EQUIFAX INC

Previous wording

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. All percentages have been calculated using unrounded amounts for each of the periods presented.

Current wording

The following Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the results of operations and financial condition of Equifax Inc. MD&A is provided as a supplement to and should be read in conjunction with our consolidated financial statements and the accompanying Notes to Financial Statements in Item 1 of this Form 10-Q. This section discusses the results of our operations for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. All percentages have been calculated using unrounded amounts for each of the periods presented.

Previous wording

Equifax Inc. is a global data, analytics and technology company. We provide information solutions for businesses, governments and consumers, and we provide human resources business process automation and outsourcing services for employers. We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals. Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal justice data, healthcare professional licensure and sanctions, demographic and marketing data. We use advanced statistical techniques, machine learning and proprietary software tools to analyze available data to create customized insights, decision-making and process automation solutions and processing services for our clients. We are a leading provider of information and solutions used in payroll-related and human resource management business process services in the U.S., as well as e-commerce fraud and charge back protection services in North America. For consumers, we provide products and services to help people understand, manage and protect their personal information and make more informed financial decisions. Additionally, we also provide information, technology and services to support debt collections and recovery management.

Current wording

Equifax Inc. is a global data, analytics and technology company. We provide information solutions for businesses, governments and consumers, and we provide human resources business process automation and outsourcing services for employers. We have a large and diversified group of clients, including financial institutions, corporations, government agencies and individuals. Our services are based on comprehensive databases of consumer and business information derived from numerous sources including credit, financial assets, telecommunications and utility payments, employment, income, educational history, criminal justice data, healthcare professional licensure and sanctions, demographic and marketing data. We use advanced statistical techniques, artificial intelligence including machine learning and proprietary software tools to analyze available data to create customized insights, decision-making and process automation solutions and processing services for our clients. We are a leading provider of information and solutions used in payroll-related and human resource management business process services in the U.S., as well as e-commerce fraud and charge back protection services in North America. For consumers, we provide products and services to help people understand, manage and protect their personal information and make more informed financial decisions. Additionally, we also provide information, technology and services to support debt collections and recovery management.

Previous wording

We currently operate in four global regions: North America (U.S. and Canada), Asia Pacific (Australia, New Zealand and India), Europe (the U.K., Spain and Portugal) and Latin America (Argentina, Brazil, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay). We maintain support operations in Chile,

Current wording

We currently operate in four global regions: North America (U.S. and Canada), Asia Pacific (Australia, New Zealand and India), Europe (the U.K., Spain and Portugal) and Latin America (Argentina, Brazil, Chile, Costa Rica, Dominican

Previous wording

Costa Rica, India and Ireland. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore.

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Republic, Ecuador, El Salvador, Honduras, Mexico, Paraguay, Peru and Uruguay). We maintain support operations in Chile, Costa Rica, India and Ireland. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore.

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We are in a period of significant economic and market volatility and uncertainty in the U.S. and our global markets, including uncertainty regarding expectations for U.S. inflation and interest rates. The direction of global economies, inflation and interest rates will have an impact on demand for our services.

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We remain in a period of economic uncertainty in the U.S. and our global markets, including uncertainty regarding expectations for inflation and interest rates. The direction of global economies, inflation and interest rates will have an impact on demand for our services.

Previous wording

Our current planning for 2025 assumes that U.S. economic activity, as measured by GDP, will grow at a rate somewhat lower than in 2024. We expect U.S. mortgage credit activity in 2025 to be below the levels of activity seen in 2024. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which we operate, our planning also assumes that economic activity, as measured by GDP, will generally grow in 2025 at rates at or below those experienced in 2024. As noted above, due the current significant economic and market volatility and uncertainty, these assumptions may change.

Current wording

Our current planning for 2025 assumes that U.S. economic activity, as measured by GDP, will grow at a rate somewhat lower than in 2024. We expect U.S. mortgage credit activity in 2025 to be below the levels of activity seen in 2024. The U.S. mortgage market, particularly the mortgage refinance portion of the U.S. mortgage market, can be significantly impacted by U.S. interest rates which impact mortgage rates available to consumers. In the international markets in which we operate, our planning also assumes that economic activity, as measured by GDP, will generally grow in 2025 at rates below those experienced in 2024. As noted above, due to the current significant economic and market volatility and uncertainty, these assumptions may change.

