The paragraph is an introduction to the Equifax, Inc. Q1 2025 Earnings Conference Call. The operator greets participants and informs them of the listen-only mode and recording of the call. Trevor Burns, the Senior Vice President and Head of Corporate Investor Relations, introduces himself and some key attendees, including the CEO, Mark Begor, and CFO, John Gamble. He mentions that the call is recorded and archived on their Investor Relations website, where presentation materials and related financial tables can also be found. The call will include forward-looking statements and references to non-GAAP financial measures, with corresponding reconciliations available online. Trevor Burns then hands over to Mark Begor.

In the first quarter of 2025, Equifax reported strong financial performance with revenue reaching $1.442 billion, surpassing guidance due to broad-based growth, particularly in non-mortgage verticals and USIS. Adjusted EPS was also above expectations, thanks to higher revenue growth and improved margins. The company achieved its debt leverage goal and is focusing on leveraging its cloud capabilities to drive innovation and growth. Equifax launched a new mortgage solution providing employment and income data alongside credit files, experiencing strong customer demand. Similar solutions for the auto and personal loan sectors are planned for later this year. EWS revenue exceeded expectations, primarily driven by talent and government sectors.

In the third paragraph, the EWS team reported impressive EBITDA margins exceeding 50%, surpassing expectations. They noted positive changes in Washington regarding social service and tax integrity, which benefits workforce solutions. EWS expanded its federal government use cases, securing an amended agreement with the SSA worth $50 million annually. This amendment enhances monthly income and employment data solutions for disability benefit applicants. EWS added 3 million active records, totaling 191 million, and signed agreements with three new partners, expecting record and revenue growth by 2025. USIS saw a 7% revenue increase, focusing on customer innovation and new products after completing cloud infrastructure work.

The team achieved nearly 7% revenue growth in constant currency internationally and completed transformational activities in Spain, alongside successful new product launches with a vitality index of 11%, surpassing their long-term target. While experiencing strong performance across all business units, especially in non-mortgage and USIS mortgage products, they are cautious about economic uncertainties, such as tariffs affecting inflation and interest rates, which is why they are maintaining their 2025 financial guidance despite strong first-quarter results. Confident in the Equifax long-term growth model, they aim for revenue growth, margin expansion, and strong free cash flow, projecting approximately $900 million in free cash flow with 95% cash conversion for the year, while completing EFX cloud efforts to enhance efficiency.

Equifax's new long-term capital allocation framework aligns with its EFX 2027 growth strategy, focusing on maintaining a strong financial position, investing in growth through high-return capital investments, executing bolt-on M&A strategies, and returning capital to shareholders. They plan to allocate 6% to 7% of revenue for CapEx due to their less capital-intensive cloud infrastructure. The framework includes a 28% increase in the quarterly dividend to $0.50 per share and a $3 billion share repurchase program. This boost in dividends reflects confidence in their business model, with plans to increase dividends annually in line with earnings growth.

The paragraph outlines Equifax's new $3 billion share repurchase program intended to be executed over the next four years, balancing this with maintaining a strong financial position and ongoing investments. The company plans to adjust repurchase levels based on market conditions and M&A activities. The expectation is to return approximately $1 billion annually to shareholders through increased dividends and share buybacks as free cash flow improves and the mortgage market recovers. Equifax reported better-than-expected first-quarter results with revenue and adjusted EPS above projections and strong growth in its non-mortgage sectors, particularly in card, auto, talent, and consumer lending.

In the quarter, Equifax's mortgage revenue increased by 7%, contributing significantly to exceeding their revenue expectations, with U.S. Information Solutions (USIS) experiencing an 11% rise due to robust mortgage PreQual and preapproval products. This improvement was aided by a 30 basis point drop in mortgage rates, enhancing mortgage inquiries, particularly in refinancing. While EWS mortgage revenue rose by 3%, they anticipate continued volatility in mortgage activity due to economic uncertainty and interest rate fluctuations, maintaining a 2025 forecast of a 12% market decline. Workforce solutions revenue grew by 3%, with stronger-than-expected growth in government, talent solutions, and consumer lending sectors.

