TransUnion’s third quarter saw strong momentum as the company surpassed Wall Street’s revenue and non-GAAP profit expectations. Management attributed this performance to broad-based growth across U.S. markets, with financial services and emerging verticals such as insurance and communications leading the way. CEO Christopher Cartwright highlighted the successful rollout of new products, including advances in fraud prevention and marketing analytics, and noted that the company’s technology modernization efforts have begun to deliver tangible operational efficiencies. Cartwright stated, “These results demonstrate the growing momentum of our innovation-led strategy.”
Is now the time to buy TRU? Find out in our full research report (it’s free for active Edge members).
TransUnion (TRU) Q3 CY2025 Highlights:
- Revenue: $1.17 billion vs analyst estimates of $1.13 billion (7.8% year-on-year growth, 3.2% beat)
- Adjusted EPS: $1.10 vs analyst estimates of $1.04 (5.4% beat)
- Adjusted EBITDA: $425.1 million vs analyst estimates of $408 million (36.3% margin, 4.2% beat)
- Revenue Guidance for Q4 CY2025 is $1.13 billion at the midpoint, above analyst estimates of $1.11 billion
- Management raised its full-year Adjusted EPS guidance to $4.22 at the midpoint, a 3.3% increase
- EBITDA guidance for the full year is $1.63 billion at the midpoint, above analyst estimates of $1.61 billion
- Operating Margin: 17.8%, up from 14.4% in the same quarter last year
- Market Capitalization: $15.62 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From TransUnion’s Q3 Earnings Call
- Andrew Steinerman (JPMorgan) asked about the drivers of U.S. market growth, specifically the impact of mortgage pricing and volume trends. CFO Todd Cello explained that most pricing growth stemmed from mortgage, while volume gains were broad-based across segments, with non-credit solutions like Trusted Call also contributing.
- Jeffrey Meuler (Third Bridge) questioned the lower-than-expected margin flow-through given strong revenue growth, asking if incremental investment was being prioritized. CEO Christopher Cartwright confirmed that investments in AI and go-to-market capabilities were accelerated, aiming to support continued top-line compounding.
- Faiza Alwy (Deutsche Bank) inquired about the sustainability of emerging verticals’ growth. Cartwright clarified there were no one-time drivers and cited insurance and communications as ongoing sources of double-digit growth, with public sector being the only lagging area.
- Toni Michele Kaplan (Morgan Stanley) pressed for more detail on TransUnion’s proprietary data and its defensibility in AI-enabled marketing and fraud solutions. Cartwright emphasized the unique, regulated nature of TransUnion’s data and the resulting competitive moat, especially as AI is layered on top.
- Craig Huber (Huber Research Partners) sought clarity on how changes in mortgage credit score pricing would affect profitability. Cartwright and Cello affirmed the company expects to preserve revenue and margins regardless of score model adoption, with incremental upside from VantageScore share gains.
Catalysts in Upcoming Quarters
Over the coming quarters, our analyst team will be watching (1) the pace of client migration to the One True platform and the resulting margin improvements, (2) adoption rates of VantageScore 4.0 and the impact of mortgage market shifts on overall profitability, and (3) stabilization and recovery in India’s lending environment as tariffs and regulatory actions play out. Additional signposts include sustained AI-related product traction and progress in international expansion.
TransUnion currently trades at $81.28, in line with $80.68 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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