TransUnion Raises Guidance as U.S. Financial Services Growth Surges 19% and Share Repurchase Authorization Hits $1 Billion
Revenue Acceleration and Outperformance Mark Third Quarter Results
TransUnion delivered strong third quarter 2025 results, exceeding all key financial targets and lifting its full-year guidance on the back of robust growth in core businesses. The standout: U.S. Financial Services revenue soared 19%, while total revenue climbed 8% to $1,169.5 million. On an organic constant currency basis (excluding last year’s large breach remediation), growth was 11%—TransUnion’s best underlying performance since 2021.
Key Financial Metrics: Margins Remain Steady as Net Income Climbs
The company reported net income attributable to TransUnion of $96.6 million for the quarter, a 42% jump year-over-year. Adjusted net income was $216.5 million, and adjusted diluted earnings per share came in at $1.10, both marking improvement from the prior year. Importantly, the adjusted EBITDA margin held steady at 36.3%, highlighting both scale and disciplined cost control even as investments in technology and M&A continue.
| Key Metric | Q3 2025 | Q3 2024 | YoY Growth |
|---|---|---|---|
| Total Revenue | $1,169.5M | $1,085.0M | +7.8% |
| Net Income (GAAP) | $96.6M | $68.0M | +42.1% |
| Adjusted EBITDA | $425.1M | $393.7M | +8.0% |
| Adjusted EPS | $1.10 | $1.04 | +5.8% |
| Adjusted EBITDA Margin | 36.3% | 36.3% | - |
U.S. Markets: Financial Services Leads the Charge
The growth engine for TransUnion was unmistakably its U.S. Financial Services segment, with revenue rising to $438 million (up 19%), and adjusted EBITDA climbing to $351 million (up 10%). Emerging Verticals posted 7% growth, though Consumer Interactive declined 17% as last year’s one-off events created a high comparison base. International operations contributed solid gains, with standout double-digit growth in the UK, Canada, and Africa.
| Segment | Q3 2025 Revenue ($M) | YoY Growth (%) |
|---|---|---|
| U.S. Financial Services | 438 | 19% |
| U.S. Emerging Verticals | 330 | 7% |
| Consumer Interactive | 145 | -17% |
| International Total | 260 | 8% |
Shareholder Returns: Aggressive Capital Return Strategy
Reflecting confidence in its outlook and robust free cash flow, TransUnion accelerated its share buybacks—repurchasing $200 million in shares year-to-date, including $160 million in Q3 and October. The board increased total repurchase authorization to $1 billion, signaling a major commitment to capital returns.
2025 Guidance Raised: Growth Outlook Tightens to 8–8.5%
Looking forward, management lifted its 2025 revenue growth forecast to 8–8.5%, underpinned by broad-based commercial momentum, steady U.S. lending trends, and accelerating international results. Fourth-quarter revenue is projected between $1.12–$1.14 billion, and full-year adjusted EBITDA is now expected to land in the $1.62–$1.64 billion range.
| 2025 Guidance Metric | Low | High |
|---|---|---|
| Revenue ($M) | 4,524 | 4,544 |
| Revenue Growth | 8% | 8.5% |
| Net Income ($M) | 438 | 448 |
| Adjusted EBITDA ($M) | 1,622 | 1,637 |
| Adjusted EPS | 4.19 | 4.25 |
Financial Health: Solid Balance Sheet and De-levering in Progress
TransUnion closed the quarter with $749.9 million in cash and a net leverage ratio of 2.7, down from prior periods—highlighting improved earnings, cash flow, and continued debt paydown. Year-to-date free cash flow increased, thanks to higher operating profits and lower interest expense. These trends have enabled the ramp-up in buybacks without sacrificing investment in technology or M&A activity.
Takeaway: Growth, Capital Returns, and Sector Leadership
With accelerating growth in Financial Services, an aggressive buyback program, and an improved financial outlook, TransUnion is positioning itself as a sector leader focused on both operational excellence and shareholder value. Investors will be watching to see if the company can sustain this pace of margin management and capital returns as macroeconomic conditions evolve through 2025.
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