The Q1 beat and raised guidance are positive, but margin compression from FICO royalties and acquisition dilution is a headwind. Watch for organic constant currency revenue ex-FICO royalty (5%-6% growth) as the cleanest read on underlying demand. The Mexico acquisition adds ~3.5pts to reported revenue growth but is margin-dilutive in 2026. Leverage at 2.8x is manageable but limits near-term buyback acceleration. The stock should react positively to the beat and guidance raise, but the magnitude may be tempered by margin concerns and macro uncertainty flagged by management.
Price Chart
Executive Summary
TransUnion reported Q1 2026 revenue of $1.246B (+14% YoY) and Adjusted Diluted EPS of $1.18 (+12% YoY), exceeding guidance on both revenue and Adjusted EBITDA. The company raised its full-year 2026 revenue guidance to $5.100B-$5.135B (from $4.946B-$4.981B) primarily to reflect the acquisition of a majority stake in Trans Union de Mexico, while maintaining organic constant currency growth assumptions of 8%-9%. U.S. Financial Services revenue grew 24% YoY, driven by a 50% surge in mortgage (+24% ex-FICO royalties), though Adjusted EBITDA margin contracted 100bps to 35.2% due to FICO royalty costs and acquisition dilution.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $1.246B (+14% YoY, +11% organic constant currency) exceeded guidance
- Adjusted Diluted EPS of $1.18 (+12% YoY) beat guidance and consensus of $0.97
- Full-year 2026 revenue guidance raised to $5.100B-$5.135B (+11%-12% reported, +8%-9% organic constant currency)
- Full-year 2026 Adjusted Diluted EPS guidance raised to $4.68-$4.75 (+9%-11% YoY)
- U.S. Financial Services revenue grew 24% YoY; Mortgage revenue up 50% (+24% ex-FICO royalty)
- Completed acquisition of ~68% equity interest in Trans Union de Mexico on March 2, 2026
- Adjusted EBITDA margin contracted 100bps YoY to 35.2% due to FICO royalty costs and acquisition dilution
- Leverage ratio increased to 2.8x from 2.6x at year-end 2025 due to Mexico acquisition financing
- Repurchased $25M in shares year-to-date through mid-April; $325M total since 2025
- International revenue flat on organic constant currency basis; India declined 5% and Asia Pacific declined 18%
Financial Impact
Revenue guidance raised by $154M at high-end to $5.135B; Adjusted EBITDA guidance raised by $39M to $1.816B; Adjusted Diluted EPS guidance raised by $0.04 to $4.75
Risk Factors
- FICO mortgage royalty program continues to compress margins (~90bps impact in FY 2026)
- International organic constant currency revenue was flat; India and Asia Pacific declining
- Leverage increased to 2.8x from 2.6x; higher interest expense ($245M vs $203M in 2025) from Mexico financing
- Geopolitical uncertainty and tariffs could impact consumer credit markets
- Integration risk from Trans Union de Mexico acquisition
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001552033-26-000025 |
| Exhibit: exhibit9923312026.htm | 0001552033-26-000025 |
| Document: ck0001552033-20260428.htm | 0001552033-26-000025 |
| Document: 0001552033-26-000025-index-headers.html | 0001552033-26-000025 |
| Document: 0001552033-26-000025-index.html | 0001552033-26-000025 |
| Document: 0001552033-26-000025.txt | 0001552033-26-000025 |
| 8-K Data (Synthetic) | 0001552033-26-000025 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 21d ago | Court Ruling | $77.70 $72.43 | ▼ −6.78% | ▼ −6.56% | $64.52 (−16.96%) |
Sep 3, 2026 28d ago | Insider Cluster | $79.88 $78.83 | ▼ −1.31% | ▼ −0.11% | $64.52 (−19.23%) |
Sep 3, 2026 29d ago | Court Ruling | $84.92 $77.70 | ▼ −8.50% | ▼ −7.35% | $64.52 (−24.02%) |
Sep 1, 2026 4w ago | Court Ruling | $83.67 $77.05 | ▼ −7.91% | ▼ −7.99% | $64.52 (−22.89%) |
Aug 27, 2026 5w ago | Press Release | $84.67 $82.39 | ▼ −2.69% | ▼ −1.92% | $64.52 (−23.80%) |
Aug 26, 2026 5w ago | Court Ruling | $84.50 $82.39 | ▼ −2.50% | ▼ −2.38% | $64.52 (−23.64%) |
Aug 17, 2026 6w ago | Court Ruling | $78.70 $84.87 | ▲ +7.84% | ▲ +9.03% | $64.52 (−18.02%) |
Aug 17, 2026 6w ago | Court Ruling | $78.70 $84.87 | ▲ +7.84% | ▲ +9.03% | $64.52 (−18.02%) |
Aug 11, 2026 7w ago | Court Ruling | $80.37 $79.47 | ▼ −1.12% | ▼ −0.72% | $64.52 (−19.72%) |
Aug 11, 2026 7w ago | Court Ruling | $80.37 $79.47 | ▼ −1.12% | ▼ −0.72% | $64.52 (−19.72%) |
US Market Status
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