Previous wording

Segments. The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction-based and is derived primarily from verifications of employment and income data, as well as criminal justice data and educational background data. Employer Services revenue is derived from our provision of certain human resources business process outsourcing services that include both transaction and subscription based product offerings. These services include unemployment claims management, I-9 and onboarding services, Affordable Care Act ("ACA") compliance management, tax credits and incentives and other complementary employment-based transaction services.

Current wording

Segments. The Workforce Solutions segment consists of the Verification Services and Employer Services business lines. Verification Services revenue is transaction and subscription based and is derived primarily from verifications of employment and income data, as well as criminal justice data and educational background data. Employer Services revenue is derived from our provision of certain human resources business process outsourcing services that include both transaction and subscription based product offerings. These services include unemployment claims management, I-9 and onboarding services, Affordable Care Act ("ACA") compliance management, tax credits and incentives and other complementary employment-based transaction services.

Previous wording

The USIS segment consists of two service lines: Online Information Solutions and Financial Marketing Services. Online Information Solutions revenue is principally transaction-based and is derived from our sales of products such as consumer and commercial credit reporting and scoring, identity management, fraud detection, modeling services and consumer credit monitoring services. USIS also markets certain decisioning software and services which facilitate and automate a variety of consumer and commercial credit-oriented decisions. Online Information Solutions also includes our U.S. consumer credit monitoring solutions business. Financial Marketing Services revenue is principally project and subscription based and is derived from our sales of batch credit and consumer wealth information such as those that assist clients in acquiring new customers, cross-selling to existing customers and managing portfolio risk.

Current wording

The USIS segment consists of two service lines: Online Information Solutions and Financial Marketing Services. Online Information Solutions revenue is principally transaction-based and is derived from our sales of products such as consumer and commercial credit reporting and scoring, identity management, fraud detection, modeling services and consumer credit monitoring services. USIS also markets certain analytical and decisioning software and services which facilitate and automate a variety of consumer and commercial credit-oriented decisions. Online Information Solutions also includes our U.S. consumer credit monitoring solutions business. Financial Marketing Services revenue is principally project and subscription based and is derived from our sales of batch credit and consumer wealth information such as those that assist clients in acquiring new customers, cross-selling to existing customers and managing portfolio risk.

Previous wording

Geographic Information. We currently have operations in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the U.K., Uruguay and the U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. Approximately 78% and 77% of our revenue was generated in the U.S. during the three months ended March 31, 2025 and 2024, respectively.

Current wording

Geographic Information. We currently have operations in the following countries: Argentina, Australia, Brazil, Canada, Chile, Costa Rica, Dominican Republic, Ecuador, El Salvador, Honduras, India, Ireland, Mexico, New Zealand, Paraguay, Peru, Portugal, Spain, the U.K., Uruguay and the U.S. We also have investments in consumer and/or commercial credit information companies through joint ventures in Brazil, Cambodia, Malaysia and Singapore. Approximately 77% and 76% of our revenue was generated in the U.S. during the three months ended June 30, 2025 and 2024, respectively. Approximately 77% of our revenue was generated in the U.S. during both the six months ended June 30, 2025 and 2024.

Previous wording

Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

Key Performance Indicators. Management focuses on a variety of key indicators to monitor operating and financial performance. These performance indicators include measurements of operating revenue, change in operating revenue, operating income, operating margin, net income, diluted earnings per share, cash provided by operating activities and capital expenditures. The key performance indicators for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

On April 21, 2025, the Board of Directors terminated the existing share repurchase authorization and approved an authorization to repurchase up to $3 billion of shares of common stock. On April 21, 2025, the Board of Directors approved an increase in our quarterly cash dividend to $0.50 per share beginning in the second quarter of 2025.

