A global information and insights company, TransUnion gathers credit, identity, and other data to help lenders, businesses, and consumers make decisions. Its product suites — TruVision for risk management, TruValidate for identity and fraud, TruAudience for marketing, and TruIQ for advanced analytics — serve financial services and other industries in over 30 countries. Alongside Equifax and Experian, it is one of the major credit bureaus.
Net income rose 168% to $397M on a $225.5M non-taxable gain from the Trans Union de Mexico step acquisition.
A one-time acquisition gain reshaped TransUnion's second quarter. rose 13.7% to $1,245.7 million and rose 168.1% to $397.1 million, almost entirely because of a $225.5 million non-taxable gain from taking a majority stake in . The underlying business grew, but narrowed 3.6 points as costs rose faster than revenue.
Key takeaways
rose 168.1% to $397.1 million, driven by a $225.5 million non-taxable gain recognized when TransUnion acquired a majority stake in , converting an existing minority investment.
rose 13.7% to $1,245.7 million, with U.S. Markets Financial Services up 18.2% on mortgage price increases including FICO royalties and higher mortgage volumes, and International up 26.8% — though the International increase was largely inorganic, with the acquisition contributing 157.5 percentage points of Latin America's 171.8% growth.
Section summaries
Management's Discussion and Analysis
Revenue grew 14.9% to $1.31B driven by U.S. Financial Services and the Trans Union de Mexico acquisition; margins compressed on higher product costs.
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Total increased 14.9% to $1,309.6M, with acquisitions contributing 4.9% of growth; U.S. Markets rose 11.5% and International rose 26.8%.
fell 3.8% to $244.8 million and narrowed 3.6 points to 19.7%, as cost of services rose 15.9% on higher product and fulfillment costs, notably FICO mortgage royalties, and SG&A rose 28.1% — the latter largely because the prior-year quarter included a $56.0 million reversal of a CFPB legal accrual that did not repeat.
was $19.0 million, down from $214.3 million a year ago and $222.8 million in the prior quarter, as fell 73.6% sequentially to $84.2 million.
rose 6.8% to $5,402.4 million to fund the $659.7 million acquisition, and the moved to 2.8x trailing twelve-month from 2.6x at year-end 2025.
What changed
The prior quarter flagged whether U.S. Financial Services growth could sustain above 20% in Q2 2026. It did not: growth moderated to 18.2% from 24.0% in Q1 2026, as the mortgage pricing cycle begins to mature.
The prior quarter noted that cost of services rose 16.6% in Q1 2026 and asked whether it would decelerate. It rose 15.9% in Q2 2026, a modest deceleration but still outpacing the 13.7% increase, continuing to compress .
The prior quarter asked whether Consumer Interactive had stabilized after the breach contract lapped. rose 1.3% in Q1 2026, and the Q2 2026 filing does not call out a decline, suggesting the has stabilized at a lower base.
The two material weaknesses in internal control over financial reporting — one on interim testing and one on expense classification — remain unremediated, a concern flagged in every filing since FY2023.
What to watch
Whether U.S. Financial Services growth continues to decelerate in Q3 2026 as the mortgage pricing actions from early 2024 lap fully, after moderating from 24.0% in Q1 to 18.2% in Q2.
Whether recovers in Q3 2026 after falling to $19.0 million in Q2, to confirm the drop was driven by timing rather than a deterioration in cash conversion.
Remediation status of the two material weaknesses in internal controls when the Q3 2026 10-Q is filed, given management's prior warning that failure to remediate could trigger regulatory scrutiny or debt defaults.
Integration and performance of the majority stake, now that the is complete and the $225.5 million gain is booked, and whether the acquired business sustains the growth that drove Latin America's 171.8% increase.
U.S. Financial Services surged 18.2% to $496.3M, primarily from price increases including FICO mortgage royalties and higher mortgage volumes.
International growth was largely inorganic: the acquisition contributed 157.5% of Latin America's 171.8% increase.
Cost of services rose 15.9% to $544.6M, driven by higher product and fulfillment costs, notably FICO mortgage royalties, partially offset by lower technology costs from a completed investment program.
Consolidated declined 90 to 34.8%, as growth was partially offset by higher product costs, particularly FICO mortgage royalties.
Liquidity remains strong with $839.1M in cash and $478.7M available under a $1.0B , used to fund the $659.7M acquisition.
Quantitative and Qualitative Disclosures About Market Risk
Market risk remains materially unchanged from FY2025 10-K, with primary exposures to variable interest rates and foreign currency exchange rates.
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As of June 30, 2026, essentially all outstanding debt was variable-rate, with 68.4% hedged via .
A hypothetical 10% change in Term would alter annual by approximately $6.5 million based on Q2 2026 rates.
The company has material exposure to interest rate risk from its unhedged variable-rate debt, which may change with borrowing levels or hedging activity.
Foreign currency exposure arises mainly from translation of foreign subsidiaries' results, with a stronger U.S. dollar adversely affecting reported figures.
A was used to hedge a portion of the Mexican peso-denominated purchase price for the acquisition, settled in Q1 2026.
Derivatives are used solely for risk management, not for speculative or trading purposes.
General Refer to Part I, Item 3, “Legal Proceedings,” of our Annual Report on Form 10-K for the year ended December 31, 2025, and Part II, Item 1, “Legal Proceedings” of all subsequently filed Quarterly Reports on Form 10-Q, including this Quarterly Report, and Part I, Item 1, N…
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General
Refer to Part I, Item 3, “Legal Proceedings,” of our Annual Report on Form 10-K for the year ended December 31, 2025, and Part II, Item 1, “Legal Proceedings” of all subsequently filed Quarterly Reports on Form 10-Q, including this Quarterly Report, and Part I, Item 1, Note 15 “Contingencies,” of this Quarterly Report for a full description of our material pending legal and regulatory matters.
In addition to the other information included in this report, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025, and any subsequently filed Quarterly Reports on Fo…
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In addition to the other information included in this report, you should carefully consider the factors discussed in Part I, Item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2025, and any subsequently filed Quarterly Reports on Form 10-Q, as well as the factors identified under “Cautionary Statement Regarding Forward-Looking Statements” at the end of Part I, Item 2 of this Quarterly Report on Form 10-Q, which could materially affect our business, financial condition or future results. The risks described in these reports are not the only risks facing TransUnion. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, and operating results.