[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Verisk reported strong Q2 2025 results with revenue at **$773 million** and adjusted EBITDA at **$445 million**, raising full-year guidance and advancing strategic acquisitions Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $773M | $717M | +7.8% | | Net Income | $253M | $308M | -17.7% | | Adjusted EBITDA | $445M | $397M | +11.9% | | Diluted EPS | $1.81 | $2.15 | -15.8% | | Diluted Adjusted EPS | $1.88 | $1.74 | +8.0% | - CEO Lee Shavel highlighted the company's evolution from a data analytics specialist to an integrated technology network, reinforced by the strategic acquisitions of SuranceBay and AccuLynx[3](index=3&type=chunk) - CFO Elizabeth Mann emphasized strong operating momentum, with **7.9% OCC revenue growth** and **9.7% OCC adjusted EBITDA growth**, driven by solid operating leverage. The company continues to invest in core operations and strategic acquisitions while returning capital to shareholders[4](index=4&type=chunk) - Verisk announced the acquisition of SuranceBay for **$163 million** and a definitive agreement to acquire AccuLynx for **$2.35 billion**, significantly expanding its capabilities in the insurance ecosystem[7](index=7&type=chunk) [Detailed Financial Performance](index=3&type=section&id=Detailed%20Financial%20Performance) This section details Verisk's Q2 2025 financial performance, analyzing revenue, profitability, earnings per share, and cash flow [Revenue Analysis](index=3&type=section&id=Revenue) Total revenue increased **7.8%** to **$773 million** in Q2 2025, driven by growth in both Underwriting and Claims segments of the Insurance business Revenue by Segment (in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | Reported Change | OCC Change | | :--- | :--- | :--- | :--- | :--- | | Underwriting | $550 | $508 | 8.3% | 7.7% | | Claims | $223 | $209 | 6.6% | 8.3% | | **Total Insurance** | **$773** | **$717** | **7.8%** | **7.9%** | - Growth in Underwriting revenue was primarily driven by forms, rules, loss cost services, and extreme event solutions[13](index=13&type=chunk) - Claims revenue growth was mainly attributed to strong performance in property estimating solutions and anti-fraud solutions[13](index=13&type=chunk) [Profitability Analysis](index=3&type=section&id=Net%20Income%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Net income decreased to **$253 million** due to prior-year gains, while Adjusted EBITDA grew **11.9%** to **$445 million**, expanding the margin to **57.6%** - The **17.7% decrease** in quarterly net income was primarily the result of net gains recognized in the prior year period from the sales of healthcare and specialized market businesses and the early extinguishment of debt[11](index=11&type=chunk) Adjusted EBITDA Performance (in millions) | Metric | Q2 2025 | Q2 2024 | Reported Change | OCC Change | | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $445 | $397 | 11.9% | 9.7% | | Adjusted EBITDA Margin | 57.6% | 55.4% | +220 bps | N/A | - The **9.7% OCC growth** in Adjusted EBITDA was driven by operating leverage on solid revenue growth and effective cost discipline[14](index=14&type=chunk) [Earnings Per Share (EPS)](index=5&type=section&id=Diluted%20Earnings%20Per%20Share) Diluted GAAP EPS decreased to **$1.81** due to prior-year gains, while Diluted Adjusted EPS increased **8.0%** to **$1.88** from strong operational performance Diluted EPS Comparison | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Diluted GAAP EPS | $1.81 | $2.15 | -15.8% | | Diluted Adjusted EPS | $1.88 | $1.74 | +8.0% | - The decrease in diluted GAAP EPS was primarily due to net gains in the prior-year period from business sales and early debt extinguishment[19](index=19&type=chunk) - Diluted adjusted EPS increased **8.0%**, reflecting strong operational performance and a lower average share count, partially offset by higher interest and depreciation expenses[19](index=19&type=chunk) [Cash Flow and Capital Return](index=5&type=section&id=Cash%20Flow%20and%20Capital%20Return) Net cash from operating activities grew **15.5%** to **$245 million** and free cash flow increased **22.6%** to **$189 million**, alongside continued capital returns Q2 2025 Cash Flow (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $244.5 | $211.7 | +15.5% | | Capital expenditures | ($55.8) | ($57.8) | -3.5% | | Free cash flow | $188.7 | $153.9 | +22.6% | - During Q2, the company completed a **$100 million** Accelerated Share Repurchase program, buying back **0.3 million shares**. **$1.3 billion** remains authorized for future repurchases[20](index=20&type=chunk) - A cash dividend of **$0.45 per share** was paid on June 30, 2025. The Board approved another **$0.45 per share** dividend payable on September 30, 2025[20](index=20&type=chunk) [Business Outlook and Strategic Developments](index=6&type=section&id=Business%20Outlook%20and%20Strategic%20Developments) This section outlines Verisk's updated full-year 2025 guidance and details recent strategic acquisitions that expand its market capabilities [Full Year 2025 Outlook](index=6&type=section&id=Full%20Year%202025%20Outlook) Verisk raised its full-year 2025 guidance for total revenue to **$3.09B - $3.13B** and adjusted EBITDA to **$1.70B - $1.74B**, while narrowing adjusted EPS Updated Full Year 2025 Guidance (in millions, except per share amounts) | Metric | Original Guidance | Updated Guidance | | :--- | :--- | :--- | | Total revenue | $3,030 - $3,080M | **$3,090 – $3,130M** | | Adjusted EBITDA | $1,670 - $1,720M | **$1,700 – $1,740M** | | Diluted adjusted EPS | $6.80 – $7.10 | **$6.80 – $7.00** | | Interest expense | $145 - $165M | **$190 – $210M** | [Subsequent Events (Acquisitions)](index=6&type=section&id=Subsequent%20Events) Verisk completed the acquisition of SuranceBay for **$162.5 million** and agreed to acquire AccuLynx for **$2.35 billion**, expanding its insurance ecosystem capabilities - On July 17, 2025, Verisk acquired SuranceBay, a provider of producer licensing and compliance solutions for the life and annuity industry, for **$162.5 million** in cash[22](index=22&type=chunk) - On July 29, 2025, Verisk agreed to acquire AccuLynx, a leading SaaS business management platform for residential property contractors, for **$2.35 billion** in cash[23](index=23&type=chunk) [Appendix](index=8&type=section&id=Appendix) This appendix provides supplementary information, including non-GAAP financial measure explanations, unaudited financial statements, and GAAP to non-GAAP reconciliations [Non-GAAP Financial Measures Explanation](index=8&type=section&id=Notes%20Regarding%20the%20Use%20of%20Non-GAAP%20Financial%20Measures) Verisk utilizes non-GAAP measures like Adjusted EBITDA, Adjusted EPS, and OCC growth to provide supplemental operating insights by excluding specific non-recurring and non-cash items - Adjusted EBITDA is used to measure operating performance and is calculated by adjusting GAAP net income for items like depreciation, amortization, interest, taxes, and certain nonrecurring gains or losses[33](index=33&type=chunk) - Diluted Adjusted EPS excludes the after-tax effect of acquisition-related costs and nonrecurring items to better represent the after-tax profitability of core results[34](index=34&type=chunk) - Organic Constant Currency (OCC) growth rates are presented to assess performance excluding the impacts of foreign currency fluctuations, recent acquisitions, and dispositions[39](index=39&type=chunk) [Financial Statements (Unaudited)](index=11&type=section&id=Attached%20Financial%20Statements) This section presents unaudited Condensed Consolidated Financial Statements, including Balance Sheets, Statements of Operations, and Statements of Cash Flows - The Condensed Consolidated Balance Sheet shows total assets grew to **$4,794.9 million** as of June 30, 2025, from **$4,264.7 million** at December 31, 2024[43](index=43&type=chunk) - The Condensed Consolidated Statement of Operations for the six months ended June 30, 2025, reports revenues of **$1,525.6 million** and net income attributable to Verisk of **$485.6 million**[44](index=44&type=chunk) - The Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2025, shows net cash provided by operating activities of **$689.2 million**[45](index=45&type=chunk) [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed tabular reconciliations of GAAP to non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow Q2 2025 Net Income to Adjusted EBITDA Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net income | $253.3 | | D&A, Interest, Taxes | +$192.4 | | EBITDA | $445.7 | | Adjustments (e.g., earn-outs) | -$0.9 | | **Adjusted EBITDA** | **$444.8** | Q2 2025 Net Income to Adjusted Net Income Reconciliation (in millions) | Line Item | Amount | | :--- | :--- | | Net income | $253.3 | | Adjustments (e.g., Amortization of intangibles, net of tax) | +$11.1 | | **Adjusted net income** | **$264.4** | - The company states it is not able to provide a reconciliation of projected non-GAAP guidance to the comparable GAAP results due to the high unpredictability of certain excluded items[41](index=41&type=chunk)