In the recent quarter, Talent Solutions saw a 12% increase in revenue, driven by improved hiring and favorable comparisons to last year. This segment outperformed with new records, products, and solutions from its verified data hub. Government revenue grew by 2%, facing challenges from changes in CMS, federal funding practices, and comparisons to previous volumes. A 10% growth in government revenue is expected in the year's second half, boosted by a new $50 million SSA amendment and expansion in state agency penetration. Consumer lending revenue rose 11% due to strong execution across various lending areas and new products. However, Employer Services revenue declined by 8% due to a weaker hiring market affecting I-9 and onboarding revenues. Workforce solutions had strong performance, with adjusted EBITDA margins exceeding expectations and significant growth in partner and record additions, underscoring the potential for future growth in the $5 billion government TAM at various levels.

In 2025, EWS expects government revenue of around $800 million, with a 10% growth acceleration in the second half of the year. The new Washington administration is focusing on program integrity and reducing $160 billion in improper payments within social service and tax programs. EWS is advancing in agencies like CMS, SSA, and SNAP TANF, leveraging verified income verification services to enhance program integrity. Additionally, efforts are being made to expand services at the state level and increase utilization of innovative solutions like "twin." The full implementation of these services can significantly impact improper payments, as shown by a recent $50 million SSA amendment. Equifax is aggressively pursuing opportunities in Washington and state agencies to aid in efficient social service delivery. Also, USIS reported a strong quarter with a 7% increase in revenue, driven by 6% growth in non-mortgage revenue and a 5% growth in B2B non-mortgage revenue, which exceeded expectations.

The paragraph discusses Equifax's business performance in various sectors and regions. In the B2B online space, there is stable lending with slight revenue growth in financial institutions and automotive sectors. Offline B2B financial marketing services saw a strong 10% growth, driven by new data delivery services via the Equifax cloud. Consumer Solutions revenue increased by 8%, and USIS adjusted EBITDA margins improved. Internationally, revenue grew by 7% with strong performance in Latin America, especially Brazil and Argentina, while Asia Pacific also performed well. However, Canada and Europe's growth was weaker due to economic conditions. International adjusted EBITDA margins slightly decreased. A significant milestone was achieved with Equifax launching a new solution combining twin and credit data for mortgage shopping.

Equifax is advancing its innovation phase by utilizing its unique income, employment, and credit data, enabled by its cloud and AI capabilities. The company plans to release new credit solutions for auto and personal loans and has already seen a strong vitality index, exceeding its long-term goals. Despite economic and market uncertainties, such as inflation and interest rate concerns, Equifax remains confident in its strategic position. The company continues to deliver strong performances and is prepared for economic fluctuations due to its business mix, subscription revenue growth, and technological advancements. Equifax has mostly completed its cloud and data transformations, enhancing stability and innovation, and is focused on improving its cost structure.

The paragraph discusses Equifax's strong position to capitalize on economic downturns, highlighting the growth potential in its government business and workforce solutions, which are expected to thrive in a recession. The company's operations, such as unemployment claims management and identity fraud, are recession-resistant or countercyclical, making up 67% of the revenue. This is a significant increase from previous years, showcasing increased resilience. Despite a hypothetical recession with a negative GDP and lower interest rates, Equifax anticipates revenue growth of 5% to 10%, backed by its strong balance sheet, cash flow, and declining capital spending after cloud investments.

The paragraph discusses Equifax's outlook on its non-mortgage and mortgage businesses. The company anticipates low single-digit growth in its non-mortgage sectors, despite some recession-affected declines. The U.S. mortgage market is currently weak, with activity 50% below pre-pandemic levels, yet presents a $1.2 billion revenue opportunity. With many recent mortgages issued at high interest rates, Equifax expects significant refinancing activity and purchase mortgages growth if rates decline, especially during a recession. This could lead to substantial revenue increases for Equifax, potentially growing 5% to 10% in a typical recession, and more if conditions improve, highlighting the company's robust position in the market.