Current wording

•On April 21, 2025, the Board of Directors terminated the existing share repurchase authorization and approved an authorization to repurchase up to $3 billion of shares of common stock. We repurchased 479,506 shares of our common stock on the open market for $127.4 million, excluding brokerage commissions and excise taxes of $0.7 million, during the first six months of 2025, all of which was purchased in the three months ended June 30, 2025. We did not repurchase any shares from public market transactions during the first six months of 2024. At June 30, 2025, approximately $2.9 billion was available for future purchases of common stock under our share repurchase authorization.

Previous wording

•We paid out $48.5 million, or $0.39 per share, in dividends to our shareholders during the first three months of 2025. On April 21, 2025, the Board of Directors approved an increase in our quarterly cash dividend to $0.50 per share beginning in the second quarter of 2025.

Current wording

•On April 21, 2025, the Board of Directors approved an increase in our quarterly cash dividend to $0.50 per share beginning in the second quarter of 2025. We paid out $110.5 million, or $0.89 per share, in dividends to our shareholders during the first six months of 2025.

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RESULTS OF OPERATIONS—THREE MONTHS ENDED MARCH 31, 2025 AND 2024

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RESULTS OF OPERATIONS—THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

Previous wording

Revenue increased by $52.6 million, or 4%, for the first quarter of 2025 compared to the same period in 2024. Total revenue was negatively impacted by foreign exchange rates, which decreased revenue by $20 million, or 1%, for the first quarter of 2025 compared to the same period in 2024.

Current wording

Revenue increased by $106.5 million, or 7%, and increased by $159.1 million, or 6%, for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Total revenue was negatively impacted by foreign exchange rates, which decreased revenue by $5.9 million, or less than 1%, and $25.9 million, or 1%, for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

Revenue in the first quarter of 2025 increased due to revenue growth in USIS, Workforce Solutions and International. USIS revenue growth is primarily due to growth in mortgage revenue and non-mortgage revenue, which includes growth in Financial Marketing Services. Workforce Solutions revenue growth is primarily due to growth in Verification Services, partially offset by declines in Employer Services. International revenue growth is primarily driven by local currency growth in Latin America, Asia Pacific, Canada and Europe.

Current wording

Revenue increased for both periods due to revenue growth in all three business units. USIS revenue growth is primarily due to growth in mortgage revenue and non-mortgage revenue in Online Information Solutions, as well as growth in Financial Marketing Services. Workforce Solutions revenue growth is primarily due to growth in Verification Services, partially offset by declines in Employer Services. International revenue growth for both periods is primarily driven by growth in Europe and Latin America.

Previous wording

Cost of services increased $29.0 million in the first quarter of 2025 compared to the same period in 2024. The increase is primarily due to higher revenue share and royalty costs. The impact of changes in foreign exchange rates on costs of services led to a decrease of $8.7 million in the first quarter of 2025 compared to the same period in 2024.

Current wording

Cost of services increased $33.7 million and $62.6 million in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to higher revenue share, royalty and purchased data and information costs, partially offset by a decrease in people costs. The impact of changes in foreign exchange rates on costs of services led to a decrease of $1.3 million and $10.0 million in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

Selling, general and administrative expenses increased $2.3 million for the first quarter of 2025 compared to the same period in 2024, primarily due to increases in people costs. The impact of changes in foreign currency exchange rates led to a decrease in selling, general and administrative expenses of $6.7 million for the first quarter of 2025 compared to the same period in 2024.

Current wording

Selling, general and administrative expenses increased $31.6 million and $33.9 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to higher litigation expense and people costs. The impact of changes in foreign currency exchange rates led to a decrease in selling, general and administrative expenses of $2.6 million and $9.4 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

Depreciation and amortization expense increased $10.2 million for the first quarter of 2025 compared to the same period in 2024. The increase is primarily due to increased amortization of capitalized internal-use software costs resulting from technology transformation capital spending incurred previously. The impact of changes in foreign currency exchange rates led to a decrease in depreciation and amortization expense of $2.4 million for the first quarter of 2025 compared to the same period in 2024.

