Verisk (VRSK) Q2 Revenue Jumps 8%

Core Insights - Verisk Analytics reported Q2 2025 results with revenue of $773 million, a 7.8% increase year-over-year, and non-GAAP EPS of $1.88, up 8.0% from the previous year, exceeding Wall Street expectations [1][2] - The company raised its full-year 2025 revenue guidance to $3.09 billion to $3.13 billion, while narrowing adjusted EPS guidance due to higher forecast interest costs [1][13] Financial Performance - Q2 2025 non-GAAP EPS was $1.88, surpassing estimates of $1.78 and up from $1.74 in Q2 2024, reflecting an 8.0% year-over-year increase [2] - GAAP revenue reached $773 million, exceeding the estimate of $768.73 million and up from $717 million in Q2 2024, marking a 7.8% increase [2] - Adjusted EBITDA rose to $445 million, a 12.1% increase from $397 million in Q2 2024 [2] - Free cash flow increased by 22.7% to $189 million compared to $154 million in the prior year [2] Business Overview - Verisk Analytics specializes in data analytics for the property and casualty insurance sector, utilizing a proprietary database with over 36.3 billion statistical records [3] - The company focuses on predictive analytics and risk management products, serving all top 100 property and casualty insurers in the U.S. [4] Strategic Initiatives - Recent acquisitions include SuranceBay for $162.5 million and a pending deal for AccuLynx at $2.35 billion, aimed at enhancing compliance and property estimating capabilities [7][10] - The company is transitioning to subscription-based contracts, which stabilize cash flows and support predictable growth [11] Product Development - Verisk's product suite includes underwriting and claims solutions, with ongoing investments in cloud-native products and artificial intelligence tools [9][10] - New products like the Enterprise Exposure Manager and Verisk Synergy Studio are expected to enhance risk evaluation and catastrophe modeling [9] Outlook - Management raised revenue guidance for fiscal 2025 to $3.09 billion to $3.13 billion, while narrowing diluted adjusted EPS guidance to $6.80 to $7.00 due to increased interest expenses [13][14] - The quarterly dividend was increased by 15.4% to $0.45 per share, reaffirming the company's commitment to capital returns [14]