Equifax Inc. (EFX) Earnings Call Transcript & Summary

Greetings, and welcome to the Equifax Investor Update Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host, Trevor Burns, Senior Vice President, Corporate Investor Relations. Thank you. Please go ahead.

Thanks, and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer; and John Gamble, Chief Financial Officer. Today's call is being recorded, and our content will be available later today. in the IR Calendar section of the News and Events tab at our Investor Relations website. During the call, we'll be making reference to certain materials that can be found in the presentation section of the News and Events tab at our IR website. These materials are labeled Equifax to acquire Mexico Credit Bureau, Circular creditor. During the call, we'll be making certain forward-looking statements deal you understand Equifax and the circulated credit business environments. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Certain risk factors that may impact the Equifax business are set forth in filings with the SEC, including our 2025 Form 10-K and subsequent filings. During this call, we refer to certain non-GAAP financial measures. -- including adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, which are adjusted for certain items that affect the comparability of our underlying operational performance. Now I'd like to turn it over to Mark.

Thanks, Trevor, and good morning, and exciting day for Equifax. Turning to Slide 3. I'm energized announced that Equifax has signed a definitive agreement to acquire Circular Credito the fastest-growing credit bureau in Mexico for enterprise value of $750 million. This acquisition will expand Equifax into the fast-growing Mexico market the second largest economy in Latin America and offer circular or Credito customers access to industry-leading Equifax cloud-native capabilities, decision and analytics capabilities, patented Fai.x technology and award-winning identity protection and fraud prevention offerings for the development of solutions designed to help customers grow and expand financial inclusion. Mexico is a market we've been focused on for the 8 years I've been at Equifax, actually longer than that. I think even Rick Smith focused on it during his CEO tenure. Until recently, 2 of the 3 credit bureaus in Mexico are owned by the banks. After TU acquired majority ownership in their bureau, Circular was the most attractive entry for Equifax. Circulo De Credito has delivered very strong financial results for the 12 months ended June 30 with revenue of $134 million, up a very strong 31% and and adjusted EBITDA margins of 46%, both highly accretive to Equifax financial results. For the full year 2026, Circulo is expected to continue to deliver strong high double-digit revenue growth with mid-40s adjusted EBITDA margins and is expected to be accretive to Equifax adjusted EPS in the first full year of ownership. Since 2020, Equifax has invested our strong free cash flow and strategic bolt-on acquisitions to drive our financial results and shareholder returns. Including Circulo De Credito, we will have invested nearly $5 billion in 17 bolt-on acquisitions since 2020 and with a proven track record of integrating these acquired businesses like our recent acquisition of Boa Vista in Brazil. We expect the Circulo acquisition to be completed in the fourth quarter of this year, subject to customary closing conditions and regulatory approvals. Turning to Slide 4. We expect to acquire Circulo De Credito for an enterprise value of $750 million. The enterprise value represents 11.7x adjusted EBITDA multiple at closing based on Circus expected 2026 adjusted EBITDA. With the addition of expected run rate synergies to Circulo's 2026 adjusted EBITDA, the adjusted EBITDA multiple is expected to be about 9.4x at closing, which is attractive and significantly below the Equifax current EBITDA multiple of about 2 turns or 12x. Equifax is delivering a strong 2026, with free cash flow expected to exceed $1 billion and continued strong growth in adjusted EBITDA, we have over $1.5 billion in financial capacity in 2026, while maintaining our leverage at under 3x that is consistent with our BBB and Baa2 credit ratings. This provides significant capacity to execute the Circulo acquisition while continuing share repurchases. Over the past 12 months through June 30, we have purchased over 6 million shares of Equifax stock over 5% of shares outstanding for almost $1.4 billion. And year-to-date, we have repurchased about 3.1 million shares for about $560 million. Given our strong financial capacity of over $1.5 billion in 2026, we can complete the Circulo acquisition in the fourth quarter, while still executing share repurchases, although at a slower pace than we saw in the first half and while continuing to manage balance sheet leverage at just below 3x. This allows us to enter 2027 with a strong balance sheet and consistent with 26 and with significant financial capacity for both acquisitions and share repurchases in 2027. We expect the Circulo acquisition to deliver mid-double-digit returns well above the Equifax cost of capital, and we expect Circular to be accretive to adjusted EPS in its first full year as part of Equifax. Accretion expands significantly given strong circular revenue growth and the mid-40s adjusted EBITDA margins as well as the significant synergies driven by both revenue expansion as Circular implements Equifax global cloud-native technology and leading efX.ai capabilities and delivers NPI and new product rollouts consistent with Equifax expectations and cost synergies delivered through the integration into our platforms. The Circulo acquisition with its very strong revenue growth, margin profile and cash generation is accretive to the Equifax long-term financial framework as well as delivering returns well above our cost of capital, which delivers strong returns to our shareholders. This acquisition fits perfectly in our balanced capital allocation framework with our focus on highly accretive bolt-on acquisitions while continuing significant ongoing return of capital to shareholders and maintaining our strong investment-grade balance sheet. Turning to Slide 5. Mexico is the second largest economy in Latin America and is 1 of the fastest-growing credit markets globally, expecting to grow very strong double digits over the next few years with continued strong growth in the future. Consumer credit growth in Mexico is expected to be driven by expanded access to credit, financial inclusion and digitization and Circulo De Credito has been a first mover in the market with the broadest set of data and innovative solutions. More than 25% of the Mexican population is without access to formal financial products and nearly 44% of the population does not have a bank account. Equifax and Circulo De Credito have a shared commitment to helping more consumers live their financial best. And together, we will continue to offer deeper alternative data and unique