Current wording

Depreciation and amortization expense increased $12.6 million and $22.8 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to increased amortization of capitalized internal-use software costs resulting from technology transformation capital spending incurred previously, partially offset by lower amortization of acquisition related purchased intangibles. The impact of changes in foreign currency exchange rates led to a decrease in depreciation and amortization expense of $0.2 million and $2.7 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

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Total company operating margin increased by 0.2 percentage points in the first quarter of 2025 compared to the same period in 2024 due to the aforementioned increase in revenue.

Current wording

Total company operating margin increased by 0.5 percentage points and 0.4 percentage points in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The margin increase in both periods is due to the aforementioned increases in revenue.

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Interest Expense and Other Income, net

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Interest Expense and Other Income (Expense), net

Previous wording

Interest expense decreased by $6.8 million in the first quarter of 2025 compared to the same period in 2024. The decrease for the first quarter of 2025 is due to lower overall debt balances when compared to the first quarter of 2024.

Current wording

Interest expense decreased by $4.2 million and $11.1 million in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The decrease for both periods is due to lower overall debt balances when compared to the same periods in 2024.

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Other income, net, increased $0.9 million in the first quarter of 2025 compared to the same period in 2024. The increase for the first quarter of 2025 is primarily due to higher equity investment income as compared to the first quarter of 2024.

Current wording

Other income (expense), net, increased by $3.9 million and $4.7 million in the second quarter of 2025 and in the first six months of 2025, respectively, as compared to the same periods in 2024. The increase for both periods is primarily due to higher equity investment income and a decrease in other non-operating expenses as compared to the same periods in 2024.

Previous wording

Our effective income tax rate was 27.8% for the three months ended March 31, 2025 compared to 24.3% for the three months ended March 31, 2024. Our effective tax rate was higher for the first three months of 2025 as compared to the same period in 2024 due to less favorable discrete benefits, none of which were individually material.

Current wording

Our effective income tax rate was 26.3% for the three months ended June 30, 2025 compared to 26.4% for the three months ended June 30, 2024. Our effective income tax rate was 26.9% for the six months ended June 30, 2025 compared to 25.5% for the six months ended June 30, 2024. Our effective tax rate did not change materially for the three months ended June 30, 2025 as compared to the same period in 2024. Our effective tax rate was higher for the six months ended June 30, 2025 as compared to the same period in 2024 primarily due to the expiration of the statute of limitations related to uncertain tax positions in 2024.

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Consolidated net income increased by $7.7 million for the first quarter of 2025 compared to the same period in 2024. The increase for the first quarter of 2025 is due to increased operating income and lower interest expense, offset by higher income tax expense.

Current wording

Consolidated net income increased by $27.4 million and $35.2 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase in both periods is due to increased operating income and lower interest expense, partially offset by higher income tax expense.

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Workforce Solutions revenue increased by 3% in the first quarter of 2025 compared to the same period in 2024. The increase is due to an increase in both non-mortgage and mortgage verticals within Verification Services, partially offset by declines in Employer Services.

Current wording

Workforce Solutions revenue increased by 8% and 5% in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is due to an increase in both non-mortgage and mortgage verticals within Verification Services, partially offset by declines in Employer Services.

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Workforce Solutions Operating Margin. Operating margin increased to 42.7% for the first quarter of 2025 from 42.3% for the first quarter of 2024. The increased margin is due to the aforementioned increase in revenue.

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Operating margin increased to 46.4% for the second quarter of 2025 from 44.5% for the second quarter of 2024, and increased to 44.6% for the first six months of 2025 from 43.4% for the first six months of 2024. The increased margin for both periods is primarily due to the aforementioned increase in revenue.

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U.S. Information Solutions revenue increased by 7% for the first quarter of 2025 compared to the same period in 2024. The increase is due to growth in Online Information Solutions which is due to growth in both mortgage and non-mortgage revenue, as well as growth in Financial Marketing Services. Growth in mortgage related services is primarily due to product pricing.

