TransUnion
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
TRU$81.18-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001552033-25-000025
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001552033-25-000047
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 259 previous paragraphs and 272 current paragraphs.
190 unchanged; 64 reworded; 12 added; 3 removed; 2 previous and 6 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes potentially significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The OBBBA has multiple effective dates, with certain provisions effective in 2025 and others implemented periodically through 2027. We are currently assessing the impact of the OBBBA on our consolidated financial statements.
Current report
Monevo Acquisition
Current report
On April 1, 2025, we gained control of Monevo Limited (“Monevo”) by acquiring the remaining 70% of the equity of Monevo, of which we previously owned 30%. We accounted for the transaction as a step acquisition in accordance with ASC 805. Accordingly, we remeasured our initial 30% investment, including the call option, at a fair value of $60.8 million, resulting in a non-taxable gain of $12.3 million recorded within other income and (expense), net in the Consolidated Statements of Operations. The results of operations of Monevo subsequent to the acquisition date, which are not material, are reflected in both the U.S. Markets and International segments for the three and six months ended June 30, 2025, which affects the comparability of results to prior year periods. See Part I, Item 1, Note 2 “Business Acquisitions” for further information about this transaction.
Current report
During the second quarter of 2025, we entered into a third-party financing arrangement to purchase certain long-lived assets.
Current report
During the three months ended June 30, 2025, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on June 30, 2025 and expire on December 31, 2027, with a current aggregate notional amount of$1,250.0 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 3.2893% and 3.6920% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.
Current report
For the six months ended June 30, 2025 cost of services increased $102.6 million compared with the same period in 2024. The increase was primarily due to:
Current report
•a net increase of approximately $20.0 million in labor-related costs, primarily due to an increase in stock-based compensation and employee benefits; and
Current report
•a net increase of approximately $17.0 million in labor-related costs, primarily due to an increase in stock-based compensation; and
Current report
For the three months ended June 30, 2025, we reported an effective tax rate of 28.3%, which was higher than the 21.0% U.S. federal corporate statutory rate, primarily due to the impact of nondeductible expenses primarily in connection with executive compensation limitations and the foreign rate differential, partially offset by the non-taxable gain related to our acquisition of Monevo.
Current report
For the three and six months ended June 30, 2025, U.S. Markets revenue increased$81.1 million, or 10.0%, and $149.2 million, or 9.3%, respectively, compared withthe same periods in 2024. Revenue increased in all verticals, and includes revenue from our acquisition of Monevo in our Consumer Interactive vertical.
Current report
The trailing twelve months ended June 30, 2025 includes the nine months of Adjusted EBITDA related to Monevo prior to our acquisition in April 2025.
Current report
During the three months ended June 30, 2025, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on June 30, 2025 and expire on December 31, 2027, with a current aggregate notional amount of$1,250.0 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 3.2893% and 3.6920% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.
Removed paragraphs (3)
Previous report
•a net increase of approximately $5.0 million in labor-related costs, primarily due to an increase in stock-based compensation; and
Previous report
For the three months ended March 31, 2025, U.S. Markets revenue increased$68.0 million, or 8.6%, compared withthe same period in 2024. The increase was due to an increase in our Financial Services and Emerging verticals, partially offset by a decrease in Consumer Interactive.
Previous report
On March 10, 2020, we entered into interest rate swap agree ments with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loans or similar replacement debt. The swaps commenced on June 30, 2022, and expire on June 30, 2025, with a current aggregate notional amount of $1,055.0 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 0.8680% and 0.8800% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.
Reworded paragraphs (64)
Previous wording
During the first three months of 2025, the U.S. economy and labor market remained resilient, with continued GDP growth, rising but still low unemployment, growing real wages and the easing of inflation. The U.S. Federal Reserve maintained higher interest rates during the first quarter of 2025, which continues to have the effect of slowing aggregate demand, resulting in slower jobs growth and a mild increase in unemployment levels. Higher interest rates have also slowed demand for consumer loans and auto loans, and have had a more pronounced impact on the housing sector, where higher borrowing rates impact both home affordability, driving down purchase activity, and demand for mortgage loan refinancing. The slowdown in demand and job growth, along with lower inflation, prompted the U.S. Federal Reserve to begin lowering interest rates at the end of the third quarter and into the fourth quarter of 2024, with three consecutive rate cuts totaling 100 basis points. Further rate cuts could spur renewed consumer confidence to borrow as well as increased demand for rate-sensitive lending products, in particular mortgage loans to the extent that mortgage rates decline in tandem with a lower federal funds rate. However, mortgage rates are not directly tied to the federal funds rate but instead are tied to the 10-year Treasury rates, which rose roughly 100 basis points as of the end of 2024 after hitting a one-year low in September 2024 due to renewed market concerns over inflation. As a result, 30-year mortgage rates remained elevated at year-end, which continues to suppress activity in the housing sector.