The paragraph outlines Equifax's financial expectations and guidance amidst economic uncertainty. Despite a downturn in USIS mortgage hard inquiries, forecasted to decrease by 12% for 2025, Equifax plans to maintain its growth and capital strategy. This includes continued investment in capital expenditures and mergers and acquisitions, along with sustaining a strong balance sheet. The 2025 revenue guidance remains unchanged from February, apart from a $20 million increase due to favorable foreign exchange rates, with organic growth holding at 6%. Guidance for the second quarter of 2025 estimates a revenue increase of over 5.5% on a reported basis and over 6.5% in constant dollar terms. Quarterly share repurchase levels and their impact will be disclosed.

In the second quarter of 2025, Equifax anticipates adjusted EPS to range from $1.85 to $1.95 per share, marking an increase of over 4.5% from the previous year, driven by revenue growth and reduced interest expenses. Adjusted EBITDA margins are projected to exceed 32.5%, reflecting strong revenue growth and improved margins in the USIS and international segments. Workforce Solutions is expected to see revenue growth of over 6.5%, with verification services up by more than 8% and mortgage revenue increasing by about 6%, despite a decline in the mortgage market. Verifier non-mortgage and government revenues are projected to rise, while talent revenue will grow modestly due to hiring declines. Meanwhile, the USIS segment is expected to achieve a 6.5% revenue growth, with a notable 11% increase in mortgage revenue, despite challenges with hard inquiries. Overall, EBITDA margins are expected to improve significantly.

The paragraph discusses Equifax's financial expectations and strategic plans for 2025. Despite strong recent performance, the company anticipates challenging U.S. mortgage and hiring markets due to economic and market uncertainties, particularly related to conditions in Washington. Equifax expects 6% constant currency revenue growth for the year. The company's long-term growth framework targets 8% to 12% growth, combining M&A and organic growth, with annual margin expansion and robust free cash flow. Although first-quarter results exceeded expectations, Equifax chose to maintain its full year 2025 guidance due to prevailing uncertainties, emphasizing the company's resilient business model and plan to return cash to shareholders.

Equifax has announced a significant update to its long-term capital allocation plan, including a 28% increase in its quarterly dividend to $0.50 per share and the launch of a $3 billion share repurchase program to be completed over four years. The plan focuses on investing in high-return opportunities across the company, including capital expenditures and mergers and acquisitions, while maintaining a strong balance sheet and returning cash to shareholders. With its cloud transformation largely complete, Equifax aims to leverage its new cloud capabilities, data assets, and analytics platform to develop innovative credit solutions and accelerate growth in sectors like mortgage and auto. The company anticipates a strong start to 2025 and looks forward to an Investor Day on June 17 in New York City, where leadership will discuss long-term growth plans aligned with the EFX 2027 growth framework.

The paragraph discusses ongoing discussions and efforts surrounding a federal initiative to address improper payments amounting to $160 billion annually. Mark Begor highlights the government's interest in tackling this issue, particularly by authenticating income more frequently and accurately. The company is actively engaging with government agencies, evidenced by their increasing presence in Washington, to contribute solutions through the TWIN system. The discussions are described as constructive, focusing on ensuring that social services are provided to deserving individuals while withdrawing benefits from those who no longer qualify.

The paragraph discusses the efforts and progress made by a company in implementing systems to prevent improper payments in social services and tax refunds, particularly with the IRS on the earned income tax credit and the "Do Not Pay" system. The company sees significant market potential at the state level, with many states and agencies not yet using their data. The current administration in Washington is viewed positively, with a focus on integrity in social services and tax payments. The company is actively working with state resources to expand its presence and capitalize on the integrity-focused mentality. Jeff Meuler comments on the business's resilience and the recession framework provided.