Core Viewpoint - Verisk reported strong financial results for Q2 2025, with revenue growth prompting an increase in full-year revenue and adjusted EBITDA guidance [2][3][17]. Financial Performance - Q2 2025 revenues reached $773 million, a 7.8% increase from $717 million in Q2 2024, and a 7.9% increase on an organic constant currency (OCC) basis [5][7]. - Net income for Q2 2025 was $253 million, down 17.7% from $308 million in Q2 2024, primarily due to prior year gains [7][9]. - Adjusted EBITDA for Q2 2025 was $445 million, up 11.9% from $397 million in Q2 2024, with a 9.7% increase on an OCC basis [7][10]. - Diluted GAAP EPS was $1.81, down 15.8%, while diluted adjusted EPS increased by 8.0% to $1.88 [7][14]. Revenue Breakdown - Underwriting revenues increased by 8.3% to $550 million in Q2 2025, while claims revenues grew by 6.6% to $223 million [8][13]. - For the first half of 2025, total revenues were $1,526 million, a 7.4% increase from $1,421 million in the same period of 2024 [5][8]. Cash Flow and Capital Return - Net cash provided by operating activities increased by 15.5% to $245 million in Q2 2025, with free cash flow rising by 22.6% to $189 million [20][15]. - The company paid a cash dividend of $0.45 per share in Q2 2025, reflecting a 15.4% increase from the previous year [20][15]. Strategic Acquisitions - Verisk completed the acquisition of SuranceBay for $163 million on July 17, 2025, enhancing its capabilities in the life and annuity sector [21]. - A definitive agreement was signed to acquire AccuLynx for $2.35 billion, aimed at strengthening its position in the insurance claims and restoration ecosystem [22]. Updated Guidance - The updated full-year 2025 guidance includes total revenue expectations of $3,090 to $3,130 million and adjusted EBITDA of $1,700 to $1,740 million [17].

