VRSK
T3Verisk Analytics, Inc.
OverviewVerisk Analytics, Inc. provides data analytics and technology solutions to the global insurance industry. Its Underwriting segment helps insurers assess and pri
Verisk Analytics, Inc. provides data analytics and technology solutions to the global insurance industry. Its Underwriting segment helps insurers assess and price risks, while the Claims segment assists with fraud detection and loss quantification. The company primarily serves property/casualty insurers, adjusters, and contractors. In 2025, Underwriting generated approximately 71% of revenue and Claims about 29%.
- What They Do (Plain English & Analogies)
- Verisk acts like a central information hub and expert advisor for the global insurance industry. Imagine insurance companies as chefs trying to bake a cake (assess risk, price policies, handle claims). Verisk provides them with the best ingredients (massive amounts of data on everything from weather patterns to past claims, property characteristics, and fraud indicators) and the best recipes (predictive analytics, software tools, and expert advice). This helps insurers make smarter decisions, operate more efficiently, and serve their customers better, whether it's setting fair prices, preventing fraud, or quickly resolving claims after a disaster. They also help other industries like energy and financial services with similar data-driven insights.
- Very Brief History
- Verisk Analytics, Inc. was founded in 1971. Originally known as ISO, it started as a non-profit consortium and evolved into a public data analytics leader, with its IPO in 2009. Over its history, Verisk has transformed from a bureau/rating content provider to an end-to-end decision support company, continuously adapting to technological changes like digitization, cloud, SaaS, and now AI.
- "Street Stereotype"
- Verisk is generally perceived as a foundational, indispensable data and analytics provider for the insurance industry, particularly in property and casualty. It's often seen as a "picks and shovels" play for the insurance sector, providing critical, often proprietary, data and workflow solutions that are deeply embedded in its clients' operations. The company is known for its strong competitive moats due to its vast data sets, regulatory expertise, and established industry standards.
- Subsidiaries On Linked In*
- AIR Worldwide — Analytical tools, software systems, and databases for catastrophe and climate risk.
- FAST — End-to-end software for life insurance and annuity markets.
- Insurance Information Exchange (iiX) — Web portal for motor-vehicle reports and related analytics.
- ISO — Core insurance data, forms, rules, and loss costs.
- ISO Claims Partners — Claims-related solutions.
- National Equipment Register (NER) — Solutions for equipment theft prevention and recovery.
- Sequel — Specialty insurance and reinsurance software.
- Verisk Maplecroft — Global risk analytics and intelligence.
- Xactware — Property estimating solutions.
- Customer Sectors & Example Clients
- Verisk's customers are primarily in the global insurance industry, including property and casualty (P&C) insurers, life and annuities providers, and reinsurers. They also serve non-carrier clients such as third-party administrators and healthcare subrogation companies. While specific client names are not provided in the transcript, Verisk serves all of the top 100 property and casualty insurance providers in the U.S. for its relevant services and 7 of the top 10 homeowners insurers. Based on this, example clients would include major insurance carriers such as State Farm, Allstate, Progressive, GEICO, Travelers, Chubb, and Liberty Mutual.
- New Customers / Segments They'Re Targeting
- Verisk is actively targeting non-carrier clients, including third-party administrators and healthcare subrogation companies. They are also seeing opportunities to expand into the excess and surplus (E&S) market and the specialty market, driven by the ability to better connect and associate data sets.
- Supply Chain And Sourcing Geographies
- As a data analytics and technology solutions provider, Verisk's "supply chain" primarily involves the collection, aggregation, normalization, and analysis of vast amounts of data from multiple sources across the insurance industry. This data is contributed by their clients (insurers, adjusters, contractors) and other partners. There is no explicit mention of physical product sourcing geographies. The company's operations are global, with offices in various countries, indicating a distributed workforce for data processing and software development.
- Sales Geographies And Expansion Plans
- Verisk sells its products and services in the United States and internationally. The majority of its revenue comes from North America. The company is focusing its growth efforts on the UK/Europe and Asia-Pacific regions, particularly through reinsurance, specialty markets, and catastrophe model adoption. They have offices in the UK, India, Germany, and Canada, among other locations.