Current wording
During the first six months of 2025, the U.S. economy and labor market remained resilient, with continued GDP growth, rising but still low unemployment, growing real wages and the easing of inflation. The U.S. Federal Reserve (the “Fed”) maintained higher interest rates during the first two quarters of 2025, which continues to have the effect of slowing aggregate demand, resulting in slower hiring and jobs growth, though moderate layoffs have kept the overall employment situation stable. Higher interest rates have also slowed demand for consumer loans and auto loans, and have had a more pronounced impact on the housing sector, where higher borrowing rates impact both home affordability, driving down purchase activity, and demand for mortgage loan refinancing. The slowdown in demand and job growth, along with lower inflation, prompted the Fed to begin lowering interest rates at the end of the third quarter and into the fourth quarter of 2024, with three consecutive rate cuts totaling 100 basis points. The Fed has so far paused additional rate cuts in 2025. Further rate cuts could spur renewed consumer confidence to borrow as well as increased demand for rate-sensitive lending products, in particular mortgage loans to the extent that mortgage rates decline in tandem with a lower federal funds rate. However, mortgage rates are not directly tied to the federal funds rate but instead are tied to the 10-year Treasury rates, which, after hitting a one-year low of roughly 3.6% in September 2024, rose nearly 100 basis points through the end of 2024 due to renewed market concerns over inflation. Ten-year Treasury rates have remained above 4.0% through 2025, which are above the levels seen from 2007 through 2023, largely due to continued uncertainty regarding the potential impact of tariffs on prices and the economy. As a result, 30-year mortgage rates remained elevated at year-end 2024 and during the first six months of 2025, which continues to suppress activity in the housing sector.
Previous wording
During the first three months of 2025 and throughout 2024, the U.K. also began to show some initial signs of improvement driven by falling inflation and moderate growth in other economic indicators, though macroeconomic challenges impacting credit markets remain in this region. Foreign central banks, including in Canada and Europe, have also begun to lower rates, which we expect will increase demand for rate-sensitive lending products. These dynamics impact the comparability of our results of operations, including our revenue and expense, between the periods presented below.
Current wording
During the first six months of 2025 and throughout 2024, the U.K. also began to show some initial signs of improvement driven by falling inflation and moderate growth in other economic indicators, though macroeconomic challenges impacting credit markets remain in this region. Foreign central banks, including in Canada and Europe, have also begun to lower rates, which we expect will increase demand for rate-sensitive lending products. These dynamics impact the comparability of our results of operations, including our revenue and expense, between the periods presented below.
Previous wording
We believe that elevated levels of inflation have had, and will continue to have, a negative impact on our business and results of operations, including decreased demand for our services. The U.S. Federal Reserve and several international central banks have begun lowering interest rates in response to significant reductions in inflation levels from peak levels in 2022 and 2023, and have indicated that further interest rate reductions in the future are likely. In the U.S., inflation expectations remain elevated as the labor market remains strong and economic growth resilient, easing pressures on the Federal Reserve to continue lowering rates in 2025, while markets assess the potential implementation and impact of policies of the new administration on inflation. If the tariff rates discussed above are implemented and maintained in their current form, we anticipate increases in inflation in the short term which could further delay the timing of additional rate cuts by the Federal Reserve. Meanwhile, rates that remain elevated relative to historic levels may result in depressed consumer spending on non-essential goods and services, and consequently lower demand for credit, which could have a material adverse impact on various aspects of our business in the future.
