VRSK
T3Verisk Analytics, Inc.
Loading chart…
OverviewVerisk Analytics, Inc. (VRSK) provides advanced data analytics and decision-making tools, primarily to the global insurance industry. Its solutions, largely sub
Verisk Analytics, Inc. (VRSK) provides advanced data analytics and decision-making tools, primarily to the global insurance industry. Its solutions, largely subscription-based (around 83% of revenue), help clients assess risk, price policies, and manage claims, leveraging proprietary data and AI. Verisk serves all top 100 U.S. property and casualty insurers, alongside other financial and natural resource sectors.
- What They Do (Plain English & Analogies)
- Verisk Analytics is like a specialized information provider and expert guide for the insurance world. Imagine insurance companies are trying to predict the future – like how many houses will be damaged by a hurricane, or who might try to commit fraud. Verisk gives them the super-powered crystal ball and the instruction manual. They collect and analyze huge amounts of data on everything from weather patterns and property characteristics to past claims and fraud indicators. Then, they turn this raw data into smart insights, predictive models, and software tools that help insurers make better decisions. This means insurers can accurately price policies, quickly detect and prevent fraud, and efficiently handle claims after a disaster. While their main focus is insurance, they also offer similar data-driven insights to other industries.
- Very Brief History
- Verisk Analytics, Inc. was founded in 1971, initially known as ISO, a non-profit consortium. It 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. Recently, the company has divested non-core assets like Verisk Marketing Solutions to sharpen its focus on the global insurance industry.
- "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.
- McKenzie Intelligence Services (MIS) — Geospatial intelligence and event response, specializing in global real-time catastrophe and conflict event analysis. Acquired in Q2 2026 and integrated into Verisk Catastrophe and Risk 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. The company actively engages with top national and regional carriers, and has a top 10 carrier already using its MCP connectors. Based on their market position, 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 new data contributors, having onboarded 8 new Core Lines contributors and 10 contributors to their new excess and surplus dataset in 2026, which now covers over $18 billion in historical and current premium. They are also expanding their client base in Catastrophe and Risk solutions, driven by the addition of new clients and notable renewals. Furthermore, they are developing agentic capabilities in their life solutions, building on their conversational Ask Max feature, indicating a focus on enhancing offerings for life insurance clients.
- 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 various countries including the UK, India, Germany, Canada, Costa Rica, Ireland, Japan, Korea, Nepal, Poland, Singapore, Spain, and Sweden.
- How Key Themes May Help/Hurt
- The "Software '26: Legal Tech" theme is highly relevant to Verisk, particularly through its specialized exposure to insurance defense law, where its data models are industry standards for litigating casualty and personal injury claims. The theme's focus on "Accelerated AI Integration, Monetization & TAM Expansion" directly aligns with Verisk's strategy of embedding AI into products like Premium Audit AI and XactAI, and developing agentic capabilities, which can lead to stronger renewal growth and new monetization channels. The "Deep Proprietary Content & Domain Expertise as Moat" bull point reinforces Verisk's competitive advantage, as its unique, structured, and regulatory-grade data is crucial for "fiduciary-grade AI" in high-stakes legal and insurance contexts. Increasing regulatory complexity and demand for compliance solutions could also benefit Verisk, as its solutions help clients navigate AI risks and regulations. However, the "Slower-Than-Anticipated AI Adoption & Change Management" bear point is a direct challenge, as Verisk has experienced extended sales cycles for some AI solutions due to complex contracting around AI governance, compliance, IP, and privacy issues. "Intensifying Competition from Generic LLMs & AI Startups" could also pose a threat, though Verisk mitigates this by focusing on its proprietary data and expertise, which are essential even for clients developing their own LLMs.
3 Main Long-Term Bull Details
- Accelerating AI Integration and Monetization: Verisk is aggressively integrating AI into its core offerings, evidenced by strong client adoption of new solutions like Premium Audit AI and XactAI, and strategic partnerships with frontier model companies. This enhances client efficiency, accuracy, and creates new revenue streams, improving price realization and supporting stronger renewal growth.
- Indispensable Proprietary and Contributory Data: Verisk provides critical, proprietary, and contributory data sets that are deeply embedded in the core workflows of the global insurance industry. The mission-critical nature of its solutions, combined with its scale-driven economic advantage and trusted partner status, ensures consistent demand and high switching costs.
- Resilient Subscription-Based Business Model: Verisk consistently delivers strong organic constant currency subscription revenue growth (83% of total revenue in Q2 2026), demonstrating the stability and value of its solutions. This recurring revenue stream, coupled with disciplined expense management and operating leverage, supports continued margin expansion and long-term growth.
3 Main Long-Term Bear Details
- Transactional Revenue Volatility: Verisk's transactional revenues (17% of total revenues in Q2 2026) remain susceptible to external factors like low weather activity, softening commercial property markets, and other temporary disruptions (e.g., international travel disruption, federal government contract work stoppage). These factors can create near-term revenue pressures and impact overall growth.
- Extended Sales Cycles for AI Solutions: While AI presents significant opportunities, the integration of AI into client strategies and existing contracts is leading to extended sales cycles. This complexity stems from negotiating contracts to incorporate new AI governance, compliance, intellectual property, and privacy issues, potentially slowing the pace of revenue realization from these advanced offerings.