- How Key Themes May Help/Hurt
- The ongoing adoption of data and technology, particularly advanced AI, is a significant tailwind for Verisk, as their extensive, high-quality data sets are critical inputs for effective AI deployment, creating new opportunities for product innovation and revenue growth. However, the evolving regulatory landscape around AI in insurance could pose challenges if Verisk's applications face significant restrictions or require extensive, costly approvals. Increased competition from emerging AI innovators or platform vendors bundling analytics could also put pressure on pricing or market share if Verisk doesn't maintain its differentiation.
3 Main Long-Term Bull Details
- Indispensable Data & Analytics for a Digitizing Industry: Verisk provides critical, proprietary, and contributory data sets that are deeply embedded in the core workflows of the global insurance industry (underwriting, claims, risk management). As the industry continues its digital transformation and adopts advanced technologies like AI, the demand for high-quality, normalized, and connected data will only increase, solidifying Verisk's foundational role.
- Strong Position in AI Integration: Verisk is actively integrating AI into its products and processes, leveraging its unique data infrastructure and domain expertise. With over 35 AI-powered projects and solutions already in use and more planned, the company is well-positioned to capitalize on the AI trend, driving efficiency for clients and creating new value-driven revenue streams.
- Robust Business Model with Operating Leverage and Free Cash Flow: Verisk consistently delivers solid financial results, marked by strong subscription revenue growth (84% of total revenue), operating leverage, and robust free cash flow generation. This allows for continued investment in innovation, strategic share repurchases, and dividend increases, demonstrating a shareholder-centric capital deployment strategy.
3 Main Long-Term Bear Details
- Transactional Revenue Volatility: A portion of Verisk's revenue is transactional (16% of total revenue), which can be significantly impacted by external factors like weather activity (e.g., low weather activity leading to lower property estimating volumes) or other market dynamics, creating quarterly and annual growth volatility.
- Competitive Pressures in Specific Segments: While Verisk has strong moats, certain segments, such as personal lines auto, face competitive challenges from products that are not sufficiently differentiated, leading to headwinds in growth.
- Regulatory and Adoption Risks with New Technologies: While Verisk emphasizes regulatory compliance, the rapid evolution of AI technologies could lead to unforeseen regulatory hurdles or slower-than-expected client adoption, particularly for smaller clients daunted by AI development, potentially impacting the pace of value realization.
- Competitors And Differentiation
- Verisk faces competition from various players in the data analytics and risk assessment space. Key competitors include LexisNexis, CoreLogic, Willis Towers Watson, RMS (Risk Management Solutions, now part of Moody's), Equifax, TransUnion, Aon Impact Forecasting, Guidewire, and Duck Creek. Verisk differentiates itself through several key competitive advantages: critical data sets, established industry process and domain expertise, existing connectivity to multiple parties in the ecosystem, the ability to invest in innovation at scale, and regulatory expertise. They aggregate and normalize massive amounts of specific and representative data, including proprietary cost and repair data sets, which is essential for accurate risk assessment, claims evaluation, and regulatory compliance. Verisk also submits over 2,000 regulatory product filings each year and interacts with all 50 state regulators daily, ensuring their products and data are compliant.
- Recent Performance & What The Market'S Focused On
- Verisk delivered solid financial results for Q4 and full year 2025, with organic constant currency (OCC) revenue growth of 6.6% for the full year and OCC adjusted EBITDA growth of 8.5%. Subscription revenues, comprising 84% of total revenues, grew 7.7% on an OCC basis. However, transactional revenues declined 6.5% OCC in Q4 due to low weather activity and softness in personal lines auto. For 2026, Verisk expects consolidated revenue between $3.19 billion and $3.24 billion, and adjusted EBITDA between $1.79 billion and $1.83 billion, with adjusted EBITDA margins of 56% to 56.5%. The company also announced a $1.5 billion accelerated share repurchase program and an 11% increase in its dividend. The market is focused on the continued integration and monetization of AI across its product portfolio, the recovery path for transactional revenue, and the sustainability of margin expansion while investing in growth.
- Revenue Segments And Estimated Mix
- Insurance (Underwriting) — Mix: n/m, largest subsegment of Insurance; Source: Q4 2025 transcript, includes forms, rules, loss costs, catastrophe and risk solutions, anti-fraud. Verisk Marketing Solutions (divested) was in this segment.; Trend: OCC growth of 7.2% in Q4 2025. Strong growth in subscription businesses like forms, rules and loss costs, catastrophe and risk solutions, and anti-fraud. Divestiture of Verisk Marketing Solutions is a headwind for 2026 revenue.