Current wording

USIS revenue increased by 9% and 8% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to growth in Online Information Solutions which is due to growth in both mortgage and non-mortgage revenue, as well as growth in Financial Marketing Services. Growth in mortgage related services is primarily due to product pricing, partially offset by lower mortgage credit inquiry volumes in the current year compared to the prior year periods.

Previous wording

Online Information Solutions. Revenue increased by 7% for the first quarter of 2025 compared to the same period in 2024. The increase is driven by growth in mortgage related services, primarily due to product pricing, as well as growth in non-mortgage online services and consumer solutions revenue.

Current wording

Revenue increased by 9% and 8% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is driven by growth in mortgage related services, as well as growth in non-mortgage online services and consumer solutions revenue. The growth in mortgage related services for both periods is primarily due to product pricing, partially offset by lower mortgage credit inquiry volumes in the current year compared to the prior year periods.

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Financial Marketing Services. Revenue increased by 10% for the first quarter of 2025 compared to the same period in 2024, primarily driven by growth in credit marketing services.

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Revenue increased by 6% and 8% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to growth in credit marketing services.

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USIS Operating Margin. USIS operating margin increased to 21.1% for the first quarter of 2025 from 19.9% for the first quarter of 2024. The margin increase is due to the aforementioned increase in revenue, partially offset by increases in certain product revenue royalty costs.

Current wording

USIS operating margin increased to 22.6% for the second quarter of 2025 from 20.6% for the second quarter of 2024 and increased to 21.9% for the first six months of 2025 from 20.3% for the first six months of 2024. The margin increase for both periods is due to the aforementioned increase in revenue, partially offset by an increase in operating expenses. Operating expenses increased for both periods due to an increase in certain product revenue royalty costs, partially offset by a decline in people costs.

Previous wording

International revenue increased by 1% in the first quarter of 2025 compared to the same period in 2024. On a local currency basis, revenue increased by 7% in the first quarter of 2025, driven by local currency growth in Latin America, primarily from Argentina and Brazil, as well as local currency growth in Asia Pacific, Canada and Europe. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $20.0 million, or 6%, for the first quarter of 2025.

Current wording

International revenue increased by 4% and 2% in the second quarter and the first six months of 2025, respectively, compared to the same periods in 2024. On a local currency basis, revenue increased by 6% in both the second quarter and first six months of 2025 compared to the same periods in 2024, driven by local currency growth in Latin America, primarily from Argentina and Brazil, as well as local currency growth in Europe, Asia Pacific and Canada. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $5.9 million, or 2%, for the second quarter of 2025, and by $25.9 million, or 4%, for the first six months of 2025.

Previous wording

Latin America. On a local currency basis, revenue increased by 16% for the first quarter of 2025 compared to the same period in 2024. The increase in revenue is primarily due to local currency growth in Argentina and Brazil. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $11.4 million, or 13%, for the first quarter of 2025, primarily within Brazil and Argentina. Reported revenue increased by 3% for the first quarter of 2025 compared to the same period in 2024.

Current wording

On a local currency basis, revenue increased by 11% and 13% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase in both periods is primarily due to local currency growth in Argentina and Brazil. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $8.0 million, or 9%, and $19.5 million, or 10%, for the second quarter and first six months of 2025, respectively, primarily within Brazil and Argentina. Reported revenue increased by 2% and 3% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

Europe. On a local currency basis, revenue increased by 1% for the first quarterof 2025 compared to the same period in 2024. The increase is primarily due to growth in the consumer credit reporting business in Spain. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $0.8 million, or 1%, for the first quarter of 2025. Reported revenue was flat for the first quarter of 2025 compared to the same period in 2024.

Current wording

On a local currency basis, revenue increased by 6% and 4% for the second quarter and first six months of 2025, compared to the same periods in 2024. The increase in both periods is primarily due to growth in the consumer credit reporting businesses in the U.K. and Spain. Local currency fluctuations against the U.S. dollar positively impacted revenue by $5.3 million, or 6%, and $4.5 million, or 3%, for the second quarter and first six months of 2025, respectively. Reported revenue increased by 12% and 7% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

Asia Pacific. On a local currency basis, revenue increased by 7% for the first quarter of 2025 compared to the same period in 2024. The increase is primarily driven by growth in the Australia consumer credit reporting and commercial businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $3.8 million, or 5%, for the first quarter of 2025. Reported revenue increased by 2% for the first quarter of 2025 compared to the same period in 2024.