Jersey City, N.J., July 30, 2025 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider to the global insurance industry, has entered into a definitive agreement to acquire AccuLynx for $2.35 billion in cash to augment its network capabilities across the insurance claims and restoration ecosystem. AccuLynx is the leading SaaS platform providing end-to-end business management workflow for residential property contractors with expertise in roofing. The acquisition i ...

Core Insights - Verisk (VRSK) is set to release its second-quarter fiscal 2025 results on July 30, with expectations of surpassing earnings estimates based on historical performance [1] Revenue Expectations - The Zacks Consensus Estimate for Verisk's revenues is $768.5 million, indicating a 7.2% growth compared to the same quarter last year, driven by strong growth in subscription-based solutions and effective pricing strategies [2][10] - Estimated revenues from the United States are projected at $635.1 million, reflecting a 7% year-over-year increase, while revenues from the U.K. are expected to reach $58.2 million, suggesting a 14.1% rise [3][10] - Revenues from other countries are anticipated to grow by 2.1% year-over-year to $73.7 million [3] Earnings Projections - The consensus estimate for earnings per share is $1.77, indicating a 1.7% growth from the previous year's reported figure, attributed to strong operational performance [4] - Verisk currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, suggesting that the model does not predict a definitive earnings beat this time [5]

Core Insights - The California Department of Insurance (CDI) has approved the Verisk Wildfire Model for assessing wildfire risk and property insurance ratemaking, marking a significant milestone in California's insurance landscape [1][3]. - This model is the first catastrophe model to successfully complete the CDI's evaluation under the new regulatory framework, promoting data-driven risk assessment in California [1][2]. Company Overview - Verisk, a leading global analytics and data provider, developed the Wildfire Model leveraging decades of wildfire science, engineering expertise, and climate data [2][6]. - The model aims to stabilize California's insurance market as part of Commissioner Ricardo Lara's Sustainable Insurance Strategy [2][4]. Industry Impact - The approval allows California insurance carriers to utilize a robust wildfire model for the first time, enhancing the accuracy of wildfire risk assessments and encouraging greater insurer participation [3][4]. - The model incorporates advanced science and data, accounting for both property-level and community-level mitigation efforts, addressing concerns over insurance availability in fire-prone regions [4][5]. Collaboration and Transparency - The approval process involved years of collaboration, transparency, and rigorous review between Verisk and the CDI, highlighting the commitment to informed, data-driven decisions that benefit the insurance industry and communities [5][6].

Core Insights - Verisk has signed a definitive agreement to acquire SuranceBay for $162.5 million in cash, aiming to enhance efficiency in the life and annuity insurance ecosystem [1][2] - The acquisition will integrate SuranceBay's agency management software, SureLC™, into Verisk's FAST platform, covering all aspects of the insurance life cycle [2][3] - Verisk's commitment to investing in the life and annuity space is emphasized, with a focus on improving the connection between carriers and distribution partners [4][5] Company Overview - Verisk is a leading global data analytics and technology provider for the insurance industry, focusing on operational efficiency, underwriting, claims outcomes, and risk management [6] - SuranceBay specializes in software solutions that automate and simplify the insurance buying and selling process, providing an integrated experience for various stakeholders [3][4] Strategic Goals - The integration of SuranceBay is expected to enhance efficiency, agility, and scalability in the insurance market, reducing friction between carriers and distribution partners [2][4] - Both companies share a focus on technology that streamlines operations, aiming to deliver necessary efficiencies in the life and annuity market [5]