- Insurance (Claims) — Mix: n/m, significant subsegment of Insurance; Source: Q4 2025 transcript, includes property estimating solutions.; Trend: OCC growth of 0.5% in Q4 2025, impacted by historically low weather activity and lower volumes in property estimating solutions. Expected to improve over 2026.
- Subscription Revenues — Mix: 84%; Source: Q4 2025 transcript; Trend: Grew 7.7% on an OCC basis in Q4 2025, compounding from 11% OCC increase in Q4 2024. Strongest driver of growth.
- Transactional Revenues — Mix: 16%; Source: Q4 2025 transcript; Trend: Declined 6.5% on an OCC basis in Q4 2025, primarily due to lower volumes in property estimating solutions from low weather activity and softness in personal lines auto. Expected to be a source of strength long-term after working through headwinds in H1 2026.
- Insurance Solutions (overall) — Mix: >95%; Source: 2024 data; Trend: Dominant segment, focus of the business.
- Energy and Specialized Markets — Mix: <5%; Source: Implied from 2024 Insurance Solutions mix; Trend: Small and decreasing share as company focuses on insurance.
- Financial Services — Mix: <5%; Source: Implied from 2024 Insurance Solutions mix; Trend: Small and decreasing share as company focuses on insurance.
- Product Brands
- XactGen
- XactXpert
- XactAI
- Xactimate
- Verisk Synergy Studio
- ClaimSearch
- Claims Coverage Identifier
- Digital Media Forensics
- Core Lines Reimagine
- Coverage Verifier
Bull / Bear DetailsVerisk Analytics, Inc. (VRSK) is a compelling long-term investment as of 2026-04-26, driven by its strategic focus on the global insurance industry and leadersh
Thesis
Verisk Analytics, Inc. (VRSK) is a compelling long-term investment as of 2026-04-26, driven by its strategic focus on the global insurance industry and leadership in AI-powered data analytics. Despite near-term transactional headwinds and tough comparisons, the company's strong subscription revenue growth, proprietary data sets, and expanding AI solutions position it for sustained growth and margin expansion, capitalizing on the healthy insurance market's increasing demand for advanced technology.
Bull case
Verisk is aggressively integrating AI into its core offerings, evidenced by new products like XactGen and XactAI. Its proprietary data sets, established industry processes, and ecosystem connectivity provide a significant competitive moat, enabling it to deliver high-ROI AI solutions that enhance client efficiency and accuracy across underwriting and claims.
The company's disciplined portfolio management, including the termination of AccuLynx and divestiture of Verisk Marketing Solutions, sharpens its focus on the high-growth global insurance industry. A healthy insurance market with improving profitability and increased budgets for data and analytics creates a favorable environment for Verisk's specialized solutions.
Verisk consistently delivers strong organic constant currency subscription revenue growth, comprising 84% of total revenues. This recurring revenue stream, coupled with ongoing cost discipline and the inherent operating leverage of its data and analytics model, supports modest but meaningful adjusted EBITDA margin expansion, even while funding significant AI investments.
Bear case
Verisk's transactional revenues, representing 16% of total, are susceptible to external factors like weather activity and softness in specific segments such as personal lines auto. These headwinds have negatively impacted recent growth and are expected to continue into the first half of 2026, creating near-term revenue and growth rate pressures.
While Verisk is rapidly deploying new AI and advanced technology modules (e.g., Core Lines Reimagine), client adoption and full value realization require significant training and integration efforts. Slower-than-expected uptake or difficulties in integrating new solutions could temper the anticipated revenue and efficiency benefits.
