VOL. XCIV, NO. 247
★ MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Friday, December 26, 2025
Equifax Inc.
EFX · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Equifax is a global data, analytics, and technology company with three reportable segments: Workforce Solutions, U.S. Information Solutions, and International. Its core moats stem from large proprietary datasets fed by broad contributor networks (credit data furnishers and employer payroll feeds) and from deep workflow integration that enables real-time verification, underwriting, and fraud decisions. The U.S. market is structurally concentrated around three nationwide consumer reporting companies, supporting durable incumbency. Key erosion risks include regulatory constraints on data use, cybersecurity and accuracy issues, alternative-data/open-banking disintermediation, and antitrust scrutiny, especially in employment and income verification.
Primary segment
Workforce Solutions
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 4 tags
Updated 2025-12-26
Segments
Workforce Solutions
Income & employment verification and employer HR compliance services
Revenue
42.8%
Structure
Oligopoly
Pricing
strong
Share
—
Peers
U.S. Information Solutions
U.S. consumer & commercial credit information, analytics, and identity/fraud solutions
Revenue
33.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
International
International consumer & commercial credit information and analytics (plus fraud/debt collections services)
Revenue
23.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Workforce Solutions
Income & employment verification and employer HR compliance services
Revenue_share computed from FY2024 segment operating revenue; operating_profit_share computed from FY2024 segment operating income (before unallocated corporate expense).
Data Network Effects
Network
Data Network Effects
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
The Work Number's value increases with more employer payroll contributors and more verification demand, improving coverage and data freshness.
Erosion risks
- Antitrust/regulatory scrutiny of verification market
- Employers or payroll/HR platforms restricting data feeds
- Alternative verification approaches reducing reliance (e.g., open banking, document upload)
Leading indicators
- Employer contributor count and churn
- Active and total employment record counts
- Verification transaction volume and pricing per transaction
Counterarguments
- Large payroll/HR platforms could build competing verification networks
- Major employers could shift data sharing terms or limit access
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Employer contributors outsource verification responses and verifiers integrate automated checks into underwriting/eligibility workflows, creating operational switching costs.
Erosion risks
- Customers multi-source verifications to reduce concentration risk
- Price compression from competing verification providers
- Trust loss from data/security incidents
Leading indicators
- Retention/renewals of large verification customers
- Integration coverage with major loan origination/underwriting platforms
- Per-transaction pricing trends
Counterarguments
- Switching costs can be reduced if competing platforms match coverage and integrations
- Some verifiers can fall back to manual verification processes when costs rise
U.S. Information Solutions
U.S. consumer & commercial credit information, analytics, and identity/fraud solutions
Revenue_share computed from FY2024 segment operating revenue; operating_profit_share computed from FY2024 segment operating income (before unallocated corporate expense).
Data Network Effects
Network
Data Network Effects
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Large credit databases are sustained by broad data furnishing and become more valuable as coverage/history improves, supporting underwriting and fraud decisions.
Erosion risks
- Regulatory restrictions on what data can be reported or used
- Alternative data/open banking reducing dependence on bureau files
- Data furnishers changing terms or providing data to new entrants
Leading indicators
- Number and coverage of data furnishers
- Regulatory changes and enforcement actions affecting consumer reporting
- Credit inquiry volumes by vertical (mortgage/auto/card)
Counterarguments
- Data furnishing is voluntary; large lenders could use their scale to negotiate or change sharing behavior
- New datasets (bank transaction data, fintech underwriting data) can substitute for parts of bureau value
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Consumer reporting requires heavy, ongoing compliance (e.g., FCRA) and secure handling of sensitive personal data; scale helps amortize compliance and security investments.
Erosion risks
- Rule changes that reduce reportable data or increase consumer opt-outs
- Enforcement actions/penalties for accuracy or security failures
- Rising compliance costs that compress margins
Leading indicators
- Changes to FCRA/CFPB rules and supervisory activity
- Consumer dispute and reinvestigation volumes/costs
- Security incidents and remediation spend
Counterarguments
- Compliance burden can constrain product scope and slow innovation for incumbents
- Some competitors may shift to less-regulated alternative datasets to avoid FCRA-like constraints
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 3/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Bureau data and decisioning tools are embedded via real-time access and customized applications inside customer underwriting and fraud workflows, increasing switching costs.
Erosion risks
- Standardized APIs and multi-bureau platforms lowering switching costs
- Regulators pushing data portability/open banking regimes
- In-house decisioning models reducing dependence on bureau-provided analytics
Leading indicators
- Attachment rates of analytics/decisioning products with bureau data
- Customer retention and contract duration trends
- Growth of multi-source decision platforms (aggregators)
Counterarguments
- Large customers can integrate multiple data sources and treat bureaus as interchangeable inputs
- If competitors match data breadth, integration becomes less differentiating
International
International consumer & commercial credit information and analytics (plus fraud/debt collections services)
Revenue_share computed from FY2024 segment operating revenue; operating_profit_share computed from FY2024 segment operating income (before unallocated corporate expense).
Data Network Effects
Network
Data Network Effects
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
In many countries, Equifax's products are generated from credit records it maintains; local data depth improves reporting, scoring and fraud models.
Erosion risks
- Local incumbents with stronger distribution or exclusive data relationships
- Country-specific regulatory changes limiting data collection/sharing
- Macro/FX volatility reducing credit demand and inquiry volumes
Leading indicators
- FX-normalized revenue growth by region
- Country-level inquiry volume trends
- Changes in data contributor relationships in key countries
Counterarguments
- International moats are country-by-country; strength can vary widely by jurisdiction
- Domestic competitors may have privileged access to local data sources
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Operating across jurisdictions requires sustained compliance with privacy, data protection and consumer credit reporting rules; scale can reduce per-unit compliance cost.
Erosion risks
- Data localization and cross-border processing restrictions
- Privacy-law reforms increasing consent/opt-out and limiting monetization
- Regulatory fines or enforcement actions
Leading indicators
- New privacy/AI/cybersecurity laws in operating regions
- Compliance and audit findings by region
- Regulatory investigations or enforcement actions
Counterarguments
- Compliance burden can also reduce flexibility and slow product rollout for incumbents
- Local regulation can favor domestic incumbents rather than multinational operators
Evidence
We rely on payroll data received from over four million organizations to provide up-to-date verifications.
Large contributor base supports a data flywheel and broad coverage.
The Work Number held about 188 million active and 734 million total employment records at December 31, 2024.
Scale of the underlying dataset supports durable advantage in automated verification.
accuses Equifax of monopolizing the electronic income and employment verification market
Allegations imply strong market power; also a risk of forced changes to pricing/contracts.
We have not experienced significant turnover in the employer contributors to the platform because we generally do not charge them
Low contributor turnover plus outsourced workflow suggests stickiness on the supply side.
FY2024 segment Operating Revenue $2,433.8; segment Operating Income $1,053.3 (in millions).
Context for Workforce Solutions economics and pricing power assessment.
Showing 5 of 13 sources.
Risks & Indicators
Erosion risks
- Antitrust/regulatory scrutiny of verification market
- Employers or payroll/HR platforms restricting data feeds
- Alternative verification approaches reducing reliance (e.g., open banking, document upload)
- Customers multi-source verifications to reduce concentration risk
- Price compression from competing verification providers
- Trust loss from data/security incidents
Leading indicators
- Employer contributor count and churn
- Active and total employment record counts
- Verification transaction volume and pricing per transaction
- Regulatory/litigation outcomes affecting verification practices
- Retention/renewals of large verification customers
- Integration coverage with major loan origination/underwriting platforms
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.