- Competitive Pressures and Softening Markets: The insurance industry is experiencing increased competition and softening pricing, particularly in commercial property, as carriers shift focus from profitability to growth. This dynamic could exert pressure on Verisk's pricing power and transactional volumes in certain segments, requiring continuous differentiation to maintain market share and value realization.
- Competitors And Differentiation
- Verisk operates in a competitive environment, particularly in areas like commercial property where pricing is soft. However, the company differentiates itself through several key aspects: * **Proprietary and Contributory Data:** Verisk possesses unique, standardized, and cleansed data sets, often contributed by the industry, which are critical for effective AI deployment and risk assessment. * **Deep Industry Expertise:** They combine advanced AI capabilities with deep industry expertise and established industry standard workflows. * **Trusted Partner Status:** Verisk positions itself as a trusted source of data and a strategic partner across the insurance ecosystem, particularly as carriers expand their use of AI. Their architecture is designed to maintain governance, security, and trust, with client data retrieved only within the client's Claude session and not used for model training. * **Advanced Technology Platforms:** The launch of Verisk Synergy Studio, a cloud-native platform for integrated catastrophe modeling and risk analytics, and reengineered models like the U.S. tropical cyclone model, provide cutting-edge science and increased capacity for clients to run sophisticated analyses. * **AI Integration:** Verisk is embedding AI into its proprietary content and workflows, as seen with Premium Audit AI and XactAI, to make offerings more valuable and drive efficiency and consistent outcomes for clients. They are also partnering with frontier model companies like Anthropic to bring regulatory-grade data and analytics directly into conversational AI workflows.
- Recent Performance & What The Market'S Focused On
- Verisk delivered organic constant currency revenue growth of 5.8% in Q2 2026, with balanced growth across underwriting (5.6% OCC) and claims (6.1% OCC), demonstrating a sequential acceleration as anticipated. Subscription revenues, comprising 83% of total revenue, grew 8% on an OCC basis. However, transactional revenues declined 4.2% on an OCC basis, impacted by tough comparisons, lower commercial property volumes, carryover from lower weather events, and international travel disruption. Adjusted EBITDA grew 7.4% on an OCC basis, with total adjusted EBITDA margin at 57.5%. The company reaffirmed its 2026 financial guidance, expecting consolidated revenue in the range of $3.19 billion to $3.24 billion and adjusted EPS between $7.45 and $7.75. The market is focused on: * **Acceleration of Organic Growth:** Investors are watching for continued sequential improvement in revenue growth, particularly in the second half of 2026, to validate the full-year guidance. * **AI Monetization and Adoption:** The pace of client adoption and monetization of new AI solutions like Verisk MCP connectors for Claude, Premium Audit AI, and XactAI is a key focus, especially given the extended sales cycles for AI solutions. * **Transactional Revenue Recovery:** The trajectory of transactional revenues, which are sensitive to weather activity and market conditions, is being closely monitored for signs of stabilization or recovery. * **Catastrophe and Risk Solutions Performance:** The successful launch and client migration to Verisk Synergy Studio and the reengineered U.S. tropical cyclone model are important for this segment's growth.
- Revenue Segments And Estimated Mix
- {"segments":[{"segment_name":"Subscription Revenues","estimated_mix":"83%","source_or_comment":"Q2 2026 earnings transcript","yoy_or_trend_comment":"Grew 8% on an OCC basis in Q2 2026, demonstrating stability and value of solutions."產業."},{"segment_name":"Transactional Revenues","estimated_mix":"17%","source_or_comment":"Q2 2026 earnings transcript","yoy_or_trend_comment":"Declined 4.2% on an OCC basis in Q2 2026, a sequential improvement from Q1, but impacted by tough comparisons, lower commercial property volumes, carryover from lower weather events, and international travel disruption."."},{"segment_name":"Underwriting (within Insurance Solutions)","estimated_mix":"n/m, largest subsegment of Insurance","source_or_comment":"Q2 2026 earnings transcript","yoy_or_trend_comment":"OCC growth of 5.6% in Q2 2026, driven by strength in forms, rules and loss costs, Catastrophe and Risk solutions, and antifraud analytics."."},{"segment_name":"Claims (within Insurance Solutions)","estimated_mix":"n/m, significant subsegment of Insurance","source_or_comment":"Q2 2026 earnings transcript","yoy_or_trend_comment":"OCC growth of 6.1% in Q2 2026, with strong momentum in XactAI and continued enhancements."."},{"segment_name":"Insurance Solutions (overall)","estimated_mix":">95%","source_or_comment":"2024 data, company focus","yoy_or_trend_comment":"Dominant segment, focus of the business."},{"segment_name":"Energy and Specialized Markets","estimated_mix":"<5%","source_or_comment":"Implied from 2024 Insurance Solutions mix","yoy_or_trend_comment":"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
- Aerial Imagery Analytics solutions
- wind and hail peril scores
- Augmented Underwriting
- 360Value Commercial
- 360Value Personal
- A-PLUS Personal Lines
- Actuarial and Strategic Data Insights
- Agriculture Models
- Anti-Fraud One Government
- Auto History Score
- Benchmark
- Casualty Catastrophe Model
- Catalog Viewer
- Change Detection
- CL VIN Decode
- Claim Scoring
- Verisk MCP connectors for Claude
- Premium Audit AI
- Ask Max
Bull / Bear DetailsVerisk Analytics, Inc. (VRSK) remains a compelling long-term investment as of 2026-07-31, leveraging its accelerated AI-powered data analytics for the global in
Thesis
Verisk Analytics, Inc. (VRSK) remains a compelling long-term investment as of 2026-07-31, leveraging its accelerated AI-powered data analytics for the global insurance industry. Strong Q2 2026 subscription revenue growth and robust adoption of AI innovations like XactAI and Anthropic connectors, coupled with strategic acquisitions, reinforce its competitive moat. Despite persistent transactional headwinds and softening markets, Verisk is well-positioned for sustained growth and margin expansion, reaffirming confidence in meeting 2026 targets.