Core Viewpoint - Verisk is set to report its financial results for the fiscal second quarter ended June 30, 2025, on July 30, 2025, before the market opens [1] Group 1: Financial Reporting - The financial results will be discussed in a live audio webcast on July 30 at 8:30 a.m. ET, accessible via the Verisk investor website [2] - A replay of the webcast will be available for 30 days on the Verisk investor website and through a dedicated conference call number [3] Group 2: Company Overview - Verisk is a leading strategic data analytics and technology partner to the global insurance industry, focusing on improving operational efficiency, underwriting, claims outcomes, and combating fraud [4] - The company employs advanced data analytics, software, and scientific research to address global risks, including climate change and political issues, while fostering an inclusive culture across its teams in over 20 countries [4]

Core Insights - OneClick Data, Inc. has integrated its building code data with Verisk's Xactware platform, enhancing claims professionals' access to crucial local code information for faster and more accurate claims resolution [1][2][6] - The collaboration aims to eliminate guesswork in property restoration claims, improving efficiency and transparency in the claims ecosystem [4][6] - OneClick Code's database covers over 32,000 municipalities and more than 99% of street addresses in the U.S., significantly outperforming other solutions that may return no results up to 40% of the time [4] Company Overview - OneClick Data, Inc. specializes in automated building code and permit data, providing address-specific reports that enhance transparency and accuracy in the construction and insurance industries [7] - The company has generated over 500,000 building code reports in the past year, showcasing its extensive reach and capability in the market [4] Industry Impact - The integration with Verisk's Xactware suite supports professionals in property insurance, remodeling, and restoration, driving accuracy and efficiency in claims resolution [5] - The upcoming expansion of OneClick Code's offerings will include exterior building code data, further aiding claims professionals in reducing research time and minimizing loss adjustment expenses [3]

Core Insights - WTW has launched a new feature in Radar that significantly reduces the time required to utilize ISO updates from months to minutes, enhancing the ability of insurers to adapt to market price movements in real time [1][4][5] Company Overview - WTW is a leading global advisory, broking, and solutions company that provides data-driven, insight-led solutions in people, risk, and capital, serving clients in 140 countries [9] - Radar is an end-to-end analytics and model deployment solution specifically designed for insurers, incorporating advanced machine learning algorithms and real-time decision-making capabilities [6][7] Industry Context - Insurers require reliable access to the latest rating information to remain competitive, as time constraints can hinder their ability to adopt deviations and perform portfolio impact analyses [2] - The integration of Verisk's ISO Electronic Rating Content™ into Radar allows insurers to create ISO-based pricing models quickly, facilitating the analysis of new ISO updates and minimizing manual errors [3][4][5] Key Benefits - The new Radar functionality enables insurers to analyze the impact of ISO updates on existing portfolios and deploy rates to the market with enhanced efficiency, providing a competitive edge [4][5] - The seamless integration of ISO ERC content into Radar enhances the ratemaking process, allowing for faster and more accurate implementation of rating information [5]

Core Insights - Verisk Analytics, Inc. (VRSK) stock has increased by 13.9% over the past year, outperforming the Business - Information Services industry growth of 9.1% and the Zacks S&P 500 composite rise of 8.3% [1] Financial Performance - VRSK's revenues are projected to grow by 6.7% in 2025 and 7% in 2026, while earnings are expected to rise by 6.2% in 2025 and 11% in 2026 [3] - The company has a long-term earnings per share growth rate estimated at 11.4% [3] - In Q1 2025, VRSK reported revenues of $753 million, reflecting a 7% increase overall and a 7.9% increase on an organic constant-currency basis [4][8] - Underwriting revenues grew by 6.8% (7.2% OCC), driven by strong performance in various services [4] - Claims revenues increased by 7.5% (9.6% OCC), highlighting growth in property estimating and anti-fraud solutions [5] Strategic Developments - The introduction of the SRCC model enhances political violence risk modeling, allowing insurers to utilize a forward-looking approach [6] - Verisk's acquisition of Nasdaq's Risk Modelling for Catastrophes (NRMC) in April 2025 strengthens its catastrophe risk modeling capabilities [7][9] - NRMC provides access to over 300 third-party and custom models, enhancing risk analysis across the insurance value chain [9] Shareholder Returns - VRSK has consistently returned value to shareholders, paying over $188 million in dividends annually since 2021 and increasing share repurchases from $475 million in 2021 to $2.8 billion in 2023 [10] - In Q1 2025, the company returned more than $250 million to shareholders through dividends and repurchases, and initiated a $200 million Accelerated Share Repurchase program [10][11]