Current wording

On a local currency basis, revenue increased by 4% and 5% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily driven by growth in the Australia commercial and consumer credit reporting businesses. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $2.3 million, or 3%, and $6.1 million, or 4%, for the second quarter and first six months of 2025, respectively. Reported revenue increased by 1% for both the second quarter and first six months of 2025 compared to the same periods in 2024.

Previous wording

Canada. On a local currency basis, revenue increased by 2% for thefirst quarter of 2025 compared to the same period in 2024. The increase is driven by growth in the direct to consumer business. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $4.0 million, or 6%, for the first quarter of 2025. Reported revenue decreased by 4% for the first quarter of 2025 compared to the same period in 2024.

Current wording

On a local currency basis, revenue increased by 1% and 2% in the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase in both periods is driven by growth in the direct to consumer business. Local currency fluctuations against the U.S. dollar negatively impacted revenue by $0.8 million, or 1%, and $4.8 million, or 4%, for the second quarter and first six months of 2025, respectively. Reported revenue was flat and decreased by 2% for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.

Previous wording

International Operating Margin. Operating margin decreased to 7.8% for the first quarter of 2025 from 9.9% for the first quarter of 2024. The decrease in margin for the first quarter of 2025 is due to higher operating expenses, partially offset by the increase in revenue. The higher operating expenses are principally due to higher people costs, higher cloud costs andincreased amortization of capitalized internal-use software costs resulting from technology transformation capital spending incurred previously.

Current wording

Operating margin decreased to 10.9% for the second quarter of 2025 from 11.9% for the second quarter of 2024 and decreased to 9.5% for the first six months of 2025 from 10.9% for the first six months of 2024. The decrease in both periods is primarily due to higher people costs, increased amortization of capitalized internal-use software costs resulting from technology transformation capital spending incurred previously and higher cloud costs. The decrease for both periods is partially offset by the increase in revenue.

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General corporate expense increased by $4.5 million for the first quarter of 2025 compared to the same period in 2024. The increase is primarily due to higher amortization of capitalized internal-use software costs.

Current wording

General corporate expense increased by $23.6 million and $27.9 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The increase for both periods is primarily due to higher litigation expense, depreciation and amortization of capitalized internal-use software costs and people costs.

Previous wording

Funds generated by operating activities, our $1.5 billion five year unsecured revolving credit facility ("Revolver") and related commercial paper ("CP") program, more fully described below, are our most significant sources of liquidity. At March 31, 2025, we had $195.2 million in cash and cash equivalents, as well as $1.3 billion available to borrow under our Revolver.

Current wording

Funds generated by operating activities, our $1.5 billion five year unsecured revolving credit facility ("Revolver") and related commercial paper ("CP") program, more fully described below, are our most significant sources of liquidity. At June 30, 2025, we had $189.0 million in cash and cash equivalents, as well as $1.3 billion available to borrow under our Revolver.

Previous wording

We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of March 31, 2025 compared to

Current wording

We believe that our existing cash balance, liquidity available from our CP and Revolver, cash generated from ongoing operations and continued access to public or private debt markets will be sufficient to satisfy cash requirements over the next 12 months and beyond. While there was no significant change in our cash requirements as of June 30, 2025 compared to December 31, 2024, we have utilized existing CP capacity, together with cash from operating activities, to meet our current obligations.

Previous wording

Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of March 31, 2025, we held $174.0 million of cash in our foreign subsidiaries.

Current wording

Fund Transfer Limitations. The ability of certain of our subsidiaries and associated companies to transfer funds to the U.S. may be limited, in some cases, by certain restrictions imposed by foreign governments. These restrictions do not, individually or in the aggregate, materially limit our ability to service our indebtedness, meet our current obligations or pay dividends. As of June 30, 2025, we held $175.5 million of cash in our foreign subsidiaries.