In this paragraph, Mark Begor discusses how Equifax estimated a modest 3% to 5% decline in business due to the recession, which may still exceed investor expectations. This estimate was derived by analyzing how their business lines performed during previous economic downturns, such as the 2008-2009 financial crisis and the COVID-19 pandemic. Equifax has increased its subscription-based revenue, which remains stable during economic challenges. Additionally, there's a counter-cyclical element where economic events lead to increased data usage for managing existing credit portfolios and identifying creditworthy consumers. John Gamble is mentioned, likely to confirm or clarify Mark Begor's points.

The paragraph discusses the impact of economic recessions on business growth, particularly focusing on the company's long-term framework, which expects a 7% to 10% growth in non-mortgage sectors. It notes a substantial decline in growth to 3% to 5%, highlighting the material impact similar to past recessions. Mark Begor mentions that while the mortgage sector is typically affected by interest rate cuts during recessions, other business areas like government services and unemployment claims can benefit due to increased demand, as seen during the COVID-19 pandemic. The company has experienced a shift in its business mix and revenue model, with a growing emphasis on subscription revenue compared to transaction revenue over recent years, which affects its recession resilience and overall revenue composition.

In the discussion, an unidentified company representative emphasizes the growth potential of their non-mortgage business, particularly during a typical recession, indicating a strategic focus on recession-resilient revenue streams. Andrew Steinerman from JPMorgan asks about the percentage of U.S. mortgage revenues and about free cash flow conversion for the year. John Gamble responds, clarifying that 21% of their revenue comes from U.S. mortgages. The conversation suggests an expectation of strong free cash flow conversion for the year, despite lower conversion in the first quarter, and this strong conversion is expected to continue in the future.

In the paragraph, Equifax discusses its first-quarter free cash flow, explaining that it is typically lower due to large variable compensation payments from the previous year. In 2025, these payments were larger than in 2024 because 2023 was a tough year with reduced compensation. Despite this, if normalized, free cash flow growth would exceed 20% from Q1 2024 to Q1 2025, aligning well with their guidance of $900 million. Additionally, Equifax has good visibility for most business lines in the second quarter, except for uncertainties related to mortgage rates. The auto sector shows strength, possibly due to pre-tariff buying.

The paragraph discusses the performance and expectations for various business segments of a company. Despite no negative impact on other businesses and muted activity, there was improvement in mortgage activity due to lower rates. The guidance for the second quarter and year reflects recent mortgage trends. Toni Kaplan from Morgan Stanley asks about government business expectations, which Mark Begor confirms will experience low double-digit growth distributed normally throughout the quarters. The Talent segment performed better than expected in the first quarter due to improved hiring conditions, particularly in February and March, after a tight market at the end of the previous year.

The paragraph discusses the strong performance of the Talent segment, driven by new product execution and market expansion. This growth helps the company outpace the market, supported by record additions in the Workforce Solutions business. John Gamble notes that the low single-digit growth is partly due to a weaker first quarter in the previous year and anticipates a decrease in hiring throughout the year. Despite this, the company hasn't changed its full-year guidance, initially set in February, reflecting expectations of continued weaker hiring. Kyle Peterson from Needham & Company inquires about the guidance, noting recent market volatility. Mark Begor confirms that their guidance accounts for the first-quarter outperforming expectations and recent conditions.

In the paragraph, the speakers discuss their decision to maintain cautious full-year financial guidance due to economic uncertainties, despite a strong first quarter and expected decent second quarter performance. They mention concerns about a potential recession predicted by economists for the second half of the year. John Gamble notes a recent weakening trend in mortgage-related activities due to rising mortgage rates, which aligns with their current yearly guidance. However, other business areas have not shown similar weakening trends, indicating the non-mortgage business remains stable.

The paragraph discusses the current economic outlook and consumer behavior as perceived by Mark Begor and John Gamble. They note that businesses are performing well, with low unemployment suggesting a stable consumer base. However, there's some concern about potential economic events in the latter half of the year, influenced by activities in Washington. While there has been a slight decrease in consumer confidence in Canada and the U.K., largely due to tariff impacts, overall economic changes are minimal. Employment remains a key indicator for economic health, with recent data showing stability. Despite uncertainties, trends indicate consistent consumer health over the past 18 months, though there are slight increases in delinquencies among subprime, card, and auto sectors.