Bull case
Verisk is rapidly accelerating AI integration and monetization, evidenced by the nearly 10x increase in XactAI users to almost 7,000 licensees since March 2026. The launch of Verisk MCP connectors for Claude, with a top 10 carrier already onboarded, and the commercial traction of Premium Audit AI driving stronger renewal growth, highlight tangible value creation and new revenue streams from AI solutions.
The company continues to demonstrate robust subscription revenue growth, achieving an 8% organic constant currency (OCC) increase in Q2 2026, an acceleration from Q1. This reflects the mission-critical nature of its proprietary data and analytics, further solidified by the launch of Verisk Synergy Studio and the reengineered U.S. tropical cyclone model, enhancing its indispensable role in risk assessment.
Verisk delivered strong Q2 2026 financial performance, with 5.8% OCC revenue growth and 7.4% OCC adjusted EBITDA growth, demonstrating sequential improvement. The reaffirmation of its 2026 financial guidance, despite market softness and transactional headwinds, underscores management's confidence in the underlying business strength, disciplined cost management, and ability to deliver on long-term targets.
Bear case
Verisk's transactional revenues, comprising 17% of total revenues, remain susceptible to external factors, declining 4.2% OCC in Q2 2026. Management anticipates that the strong insurance-linked securitization (ILS) activity will not repeat in Q3, and a slower start to the hurricane season could exert further pressure, alongside persistent softness in commercial property volumes.
While AI presents significant opportunities, Verisk continues to experience extended sales cycles for some AI solutions. This complexity stems from ongoing negotiations with clients regarding AI governance, data usage rights, intellectual property, and privacy issues, potentially slowing the pace of revenue realization from these advanced offerings despite robust client interest.
The insurance industry is experiencing price competition and softening markets, particularly in property and commercial property, as carriers shift focus from profitability to growth. This dynamic could exert pressure on Verisk's pricing power and growth rates in certain transactional segments, requiring continuous differentiation to maintain market share and value realization.
Bull / Bear Case
- Bear Case
- Verisk's transactional revenues, representing 17% of total revenues, remain susceptible to external factors, declining 4.2% OCC in Q2 2026. Management anticipates that strong insurance-linked securitization (ILS) activity will not repeat in Q3, and a slower start to the hurricane season could exert further pressure, alongside persistent softness in commercial property volumes. While AI presents significant opportunities, Verisk continues to experience extended sales cycles for some AI solutions due to complex negotiations around governance, data usage rights, and intellectual property, potentially slowing revenue realization. The insurance industry is experiencing price competition and softening markets, particularly in property and commercial property, which could pressure Verisk's pricing power and growth rates in certain transactional segments.
- Bull Case
- Verisk is rapidly accelerating AI integration and monetization, with XactAI users increasing nearly tenfold to almost 7,000 licensees since March 2026. The launch of Verisk MCP connectors for Claude, already adopted by a top 10 carrier, and the commercial traction of Premium Audit AI are creating tangible value and new revenue streams. The company continues to demonstrate robust subscription revenue growth, achieving an 8% organic constant currency (OCC) increase in Q2 2026, driven by the mission-critical nature of its data and analytics. Strong Q2 2026 financial performance, with 5.8% OCC revenue growth and 7.4% OCC adjusted EBITDA growth, and the reaffirmation of 2026 financial guidance, underscore management's confidence in underlying business strength and long-term targets.
- More Compelling & Why
- Bear. Given Verisk's typically high EV/EBITDA multiple (often in the low 20s), the bear case is more compelling. The 10% decrease in GAAP net income year-over-year, coupled with persistent transactional revenue declines (-4.2% OCC) and anticipated Q3 headwinds, makes the premium valuation difficult to justify in the near term. While AI adoption is strong, its quantifiable impact on overall growth and profitability is still nascent. A sustained acceleration in transactional revenue growth and clear, measurable contributions from AI to net income would flip my view.