Despite its strong data moats, Verisk faces competition, particularly in less differentiated product areas like personal lines auto. Furthermore, the termination of the AccuLynx acquisition due to FTC review highlights potential regulatory hurdles for future strategic M&A, which could limit growth avenues.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| AccuLynx Acquisition Finalization | The successful acquisition of AccuLynx would significantly strengthen Verisk's property estimating solutions and claims ecosystem, driving growth and generating strong returns on capital, reversing the prior termination decision. | Official announcement from Verisk confirming the successful completion of the AccuLynx acquisition, including any details on the resolution of regulatory concerns or revised terms. | Bullish if the acquisition is confirmed and completed, indicating a significant strategic expansion and positive outlook for the claims segment. | Company press releases, SEC filings (e.g., 8-K, 10-Q), future earnings calls. The next earnings call for Q1 2026 is scheduled for April 29, 2026. | Industry news outlets (e.g., Insurance Journal, PropertyCasualty360) covering M&A in the insurance technology space. | MergerMarket: Updates on M&A deal progress and regulatory reviews. |
| Core Lines Reimagine Program Module Releases | The completion of the remaining 25 customer-facing modules in 2026 will enhance Verisk's core underwriting products, driving value realization for clients, strengthening subscription renewals, and supporting pricing power. | Specific announcements or updates on the progress of releasing the 25 planned modules throughout 2026. Management commentary on client engagement and feedback regarding the new functionality. | Bullish if Verisk consistently reports on track or ahead of schedule for releasing the 25 modules, indicating successful execution of this key investment program. | Company press releases, investor presentations, future earnings calls (Q1, Q2, Q3, Q4 2026), Verisk's 'Reimagine Roadmap' webpage. | Industry forums/blogs discussing Verisk's Core Lines updates and new features. | N/A |
| Personal Lines Auto Differentiated Analytics Adoption | Successful adoption of new differentiated analytics, such as the enhanced Coverage Verifier product, is critical for addressing competitive challenges and softness in the personal lines auto business, driving long-term subscription growth. | Management commentary on the interest and uptake of the new Coverage Verifier enhancement. Specific metrics on new client wins or increased usage by existing clients for this product. | Bullish if Verisk reports strong client interest and initial adoption of the enhanced Coverage Verifier, indicating successful differentiation in a competitive market. | Future earnings calls, company press releases, investor presentations, Verisk's Personal Auto solutions webpage. | Industry publications discussing innovations in auto insurance underwriting. | N/A |
| AI Product Launches and Client Adoption | Verisk's ability to introduce new AI-powered solutions and drive client adoption is crucial for monetizing its data, enhancing client efficiency, and achieving long-term growth targets in a rapidly evolving industry. | Specific announcements of new AI-powered products or significant enhancements (e.g., XactGen, XactAI). Management commentary on the number of clients adopting these platforms or the number of adjusters/employees trained. | Bullish if Verisk announces new AI solutions beyond the 35+ existing ones and reports strong initial adoption (e.g., 'thousands of employees trained' or 'X of top Y insurers adopting'). | Company press releases, investor presentations, industry conferences (e.g., Verisk Insurance Conference held March 23-26, 2026), future earnings calls. | Industry news outlets for product reviews or client testimonials; Verisk's own website/blog for product announcements. | Thinknum: Job postings mentioning Verisk's AI products or related skills; Web traffic analysis to Verisk's product pages. |
| Verisk Synergy Studio Launch and Client Hosting Expansion | The official launch of Verisk Synergy Studio and increased client hosting signify a new growth driver in catastrophe and risk solutions, potentially leading to new client acquisitions and contract expansions. | Official announcement of the launch date for Verisk Synergy Studio, which is 'set to arrive in 2026'. Management commentary on the number of clients expanding hosting relationships or new client wins attributed to Synergy Studio. | Bullish if Synergy Studio launches as planned 'later this year' and Verisk reports significant uptake in client hosting and new client acquisitions. | Company press releases, investor presentations, future earnings calls, Verisk's website for product updates. | Industry news and analyst reports covering new platform launches in catastrophe modeling. | N/A |
Key Reported Metrics
| Metric | Why It Matters | Last Period |
|---|---|---|
| Transactional Revenues (OCC Growth/Decline) | This segment has faced headwinds from low weather activity and softness in personal lines auto. Its recovery or continued decline is crucial for overall revenue growth, with management expecting improvement in the second half of 2026. | -6.5% |
| Underwriting Segment OCC Revenue Growth | As Verisk's largest segment, its continued strong subscription revenue growth, driven by the completion of the Core Lines Reimagine program and new AI-powered solutions, is fundamental to the company's long-term growth targets and competitive differentiation. | 7.2% |
| Organic Constant Currency Revenue Growth | This metric indicates Verisk's overall top-line performance, reflecting the adoption of its data and technology solutions across the global insurance industry. Q1 2026 is anticipated to be the trough for growth, making its trajectory crucial for investor sentiment. | 5.2% |
Key QuestionsWill Verisk's Q1 2026 reported revenue growth indeed represent the anticipated trough, and will management reaffirm the expected acceleration in organic constan
Will Verisk's Q1 2026 reported revenue growth indeed represent the anticipated trough, and will management reaffirm the expected acceleration in organic constant currency revenue growth for the remainder of 2026?