In the paragraph, Shlomo Rosenbaum from Stifel poses a question about the response of banking and financial customers to current market conditions, particularly concerning whether they are proactive or reactive. Mark Begor responds by saying that due to the advanced data and expertise in financial services, these companies are quite responsive. Although there have been subprime delinquencies, the main consumer base remains stable, and there's no significant increase in special projects or rescoring portfolios yet. He notes that while they are prepared for potential consumer stress or unemployment issues, such pressures have not yet materialized. However, they anticipate seeing some impact later in the year due to the resumption of student loan collections, following a recent announcement by the Department of Education.

The paragraph discusses how Equifax plans to help its customers manage economic changes by providing data on impacts and financial services exposure, especially as consumer and corporate confidence declines. It highlights that despite concerns, business activities remain strong, with offline revenue growth and investments in data analytics tools like Data Fabric and Ignite. There's a mention of customers tightening credit lines and doing more portfolio management, which could benefit Equifax in an economic downturn. The conversation then shifts to a competitor, Truework, being acquired by Checker, prompting an inquiry into Equifax's perspective on this industry development.

In the paragraph, Mark Begor discusses the limited impact of a recent business acquisition by Checkers, with revenue around $20-$25 million, on their marketplace. He acknowledges that Checkers relies on manual verifications, contrasting with their own data assets, but he respects their customer relationship and anticipates possible future engagement post-acquisition. The conversation then shifts to a question from Andrew Nicholas about how a recession scenario might affect Equifax’s margins. Begor explains that Equifax experiences high incremental margins from both mortgage and non-mortgage growth, suggesting operating leverage benefits if the business grows within the 5% to 10% range.

The paragraph discusses a company's strategy during economic events. Despite not explicitly planning for economic downturns in their model, the company can adjust construction costs as needed. Historically, during events like the COVID-19 pandemic, they continued to invest due to their confidence in future growth and high incremental margins, expecting income and margin growth. They typically aim for a 7% to 10% long-term organic growth rate, with the potential to increase margins by 50 basis points, although lower growth could affect margins. Margins are stronger in non-mortgage areas compared to mortgage sectors, primarily due to payments to partners and vendors. The paragraph concludes with a question about whether automated verification services are prioritized over manual options or consumer-led verifications during volatile economic conditions.

Mark Begor discusses the positive impact of comprehensive income and employment data in economic events, emphasizing the advantage of understanding credit scores and employment status in promoting consumer confidence and better credit card origination. He highlights the value of Equifax's alternative data solutions, such as NC Plus, DataX, and Teletrac, and the power of their One Score solution to enhance credit profiles. With a complete cloud infrastructure and EFX.AI, Equifax is poised to offer enhanced, high-performing data solutions that are especially valuable in economic downturns, helping customers identify creditworthy consumers. Begor notes their focus on innovation and product development post-cloud transition, citing the TWIN indicator for mortgages and plans to expand similar innovations in auto and personal loans.

The paragraph discusses the early positive reception of a new product feature called the TWIN indicator in the mortgage industry. Mark Begor explains that within just 60 days of its launch, mortgage professionals have highly valued the additional data provided by the TWIN indicator. It offers insights such as employment status and average income over the past 12 months, enhancing mortgage lenders' ability to assess potential borrowers beyond just credit scores. This added information helps lenders efficiently allocate resources to the most promising clients, potentially reducing the $5,000 expenditure associated with turning a prospect into a closed loan, thereby enhancing the value of their credit file.

