Verisk Earnings Surpass Estimates in Q3, Revenues Increase Y/Y

Core Insights - Verisk (VRSK) reported strong third-quarter fiscal 2025 results, with adjusted earnings of $1.72 per share, exceeding the Zacks Consensus Estimate by 1.8% and reflecting a 3% year-over-year increase [1][9] - Total revenues reached $768.3 million, slightly missing consensus estimates but showing a 5.9% increase compared to the previous year [1][9] Performance Comparison - VRSK shares have increased by 6.8% year-to-date, outperforming the industry, which has declined by 6.2%, and the Zacks S&P 500 Composite, which has grown by 8% [2] Quarterly Financial Details - Underwriting and Rating revenues rose by 6.9% year-over-year to $542 million, surpassing estimates [3] - Claim revenues increased by 3.6% to $226 million, also beating estimates [3] - Adjusted EBITDA grew by 7.2% to $429 million, with an adjusted EBITDA margin of 55.8%, up from 55.2% in the previous year [4] Cash Flow and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $2.1 billion, a significant increase from $628.7 million at the end of the previous quarter [4] - Net cash utilized from operating activities was $404 million, with free cash flow of $336 million [5] - VRSK repurchased shares worth $100 million and returned $62.6 million in dividends to shareholders during the quarter [5] 2025 Guidance - For fiscal 2025, Verisk lowered its revenue guidance to $3.05-$3.08 billion, below the previous estimate and the Zacks Consensus Estimate of $3.1 billion [6] - Adjusted EBITDA forecast was also reduced to $1.69-$1.72 billion, with an anticipated adjusted EBITDA margin of 55-55.8% [6] - The adjusted earnings per share growth guidance remains at $6.80-$7.00, with the midpoint lower than the consensus mark [7]