- Question 2
Will Verisk demonstrate accelerated client adoption and initial revenue contributions from its new AI-powered solutions (e.g., XactGen, XactAI) in the upcoming quarter, validating the monetization potential of its AI investments?
- Question 3
Will Verisk show signs of stabilization or early recovery in its transactional revenue segment in Q1 2026, particularly in property estimating solutions and personal lines auto, mitigating concerns about ongoing headwinds?
Rerating Thresholds
| Metric | What'S Needed For Rerating | Why It Matters | Earnings Date |
|---|---|---|---|
| Underwriting Segment OCC Revenue Growth | Underwriting Segment OCC Revenue Growth needs to hit at least 6% or higher, significantly exceeding the 2.2% analyst consensus for Q1 2026 and demonstrating a clear path towards the company's 6-8% medium-term target. | Hitting this threshold would validate Verisk's strategic focus on core insurance and AI investments, signaling strong execution and a quicker recovery from transactional headwinds. It would confirm the company's competitive moat and ability to drive sustained subscription revenue growth, justifying a higher valuation multiple. | 2026-04-29 |
| Transactional Revenues (OCC Growth/Decline) | Transactional Revenues (OCC Growth/Decline) needs to be -3% or better (i.e., less negative, flat, or positive). This would demonstrate a clear improvement from the -6.5% decline in Q4 2025 and signal that the 'trough' for this segment has been passed, validating management's expectation for recovery in the second half of 2026. | Hitting this threshold matters because transactional revenues, despite being 16% of total revenue, have been a key drag on overall growth. A significant improvement or return to positive growth would validate management's outlook, reduce concerns about external headwinds like low weather activity and personal lines auto softness, and confirm the long-term growth thesis, potentially leading to a higher valuation. | 2026-04-29 |
| Organic Constant Currency Revenue Growth | For Verisk Analytics (VRSK) to rerate higher, its Organic Constant Currency (OCC) Revenue Growth needs to demonstrate a clear and robust acceleration. Specifically, Q1 2026 OCC revenue growth should exceed the implied low single-digit analyst expectations (e.g., above 4-5% OCC growth), signaling a shallower trough than anticipated. More critically, the company must reaffirm or, ideally, raise its full-year 2026 OCC revenue growth guidance to the higher end of its 6-8% medium-term target, ideally indicating 7% or more, to align with or surpass peer performance and validate its growth trajectory. | Hitting this threshold is crucial as it would validate Verisk's strategic focus on its core insurance business and its significant investments in AI-powered solutions. It would alleviate investor concerns regarding near-term transactional revenue headwinds and the anticipated Q1 trough, demonstrating sustainable growth and competitive strength. Achieving 7%+ OCC growth for the full year would confirm the company's ability to meet or exceed its medium-term targets and align with high-growth peers, thereby driving valuation expansion. | 2026-04-29 |
Earnings Transcript Summary
· 2025Q4 Earnings Call
| 3 Things Management Is Most Focused On | Call Takeaway & Tone | Prior Quarter'S Y/Y Growth By Segment | 3 Things Analysts Most Pressed On (And Mgmt Responses) | Revenue Segments |
|---|---|---|---|---|
| 1. **Strategic Portfolio Management and Focus on Core Insurance Business**: Management emphasized the termination of the AccuLynx acquisition and the sale of Verisk Marketing Solutions, demonstrating a commitment to focusing on data, analytics, and technology solutions for the global insurance industry. 2. **Leveraging AI and Advanced Technologies for Client Value**: Management is heavily focused on integrating AI into existing products and developing new AI-powered solutions (e.g., XactGen, XactAI) to enhance client efficiency, accuracy, and provide better ROIs, capitalizing on Verisk's proprietary data sets and industry expertise. 3. **Shareholder Returns and Organic Investment**: Management highlighted a commitment to shareholder-centric capital deployment, announcing a $1.5 billion accelerated share repurchase program and an 11% increase in the annual dividend. They also stressed prioritizing organic investment in the business for future growth. | The overall takeaway from the call was positive and confident, despite acknowledging some temporary headwinds. Management expressed satisfaction with solid 2025 financial results, which were in line with long-term targets, and confidence in delivering continued growth in 2026. Key themes included strategic portfolio management to focus on the core insurance business, aggressive investment in and leveraging of AI and advanced technologies to drive client value, and a strong commitment to shareholder returns through capital deployment and organic investments. The tone was optimistic about future growth opportunities and the