insights that can help our customers deliver unique solutions to expand to their consumer credit offers. Circular is posed to capture significant share of the Mexico credit market growth given its unique proprietary data, strong relationship with the expanding fintechs and strong synergies with Equifax. Turning to Slide 6. Circulo De Credito is the fastest-growing credit bureau in Mexico and the only credit bureau licensed to operate both consumer and Commercial Credit Bureau Services with more than 1,700 bank, retail, fintech, small business lending, microfinance and telecommunication customers and 2 billion trade lines covering 80 million validated identities. While traditional credit data is required by law to be shared between the credit bureaus, alternative credit data is not. Circulo is a leader in alternative data or information not included in traditional credit reports in Mexico, including gig economy transactions and utility payment history. This alternative data can be responsibly expand access to credit in support of more inclusive economy critical to a country where nearly 33 million people are engaged in the informal employment, such as unregistered micro businesses or gig employment. Turning to Slide 7. Circulo's unique market position has delivered very strong financial results. As you can see from the chart on Slide 7, Circulo's compound annual revenue growth was a very strong 23% and from 2023 to 2025, with revenue growth for the past 12 months ending June 30 of 31%. And Circula has delivered very strong mid-40s adjusted EBITDA margins in both 2025 and the last 12 months through June 30, 2026. And -- for the full year of 2026, Circula revenue is expected to grow strong high double digits while maintaining their mid-40s adjusted EBITDA margins. Circular revenue growth has been led by their unique alternative credit data advantage enabled by deep relationships with fintechs and with over 40% of Circulo's 2025 revenue generated from fintechs with a growth rate of over 50%. The Circulars unique alternative data and the team's strong relationships with fintech customers are a key driver of future circular revenue growth in a market where consumer credit is underpenetrated and growing rapidly. The very attractive Circular financial results are accretive to the Equifax long-term financial framework of 7% to 10% organic revenue growth and 50 basis points of annual margin expansion. Turning to Slide 8. Equifax expects to deliver strong synergies through the integration of Circulate Credito. First, we plan to deepen Circulo's retail and fintech data mode while simultaneously expanding their penetration with large financial institutions. By leveraging Equifax' global scale, we can take Circulo's market-leading position with fintechs and extend that influence into the traditional bank and financial institution space, where Circulo is not penetrated. Second, we expect to leverage Equifax's scalability, technology and security to modernize Circulars infrastructure to the new Equifax cloud native architecture. By deploying our core data analytics platforms, we can ensure seamless integration and the rapid deployment of global Equifax product scores and solutions to Circulo customers. And lastly, we're committed to delivering deeper alternative data and unique insights to help our customers in Mexico grow. We expect to leverage our global footprint and specifically our established leadership across Latin America to introduce high-value products and services, integrating our patented efX.ai, cloud-native technology and advanced decisioning platforms into the Mexico market. Together, these initiatives form a comprehensive road map for enhancing Circulo's platform, ensuring we are not just acquiring a business, but we're actively elevating its capabilities across the Mexico market and for the new -- the circular customers. Turning to Slide 9. Our recent acquisition of Boa Vista in Brazil has outperformed our expectations as well as outperformed other market participants from share gains and the deployment of new solutions to the market to help our customers grow. The acquisition of Boa Vista established our presence in the fast-growing Brazilian market 3 years ago and added unique retail data assets to our portfolio for that market. the Boa Vista integration gives us significant confidence in our M&A integration playbook as we look forward to rapidly integrating the circular business into the new Equifax cloud native platform and technology after closing. Equifax will offer Circulo De Credito customers access to industry-leading Equifax cloud native capabilities, decision and analytics capabilities, patented eFX.ai technology and award-winning identity protection and fraud prevention offerings for the development of solutions designed to help customers grow and expand financial inclusion. The Boa Vista integration serves as a great blueprint for the Circulo De Credito integration. Turning to Slide 10. Circulo De Credito is a highly strategic asset in core to our international and Latin American growth strategy to invest in high-growth markets. Equifax is already a market leader in Latin America, holding leading credit bureau positions in Costa Rica, El Salvador, Honduras, Ecuador, Peru, Chile, Argentina, Uruguay and Paraguay. By acquiring circular, we are firmly expanding our footprint into Latin America as a market leader, complementing the position we established 3 years ago in the large, fast-growing Brazilian market with Boa Vista. We plan to deploy the same proven global integration playbook that we use to accelerate Boa Vista's growth and share gains to Circulo. Moving to Slide 11. The Circulo acquisition closely aligns with our broader strategic bolt-on M&A framework. And with the Circulate Credit acquisition, Equifax will have invested nearly $5 billion in 17 strategic bolt-on acquisitions since 2020 and all of which are strictly aligned with our core priorities of adding differentiated data, strengthening our fast-growing workforce solutions business, expanding in fast-growing international markets and broadening our identity and fraud capabilities. Circulo checks multiple boxes, specifically leveraging unique differentiated data and expanding our international footprint much like our recent acquisitions of Boa Vista in Brazil and Data Credito in the Dominican Republic. We have a very strong history of integrating our acquisitions to deliver growth and shareholder returns. Because of our $3 billion investment in the new Equifax Cloud, we can integrate acquisitions more quickly than ever and move products and platforms quickly between our different markets. By executing our [indiscernible] strong investment-grade balance sheet. We're incredibly energized to bring Juan Manuel Luis Palmari, who leads Circula and his team into Equifax and on to the Equifax cloud to accelerate their product innovation and drive strong returns for Equifax shareholders after closing. And with that, operator, let me open it up for questions.

