoLong-term

    Competitor recently announced acquisition of second largest credit bureau in Mexico.

    Mitigation: TransUnion has leading market position, broader data archives, plans to broaden data contributions, push into fintech, bring alternative credit data, roll out OneTru, and leverage TruIQ analytics. Market is large and underpenetrated, with room for multiple players.

    What to watch in Q3 FY26

    5

    Mortgage Volume Trends

    Next quarter (Q3 FY26)
    CurrentInquiries down 7% in Q2 FY26; rates above 6.5%
    TargetStabilization or less severe decline than low double-digit expectation for H2

    Why it matters

    Mortgage is the most rate-sensitive segment, and its performance will impact overall revenue and margin, especially given conservative H2 assumptions.

    Our conservative assumptions provide us flexibility to deliver these growth rates even if rates increase modestly from current levels. We now anticipate mid- to high single-digit inquiry declines for the full year, including low double-digit declines in the second half of the year.

    Q&A highlights

    6

    Struggling to understand how non-mortgage organic upside is adjusted in guidance, given mortgage guidance is unchanged and most revenue guidance raise is from Mexico/M&A.

    Management explained that mortgage guidance is maintained with conservative assumptions for H2 due to rising rates, providing flexibility. Non-mortgage organic growth is expected to continue at Q2 levels (6%), with strong tailwinds in financial services, emerging verticals, and international. The overall guidance is prudently conservative, with expectations to hit the high end or slightly above if current trends persist.

    “But the market remains uncertain. So we are taking a prudently conservative approach towards our guidance. And as we've put on, as I said in my prepared remarks as well as what we've put on the slide, we would orient you to the high end of that guidance and that more than likely if these conditions that were currently living through right now persist, we'll be above the high end of that guidance.”

    asked by Jeff Meuler · answered by Todd Cello

    2 min read7 chapters

    Detailed Narrative

    01

    Q2 Performance and Guidance Raise

    TransUnion reported strong Q2 FY26 results, exceeding guidance for revenue, adjusted EBITDA, and adjusted diluted EPS. Organic constant currency revenue grew 10%, driven by robust U.S. Financial Services and accelerating international markets. This strong first-half performance enabled the company to raise its full-year guidance for revenue, adjusted EBITDA, and adjusted diluted EPS, reflecting confidence in ongoing trends while maintaining prudent conservatism for macro uncertainties.

    02

    OneTru Platform Modernization

    The company made significant progress on its OneTru platform modernization, with roughly 60% of U.S. match activity and 30% of online customers now running on OneTru, totaling over 4,000 migrated customers. U.S. migrations are expected to complete by year-end. OneTru has also been deployed internationally in Canada, the U.K., and India, supporting the launch of TruIQ analytics and other global products like TruValidate and Trusted Call Solutions in local markets.

    03

    Innovation and AI-Enabled Solutions

    TransUnion launched 40 new products and AI-powered enhancements in the first half of the year, significantly contributing to its sales pipeline. Internally, AI tools are driving productivity gains, with average improvements of over 25% for software engineers and data scientists, and more than 20% in consumer support operations. These successes reinforce confidence in AI's potential to enhance margins and fund future growth investments.

    04

    U.S. Financial Services Diversification

    U.S. Financial Services, excluding mortgage, has consistently outgrown underlying market volumes, with a 9% CAGR over the past two years. This outperformance is driven by diversification, with over one-third of revenue now coming from solutions outside traditional credit reports and scores, including 12% from alternative data (FactorTrust, TruIQ) and 24% from noncredit solutions (Trusted Call, marketing, fraud). This strategy expands TransUnion's role beyond CoreCredit across the customer lifecycle.

    05

    International Market Acceleration

    International revenue accelerated to 6% organically in Q2, with strong performance in developed markets like Canada (10% growth) and improving trends in emerging markets. India returned to 8% growth, supported by improving volumes and strong new business wins. The recently acquired Bureau in Mexico is significantly outperforming its acquisition case, with plans to integrate global products like TruIQ and TruValidate to accelerate growth beyond market volumes.

    06

    VantageScore Adoption Momentum

    VantageScore usage in mortgage saw a meaningful increase in adoption, moving from less than 5% at the start of the year to closer to 30% across over 900 lenders. While most activity remains dual poles with FICO, there's increasing VantageScore-only usage, including for certain mortgages requiring insurance. The company's 2026 guidance assumes no benefit from VantageScore adoption, but momentum provides confidence in long-term opportunities.

    07

    Capital Allocation and Shareholder Returns

    TransUnion ended Q2 with a reduced leverage ratio of 2.6x and accelerated share repurchases, totaling $150 million year-to-date. The company retains ample capacity under its $1 billion authorization and plans for second-half repurchases to be at least comparable to the first half, reflecting a bias toward capital return. The long-term target for the leverage ratio remains under 2.5x.

    AI-generated summary of the company’s earnings call. Not investment advice.