Verisk Reports Fourth-Quarter and Full-Year 2025 Financial Results

Core Insights - Verisk reported solid financial results for the fourth quarter and full year 2025, aligning with long-term growth targets, and expressed confidence in future performance [4][5]. Financial Performance - Fourth quarter revenue was $779 million, a 5.9% increase from the previous year, while full-year revenue reached $3,073 million, up 6.6% [7][8]. - Net income for the fourth quarter was $197 million, down 6.2%, and for the full year, it was $908 million, down 5.1% due to prior year gains [8][12]. - Adjusted EBITDA for the fourth quarter was $437 million, up 9.8%, and for the full year, it was $1,727 million, up 9.6% [9][15]. - Diluted adjusted EPS increased by 13.0% in the fourth quarter to $1.82 and by 7.8% for the full year to $7.16 [20][21]. Cash Flow and Capital Return - Net cash provided by operating activities increased by 34.4% in the fourth quarter to $343 million and by 25.5% for the full year to $1,436 million [21][22]. - Free cash flow rose by 38.0% in the fourth quarter to $276 million and by 29.5% for the full year to $1,192 million [19][21]. - The board approved an 11% increase in the dividend to $0.50 per share and a $2.5 billion share repurchase authorization [5][26]. Business Segments - Underwriting revenues increased by 8.7% in the fourth quarter and 7.7% for the full year, driven by forms, rules, and loss cost services [11][14]. - Claims revenues decreased by 0.7% in the fourth quarter but increased by 4.1% for the full year, primarily due to growth in anti-fraud solutions [14]. Strategic Actions - The company terminated its agreement to acquire AccuLynx due to regulatory delays and sold Verisk Marketing Solutions, which contributed $68 million to revenue in 2025 [24][25]. - The company is leveraging generative and agentic AI solutions to enhance client support and operational efficiency [4].