company's competitive advantages in the evolving insurance industry. | In Q3 2025, Verisk's overall organic constant currency (OCC) revenue grew 5.5%. The Underwriting segment's OCC revenue grew 5.8%, and the Claims segment's OCC revenue grew 5.0%. Subscription revenue grew 8.7% on an OCC basis, while transactional revenue declined 8.8% on an OCC basis. | 1. **AI Strategy and Client Adoption**: Analysts inquired whether clients prefer to use Verisk's data for their own AI products or have Verisk create the AI products. Management responded that it's both, depending on the client's scale and sophistication. Larger clients seek data in AI-compatible formats for their own development while also leveraging Verisk's integrated AI, whereas smaller clients often prefer to rely on Verisk's integrated AI functionality for faster ROI. They stressed that Verisk's data is at the core of these applications. 2. **Transactional Revenue Declines and Recovery Path**: Analysts questioned the recent declines in transactional growth and the outlook for recovery. Management explained that the primary driver of the Q4 decline was tough comparisons to prior-year storms and other temporary factors like low weather activity and softness in personal lines auto. They expect to work through these headwinds in the first half of 2026 and anticipate transactional revenue to be a source of strength in the long term. 3. **EBITDA Margin Outlook and Investment vs. Efficiency**: Analysts pressed on the modest EBITDA margin expansion guided for 2026, asking about the balance between investments and cost efficiencies. Management clarified that the 2026 guidance of 56%-56.5% represents modest but meaningful expansion from a normalized 2025 baseline of 55.8% (excluding a non-recurring FX benefit). This expansion balances operating leverage and efficiencies with significant funding for exciting AI product investments. | Verisk reported organic constant currency (OCC) revenue growth of 5.2% in Q4 2025. Underwriting segment grew 7.2% on an OCC basis, while the Claims segment grew 0.5% on an OCC basis. Subscription revenues, comprising 84% of total revenues, increased 7.7% on an OCC basis. Transactional revenues, representing 16% of total revenues, declined 6.5% on an OCC basis. |
Transcript Tidbits
| About Expanding Eligible Market | About Competition | About The Broader Industry | Where Things Are Headed | Updates On Theme | Broader Themes Emerging | Bullish-Leaning Quotes (Short) | Bearish-Leaning Quotes (Short) | Hiring |
|---|---|---|---|---|---|---|---|---|
| Verisk is developing new data sets in the excess and surplus market, driven by the ability to connect and associate data sets, leveraging connectivity with P&C carriers writing both admitted and excess/surplus lines. There is also greater connectivity emerging in the specialty market, leading to more requests for data and analytics to support this market. | Verisk is in a unique position as one of very few providers who aggregate, organize, and normalize data from multiple sources to glean insights about risk at a granular level. The company has a competitive advantage in providing AI functionality integrated into existing products and processes, particularly for smaller and mid-sized clients who seek faster ROI. Challenges exist in products that are not differentiated, specifically in the personal lines auto business, where the focus is now on delivering differentiated analytics for long-term subscription growth. Verisk believes its fundamental data differentiation and connectivity differentiation protect it from threats like AI-driven or 'vibe coding' in software. | The insurance industry is healthy, coming off a strong 2025 with solid mid-single-digit net written premium growth and consistently better year-over-year combined ratios, indicating strong overall profitability. This health fosters the industry's interest and capability to adopt and integrate improved data, analytics, and technology, with efficiency, better risk selection, and new technology adoption being top priorities. The P&C insurance industry's transition from a hard to a soft market is expected to improve carrier profitability, leading to a better budget environment for data and analytics. | Verisk has confidence in delivering against its long-term growth targets, driven by the ongoing adoption of data and technology across the global insurance industry. The company plans to introduce many more AI-powered projects and solutions throughout 2026, building on the 35+ already in use. The original scope of the Core Lines Reimagine investment program will be completed in 2026, with continuous innovation planned for proprietary content and AI-powered tools. Verisk anticipates Q1 2026 reported revenue to be the trough in terms of both dollars and growth rate, with improvement expected over the balance of the year. The company is focused on differentiated analytics to drive long-term subscription growth. | AI | Digitization, cloud, and SaaS are mentioned as prior technology transformations that