Key Factors
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| Core Lines Reimagine Program Module Releases & Impact on Renewals | This program drives strong price realization and value for clients through enhanced platform functionality, underpinning subscription revenue growth in a key segment (Forms, Rules & Loss Costs). | Progress on releasing the remaining modules (7 released in Q2 2026, on track for 25 total in 2026). Management commentary on client engagement, value realization, and the impact on subscription renewal rates and price realization. | Bullish if Verisk consistently reports on track or ahead of schedule for releasing the remaining modules and attributes continued strong price realization to the program. Bearish if there are delays or if the impact on renewals is not as strong as anticipated. | Company earnings releases and conference calls (next expected Q3 2026 earnings in late October/early November 2026). | ||
| Transactional Revenue Growth Trajectory (including Commercial Property & Weather Impact) | This segment (17% of revenue) has been a significant drag due to external factors like low weather activity and commercial property softness. Its recovery or continued decline in H2 2026 is crucial for overall revenue growth and validating management's improvement outlook. | Organic constant currency (OCC) growth rate for transactional revenues in Q3 2026 and Q4 2026. Specific commentary on hurricane season activity, commercial property volumes, and ILS activity (Q3 not expected to benefit from strong ILS). | Bullish if transactional OCC revenue decline is less than -4.2% (Q2 2026 actual) in Q3 2026, or ideally, shows positive growth. Bearish if declines persist or worsen, especially if weather activity remains low and commercial property softness continues. | Company earnings releases and conference calls (next expected Q3 2026 earnings in late October/early November 2026). NOAA hurricane season updates. | NOAA: Atlantic Hurricane Season Outlook and activity reports. Industry reports on commercial property insurance pricing and volumes. | AccuWeather Enterprise Solutions: Catastrophe event data. CoreLogic: Property claims data. |
| Verisk Synergy Studio & Catastrophe Model Client Migration/Adoption | The successful launch and adoption of this new cloud-native platform and reengineered models are critical for enhancing Verisk's competitive position in catastrophe risk solutions, driving new client wins, and expanding existing relationships. | Number of additional clients migrated to Verisk Synergy Studio through the remainder of 2026. Management commentary on client feedback, performance, scalability, and new client wins specifically attributed to Synergy Studio and the new U.S. tropical cyclone model. | Bullish if Verisk reports a robust number of client migrations and positive feedback, indicating strong uptake and value realization. Bearish if migration is slower than expected or client feedback is mixed. | Company earnings releases and conference calls (next expected Q3 2026 earnings in late October/early November 2026). Investor presentations. | Industry news/press releases from clients announcing adoption. | TechCrunch/Crunchbase: Mentions of Verisk Synergy Studio or competitor platforms. |
| Subscription Revenue Organic Constant Currency Growth Rate | Comprising 83% of total revenue, this metric demonstrates the core health and mission-critical nature of Verisk's solutions. Sustained strong growth is key for long-term stability and investor confidence in its competitive moat. | Organic constant currency (OCC) subscription revenue growth rate in Q3 2026 and beyond. Management commentary on renewal rates, price realization, and expansion of existing contracts. | Bullish if OCC subscription revenue growth remains at or above 8% (Q2 2026 actual) or shows continued acceleration. Bearish if it significantly decelerates below 7%. | Company earnings releases and conference calls (next expected Q3 2026 earnings in late October/early November 2026). | Thinknum: Verisk customer churn rate (proxy for renewals) | |
| AI-Powered Solutions Adoption & Monetization (XactAI, MCP Connectors, Premium Audit AI) | AI integration is a core part of Verisk's growth strategy, improving product value, driving price realization, and creating new revenue streams. Strong adoption validates their AI investments and competitive differentiation. | Continued acceleration in XactAI user growth (nearly 7,000 licensees, up 10x since March). Number of additional top-tier carriers adopting MCP connectors beyond the initial top 10 carrier. Commercial traction and impact on renewal growth for Premium Audit AI. Progress on the next-generation agentic underwriting platform. | Bullish if XactAI user growth continues to accelerate significantly, additional top-tier carriers adopt MCP connectors, and Premium Audit AI shows clear, quantifiable contributions to renewal growth. Bearish if adoption rates slow or monetization efforts do not yield expected results. | Company earnings releases and conference calls (next expected Q3 2026 earnings in late October/early November 2026). Investor presentations. | Google Trends: 'XactAI', 'Verisk AI', 'Anthropic Claude MCP' search volume. Industry articles on AI adoption in insurance. | Thinknum: Verisk job postings for AI/ML roles (proxy for investment). Apptopia/Sensor Tower: Usage data for Xactware mobile apps (if applicable and publicly tracked). |
Key Reported Metrics, Reratings Triggers & ResultsThis indicates Verisk's overall top-line performance. Investors will closely watch its trajectory in the next quarter to confirm the anticipated gradual improve
Upcoming print · 2026-11-04
| Key reported metrics | ||
|---|---|---|
| Metric | Last period | Why it matters |
| Organic Constant Currency Revenue Growth | 5.8% | This indicates Verisk's overall top-line performance. Investors will closely watch its trajectory in the next quarter to confirm the anticipated gradual improvement and validate the full-year guidance. |
| Transactional Revenues (OCC Growth/Decline) | -4.2% | This segment is susceptible to external factors like weather and market conditions. Its recovery or continued decline in the next quarter is crucial for overall revenue growth and validating management's H2 2026 improvement outlook. |
| Subscription Revenues (OCC Growth) | 8.0% | This metric, comprising 83% of total revenue, demonstrates the core health and mission-critical nature of Verisk's solutions. Sustained strong growth is key for long-term stability and investor confidence. |
Last reported · 2026-07-29
| Key reported metrics | Rerating thresholds | ||||
