Verisk Analytics reported higher third-quarter revenue and adjusted earnings, with growth across both its underwriting and claims businesses. Net income slipped, however, and operating cash flow and free cash flow fell sharply from a year earlier.
The insurance data and analytics provider also said it completed a $100 million accelerated share repurchase and paid a quarterly dividend of 50 cents per share. Management maintained its 2026 outlook, saying it still expects performance in line with targets set at its Investor Day.
Key details
- Revenue rose 5.3% to $809 million. On an organic constant-currency basis, a non-GAAP measure that excludes currency effects and certain other factors, revenue increased 7.4%.
- Both business lines grew. Underwriting revenue increased 4.8% as reported and 7.7% on an organic constant-currency basis. Claims revenue rose 6.6% and 6.7%, respectively.
- Underwriting growth reflected annual price increases tied to enhancements in models and content, along with sales of expanded catastrophe and risk solutions.
- Claims growth was driven by pricing, adoption of newer anti-fraud analytics, and demand for property and restoration solutions.
- Subscription revenue grew 8.2% on an organic constant-currency basis, while transactional revenue increased 3.2%.
- Net income declined 2.8% to $219 million. Diluted earnings per share under GAAP nevertheless rose 5.6%, to $1.70.
- Adjusted EBITDA increased 7.0% to $459 million, or 7.5% on an organic constant-currency basis. Verisk said this marked another quarter of margin expansion, though the figures provided here do not specify the margin.
- Diluted adjusted earnings per share rose 14.0% to $1.96. Verisk attributed the growth to operating performance and its continued share-buyback activity.
- Cash flow was weaker year over year. Cash from operations fell 33.8% to $267 million, and free cash flow declined 40.5% to $200 million. The company cited the timing of collections, higher interest payments and a tax refund received in the prior-year quarter that did not recur.
- Verisk paid a 50-cent-per-share cash dividend on September 30, up from 45 cents a year earlier, and completed a $100 million accelerated share repurchase.
- For the first nine months of 2026, revenue was $2.40 billion, up 4.5%; net income was $682 million, down 4.1%; adjusted EBITDA was $1.36 billion, up 5.4%; and diluted adjusted EPS was $5.76, up 7.9%. Operating cash flow fell 6.3% to $1.02 billion, while free cash flow decreased 10.0% to $824 million.
- CEO Lee Shavel highlighted priorities that include strengthening client relationships, expanding AI-powered products and building connections across the insurance value chain. CFO Elizabeth Mann said growth had accelerated sequentially and that the company was maintaining its full-year 2026 outlook in line with Investor Day targets.
Plain-English implications
Revenue and adjusted earnings grew, with subscription sales providing the larger of the two reported growth rates. The quarter’s lower net income and cash generation show that stronger adjusted results did not translate into higher reported profit or cash flow year over year. The dividend and completed share repurchase represent direct returns of capital to shareholders.