Current wording
We believe that elevated levels of inflation have had, and will continue to have, a negative impact on our business and results of operations, including decreased demand for our services. The Fed and several international central banks have begun lowering interest rates in response to significant reductions in inflation levels from peak levels in 2022 and 2023, and have indicated that further interest rate reductions in the future are likely. In the U.S., inflation expectations remain elevated as the labor market remains stable and economic growth resilient, easing pressures on the Fed to continue lowering rates in 2025, while markets assess the potential implementation and impact of policies of the new administration on inflation. If the tariff rates discussed above are implemented and maintained in their current form, we anticipate increases in inflation in the short term which could further delay the timing of additional rate cuts by the Fed. Meanwhile, rates that remain elevated relative to historic levels may result in depressed consumer spending on non-essential goods and services, and consequently lower demand for credit, which could have a material adverse impact on various aspects of our business in the future.
Previous wording
We have incurred cumulative expenses of$182.2 million through March 31, 2025, comprised of restructuring expenses related to employee separation costs and facility exit charges as well as other business optimization expenses. We have accrued liabilities for the payment of employee separation costs of$11.3 million as of March 31, 2025. We have incurred cumulative costs for the final phase of our accelerated technology investment of$104.3 million through March 31, 2025. The remaining costs associated with the operating model optimization program and the final phase of our accelerated technology investment will be incurred in 2025. See Part I, Item 1, “Financial Information – Notes to Unaudited Consolidated Financial Statements,” Note 8, “Restructuring” for additional information about our restructuring expenses and “Results of Operations – Non-GAAP Measures” for additional details of the composition of these expenses.
Current wording
We have incurred cumulative expenses of $187.6 million through June 30, 2025, comprised of restructuring expenses related to employee separation costs and facility exit charges as well as other business optimization expenses. We have accrued liabilities for the payment of employee separation costs of $10.7 million as of June 30, 2025. We have incurred cumulative costs for the final phase of our accelerated technology investment of $127.5 million through June 30, 2025. The remaining costs associated with the operating model optimization program and the final phase of our accelerated technology investment will be incurred in 2025. See Part I, Item 1, “Financial Information – Notes to Unaudited Consolidated Financial Statements,” Note 9, “Restructuring” for additional information about our restructuring expenses and “Results of Operations – Non-GAAP Measures” for additional details of the composition of these expenses.
Previous wording
On February 28, 2025, the CFPB, Trans Union LLC, TransUnion Interactive, Inc. and Mr. Danaher, the former President of Consumer Interactive, filed a joint stipulation with the Court to voluntarily dismiss the lawsuit related to the 2017 Consent Order with prejudice, and the Court dismissed the lawsuit on March 21, 2025. During the three months ended March 31, 2025, we adjusted the $56.0 million previously accrued for this matter to zero, as the loss is no longer probable. See Part I, Item 1, “Financial Information – Notes to Unaudited Consolidated Financial Statements,” Note 15, “Contingencies” for additional information about this matter.
Current wording
On February 28, 2025, the CFPB, Trans Union LLC, TransUnion Interactive, Inc. and Mr. Danaher, the former President of Consumer Interactive, filed a joint stipulation with the Court to voluntarily dismiss the lawsuit related to the 2017 Consent Order with prejudice, and the Court dismissed the lawsuit on March 21, 2025. During the first quarter of 2025, we adjusted the $56.0 million previously accrued for this matter to zero, as the loss is no longer probable. See Part I, Item 1, “Financial Information – Notes to Unaudited Consolidated Financial Statements,” Note 16, “Contingencies” for additional information about this matter.
Previous wording
Repurchased shares are retired, resulting in a reduction to common stock at par with the remainder to additional paid-in capital. Once repurchased the shares are returned to the status of authorized but unissued shares of the Company and reduce the weighted average number of shares of common stock outstanding for purposes of calculating basic and diluted earnings per share. During the three months ended March 31, 2025, the Company repurchased approximately 63,000 shares of common stock for a total of $5.4 million, including commissions and excise taxes, under the 2025 Repurchase Plan. The average price paid per share was $84.86. As of March 31, 2025, $494.7 million remains available for repurchases under the 2025 Repurchase Plan.
