Equifax (EFX) Financials

Equifax (NYSE: EFX) has demonstrated steady financial performance over the past four years, with consistent growth in key income, cash flow, and balance sheet metrics through Q2 2025.

Key Financial Trends:

• Net income continued to increase quarter over quarter, reaching $192.6 million in Q2 2025, up from $133.8 million in Q1 2025 and $173.4 million in Q4 2024, showing solid profitability growth.
• Total revenue also exhibits a growth trend, with Q2 2025 revenue at $1.48 billion, rising from $1.39 billion in Q1 2025 and $1.36 billion in Q4 2024.
• Operating cash flow shows robust generation, with $361.1 million in Q2 2025, up markedly from $223.9 million in Q1 2025 and $324.8 million in Q4 2024, indicating strong core cash-generating ability.
• Equifax maintains a substantial asset base, totaling approximately $11.9 billion in Q2 2025, with goodwill and intangible assets representing significant portions, reflecting strong brand and intellectual property value.
• The company shows consistent dividend payments, with cash dividends per common share rising to $0.50 in Q2 2025 from $0.39 per share in prior quarters, suggesting confidence in ongoing cash flow and shareholder returns.
• Long-term debt remains stable around $4.0 to $4.7 billion over the last few quarters, with consistent repayment activity partially offsetting new borrowings, indicating management’s focus on debt management without aggressive deleveraging.
• Depreciation expenses have gradually increased in line with business growth, reflecting ongoing investment in premises and equipment, with Q2 2025 depreciation at roughly $179 million.
• Total liabilities have remained high and somewhat volatile around $6.7 billion to $7.3 billion, driven principally by long-term debt and accrued interest payables; this level warrants monitoring for financial risk considerations.
• Treasury stock levels are significant (negative equity line item of about $2.7 billion in Q2 2025), reflecting ongoing share repurchases which, while shareholder-friendly, reduce equity available to absorb potential losses.
• Effect of foreign exchange on cash and equivalents is relatively minor but fluctuates, indicating some exposure to currency risk.

Summary:
Equifax exhibits solid revenue and earnings growth, supported by strong operating cash flows and a healthy asset base. The company’s strategy appears balanced between investing in the business, managing debt prudently, and returning capital to shareholders via dividends and buybacks. While liabilities and treasury stock levels remain elevated, Equifax’s consistent profitability and cash generation mitigate immediate concerns. Investors should watch for future debt management and any potential changes in goodwill or intangible asset values, which compose a large part of total assets.