|---|---|---|---|---|---|
| Metric | Last period | Why it matters | What's needed for rerating | Rerating context | Earnings date |
| Subscription Revenues (OCC Growth) | This metric, comprising 84% of total revenues, demonstrates the core health and mission-critical nature of Verisk's solutions. Sustained strong growth is key for long-term stability and investor confidence, validating the company's competitive moat and driving a positive rerating. | For Verisk Analytics (VRSK) to rerate higher, its Subscription Revenues (OCC Growth) needs to remain at or above 7% in Q2 2026. | This metric, comprising 84% of total revenues, demonstrates the core health and mission-critical nature of Verisk's solutions. Sustained strong growth is key for long-term stability and investor confidence, validating the company's competitive moat and driving a positive rerating. | ||
| Transactional Revenues (OCC Growth/Decline) | Hitting this threshold is crucial because transactional revenues, despite comprising 16% of total revenue, have been a significant drag on overall growth. A notable improvement or return to positive growth would validate management's outlook, alleviate 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. | For Verisk Analytics (VRSK) to rerate higher, its 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 -6.1% decline reported in Q1 2026 and the -6.5% decline in Q4 2025. This improvement would signal that the 'trough' for this segment has been passed, aligning with management's expectation for a gradual recovery in the second half of 2026. | Hitting this threshold is crucial because transactional revenues, despite comprising 16% of total revenue, have been a significant drag on overall growth. A notable improvement or return to positive growth would validate management's outlook, alleviate 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. | ||
| Organic Constant Currency Revenue Growth | Hitting this threshold validates Verisk's strategic focus on core insurance and AI investments, alleviating concerns about transactional headwinds. It confirms sustainable growth and competitive strength, demonstrating the company's ability to meet or exceed medium-term targets, thereby driving valuation expansion. | For Verisk Analytics (VRSK) to rerate higher, its Organic Constant Currency (OCC) Revenue Growth needs to demonstrate a clear and robust acceleration in Q2 2026, significantly exceeding the Q1 2026 rate of 4.7%. Specifically, Q2 2026 OCC revenue growth should ideally hit 6% or higher, demonstrating a strong trajectory towards the higher end of its reaffirmed 6-8% medium-term target, with a clear path to achieving 7% or more for the full year 2026. This would align with or surpass peer performance and validate its growth trajectory. | Hitting this threshold validates Verisk's strategic focus on core insurance and AI investments, alleviating concerns about transactional headwinds. It confirms sustainable growth and competitive strength, demonstrating the company's ability to meet or exceed medium-term targets, thereby driving valuation expansion. | ||
Key QuestionsWill Verisk's Q3 2026 organic constant currency revenue growth continue its sequential improvement, or will the specific transactional headwinds (ILS seasonalit
Will Verisk's Q3 2026 organic constant currency revenue growth continue its sequential improvement, or will the specific transactional headwinds (ILS seasonality, slow hurricane season start, commercial property softness) temper this acceleration and challenge the reaffirmed full-year guidance?
- Question 2
Can Verisk translate the strong early adoption and positive client feedback for AI-powered solutions (e.g., XactAI, MCP connectors, Premium Audit AI) into a more significant and quantifiable contribution to overall revenue growth and improved price realization in Q3 2026, despite ongoing extended sales cycles for some AI solutions?
- Question 3
How resilient will Verisk's transactional revenue segment be in Q3 2026, given the anticipated absence of strong ILS activity, a slow start to the hurricane season, and persistent soft pricing and lighter volumes in commercial property, and will these factors lead to a re-acceleration of declines in this segment?
Earnings Transcript Summary
· 2026Q2 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 |
|---|---|---|---|---|
| 3 Things Management Is Most Focused On1. **Accelerating AI Integration and Innovation**: Management is heavily focused on leveraging AI to drive value for clients, evidenced by investments in techniques like Retrieval Augmented Generation (RAG), the launch of AI-powered solutions such as Verisk Synergy Studio, XactAI, Premium Audit AI, and Anthropic MCP connectors, and their role in guiding clients through AI adoption. 2. **Delivering on Financial Guidance and Driving Sequential Revenue Growth**: Management reaffirmed their 2026 financial guidance and expressed confidence in continued sequential improvement in revenue growth through the second half of the year, underpinned by strong subscription revenues and the resolution of short-term factors. 3. **Strategic Product Development and Acquisitions**: The company is focused on enhancing its core offerings through significant product launches like the reengineered U.S. tropical cyclone model and Verisk Synergy Studio, and strategic tuck-in acquisitions such as McKenzie Intelligence Services to provide more comprehensive risk insights. | Call Takeaway & ToneThe overall takeaway from the call was one of cautious optimism and confidence in Verisk's strategic direction and long-term targets. Management highlighted a sequential acceleration in revenue growth, driven by strong subscription performance and significant advancements in AI integration and product innovation. While acknowledging persistent transactional headwinds related to weather, commercial property softness, and ILS seasonality, the company reaffirmed its full-year 2026 financial guidance. The tone was reassuring, emphasizing the value of their data and expertise in the evolving insurance industry, particularly with the increasing adoption of AI. | Prior Quarter'S Y/Y Growth By SegmentIn Q1 2026, overall organic constant currency (OCC) revenue grew 4.7%. The Underwriting segment's OCC revenue grew 5.3%. The Claims segment's OCC revenue grew 3.4%. Subscription revenue grew 7% on an OCC basis. Transactional revenue declined 6.1% on an OCC basis. | 3 Things Analysts Most Pressed On (And Mgmt Responses)1. **Impact of Soft Market on Growth and AI Monetization**: Analysts questioned how Verisk's growth would fare in a soft market, particularly if new AI products could offset decelerating pricing. Management responded that historically, growth in soft markets (approx. 