Current wording
Repurchased shares are retired, resulting in a reduction to common stock at par with the remainder to additional paid-in capital. Once repurchased, the shares are returned to the status of authorized but unissued shares of the Company and reduce the weighted average number of shares of common stock outstanding for purposes of calculating basic and diluted earnings per share. During the three and six months ended June 30, 2025, the Company repurchased approximately 388,000 and 452,000 shares of common stock, respectively, for a total of $33.5 million and $38.8 million, respectively, including commissions and excise taxes, under the 2025 Repurchase Plan. The average price paid per share for the three and six months ended June 30, 2025 was $86.14 and $85.96, respectively. As of June 30, 2025, $461.6 million remains available for repurchases under the 2025 Repurchase Plan.
Previous wording
On December 12, 2024, we executed Amendment No. 24 to the Senior Secured Credit Facility, pursuant to which we entered into Senior Secured Term Loan B-9 with an aggregate principal amount of$1.9 billion, the proceeds of which were used to repay in full Senior Secured Term Loan B-7. In addition, we increased the principal on Senior Secured Term Loan B-8 by $425.0 million and used the increase in proceeds to repay a portion of Senior Secured Term Loan B-5. In connection with this refinancing, we incurred related financing fees and expenses.
Current wording
On December 12, 2024, we executed Amendment No. 24 to the Senior Secured Credit Facility, pursuant to which we entered into Senior Secured Term Loan B-9 with an aggregate principal amount of $1.9 billion, the proceeds of which were used to repay in full Senior Secured Term Loan B-7. In addition, we increased the principal on Senior Secured Term Loan B-8 by $425.0 million and used the increase in proceeds to repay a portion of Senior Secured Term Loan B-5. In connection with this refinancing, we incurred related financing fees and expenses.
Previous wording
We did not make any debt prepayments during thethree months ended March 31, 2025 and 2024. In the second, third, and fourth quarters of 2024, we prepaid $80.0 million, $25.0 million, and $45.0 million, respectively, for a total of$150.0 million, of our Senior Secured Term Loan B-5, funded from cash-on-hand. These transactions affect the comparability of interest expense between years, as further discussed in “Results of Operations – Non-Operating Income and (Expense) – Interest Expense” below.
Current wording
We did not make any debt prepayments during thethree and six months ended June 30, 2025. In the second, third, and fourth quarters of 2024, we prepaid $80.0 million, $25.0 million, and $45.0 million, respectively, for a total of$150.0 million, of our Senior Secured Term Loan B-5, funded from cash on hand. These transactions affect the comparability of interest expense between years, as further discussed in “Results of Operations – Non-Operating Income and (Expense) – Interest Expense” below.
Previous wording
In 2024, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on December 31, 2024, and expire on December 31, 2027, with a current aggregate notional amount of $1,095.7 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 3.0650% and 3.9925% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.
Current wording
In 2024, we entered into interest rate swap agreements with various counterparties that effectively fix our variable interest rate exposure on a portion of our Senior Secured Term Loan or similar replacement debt. The swaps commenced on December 31, 2024, and expire on December 31, 2027, with a current aggregate notional amount of $1,091.4 million that amortizes each quarter. The swaps require us to pay fixed rates varying between 3.0650% and 3.9925% in exchange for receiving a variable rate that matches the variable rate on our loans. We have designated these swap agreements as cash flow hedges.
Previous wording
Results of Operations —Three Months Ended March 31, 2025 and 2024
Current wording
Results of Operations —Three and Six Months Ended June 30, 2025 and 2024
Previous wording
For the three months ended March 31, 2025 and 2024, our results of operations were as follows:
Current wording
For the three and six months ended June 30, 2025 and 2024, our results of operations were as follows:
Previous wording
For the three months ended March 31, 2025, revenue increased $74.5 million, or 7.3%, compared with the same period in 2024, due to growth in both segments, partially offset by a decrease of 0.8% from the impact of foreign currencies, as further discussed in the Segment Results of Operations section below.
Current wording
For the three and six months ended June 30, 2025 revenue increased $99.0 million, or 9.5% and $173.5 million, or 8.4%, respectively, compared with the same periods in 2024, due to growth in both segments. The impact of foreign currency was flat and a decrease of 0.4%, respectively, compared with the same periods in 2024.