The paragraph discusses a strategy to implement income and employment validation indicators within auto and personal loan markets, aiming to enhance the loan approval process by providing visibility into a consumer's capacity and propensity to repay. Mark Begor addresses potential concerns about the cannibalization of markets, explaining that while maintaining a balance of information shared during the shopping process, their methods are expected to bring more adoption of their TWIN system. This system does not yet see full adoption, particularly in mortgage origination. They anticipate benefits in increasing their reach and improving the shopping experience, while efforts to expand are expected to accelerate throughout the year.

The paragraph is a transcript from a discussion involving Jason Haas, John Gamble, and Mark Begor, where they address the outlook for EWS (presumably a business or segment), specifically regarding its margins. John Gamble mentions that EWS margins are expected to remain over 50% and are improving sequentially, despite being impacted by a downturn in the mortgage market. Subsequently, an unidentified analyst questions Mark Begor about the company's acquisition strategy, asking whether they intend to grow TWIN records organically through partnerships or through mergers and acquisitions (M&A). Mark Begor responds by emphasizing that bolt-on M&A is a crucial part of their strategic approach.

Equifax has a long-term strategy to achieve an 8% to 12% growth rate annually, with 1 to 2 percentage points of that growth coming from bolt-on mergers and acquisitions (M&A). Their strategy focuses on small, strategic acquisitions rather than large or transformational ones, aiming to strengthen core areas like Workforce Solutions, differentiated data, identity and fraud, and international platforms. They have made eight acquisitions in the past five years to enhance their workforce solutions. The company did not pursue the Checker acquisition as it did not align with their strategic goals. Equifax plans to maintain high investment levels in new products and aims to continue returning cash to shareholders through dividends and buybacks, supported by ample cash flow and leverage capacity.

In the paragraph, David Paige asks for clarification about an amended SSA agreement, inquiring if the additional revenue mentioned is $50 million or $100 million. Mark Begor explains that it is approximately $50 million and part of a contract extension made over a year ago. He highlights the value of the TWIN program, which recently launched, and expects it to contribute to Equifax's long-term revenue. Kevin McVeigh from UBS then asks about the decision to initiate capital returns amid macro uncertainty. Begor responds by stating that the move was long planned, highlighted by the significant milestone of nearly completing their transition to the cloud.

The paragraph discusses Equifax's strategic decision to adjust capital expenditure (CapEx) after years of substantial investment using excess free cash flow. Having assessed their post-cloud operations across various segments like USIS and EWS, the company felt confident in their ability to innovate, roll out new products, and maintain growth even during potential economic downturns. This confidence allowed them to defer certain actions to a later time, with full support from the Board. They remain committed to consistently paying and growing dividends while also engaging in share buybacks. Moreover, the company has achieved a targeted leverage ratio of 2.5 times on their balance sheet, along with reducing capital expenditure, which solidifies their free cash flow outlook. The paragraph ends with a discussion about pricing dynamics and whether recent financial outcomes were anticipated in their guidance.

In the paragraph, Mark Begor addresses questions about pricing dynamics and expectations under different economic scenarios. He confirms that Equifax's pricing is already included in their 2025 guidance and was established in February, with no changes planned. He notes that pricing generally adjusts annually on January 1st, though government contracts may vary due to their multi-year nature. Kelsey Zhu from Autonomous Research inquires about Equifax's growth expectations under a stagflation scenario, characterized by high inflation, low growth, and high interest rates. Begor responds that they have not conducted a specific analysis for stagflation but focused on a typical recession scenario instead.

The paragraph discusses the impact of changes in funding practices by CMS and USDA on certain government contracts and highlights the shift from full federal reimbursement to a cost-sharing model with states. The speaker anticipates potential policy reversals that might restore full federal reimbursement to encourage the use of verified data, which could reduce improper payments. The focus is on expanding state-level adoption of their solutions as a key growth driver for future years, with increased attention from the current administration on addressing improper payments. The company has factored these elements into its growth projections and strategic planning for existing and new contracts.