Verisk capitalized on to drive growth and value for the insurance industry. | Verisk delivered solid financial results for 2025, marked by organic constant currency revenue growth of 6.6%, organic constant currency adjusted EBITDA growth of 8.5% and strong free cash flow growth. The insurance industry is healthy, coming off a strong 2025, marked by solid mid-single-digit net written premium growth and consistently better year-over-year combined ratios, reflecting strong overall profitability. We are well positioned to benefit from AI, drive new innovation, further connect the insurance ecosystem and deliver growth in line with our long-term growth targets. We are energized by the opportunity that lies ahead. Subscription revenues, which comprised 84% of our total revenues in the quarter, grew 7.7% on an OCC basis. We do expect growth in reported revenue on a year-over-year basis and on a sequential basis when normalized for the sale of marketing solutions. Additionally, we anticipate the first quarter to be the trough, both in terms of reported dollars and growth rate. | First, we made the difficult decision to terminate the definitive agreement to purchase AccuLynx. That said, following the notice from the FTC that the review would be extended, the opportunity cost of waiting on the sidelines through a long, uncertain and costly approval process was too high. This growth was achieved despite some temporary headwinds, including a year of very low weather activity. The primary driver of the transactional revenue decline was lower volumes in our property estimating solutions business, resulting from continued low levels of weather activity. Additionally, as we noted on our prior call, softness in our personal lines auto business also negatively impacted growth. We have tougher comparisons in the first half of the year. There is a work stoppage on a certain government contract that started in the first quarter and will impact revenue growth. We anticipate first quarter 2026 reported revenue will be lower than reported revenue in the fourth quarter of '25 by a low single-digit percentage given the divestiture of Verisk Marketing Solutions. | Steve Kauderer has joined Verisk to lead the claims business. He brings 3 decades of experience as a consultant, advising global carriers and brokers on transforming insurance workflows using data and technology, including AI. |
Notes
| Date | Comment | Comment Type | Comment Sentiment | Link | IS CHANGE | Price Reaction |
|---|---|---|---|---|---|---|
| 2026-02-18 | Verisk reported solid 2025 results and highlighted strong AI integration and shareholder returns. However, the termination of the AccuLynx acquisition and Q1 2026 revenue trough guidance likely overshadowed positive messaging. The stock underperformed SPY by -0.28% (t+2 days), indicating market caution, possibly due to near-term headwinds and modest margin expansion despite long-term confidence. | Earnings Transcript | Neutral | False | -0.85% (vs SPY: -0.28%) |
Upcoming Events
| Catalyst ID | Estimated Timing | Estimated Date Start | Estimated Date End | Catalyst | Why It Matters | Ticker Or Theme Specific | Transcript Date | Source Type |
|---|---|---|---|---|---|---|---|---|
| VRSK_81609b55 | throughout 2026 | 2026-04-26 | 2026-12-31 | Verisk plans to introduce 'many more' AI-powered projects and solutions for both internal and external purposes across its businesses. | These new AI solutions could enhance product offerings, improve operational efficiency, and drive future revenue growth, impacting investor sentiment regarding Verisk's innovation and competitive edge in AI adoption. | Ticker | 2026-02-18 | earnings_transcript |
| VRSK_b25de69a | for 2026 | 2026-04-26 | 2026-12-31 | Verisk's ability to achieve its 2026 financial guidance, including consolidated revenue of $3.19B-$3.24B, adjusted EBITDA of $1.79B-$1.83B, adjusted EBITDA margin of 56%-56.5%, and adjusted EPS of $7.45-$7.75. | Meeting or exceeding this guidance would signal strong operational execution and market demand, positively impacting investor confidence and valuation. Missing guidance could lead to negative sentiment. | Ticker | 2026-02-18 | earnings_transcript |
| VRSK_153bba18 | in 2026 | 2026-04-26 | 2026-12-31 | Release of 25 additional customer-facing modules for the Core Lines Reimagine program, which will deliver upon the original scope of the investment program. | The completion and adoption of these modules are expected to enhance client value, drive subscription growth, and improve profitability, demonstrating the return on Verisk's strategic investments. | Ticker | 2026-02-18 | earnings_transcript |
| VRSK_7e4f3989 | later this year | 2026-07-01 | 2026-12-31 | Launch of the Verisk Synergy Studio platform within the catastrophe and risk solutions segment. | The successful launch and adoption of this platform could expand client engagements, drive new revenue streams, and strengthen Verisk's competitive position in catastrophe and risk solutions. | Ticker | 2026-02-18 | earnings_transcript |