Previous wording
For the three months ended March 31, 2025, cost of services increased $39.4 million compared with the same period in 2024. The increase was primarily due to:
Current wording
For the three months ended June 30, 2025, cost of services increased $63.2 million compared with the same period in 2024. The increase was primarily due to:
Previous wording
•an increase of approximately $22.0 million in product and fulfillment costs primarily due to an increase in certain product cost pricing in our U.S. Markets segment and an increase in volume in both segments, partially offset by a decrease in variable postage related to breach remediation revenue in 2024 in our U.S Markets segment;
Current wording
•an increase of approximately $36.0 million in product and fulfillment costs primarily due to an increase in certain product cost pricing in our U.S. Markets segment and an increase in volume in both segments, partially offset by a decrease in variable postage related to breach remediation revenue in 2024 in our U.S Markets segment;
Previous wording
•a net increase of approximately $9.0 million in labor-related costs, primarily due to an increase in annual incentive compensation, employee benefits and stock-based compensation, partially offset by the realization of benefits from our operating model transformation plan; and
Current wording
•a net increase of approximately $11.0 million in labor-related costs, primarily due to an increase in employee benefits and stock-based compensation, partially offset by the realization of benefits from our operating model transformation plan; and
Previous wording
•an increase of approximately $7.0 million in technology and communications costs, including costs for our accelerated technology investment.
Current wording
•an increase of approximately $12.0 million in technology and communications costs, including costs for our accelerated technology investment.
Previous wording
•an increase of approximately $5.0 million in technology and communications costs, including our accelerated technology investment;
Current wording
•an increase of approximately $4.0 million in technology and communications costs, including our accelerated technology investment.
Previous wording
For the three months ended March 31, 2025, selling, general and administrative expenses decreased $48.8 million compared with the same period in 2024. The decrease was primarily due to:
Current wording
For the six months ended June 30, 2025, selling, general and administrative expenses decreased $24.6 million compared with the same period in 2024. The decrease was primarily due to:
Previous wording
•a decrease of approximately $5.0 million in other professional services and marketing and advertising costs.
Current wording
•a decrease of approximately $7.0 million in other professional services and marketing and advertising costs.
Previous wording
•an increase of approximately $4.0 million from costs related to our operating model optimization program.
Current wording
•an increase of approximately $3.0 million from costs related to our operating model optimization program.
Previous wording
For the three months ended March 31, 2025, depreciation and amortization increased $4.9 million compared with the same period in 2024 primarily due to the increase in capital expenditures related to our accelerated technology investment initiative over the past few years.
Current wording
For the three and six months ended June 30, 2025, depreciation and amortization increased $9.9 million and $14.7 million, respectively, compared with the same periods in 2024, primarily due to the increase in capital expenditures related to our accelerated technology investment initiative over the past few years.
Previous wording
Restructuring expenses relate to our operating model optimization program. For thethree months ended March 31, 2024 these expenses include approximately $16.8 million related to employee separation costsand $1.4 million related to facility exists.
Current wording
Restructuring expenses relate to our operating model optimization program. For thethree and six months ended June 30, 2024 these expenses include approximately $7.9 million and $24.6 million, respectively, related to employee separation costsand $0.2 million and $1.7 million, respectively, related to facility exits.
Previous wording
For the three months ended March 31, 2025, interest expense decreased $12.6 million compared with the same period in 2024. This decrease was due to a decrease in outstanding principal balance due to the prepayments made in 2024 and the debt refinancing transactions over the last 12 months and a decrease in theaverage periodic variable interest rate on the unhedged portion of our debt.
Current wording
For the three and six months ended June 30, 2025, interest expense decreased $12.1 million and $24.7 million, respectively, compared with the same periods in 2024. The decrease was due to a decrease in outstanding principal balance due to prepayments and debt refinancing transactions in 2024 and a decrease in theaverage periodic variable interest rate on the unhedged portion of our debt.
Previous wording
The change in interest income for the current period compared to the prior period was primarily due to an increase in our average investment balances and an increase in interest rates.
Current wording
The change in interest income for the current period compared to the prior period was primarily due to an increase in our average investment balances.
Previous wording
For the three months ended March 31, 2025, debt-related expenses included $0.4 million of debt financing fees. For the three months ended March 31, 2024, debt-related expenses included $3.1 million of unamortized original issue discount, deferred financing fees and other related fees expensed as a result of our debt prepayments and refinancings, and $0.6 million of other debt financing expenses.