[Operator Instructions]. Our first question comes from the line of Jeff Meuler with Baird.

Congrats on the acquisition. Can you go through the 2025 acceleration and faster growth year-to-date '26. I guess how much of that is the fintech market, it sounds like that's a really good position and growing really well. And is it -- I guess, are there market inflection points or new products that are driving it, anything beyond, I guess, cyclicality about that market?

Yes. The underlying market, Jeff, is growing quite rapidly, particularly in the space that Circula has been really growing and living in. I think as I mentioned in my comments, they don't do a lot of business directly with the traditional banks. Their focus has been on retailers, there's a lot of retail finance in Mexico with the telcos and as you point out, with the fintechs. And as we said in my prepared comments, they've seen like 50% growth in the fintechs. And you've had a lot of new entrants, a lot of new companies being formed there and a lot of growth in that fintech market. And they're uniquely positioned with their large alternative data. They just have more data on that near prime, call it subprime, call it unbanked consumer. If you think about a consumer in Mexico that doesn't have a bank account doesn't have financial products. Their first financial product likely is going to be financing at a retailer to buy an appliance, to buy furniture and those trade lines become really the basis for their financial future until they do move into the formal financial environment. So they've just really been well positioned given their alternative data, their customer focus and approach to market. There really alignment with the fintechs is extremely strong, and they've just been riding that quite strongly. And we expect that to continue going forward. And one of the new levers for them is the opportunity now with the banks selling off their interest in their credit bureaus. As you know, they sold their interest to TransUnion, and they've got a commercial credit bureau that that may be something that they decide to monetize, but that opens up the door for Circulo to have direct relationships with the banks because they're no longer owners of the credit bureau. And then obviously, you think about that what we're going to be able to bring like we did with Boa Vista, bringing down our products, our technology, expanding their score capabilities and our data analytics, our AI, we expect them to really be able to expand their product offerings going forward, which are part of the synergies that we see once we get them on the Equifax cloud and into our platforms.

Our next question comes from the line of Toni Kaplan with Morgan Stanley.

Wanted to ask about the competitive landscape, particularly since your 2 biggest competitors are already in the market. Just wanted to understand if you think that the strategies are going to be similar or how you're expecting to get the different areas of synergies and things like that.

