Verisk Analytics (VRSK) Retreated in Q3 Following a Strong First Half

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite returned -3.2% net-of-fees, underperforming the Russell Midcap Growth Index which gained 2.8% [1] Company Overview - Verisk Analytics, Inc. (NASDAQ:VRSK) provides data analytics and technology solutions primarily for the insurance industry [3] - As of October 21, 2025, Verisk's stock closed at $237.03 per share, with a market capitalization of $33.117 billion [2] Performance Metrics - Verisk's one-month return was -2.17%, and its shares lost 11.42% over the last 52 weeks [2] - In Q2 2025, Verisk generated $773 million in revenue, reflecting a 7.8% increase from Q2 2024 [4] - The company reported organic revenue growth of 7.9% in Q2 2025, exceeding market expectations across various financial metrics [3] Strategic Developments - Verisk announced a $2.5 billion acquisition of AccuLynx, a SAAS-based software business, but the market reacted negatively to the 15x revenue multiple paid for this acquisition [3] - The decline in Verisk's stock is attributed to moderating organic growth expectations for the latter half of the year [3] Market Sentiment - Verisk Analytics is not among the 30 most popular stocks among hedge funds, with 49 hedge fund portfolios holding the stock at the end of Q2 2025, up from 45 in the previous quarter [4] - While Verisk is recognized for its potential, certain AI stocks are viewed as having greater upside potential and less downside risk [4]