Verisk(US:VRSK)2025-10-29 11:23Revenue Performance - Revenue for the three months ended September 30, 2025, was $768.3 million, representing a year-over-year growth of 5.9% compared to $725.3 million in 2024[119] - For the nine months ended September 30, 2025, revenue reached $2,293.9 million, a 6.9% increase from $2,146.1 million in the same period of 2024[119] - Revenues for Q3 2025 were $768.3 million, a 5.9% increase from $725.3 million in Q3 2024, driven by a $35.2 million increase in underwriting revenue (6.9%) and a $7.8 million increase in claims revenue (3.6%) [123] - For the nine months ended September 30, 2025, revenues reached $2,293.9 million, up 6.9% from $2,146.1 million in the same period of 2024, with underwriting revenue increasing by $110.9 million (7.3%) and claims revenue by $36.9 million (5.8%) [135] EBITDA and Margins - EBITDA for the three months ended September 30, 2025, was $426.6 million, reflecting an 8.3% growth from $393.8 million in 2024[119] - The EBITDA margin for the nine months ended September 30, 2025, was calculated as EBITDA of $1,288.2 million against revenues of $2,293.9 million, indicating a margin improvement[119] - EBITDA for Q3 2025 was $426.6 million, with an EBITDA margin of 55.5%, up from $393.8 million and 54.3% in Q3 2024, reflecting revenue growth and cost discipline [133] - EBITDA for the nine months ended September 30, 2025 was $1,288.2 million, with an EBITDA margin of 56.2%, down from 59.3% in the prior year [147] Net Income - Net income for the three months ended September 30, 2025, was $225.5 million, a 2.5% increase from $220.0 million in 2024[119] - Net income for Q3 2025 was $225.5 million, a slight increase from $220.0 million in Q3 2024, while net income for the nine months ended September 30, 2025, was $711.1 million, down from $747.2 million in the same period of 2024[149] - For the nine months ended September 30, 2025, net income was $711.1 million, down 4.8% from $747.2 million in the same period of 2024, with a net income margin of 31.0% compared to 34.8% [146] Expenses - Personnel expenses accounted for approximately 56% of total operating expenses for the nine months ended September 30, 2025[113] - The cost of revenues for the three months ended September 30, 2025, was $229.5 million, a 2.7% increase from $223.4 million in 2024[119] - Selling, general and administrative expenses decreased by 3.0% to $110.6 million for the three months ended September 30, 2025, compared to $114.0 million in 2024[119] - Cost of revenues for Q3 2025 was $229.5 million, a 2.7% increase from $223.4 million in Q3 2024, with a net increase of $8.1 million attributed to IT expenses, salaries, and data costs [125] - Selling, general and administrative expenses decreased by 3.0% to $110.6 million in Q3 2025 from $114.0 million in Q3 2024, despite a net increase of $3.4 million from recent acquisitions [126] Cash Flow and Debt - Cash and cash equivalents totaled $2,108.7 million as of September 30, 2025, significantly up from $292.5 million at the end of 2024[150] - Net cash provided by operating activities increased by 36.2% to $403.5 million in Q3 2025 from $296.2 million in Q3 2024[159] - Total debt increased to $4,750 million as of September 30, 2025, up from $3,050 million at the end of 2024[153] - The company repurchased $400.2 million of its common stock during the nine months ended September 30, 2025, compared to $750.0 million in the same period of 2024[152] - The company entered into a $750.0 million Term Credit Agreement on August 15, 2025, to finance the acquisition of AccuLynx[156] - Net cash used in investing activities for Q3 2025 was $234.5 million, primarily due to acquisitions totaling $160.4 million[161] - Net cash provided by financing activities for Q3 2025 was $1,305.3 million, driven by proceeds from short-term debt issuance[163] Tax and Interest - The provision for income taxes for Q3 2025 was $76.6 million, with an effective tax rate of 25.3%, compared to $65.3 million and 22.9% in Q3 2024 [131] - Interest expense for Q3 2025 increased by 31.5% to $42.2 million from $32.1 million in Q3 2024, primarily due to new Senior Notes issuance [130] Management and Accounting - Management's discussion and analysis are based on condensed consolidated financial statements prepared in accordance with U.S. GAAP[167] - Management evaluates estimates related to acquisition purchase price allocations, revenue recognition, and goodwill[167] - No material changes to critical accounting policies and estimates since the last annual report on Form 10-K[167] - Market risks as of September 30, 2025, have not materially changed from those discussed in the previous annual report[168] Operational Efficiency - The company aims to grow its headcount while managing personnel expenses at a lower rate than revenue growth, indicating a focus on operational efficiency[115]