Equifax (EFX) Financials

Equifax’s latest quarter shows solid profitability and cash generation, but also a balance sheet that remains highly leveraged and heavily tied to intangible assets. In Q1 2026, the company posted $1.59 billion in revenue and $173.3 million in net income, with operating cash flow of $241.9 million. That’s a profitable business, but the quarter also featured weaker operating working-capital movement, ongoing share repurchases, and meaningful debt on the balance sheet.

Looking at the last four years, the big picture is fairly consistent: Equifax has steadily grown revenue and earnings, generated recurring operating cash flow, and returned capital to shareholders. At the same time, it has carried a large debt load, maintained substantial goodwill and intangible assets, and seen quarterly cash flow swing around based on working-capital changes and financing activity.

• Revenue and earnings have trended higher over time. Q1 2026 revenue of $1.59 billion was above Q1 2025’s $1.39 billion and well above Q1 2024’s $1.33 billion. Net income also improved to $173.3 million versus $133.8 million in Q1 2025 and $126.1 million in Q1 2024.
• Operating cash flow remains healthy. Q1 2026 operating cash flow was $241.9 million, compared with $223.9 million in Q1 2025 and $252.7 million in Q1 2024. Over the periods shown, Equifax has consistently produced positive cash from operations.
• Equifax continues to convert earnings into cash. The business generated meaningful depreciation and other non-cash add-backs each quarter, which supports cash generation even though reported net income is lower than operating cash flow.
• Shareholders are still being rewarded with buybacks and dividends. In Q1 2026, the company repurchased $260 million of stock and paid $67.1 million in dividends. That suggests management remains confident in long-term cash generation.
• Equity has grown over the last year. Total common equity increased to $4.54 billion in Q1 2026 from $4.18 billion in Q2 2025 and $4.06 billion in Q1 2024, helped by retained earnings growth.
• Interest expense has been fairly stable, but still meaningful. Long-term debt interest expense was $55.7 million in Q1 2026 versus $52.9 million in Q1 2025 and $59.7 million in Q1 2024.
• The company’s revenue mix is heavily non-interest based. Almost all revenue comes from non-interest income, which is typical for Equifax, but it also means the business depends on steady demand for its core data and analytics services rather than a diversified product mix.
• Cash balances remain modest relative to the size of the balance sheet. Q1 2026 cash and equivalents were $183.4 million, which is not large compared with total assets of $11.94 billion.
• Debt remains elevated. Q1 2026 short-term debt was $1.41 billion and long-term debt was $4.06 billion, leaving the company with a sizable leverage burden.
• A large portion of assets is tied up in goodwill and intangibles. In Q1 2026, goodwill was $6.79 billion and intangible assets were $4.37 billion, which means a major share of assets is non-tangible and could be exposed to impairment risk if growth weakens.

Quarter-to-quarter, Q1 2026 looks slightly softer on cash deployment than Q4 2025. Operating cash flow fell from $470.8 million in Q4 2025 to $241.9 million in Q1 2026, while working-capital changes turned negative by $173 million. That doesn’t necessarily signal a structural problem, but it does show how much quarterly cash flow can fluctuate.

One important trend to watch is leverage management. Over the last several quarters, Equifax has relied on debt issuance, repayments, and refinancing activity to manage its capital structure. The business is profitable enough to service debt, but investors should keep an eye on whether debt levels trend down meaningfully or remain stubbornly high.

Bottom line: Equifax appears to be a consistently profitable, cash-generative company with steady top-line growth and shareholder returns. However, the balance sheet is still burdened by substantial debt and a large intangible asset base, so the stock’s long-term appeal will likely depend on continued earnings growth and disciplined capital allocation.