Verisk — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue was $809 million for the quarter, a 5.3% increase year-over-year, and 7.4% on an organic constant currency (OCC) basis.
• Net income was $219 million, a 2.8% decrease year-over-year.
• Diluted GAAP earnings per share (EPS) was $1.70, up 5.6% year-over-year.
• Diluted adjusted EPS was $1.96, up 14.0% year-over-year.
• Adjusted EBITDA was $459 million, up 7.0% year-over-year, and 7.5% on an OCC basis, with a margin of 56.7% compared to 55.8% in the prior year period.
• Net cash provided by operating activities was $267 million, down 33.8% year-over-year.
• Free cash flow was $200 million, down 40.5% year-over-year.
• The decrease in operating cash flow and free cash flow was primarily due to collection timing, higher interest payments, and a prior-year tax refund that did not recur.
• Effective tax rate was 25.7% for the quarter, compared to 25.3% in the prior year.
• For the nine months ended September 30, 2026, revenue was $2,398 million (up 4.5% reported, 6.0% OCC), net income was $682 million (down 4.1%), and adjusted EBITDA was $1,360 million (up 5.4% reported, 6.9% OCC).

Guidance and Future Outlook:

• The company maintains its full-year 2026 guidance unchanged.
• Full-year 2026 revenue guidance is $3,190 million to $3,240 million.
• Full-year 2026 adjusted EBITDA guidance is $1,790 million to $1,830 million.
• Full-year 2026 adjusted EBITDA margin guidance is 56.0% to 56.5%.
• Full-year 2026 diluted adjusted EPS guidance is $7.45 to $7.75.
• Full-year 2026 tax rate guidance is 23.0% to 26.0%.
• Full-year 2026 capital expenditures guidance is $260 million to $280 million.
• Full-year 2026 fixed asset depreciation and amortization guidance is $270 million to $290 million.
• Full-year 2026 intangible amortization guidance is $60 million.
• Full-year 2026 interest expense guidance is $190 million to $200 million.
• Full-year 2026 dividend per share guidance is $2.00.

Business Segments and Product Lines:

• Underwriting revenue was $568 million, up 4.8% reported and 7.7% OCC, driven by annual price increases from model and content enhancements in forms, rules, and loss cost services, and expanded solutions in catastrophe and risk solutions.
• Claims revenue was $241 million, up 6.6% reported and 6.7% OCC, driven by strong price realization, adoption of anti-fraud analytics innovations, and growth in property and restoration solutions.
• Subscription growth was 8.2% and transactional growth was 3.2% in the third quarter.

Market and Competitive Landscape:

• Verisk describes its business model as resilient and mission-critical within the insurance ecosystem.
• The company is executing on strategic priorities including deepening client partnerships, accelerating AI-powered innovation at scale, and expanding network effects across the insurance value chain.
• The company operates as a leading strategic data analytics and technology provider to the global insurance industry.

Risks and Challenges:

• Net income decreased due to losses related to cost-based investments and higher net interest expense.
• Free cash flow and operating cash flow were impacted by unfavorable working capital movements related to the timing of cash collections.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially, including factors related to dividend payments, business conditions, and capital allocation determinations.

Management Commentary and Tone:

• Lee Shavel, President and CEO, stated that results underscore the resilience of the subscription-based model and the company's mission-critical role, emphasizing disciplined execution on strategic priorities.
• Elizabeth Mann, CFO, noted that results returned to levels in line with annual Investor Day targets and reflected continued sequential acceleration in growth.
• Management expressed confidence that 2026 will be another year of performance in line with Investor Day targets.

Other Key Points:

• A cash dividend of 50 cents per share was paid on September 30, 2026.
• The Board of Directors approved a subsequent cash dividend of 50 cents per share, payable on December 31, 2026, to holders of record as of December 15, 2026.
• The company executed a $100 million Accelerated Share Repurchase (ASR) program in the third quarter, receiving 2.0 million shares at an average price of $181.76.
• As of September 30, 2026, $700 million remained under the share repurchase authorization.
• During the first nine months of 2026, the company funded $1.9 billion in aggregated share repurchases, receiving approximately 10.5 million shares at an average price of $185.46.
• Cash and cash equivalents decreased to $556.8 million as of September 30, 2026, from $2,178.2 million as of December 31, 2025.
• Short-term debt and current portion of long-term debt decreased to $267.5 million as of September 30, 2026, from $1,508.9 million as of December 31, 2025.
• Long-term debt increased to $4,227.8 million as of September 30, 2026, from $3,228.3 million as of December 31, 2025.
• Deferred revenues increased to $518.5 million as of September 30, 2026, from $444.2 million as of December 31, 2025.
• Total stockholders' equity was a deficit of $1,113.5 million as of September 30, 2026, compared to $309.0 million as of December 31, 2025.