6.8% OCC) remains within their Investor Day targets and that AI is a key differentiator, improving value delivery and price realization, making them more bullish on growth despite market conditions. 2. **Hurricane Activity Assumptions in Guidance and El Nino Impact**: Analysts inquired about the weather assumptions embedded in the full-year guidance, especially concerning hurricane activity and El Nino. Management clarified that the guidance assumes an average year of weather activity, and lighter hurricane activity would pose a risk to transactional revenue. They also noted that their Catastrophe and Risk modeling team engages clients on El Nino impacts and highlighted the recent McKenzie Intelligence Services acquisition for real-time event insights. 3. **AI Monetization Strategy and Data Security/IP Protection**: Analysts pressed on how Verisk monetizes its AI solutions (e.g., MCP connectors, XactAI) and how it protects its proprietary data assets amidst growing LLM usage. Management explained that monetization occurs through improved value in subscription renewals (e.g., Premium Audit AI, XactAI), potential transactional pricing for new AI applications, and licensing fees for platforms. They emphasized that data security is paramount, with strict controls ensuring client data used with AI models is not used for model training and remains within the client's instance. | Revenue SegmentsConsolidated GAAP revenue was up 4% year-over-year. Organic constant currency (OCC) revenues grew 5.8%. Underwriting OCC grew 5.6%. Claims OCC grew 6.1%. Subscription revenues, comprising 83% of total revenue, grew 8% on an OCC basis. Transactional revenues, comprising 17% of total revenues, declined 4.2% on an OCC basis. |
· 2026Q1 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 |
|---|---|---|---|---|
| 3 Things Management Is Most Focused On1. **Driving Compounding Growth through Strategic Initiatives**: Management is focused on four key initiatives: strengthening strategic client relationships, expanding proprietary and contributory data advantage, delivering a steady stream of innovations, and expanding networks across their businesses. 2. **Investing in AI and Advanced Technologies**: Verisk is heavily investing in new technologies, particularly AI, to support clients with advanced data analytics and insights, introducing new innovations at a faster rate, and developing impactful solutions like digital media forensics and enhanced aerial imagery offerings. 3. **Maintaining Efficiency and Cost Discipline**: Management emphasized their focus on efficiency and cost discipline, which drove 60 basis points of adjusted EBITDA margin expansion, even while increasing investment in AI and technology. | Call Takeaway & ToneThe overall takeaway from the call was one of cautious optimism and confidence in Verisk's long-term strategy, despite acknowledging several temporary headwinds in the first quarter of 2026. Management reported a solid start to the year, with organic revenue growth and expanding margins modestly ahead of expectations. They expressed strong confidence in achieving their long-term growth targets for 2026, driven by the resilience of their subscription-based model and continued investment in high-return initiatives, particularly in AI. The tone was reassuring regarding the company's ability to navigate short-term challenges and capitalize on significant growth opportunities, especially those related to AI integration and client engagement. | Prior Quarter'S Y/Y Growth By SegmentIn the prior quarter (Q4 2025), Verisk's overall organic constant currency (OCC) revenue grew 5.2%. The Underwriting segment's OCC revenue grew 7.2%. The Claims segment's OCC revenue grew 0.5%. Subscription revenue grew 7.7% on an OCC basis. Transactional revenue declined 6.5% on an OCC basis. | 3 Things Analysts Most Pressed On (And Mgmt Responses)1. **AI Strategy and Monetization**: Analysts inquired about Verisk's monetization model for clients using its data in their internal AI strategies, and the potential impact on revenue and cross-selling. Management responded that monetization will be rooted in providing structured, clean, industry-wide data for AI applications, encouraging broader data use. They expect to realize more value through pricing arrangements and by opening new specific data utilization for AI applications. 2. **Extended Sales Cycles for AI Solutions**: Analysts questioned the comment about extended sales cycles for some AI solutions, asking if it signals incremental caution. Management clarified that these extended cycles are due to the added complexity in negotiating contracts to incorporate AI governance, compliance, intellectual property, and privacy issues. They view this as a temporary factor related to a growing opportunity, and Verisk is well-positioned to resolve these issues given its experience with data governance. 3. **Cadence of Revenue Growth and Headwinds**: Analysts pressed for color on the expected gradual improvement in organic revenue growth throughout the year, considering factors like weather, property underwriting overages, and subscription renewal timing. Management reiterated that Q1 2026 is expected to be the trough for organic constant currency revenue growth, with gradual improvement throughout the year. They noted that Q2 might still see growth below the long-term guidance range due to persistent year-over-year headwinds (low weather activity, tough comparisons from strong renewals, government contract work stoppage), but the underlying strength of the business and subscription revenues are expected to re-emerge in the second half. | Revenue SegmentsVerisk reported consolidated GAAP revenue of $783 million, up 4% year-over-year. Organic constant currency (OCC) revenues grew 4.7%. Within this, underwriting OCC grew 5.3%, and claims OCC grew 3.4%. Subscription revenues, which comprised 84% of total revenues, increased 7% on an OCC basis. Transactional revenues, representing 16% of total revenues, declined 6.1% on an OCC basis. |
· 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 |
|---|---|---|---|---|
| 3 Things Management Is Most Focused On1. **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. | Call Takeaway & ToneThe 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. | Prior Quarter'S Y/Y Growth By SegmentIn 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. | 3 Things Analysts Most Pressed On (And Mgmt Responses)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. | Revenue SegmentsVerisk 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 |