Current wording
For the three and six months ended June 30, 2025, debt-related expenses included $0.6 million and $1.1 million, respectively, of other debt financing expenses. For the three and six months ended June 30, 2024, debt-related expenses included $6.0 million and $9.1 million, respectively, of unamortized original issue discount, deferred financing fees and other related fees expensed as a result of our debt prepayments and refinancings, and $0.6 million and $1.1 million, respectively, of other debt financing expenses.
Previous wording
Gain (loss) from post-acquisition adjustments relate to contingent consideration or to assets and liabilities that occurred after the acquisition measurement period. Fair value and impairment adjustments primarily relate to investments and notes receivable. Currency remeasurement gains (losses), net consist of realized foreign currency gains and losses for transactions in currencies other than the functional currency of the corresponding consolidated entity that were settled during the period. Miscellaneous non-operating income and(expense) includes other miscellaneous non-operating income and expense.
Current wording
Gain (loss) from post-acquisition adjustments relate to contingent consideration or to assets and liabilities that occurred after the acquisition measurement period. Fair value and impairment adjustments primarily relate to investments in affiliated companies and notes receivable, and include the gain onour acquisition of Monevo for the three and six months ended June 30, 2025, as further discussed in Part 1, Note 2, “Business Acquisition.” Currency remeasurement gains (losses), net consist of realized foreign currency gains and losses for transactions in currencies other than the functional currency of the corresponding consolidated entity that were settled during the period. Miscellaneous non-operating income and(expense) includes other miscellaneous non-operating income and expense.
Previous wording
For the three months ended March 31, 2025, we reported an effective tax rate of 21.2%, which was higher than the 21.0% U.S. federal corporate statutory rate, primarily due to the impact of nondeductible expenses primarily in connection with executive compensation limitations, the foreign rate differential, and state taxes, partially offset by the impact of the benefit to legal and regulatory expenses from the reduction of an accrued liability to zero for the dismissal of a lawsuit previously treated as nondeductible.
Current wording
For the six months ended June 30, 2025, we reported an effective tax rate of 24.4%, which was higher than the 21.0% U.S. federal corporate statutory rate, primarily due to the impact of nondeductible expenses primarily in connection with executive compensation limitations, and the foreign rate differential, partially offset by the impact of the benefit to legal and regulatory expenses from the reduction of an accrued liability to zero for the dismissal of a lawsuit previously treated as nondeductible.
Previous wording
For the three months ended March 31, 2024, we reported an effective tax rate of 15.7%, which was lower than the 21.0% U.S. federal corporate statutory rate primarily due to the impact of benefits on the remeasurement of deferred taxes due to changes in state apportionment rates, benefits from the foreign rate differential, and the research and development credit, partially offset by the impact of increases for foreign withholding taxes, nondeductible expenses primarily in connection with executive compensation limitations and uncertain tax positions.
Current wording
For the six months ended June 30, 2024, we reported an effective tax rate of 21.6%, which was higher than the 21.0% U.S. federal corporate statutory rate primarily due to foreign withholding taxes, nondeductible expenses primarily in connection with executive compensation limitations and uncertain tax positions, partially offset by benefits from the foreign rate differential, the remeasurement of deferred taxes due to changes in state apportionment rates, and the research and development credit.
Previous wording
Segment Results of Operations—Three Months Ended March 31, 2025 and 2024
Current wording
Segment Results of Operations—Three and Six Months Ended June 30, 2025 and 2024
Previous wording
Management, including our CODM, evaluates the financial performance of our businesses based on revenue and segment Adjusted EBITDA. For the three months ended March 31, 2025 and 2024, our segment revenue, segment Adjusted EBITDA and segment Adjusted EBITDA Margin were as follows:
Current wording
Management, including our CODM, evaluates the financial performance of our businesses based on revenue and segment Adjusted EBITDA. For the three and six months ended June 30, 2025 and 2024, our segment revenue, segment Adjusted EBITDA and segment Adjusted EBITDA Margin were as follows:
Previous wording
Financial Services: For the three months ended March 31, 2025, revenue increased $51.8 million, or 14.7%, compared with the same period in 2024. A majority of the growth in Financial Services comes from our Mortgage line of business, primarily due to increases in price. Our other lines of business also grew, primarily due new business wins, price increases in our Auto line of business, volume increases and higher batch activity in our Consumer Lending and Card & Banking line of business.