Yes. There's only 1 in the market. I think, as you know, TransUnion, I think, own 20% of the bank owned credit -- consumer credit bureau, and they acquired the rest of that or most of it, I believe, I don't think they have 100%, but they acquired the rest of that about a year ago. So TransUnion is in market. They own the previously bank-owned credit bureau. There's a bank-owned credit bureau that's a commercial SMB credit bureau that's still owned by the banks and then they're circular. So as of closing, when we close the deal, there'll be 2 of the global players, Equifax and TransUnion in market. We think we're super well positioned because of Circulo's unique data. They have data that's really much more expansive than TransUnion has in the bank credit bureau, just more trade lines because of the retail and fintech and telco contributors are just so much more expansive and there's just more consumers in that space. So we think we're extremely well positioned there. And then like we did in Boa Vista, the opportunity where Experian, obviously, was well established for many, many years, was a decade in Brazil as a stand-alone global player bringing in our global platforms, putting Boa Vista and now Circulo on the Equifax cloud, we'll be able to do that quite quickly. And then we're going to run the same playbook that we've done in Damaca Republic that we've done in in Brazil is bring in our new products, bringing our new AI capabilities, bring in our new technology capabilities. And our discussions -- we've been -- I said in my comments, we've been trying to enter Mexico, I think Equifax as a whole for probably 15 years for me personally for 8 years. It's a great market. It's adjacent to the United States. There's a lot of synergies. For example, we have a product now, a global credit report where we'll take trade lines from a consumer, in this case, a Mexican consumer in the U.S. and trade lines from a Mexican consumer that previously may have lived in Mexico and put those together. So that's a big opportunity for us. But we've really been focused on entering this large market. It's the second largest market in Latin America. It's very fast growing. And Circulo as a business is just super attractive. The growth rates are obviously quite evident and super attractive. It's a great management team and they've been really focused on innovation and new products, which is really driving their growth, and we just think we can help accelerate that by having a global partner there. And again, our comments with the customers there is they welcome Equifax coming in as a global participant because they know that we can be accretive or additive to an already great business in Circulo by bringing in all of our global capabilities, whether it's our Ignite analytics platform, our interconnect platform, all of our new products, it's going to bring more solutions for the Mexican customers, which we know is going to be attractive to them and also attractive to our circular investment.

Our next question comes from the line of Manav Patnaik with Barclays.

I just had a question. So at 30% growth and mid-40s margins, I mean, you gave a pretty good price on this one. And so I'm just curious, like longer term, beyond '26, like what is the right growth framework to think about for this business in that context?

Yes. 30% is a very high growth rate, Manav. I think as you know that. It's 1 that they've been achieving over the last, call it, 18, 24 months. But even previous to that, they've had strong double-digit growth rate. I think our competitor, TransUnion has kind of low double-digit growth rate. So the market itself is underlying a very strong market. That large unbanked population that's moving into the bank population the influx of global and local fintechs into the space because of the attractive opportunities there. Those are all kind of macros that, in our opinion, underlie a very strong underlying market, think about low double digits. And we think Circulo can be accretive to that going forward, given its unique data sets, which are really a strong asset in this acquisition that they have such a wealth of additional data that's accretive to what I would call the traditional credit file in Mexico. And as you know, when you add those additional trade lines and additional data, it results in a higher performing solution. So they're well positioned to drive that going forward. So we're not prepared to give long-term guidance on circular or the Mexican market. We don't do that typically, as you know. But for sure, we think about this as being accretive to our 7% to 10% organic and certainly accretive to the 7 to 9 international long-term framework that we have. It's clearly going to be above that 7% to 9% over the long term. Given the underlying market and the opportunities that the business itself has with its unique data assets. And then you have to add to it, all the capabilities we're going to bring as a global participant to really expand the arsenal of tools and solutions that Circulo can bring to both their current customers, think fintechs, I think retailers, which is a big space there in Mexico that Circula participates in, I think telcos but they also think traditional banks where Circula hasn't participated in the past, and that will be an opportunity for them going forward. So we're energized about the acquisition and the underlying market. And as I said, Rick was after this 10 years ago trying to get into Mexico, and I've been trying to get in there for 8 years. And we've really spent probably the past 5 years and more specifically, the last 12 to 18 months, really focused on once the banks opened up the window. They decided they were going to sell the TU credit union. And obviously, TU is in a position to buy that because of their kind of control or minority position -- we really saw this as an opportunity to get into Mexico, and we're super energized to be there.