The paragraph discusses a company's strategy to address $160 billion of improper payments with its solutions. They are increasing their presence in Washington to assist agencies and adding resources at the state level to expand their market. A $50 million contract was announced, contributing to their $800 million business and indicating growth. Additionally, during a Q&A session, Simon Clinch inquires about revenue growth in the EWS and Talent segments. John Gamble replies that while they previously offered detailed revenue forecasts, moving forward, they will provide a general view of EWS mortgage revenue, but no longer share specific component statistics.

The paragraph discusses Equifax's international efforts in expanding their EWS (Employment and Wage Solutions) across markets in Australia, Canada, the U.K., and India. Mark Begor mentions that while these efforts show positive traction, the penetration in these markets is still developing, and significant impact on Equifax's business will take time. The company remains focused on growth and investment in these markets. In response to a question on U.S. hiring, John Gamble confirms that their hiring guidance remains unchanged, despite first-quarter outperformance, indicating a cautious outlook for the rest of the year.

In the article's paragraph 43, Mark Begor discusses the company's financial guidance, noting an adjustment to a negative 12% for the year in USIS inquiries, based on recent trends. The initial stronger performance in the first quarter was attributed to non-mortgage activity and better execution on prequal products, despite a temporary mortgage activity boost due to lower mortgage rates. However, with the 10-year rate increase and economic concerns, recent activity has declined, leading to the adjusted forecast. Matt O'Neill questions the impact on white-collar hiring and the company's capital allocation balance. Begor responds, indicating no recent change in hiring trends and emphasizes a balanced approach to capital allocation.

The paragraph outlines Equifax's strategic priorities regarding capital expenditure (CapEx), mergers and acquisitions (M&A), and shareholder returns. The company emphasizes investing in CapEx for high organic returns, focusing on disciplined bolt-on M&A to enhance growth and margins, highlighting successful past acquisitions like Appriss Insights and Boa Vista. Equifax is committed to maintaining a steady dividend aligned with earnings growth of 5% to 15%. Additionally, they have announced a $3 billion, 4-year share buyback program aimed at leveraging growth and free cash flow, with plans for opportunistic market purchases during trading windows.

The paragraph discusses the impact of cloud transformation on a company's USIS non-mortgage business. The company experienced significant acceleration in this sector in the first quarter compared to the previous one, which was largely attributed to the completion of their cloud transformation rather than changes in market conditions. Mark Begor emphasizes that the shift in momentum is due to the company's enhanced ability to execute and engage with customers after the cloud migration. The cloud transformation has allowed the company to focus more effectively on growing the business, as previous customer interactions were dominated by migration discussions.

The paragraph discusses the positive impacts of Equifax's transformation to a cloud-native platform on its U.S. Information Solutions (USIS) division. The shift to cloud has driven increased customer engagement, innovation, and product development, leading to share gains and outperforming expectations. This improvement is linked to the advantages of being always-on and having faster data transmission, with customers responding positively. Additionally, new data solutions like the mortgage TWIN indicator are set to further differentiate USIS in the market. The cost benefits are evident as the migration of consumer databases to the cloud is complete, decommissioning prior infrastructure and improving margins.

In the paragraph from the article, the discussion revolves around the financial performance and outlook of a company, particularly focusing on margin growth and product categories like cards, personal loans, and auto volumes. The company experienced significant margin growth, with increases of 150 basis points in the first quarter and almost 200 in the second quarter year-over-year. When asked about the performance of cards, personal loans, and auto volumes, Mark Begor indicated that there had been no changes in trends in the early weeks of April compared to the first quarter. In terms of long-term growth, the company does not expect mortgage volumes to return to pre-COVID levels immediately but anticipates an 8 to 12% growth through economic cycles, attributing a portion of this potential growth to an eventual normalization in the mortgage market.

The paragraph discusses the uncertainty in mortgage pricing due to the long-term impact of pricing decisions made by a partner, acknowledging substantial changes in recent years. The conversation marks the end of a question-and-answer session, with Trevor Burns thanking the participants and offering contact information for follow-up questions. The operator concludes the teleconference, thanking participants and allowing them to disconnect.

This summary was generated with AI and may contain some inaccuracies.