|---|---|---|---|---|---|---|---|---|
| About Expanding Eligible MarketVerisk onboarded 8 new Core Lines contributors and 10 contributors to its new excess and surplus dataset, which now covers over $18 billion in historical and current premium. The company's Catastrophe models are increasingly informing decisions in industries outside of insurance, including housing, infrastructure, capital markets, and climate risk disclosure. Verisk also expanded its market through the strategic tuck-in acquisition of McKenzie Intelligence Services, a geospatial intelligence and event response company specializing in global real-time catastrophe and conflict event analysis. Strong growth in Catastrophe and Risk solutions was driven by the addition of new clients and notable renewals. The anti-fraud business also saw strong growth from adoption of newer innovations like digital media forensics and healthy growth in adjacent markets. | About CompetitionThe insurance industry is experiencing price competition and softening markets, particularly in property and commercial property, as carriers shift focus from profitability to growth. Verisk is the first insurance data provider with MCPs (Model Connectors) available with Claude, demonstrating a competitive edge in AI integration. The company's connectivity to insurance professionals strengthens its position in applying AI models effectively. Verisk Synergy Studio offers a competitive differentiation through easier model updates and a consistent economic framework for global portfolio risk assessment. The competitive environment in the Auto business remains robust. Verisk views its long history of trust with the insurance industry and robust governance processes as a competitive differentiator, especially regarding AI data security and compliance. | About The Broader IndustryThe first half of 2026 continued trends from 2025 with improved combined ratios and robust industry profitability, aided by unusually low catastrophe losses, with global catastrophe losses tracking below $100 billion for the first time since 2020. With profitability and rate adequacy satisfied, carriers are now prioritizing growth, leading to price competition and softening markets, particularly in property and commercial property. This environment drives carriers to focus on underwriting discipline and risk selection. AI remains a critical topic, with carriers increasingly turning to Verisk as a trusted data source for accuracy, efficiency, and ROI in AI deployments. The rapid adoption of AI solutions like XactAI reinforces the conviction that AI will drive efficiency, consistency, and better outcomes across the property claims lifecycle. Most large property casualty companies have walled off general LLM access to their data and pricing infrastructure, but are interested in applying AI to data sets for underwriting and claims. | Where Things Are HeadedVerisk anticipates continued sequential improvement in revenue growth through the second half of 2026, driven by the resolution of short-term factors and core growth momentum. The company reaffirmed its 2026 financial guidance, expecting performance in line with Investor Day targets. Verisk is actively developing additional AI connectors with Anthropic and other frontier model companies. Agentic capabilities are being developed for life solutions, building on the conversational Ask Max feature. A robust pipeline of clients is scheduled to migrate to the Verisk Synergy Studio platform through the remainder of the year. While a gradual recovery in OCC growth is expected for the remaining two quarters, a cautious view on transactional revenues persists for Q3 due to strong ILS activity not repeating and a slower start to hurricane season. AI is expected to be additive to Verisk's overall growth rate. | Updates On ThemeLegal | Broader Themes EmergingAI risks and regulations, quantum computing, and the broader shift towards digitization, cloud, and SaaS as technology transformations. | Bullish-Leaning Quotes (Short)Verisk delivered organic constant currency revenue growth of 5.8% with balanced growth across underwriting and claims. Revenue growth was underpinned by an 8% increase in subscription revenues. Our focus on efficiency and cost discipline drove organic constant currency adjusted EBITDA growth of 7.4%. We continue to have confidence that the resolution of these short-term factors and core growth momentum will result in continued sequential improvement in revenue growth. We expect 2026 to be another year of performance in line with our Investor Day targets and reaffirm our 2026 financial guidance. We are the first insurance data provider with MCPs available with Claude. Adoption has accelerated significantly. Since March, the number of XactAI users has increased nearly 10x. We closed this week on the strategic tuck-in acquisition of McKenzie Intelligence Services. We are pleased to deliver continued momentum in the second quarter and are reaffirming our outlook for 2026. The increased value in our products from AI functionality is improving price realization. We're more bullish on our ability to create value for our clients and for the industry by supporting their adoption of AI. | Bearish-Leaning Quotes (Short)Growth was modestly ahead of our expectations and reflected the short-term factors we previously described, namely the carryover impact of the very low weather activity, tough compares from strong renewals last year and a work stoppage in a federal government contract. With profitability improvements and rate adequacy satisfied across many lines, carriers have turned their attention to driving growth, resulting in price competition and softening markets. This dynamic is most pronounced in property and commercial property in particular, where pricing is soft and volumes are lighter. Net income was $229 million, a 10% decrease versus the prior year. Our transactional revenues, which comprised 17% of our total revenues declined 4.2% on an OCC basis. The strong ILS contribution that we had in the second quarter is not likely to repeat. The hurricane season is off to a slower start as June and July have had limited storm activity. Our experience has been in soft markets that we've generally grown at approximately 6.8% organic constant currency growth rate. The competitive environment remains robust. | HiringNick Daffan, Chief Information Officer, is leaving Verisk after two decades. Jeff Negrete, CTO, will serve as interim Chief Information Officer, and a search for a permanent replacement will commence. The company mentioned 'ongoing global talent optimization initiatives' as a driver for solid margin expansion. |