Current wording
Financial Services: For the three and six months ended June 30, 2025, revenue increased $61.3 million, or 17.1%, and $113.1 million, or 15.9%, respectively, compared with the same periods in 2024. A majority of the growth in Financial Services comes from our Mortgage line of business, primarily due to increases in price. Our other lines of business also grew, primarily due to price increases in our Auto line of business, volume increases, higher batch revenue, and new business wins.
Previous wording
Emerging Verticals: For the three months ended March 31, 2025, revenue increased $17.4 million, or 5.8%, compared with the same period in 2024. The increase was primarily due to an increase in the Insurance and most other verticals from price increases, new business wins and an increase in volumes.
Current wording
Emerging Verticals: For the three and six months ended June 30, 2025, revenue increased $15.1 million, or 4.9%, and $32.5 million, or 5.4%, respectively, compared with the same periods in 2024. The increase was primarily due to an increase in Insurance and most other verticals from volume increases across online and batch services, new business wins and pricing increases.
Previous wording
Consumer Interactive: For the three months ended March 31, 2025, revenue decreased $1.2 million, or 0.8%, compared with the same period in 2024. The decrease was primarily due to a decrease in breach remediation revenue and slowing demand for paid credit products, partially offset by new business wins.
Current wording
Consumer Interactive: For the three and six months ended June 30, 2025, revenue increased $4.8 million, or 3.3%, and $3.6 million, or 1.3%, respectively, compared with the same periods in 2024. The acquisition of Monevo contributed 1.5% and 0.7% of the increase in each respective period. The rest of the increase was primarily due to new business wins, partially offset by a decrease in breach remediation revenue and slowing demand for paid credit products.
Previous wording
For the three months ended March 31, 2025, Adjusted EBITDA increased $35.0 million compared with the same period in 2024, primarily due to an increase in revenue and a decrease in labor costs from our operating model optimization program, partially offset by higher variable product and fulfillment costs. For the three months ended March 31, 2025, Adjusted EBITDA margins increased 1.2% compared with the same period in 2024, primarily due to high-margin revenue growth and realization of cost savings from the transformation plan.
Current wording
For the three and six months ended June 30, 2025, Adjusted EBITDA increased $21.5 million and $56.4 million, respectively, compared with the same periods in 2024, primarily due to an increase in revenue, partially offset by higher variable product and fulfillment costs and other costs. For the three and six months ended June 30, 2025, Adjusted EBITDA margins decreased 1.1% in the three-month period and were flat for the six-month period, primarily due to higher labor and technology costs and a shift in the mix of revenue.
Previous wording
For the three months ended March 31, 2025, International revenue increased $5.9 million, or 2.5%, compared with the same period in 2024 primarily due to higher local currency revenue in all regions, driven by increased volumes from improving economic conditions and new product initiatives, partially offset by a decrease of 3.5% from the impact of foreign currencies.
Current wording
For the three and six months ended June 30, 2025, International revenue increased $17.4 million, or 7.4%, and $23.3 million, or 4.9%, respectively, compared with the same periods in 2024 primarily due to higher local currency revenue in all regions except for Asia Pacific, driven by increased volumes from improving economic conditions and new product initiatives. The acquisition of Monevo contributed 2.0% and 1.0% of the increase in each respective period. The impact of foreign currencies was flat for the three-month period and a decrease of 1.8% for the six-month period, compared with the same periods in 2024.
Previous wording
Canada: For the three months ended March 31, 2025, Canada revenue increased $0.2 million, or 0.4%, compared with the same period in 2024, primarily due to higher local currency revenue from broad-based volume increases, new business wins, and increased breach services, partially offset bya decrease of 6.4% from the impact of foreign currencies.
Current wording
Canada: For the three and six months ended June 30, 2025, Canada revenue increased $3.5 million, or 9.0%, and$3.7 million, or 4.8%, respectively, compared with the same periods in 2024, primarily due to higher local currency revenue from broad-based volume increases, new business wins, and increased breach services for the six month period, partially offset bya decrease of 1.4% and 3.9%, respectively, from the impact of foreign currencies.
Previous wording
Latin America: For the three months ended March 31, 2025, Latin America revenue decreased $0.2 million, or 0.5%, compared with the same period in 2024, primarily due toa decrease of 7.4% from the impact of foreign currencies, partially offset by higher local currency revenue from broad-based volume increases, new business wins, and higher batch services across several of our markets.