And remember, very strong margins accretive to both international margins and our margins, right? So it's not just driving revenue growth, very, very profitable revenue growth.

Yes, that makes sense. And I just wanted to follow up on the slide. I think you said that over 60% of the trade lines where you need the circular. So just trying to appreciate I guess, just the market structure because I mean, I guess in great as to lap there. So just trying to appreciate that.

Yes. it's a great question. And today, the banks think about the traditional banks. There's, I think, 7 large ones down there, and there's obviously a larger network. They contribute their trade lines to the bank-owned credit bureau, which is TransUnion and also to the commercial credit bureau. Those trade lines are not contributed to Circulo. Circulo trade lines are all from fintechs, all from retailers, which, again, I want to appreciate, we're not used to that in the United States, where most of us on the call live, that retail finance is still large, but it's more consolidated in the United States by the likes of Synchrony and Chase and Citi and others. In Mexico, most of the retailers do their own retail finance. So they have their own finance arms, they finance furniture, appliances, other purchases there. So that's a very big market that's unique to circular those trade lines. And then the telcos are also unique to Circulo. So that large array of trade lines, there's -- if you think about it, Manav, there's multiples of transactions, meaning many more transactions happening in that ecosystem of think about retail fintech and telcos than there are in the banks. So that gives them the advantage. It also gives them the advantage in that unbanked and in our vernacular in United States, think about subprime, near prime type consumers and unbanked is like there's no credit file on them, that a large portion of the population is 30 million people -- 33 million people in Mexico without a bank account. They're doing retail finance and they're creating trade lines when they're financing that refrigerator that they're purchasing. So that's a huge asset for Circulo and was one of the many reasons we were attracted to the business.

Our next question comes from the line of Andrew Steinerman with JPMorgan.

I have 2 questions, Mark. First one is, given how different the data is in the credit report in Mexico, do Mexican lenders typically pull both of the top grade reports because they just different type of data. And then the second is when you talked about the kind of unique alternative data that you guys had, you mentioned telco, you mentioned gig. My question is about data furnishing. Like are there any unique sources that Circle has in Mexico like the way Equifax U.S. has the telco utility exchange? And are there ways Equifax could expand data furnishing, how it works in Mexico?

Yes. So on the first one, there's actually a law in Mexico that was put in place because of the unique structure of the banks owning the credit bureaus where the credit bureaus are required to share trade lines between each other when a credit report is pulled. So there's a financial ecosystem where, in essence, the bureaus buy data from each other and share it to deliver a complete credit report, if you will. The advantage Circulo has is all the inquiry data and the positive data that shared -- only negative data shared positive data is not. So they have a real advantage in the wealth of positive data that they have around consumers that is really unique to them. And they just have more contributors think about 1,700 contributors. I don't know what the exact number is for TransUnion, but it's a different number and lower than that. That's the real asset that they have is that network of retailers, large and small, the network of fintechs where they've had a presence there for a long time, it's very, very strong. That data advantage is a real positive for them.

And remember, both a consumer and a commercial business, right? So they have both licenses unlike our competitors.

That's one that -- as you know, we have a large commercial SMB business globally, particularly in the United States and other markets. So as another reason, as John pointed out, we were attracted to circulars that -- not only can we offer that consumer solution, but we can grow and expand the commercial or think about small business or SMB type space.

Our next question comes from the line of Shlomo Rosenbaum with Stifel.

I just want to go back exactly to what Andrew was talking about. -- if there's a bank that's lending right now, are they pulling both from TransUnion and from Circula because of what you have? And exactly what's shared and what's not shared. I just wanted to understand. I understand that they have positive data is not shared, but is the negative data from the bank shared? Is there also a positive data in the TransUnion one that does not come to Circulo? Maybe you can just explain that to us and so you could basically explain how you have the ability or what you see the opportunity is to sell to the banks.

Yes. So it is a unique market. And unlike any other that I'm familiar with globally because of the historical structure of the banks for many, many years owned the credit bureaus. So the banks contribute their data to TransUnion and the commercial bureau. There's a law in Mexico that if Circulo wants to get access to the trade lines, they're able to do that from TransUnion and vice versa. And these are the negative trade lines. And the positive trade lines, which are super accretive to a decision are really unique to both credit bureaus. So those are bureaus where TransUnion will deliver those to their customers, the positive trade lines that they have. And in Circular will deliver their unique positive trade lines to theirs. The other positive that Circulo has is that many of their data contributors, the trade lines that they have are on a weekly basis versus monthly where the bank trade lines are typically on a monthly basis. So those more frequent trade lines or another asset with Circulo. And then Circulo just has more trade lines. meaning more consumers in its credit bureau, more trade lines in its credit bureau because it has the weekly versus monthly. And there's just much more transactions happening in a retailer. I mean, retail finance is very large in Mexico and also with the fintech. So it's one of the advantages that Circulo has and one that we look forward to taking advantage of.

