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VRSK's Q3 adjusted EPS rose 14% y/y to $1.96, beating estimates, while revenues climbed 5.3% to $809M.
VRSK's subscription revenues grew 8.2% on an OCC basis, while the adjusted EBITDA margin expanded 90 bps.
VRSK's free cash flow fell 40.5% to $200M, while the company reaffirmed its 2026 revenue outlook.
Verisk Analytics (VRSK - Free Report) has reported third-quarter 2026 adjusted earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.92 by 2.1%. The figure increased 14% from the year-ago quarter.
Revenues of $809 million topped the consensus mark of $806.8 million by 0.3% and rose 5.3% year over year. Organic constant-currency (OCC) revenue growth was 7.4%, supported by an 8.2% increase in subscription revenues, and growth across Underwriting and Claims.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Underwriting revenues increased 4.8% year over year to $568 million from $542 million. On an OCC basis, revenues advanced 7.7%, reflecting stronger growth than the 5.6% recorded in the preceding quarter.
Growth was primarily driven by annual price increases tied to continued enhancements in the models and content supporting Verisk's forms, rules and loss cost services. The company also benefited from expanded catastrophe and risk solutions sold to new and existing customers.
Verisk Benefits From Claims Growth
Claims revenues rose 6.6% year over year to $241 million from $226 million. OCC growth was 6.7%, improving from 6.1% in the second quarter.
The increase was primarily driven by strong price realization and adoption of innovations in anti-fraud analytics. Growth in property and restoration solutions also contributed to the segment's performance, supporting broader demand for Verisk's insurance data and technology offerings.
VRSK Sees Subscription & Transactional Gains
Subscription revenues grew 8.2% on an OCC basis compared with an 8% rise in the preceding quarter. Subscription-based offerings accounted for 84% of total revenues, highlighting their importance to the company's business model.
Growth reflected clients expanding and extending relationships across Forms, Rules & Loss Costs, and Catastrophe Risk Solutions. Strong renewals and customer additions in Anti-Fraud also supported the performance.
Transactional revenues increased 3.2% on an OCC basis, reversing the 4.2% decline in the preceding quarter. Stronger services revenues in Life Solutions supported growth, although below-average weather-related volumes and softer property-related transactional activity in the United States and Canada remained headwinds.
Verisk Expands Adjusted EBITDA Margin
Adjusted EBITDA increased 7% year over year to $459 million from $429.1 million. On an OCC basis, adjusted EBITDA grew 7.5%, primarily reflecting revenue growth and continued cost discipline.
The adjusted EBITDA margin expanded 90 basis points to 56.7% from 55.8%. Adjusted EBITDA expenses increased to $350 million from $339.2 million, while operating income improved to $365.3 million from $345.9 million.
VRSK Faces Pressure on GAAP Profitability
Net income declined 2.8% year over year to $219.2 million from $225.5 million. The net income margin contracted to 27.1% from 29.3%, although GAAP earnings increased 5.6% to $1.70 per share.
The decline in net income primarily reflected losses related to cost-based investments and higher net interest expenses, partially offset by operating leverage and cost discipline. Net interest expenses increased to $53 million from $42.2 million, while the effective tax rate rose to 25.7% from 25.3%.
Verisk Records Lower Cash Flow
Net cash provided by operating activities declined 33.8% year over year to $267.2 million. The free cash flow decreased 40.5% to $200 million, while the capital expenditure totaled $67.2 million compared with $67.4 million a year earlier.
The decline reflected higher cash tax payments, increased interest payments and unfavorable working capital movements associated with cash collection timing. Verisk ended September with $556.8 million in cash and cash equivalents compared with $2.18 billion at the end of 2025.
VRSK Continues Shareholder Returns
The company executed a $100-million accelerated share repurchase program during the quarter. It received 2 million shares at an average price, less a discount, of $181.76. Verisk had $700 million remaining under its repurchase authorization at the quarter-end.
During the first nine months of 2026, Verisk funded $1.9 billion in aggregate share repurchases and received 10.5 million shares. The company also paid out a quarterly dividend of 50 cents per share on Sept. 30.
Verisk Reaffirms 2026 Outlook
VRSK maintained its 2026 revenue guidance of $3.19-$3.24 billion. The midpoint ($3.22 billion) of the guided range meets the Zacks Consensus Estimate. Management expects adjusted EBITDA of $1.79-$1.83 billion and an adjusted EBITDA margin of 56-56.5%.
Adjusted earnings are projected between $7.45 and $7.75 per share. The midpoint ($7.60) of the guided range is lower than the Zacks Consensus Estimate of $7.71. The company expects a tax rate of 23-26%, a capital expenditure of $260-$280 million and interest expenses of $190-$200 million.
Adjusted earnings of $2.15 per share lagged the Zacks Consensus Estimate of $2.18 by 1.4%. The reported figure increased 8.6% from the year-ago quarter's $1.98.
Revenues rose 6.3% year over year to $6.85 billion, surpassing the consensus estimate of $6.8 billion by 0.7%.
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Verisk Analytics Q3 Earnings Beat Estimates, Revenues Jump 5% Y/Y
Key Takeaways
Verisk Analytics (VRSK - Free Report) has reported third-quarter 2026 adjusted earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.92 by 2.1%. The figure increased 14% from the year-ago quarter.