Current wording
Latin America: For the three and six months ended June 30, 2025, Latin America revenue decreased $0.4 million, or 1.0%, and $0.5 million, or 0.8%, respectively, compared with the same periods in 2024, primarily due toa decrease of 5.1% and 6.2%, respectively, from the impact of foreign currencies, partially offset by higher local currency revenue from broad-based volume increases, new business wins, and higher batch services across several of our markets.
Previous wording
United Kingdom: For the three months ended March 31, 2025, United Kingdom revenue increased $4.7 million, or 8.6%, compared with the same period in 2024, primarily due to volume increases and new business wins, partially offset bya decrease of 0.9% from the impact of foreign currency.
Current wording
United Kingdom: For the three and six months ended June 30, 2025, United Kingdom revenue increased $10.6 million, or 18.7%, and $15.3 million, or 13.8%, respectively, compared with the same periods in 2024, primarily due to an increase of 8.4% and 4.3%, respectively, from revenue of our acquisition of Monevo, volume increases and new business wins, andan increase of 6.2% and 2.7%, respectively, from the impact of foreign currency.
Previous wording
Africa: For the three months ended March 31, 2025, Africa revenue increased $1.8 million, or 11.9%, comp ared with the same period in 2024, primarily due to meaningful new business wins and contract renewals as well as volume growth in emerging countries and emerging verticals. The impact of foreign currencies result inan increase of 2.4%.
Current wording
Africa: For the three and six months ended June 30, 2025, Africa revenue increased $2.4 million, or 15.0%, and $4.2 million, or 13.5%, respectively, comp ared with the same periods in 2024, primarily due to meaningful new business wins and contract renewals as well as volume growth in emerging countries and emerging verticals. The impact of foreign currencies resulted inan increase in revenue of 1.3% and 1.8%, respectively, compared with the same periods in 2024.
Previous wording
India: For the three months ended March 31, 2025, India revenue decreased $2.4 million, or 3.3%, compared with the same period in 2024, primarily due toa decrease of 4.2% from the impact of foreign currencies, partially offset by higher local currency revenue from higher commercial volumes and new contracts.
Current wording
India: For the three and six months ended June 30, 2025, India revenue increased $3.1 million, or 4.8%, and $0.7 million, or 0.5%, respectively, compared with the same periods in 2024, primarily due to higher local currency revenue from higher commercial volumes and new contracts, partially offset by lower consumer online volume anda decrease of 2.7% and 3.5%, respectively, from the impact of foreign currencies.
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Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
•an increase of approximately $58.0 million in product and fulfillment costs primarily due to an increase in certain product cost pricing in our U.S. Markets segment and an increase in volume in both segments, partially offset by a decrease in variable postage related to breach remediation revenue in 2024 in our U.S Markets segment;
Current report — wording carried from elsewhere
•an increase of approximately $19.0 million in technology and communications costs, including costs for our accelerated technology investment.
Current report — wording carried from elsewhere
For the three months ended June 30, 2025, selling, general and administrative expenses increased $24.2 million compared with the same period in 2024. The increase was primarily due to:
Current report — wording carried from elsewhere
•a net increase of approximately $22.0 million in labor-related costs, primarily due to an increase in stock-based compensation and employee benefits; and
Current report — wording carried from elsewhere
•an increase of approximately $9.0 million in technology and communications costs, including our accelerated technology investment; and
Current report — wording carried from elsewhere
For the three months ended June 30, 2024, we reported an effective tax rate of 25.7%, which was lower than the 21.0% U.S. federal corporate statutory rate primarily due to foreign withholding taxes, nondeductible expenses primarily in connection with executive compensation limitations and uncertain tax positions, partially offset by benefits from the foreign rate differential and the research and development credit.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
We have no obligation to repurchase additional shares, and the timing, actual number and value of the shares that arerepurchased, if any, are at the discretion of management and depend on a number of factors, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. Repurchases may be suspended, terminated or modified at any time for any reason and the 2025 Repurchase Plan does not have an expiration date.
Previous report — wording carried elsewhere
“Commitments” for information about our long-term debt obligations, noncancelable lease obligations, and noncancelable purchase obligations as of December 31, 2024.