Verisk Analytics, Inc. (VRSK) Earnings & Analysis

Latest quarter

Verisk reported Q3 FY2026 revenue of $809.0 million, up from $768.3 million a year earlier. Diluted earnings per share rose to $1.70 from $1.61. For the preceding quarter ended June 30, adjusted EPS was $1.98 against a consensus of $1.94, while revenue was $806.3 million against a consensus of $802.4 million.

The filing shows Q3 underwriting revenue increased 4.8% and claims revenue rose 6.6%. Excluding the effects of acquisitions and a disposition, Verisk attributed underwriting growth to annual price increases and expanded catastrophe and risk solutions; it attributed claims growth to pricing, adoption of anti-fraud analytics and growth in property and restoration solutions.

Verisk’s operating margin was 45.2%, compared with 45.0% a year earlier. The filing shows net income fell to $219.2 million from $225.5 million, with the decline in net income margin driven primarily by higher investment losses, net interest expense and AccuLynx-related costs.

Free cash flow fell to $200.0 million from $336.1 million. The filing attributed the decline in operating cash flow primarily to higher cash tax and interest payments and the timing of collections.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Elizabeth Mann said subscription revenue grew 8.2% on an organic constant-currency basis in Q3, driven by the forms, rules and loss costs, catastrophe risk, and anti-fraud businesses. Transactional revenue grew 3.2% on the same basis, partly because some temporary pressures eased and life solutions services revenue increased, Mann said.

CEO Lee Shavel said lighter weather had reduced repair and restoration demand for contractor and adjuster clients, contributing to collection pressures and bankruptcies among a small number of customers. In the Q&A, Mann said additional life services and data-pull overages contributed to transactional revenue, but the overages might not repeat.

On pricing, Mann said customers were expanding and extending relationships in forms, rules and loss costs, alongside purchases of add-on products. Underwriting Solutions President Saurabh Ghimka said the CoreLines Reimagine program was on track to deliver 25 new modules this year and that Verisk saw further opportunities to develop the offering.

Mann said the Q3 adjusted EBITDA margin rose to 56.7%, reflecting revenue growth, cost discipline and benefits from global talent optimization. She said early signs of AI-driven productivity were also allowing increased investment in innovation and sales efforts.

Shavel said insurers were taking a deliberate approach to AI as they assessed reliability. He said Verisk was seeing increased activity in pilots and tests, while larger carriers’ enterprise licensing discussions took longer. He also said a partnership with a specialty insurer had moved into its third phase, with work shifting toward validation and integration.

On the quarter ahead, Mann said Verisk did not expect Q3’s better-than-anticipated transactional revenue to repeat and expected below-average weather activity and property-market pressure to persist. Shavel said the AccuLynx transaction remained subject to customary closing conditions and FTC review, with no guarantee of completion.

Guidance

Mann said Verisk maintained its FY2026 outlook. She said elongated sales cycles and lower weather activity would likely keep results toward the midpoint of its range. For Q4, Mann said the company did not expect the stronger-than-anticipated transactional revenue seen in Q3 to repeat.