Revenues of $809 million topped the consensus mark of $806.8 million by 0.3% and rose 5.3% year over year. Organic constant-currency (OCC) revenue growth was 7.4%, supported by an 8.2% increase in subscription revenues, and growth across Underwriting and Claims.
Verisk Analytics, Inc. Price, Consensus and EPS Surprise
Verisk Analytics, Inc. price-consensus-eps-surprise-chart | Verisk Analytics, Inc. Quote
VRSK Posts Higher Underwriting Revenues
Underwriting revenues increased 4.8% year over year to $568 million from $542 million. On an OCC basis, revenues advanced 7.7%, reflecting stronger growth than the 5.6% recorded in the preceding quarter.
Growth was primarily driven by annual price increases tied to continued enhancements in the models and content supporting Verisk's forms, rules and loss cost services. The company also benefited from expanded catastrophe and risk solutions sold to new and existing customers.
Verisk Benefits From Claims Growth
Claims revenues rose 6.6% year over year to $241 million from $226 million. OCC growth was 6.7%, improving from 6.1% in the second quarter.
The increase was primarily driven by strong price realization and adoption of innovations in anti-fraud analytics. Growth in property and restoration solutions also contributed to the segment's performance, supporting broader demand for Verisk's insurance data and technology offerings.
VRSK Sees Subscription & Transactional Gains
Subscription revenues grew 8.2% on an OCC basis compared with an 8% rise in the preceding quarter. Subscription-based offerings accounted for 84% of total revenues, highlighting their importance to the company's business model.
Growth reflected clients expanding and extending relationships across Forms, Rules & Loss Costs, and Catastrophe Risk Solutions. Strong renewals and customer additions in Anti-Fraud also supported the performance.
Transactional revenues increased 3.2% on an OCC basis, reversing the 4.2% decline in the preceding quarter. Stronger services revenues in Life Solutions supported growth, although below-average weather-related volumes and softer property-related transactional activity in the United States and Canada remained headwinds.
Verisk Expands Adjusted EBITDA Margin
Adjusted EBITDA increased 7% year over year to $459 million from $429.1 million. On an OCC basis, adjusted EBITDA grew 7.5%, primarily reflecting revenue growth and continued cost discipline.
The adjusted EBITDA margin expanded 90 basis points to 56.7% from 55.8%. Adjusted EBITDA expenses increased to $350 million from $339.2 million, while operating income improved to $365.3 million from $345.9 million.
VRSK Faces Pressure on GAAP Profitability
Net income declined 2.8% year over year to $219.2 million from $225.5 million. The net income margin contracted to 27.1% from 29.3%, although GAAP earnings increased 5.6% to $1.70 per share.
The decline in net income primarily reflected losses related to cost-based investments and higher net interest expenses, partially offset by operating leverage and cost discipline. Net interest expenses increased to $53 million from $42.2 million, while the effective tax rate rose to 25.7% from 25.3%.
Verisk Records Lower Cash Flow
Net cash provided by operating activities declined 33.8% year over year to $267.2 million. The free cash flow decreased 40.5% to $200 million, while the capital expenditure totaled $67.2 million compared with $67.4 million a year earlier.
The decline reflected higher cash tax payments, increased interest payments and unfavorable working capital movements associated with cash collection timing. Verisk ended September with $556.8 million in cash and cash equivalents compared with $2.18 billion at the end of 2025.
VRSK Continues Shareholder Returns
The company executed a $100-million accelerated share repurchase program during the quarter. It received 2 million shares at an average price, less a discount, of $181.76. Verisk had $700 million remaining under its repurchase authorization at the quarter-end.
During the first nine months of 2026, Verisk funded $1.9 billion in aggregate share repurchases and received 10.5 million shares. The company also paid out a quarterly dividend of 50 cents per share on Sept. 30.
Verisk Reaffirms 2026 Outlook
VRSK maintained its 2026 revenue guidance of $3.19-$3.24 billion. The midpoint ($3.22 billion) of the guided range meets the Zacks Consensus Estimate. Management expects adjusted EBITDA of $1.79-$1.83 billion and an adjusted EBITDA margin of 56-56.5%.
Adjusted earnings are projected between $7.45 and $7.75 per share. The midpoint ($7.60) of the guided range is lower than the Zacks Consensus Estimate of $7.71. The company expects a tax rate of 23-26%, a capital expenditure of $260-$280 million and interest expenses of $190-$200 million.
VRSK currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Republic Services (RSG - Free Report) reported better-than-expected third-quarter 2026 results.
RSG's adjusted earnings of $1.94 per share increased 2.1% year over year and surpassed the Zacks Consensus Estimate of $1.92 by 1%.
Revenues rose 8.2% to $4.56 billion and beat the consensus mark of $4.41 billion by 3.4%.
Waste Management (WM - Free Report) posted mixed third-quarter 2026 results.
Adjusted earnings of $2.15 per share lagged the Zacks Consensus Estimate of $2.18 by 1.4%. The reported figure increased 8.6% from the year-ago quarter's $1.98.
Revenues rose 6.3% year over year to $6.85 billion, surpassing the consensus estimate of $6.8 billion by 0.7%.