Could you talk a little bit about the split of commercial versus consumer -- and is commercial really growing much? And how is it that you have that this company has a commercial license, but the other 1 did not have a commercial license. Maybe give us a little bit of background on that.

Yes, more historical structure, which I don't know all of the reasons why, but way back when, I don't know whether it's 30 years ago or something like that, the banks created 2 credit bureaus, on consumer and on commercial. And they were run and owned by the banks. They were actually one entity when the sold the Entity 2 TransUnion, they carved out the commercial credit bureau separate entity. So it sits there today and TransUnion acquired and you could talk to TransUnion about this. The Consumer Credit Bureau and the commercial credit bureau is still owned by the banks and whether they're going to continue to own that or not. Obviously, you may know that the commercial credit bureau in Mexico is much smaller, owned by the banks than the consumer credit bureau, which is TransUnion has already talked about how large that is. So those are one entity and then they were separating it, too, and the commercial credit bureau sits there. 20 years ago, when Circulo was formed, they got the license to do both consumer and commercial and that's why they have both bureaus. The commercial credit bureau or the commercial business in Circulo is much -- is very, very small, but it's one that we believe is an asset to have the license. It's one that we would expect to invest and grow in. And we like the idea because we have it in other markets, the idea of having both the consumer and commercial. And as you know, what's really important in SMB is that much of the underwriting of a small business is done on what trade lines they have as a small business, but also the trade lines of the owner or entrepreneur, typically single entrepreneur and micro businesses, both of those trade -- sets of trade lines, the consumer and commercial are very valuable. So that's the playbook we run in the United States. We run that in other markets around the world, and we would do that here in Mexico also.

Our next question comes from the line of Kyle Peterson with Needham & Company.

Congrats on getting the deal on I wanted to just ask if given the presence here, it sounds like it's really scaled in Mexico. I understand a lot of these fintechs in Mexico also have operations in other countries, whether be in Latin America or Europe. So I just want to see like -- are there opportunities for you guys to potentially deepen some of these relationships once this deal closes? Or are these relationships you guys already have? Like is there a lot of customer overlap just with other divisions? Just wanted to get a sense of and potential cross-selling opportunities in the fintech space in other geos?

Yes. It's actually a bit of all of the above. You got to start with Circulo has a very, very strong market position in Mexico with Fintechs, so super strong. So that has been -- you think about where they built their business. First, it was off retail finance. And I would remind you to recognize that retail finance is very big in Mexico. It is very big in other Latin American markets. We don't talk about it a lot, but meaning the retailer itself does their own finance of their products to their consumers. So that's a big -- and kind of how the business was formed 20 years ago, it was off retail finance. And then over the last 10 years, 5 years, Juan Manuel and their team have done a great job of really positioning themselves with the fintechs and why? Because they have the unique data. The fintechs are typically financing around the globe and in Mexico, subprime unbanked near-prime consumers, there's better returns in those kind of loans, and it's why -- it's where the fintechs really spend their focus. So they've got an extremely strong market position with really all of the fintechs in the market. They've built their business to be responsive to the fintechs around how they deliver products and solutions, and they have the underlying data to really approve and and deliver data on more of those consumers than others in the market can, the traditional credit bureaus in the market just because they have so much alternative data. To your question, yes, there's a bunch of global players there that we have relationships with. For example, there's a a large fintech that we have a large position in Brazil in that is growing in Mexico. And there, I know we're going to be very pleased that we're going to be helping grow circular with our global platforms and capabilities. So I think that will be another asset where we can take advantage. I would also make the point that our global banking relationships will also be an asset for Circulo as they work to enter the traditional bank environment, which they haven't participated in directly. So that's another opportunity going forward. We have relationships with many of the global banks that are in Mexico, they could be Canadian banks or they could be, for example, a large bank, Santander or from Spain or Scotia from Canada, we have large global relationships there in Mexico. So that's another opportunity for us going forward. So we're really excited about the market position that Juan Manuel and his team have really built in the market, and we look forward to bringing our products, our capabilities, our tech, our AI, our DNA to really help one menu and the team accelerate that growth.

Our next question comes from the line of Jason Haas with Wells Fargo.