| 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 |
|---|---|---|---|---|---|---|---|---|
| About Expanding Eligible MarketVerisk is expanding its eligible market by adding new logos, including clients new to catastrophe modeling, and through the expansion of contracts with existing clients in catastrophe and risk solutions. The company is also seeing double-digit organic revenue growth in its Life business, driven by new client wins and expanded relationships, including a combined Fast Insurance Bay deal with a major life and annuity carrier. New contributions are also being seen in the excess and surplus lines contributory data program, representing more than $15 billion in premium. | About CompetitionThe insurance industry is experiencing increased competition and softening pricing, particularly in commercial property, as carriers shift focus from profitability to growth. Verisk maintains strong competitive win rates and was selected as the strategic partner for a global insurance firm's next-generation digitally native underwriting entity after a competitive RFP process. The company's competitive moat is rooted in its proprietary and contributory data sets, unique analytics and normalization across platforms, focus on risk segmentation, and trusted provider status for standardized and regulatory-filed analytics. | About The Broader IndustryThe insurance industry is currently healthy but evolving, with 2025 marking one of the strongest underwriting results in years, characterized by robust profitability and near-record low combined ratios due to unusually low catastrophe losses. With ample capital, carriers are now prioritizing growth, leading to increased competition and softening pricing, especially in property lines. This environment drives carriers to focus on cost efficiency, underwriting discipline, and enhanced risk selection, increasing their need for comprehensive data and analytics. An A.M. Best report highlighted data readiness as the top impediment to AI implementation in insurance, even ahead of security and privacy. | Where Things Are HeadedVerisk expects 2026 to be another year of performance in line with its long-term growth targets, with a gradual improvement in revenue growth throughout the year, as Q1 2026 is anticipated to be the trough for organic constant currency revenue growth. The company is reaffirming its 2026 outlook for consolidated revenue, adjusted EBITDA, net interest expense, and effective tax rate. Verisk plans to introduce additional innovations this year, including wind and hail peril scores and remaining life for property solutions. | Updates On ThemeRisk | Broader Themes EmergingAI-Driven Productivity & Workforce Transformation | Bullish-Leaning Quotes (Short)Verisk delivered organic constant currency revenue growth of 4.7% with growth across both underwriting and claims and sustained strong growth of 7% in subscription revenues. Our focus on efficiency and cost discipline drove organic constant currency adjusted EBITDA growth of 5.9%, delivering 60 basis points of margin expansion. We have confidence that the resolution of these short-term factors and continued core growth momentum will result in a gradual improvement in revenue growth as we move through the year. We expect 2026 to be another year of performance in line with our long-term growth targets. Today, the insurance industry backdrop in which we are operating is healthy, yet evolving. Client adoption has been strong with our enhanced aerial imagery offerings, growing revenue more than 30% over the last 2 years. just this quarter, we on-boarded the sixth top 10 carrier to the digital media forensics platform. client interest and sales pipelines are robust and competitive win rates have been very strong. Verisk was the winner of a competitive RFP process to be the strategic partner of a global insurance firm to support the creation of a next-generation digitally native underwriting entity. The durability of our subscription revenues is the best demonstration of the ongoing health of our business and the mission-critical nature of our solutions. Within catastrophe and risk solutions, we delivered another quarter of double-digit growth. We are reaffirming our outlook for 2026. We are excited about the growth opportunities ahead and have confidence in delivering a year of growth in 2026 that is in line with our long-term growth targets. | Bearish-Leaning Quotes (Short)This growth was modestly ahead of our expectations and included the impact of the factors we previously communicated, namely the carryover impact of the very low weather activity, tougher compares from strong renewals last year and a work stoppage in a federal government contract. So while this quarter's performance is modestly below our typical growth levels... With ample capital, carriers are shifting their focus from profitability to growth, resulting in more competition and softening pricing. in certain cases, we are seeing an extended sales cycle related to the more complex contracting to incorporate AI governance and compliance. Our transactional revenues, which comprised 16% of total revenues in the quarter, declined 6.1% on an OEC basis. The primary driver of this decline continues to be lower volumes in property and restoration solutions due to low levels of weather activity. Additionally, softness in the personal lines auto business as well as a lower level of overage revenues in the property business also negatively impacted growth. we continue to face tougher comparisons in the first half of this year as last year benefited from a strong subscription renewal cycle across our largest underwriting businesses. | HiringVerisk is committed to cost discipline, including global talent optimization. The company is improving client engagement by adding new sales leadership in its Claims business, increasing sales resources across the business, and expanding its client strategy group focused on large clients. |
| 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 |
|---|---|---|---|---|---|---|---|---|
| About Expanding Eligible MarketVerisk 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. | About CompetitionVerisk 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. | About The Broader IndustryThe 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. | Where Things Are HeadedVerisk 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. | Updates On ThemeAI | Broader Themes EmergingDigitization, cloud, and SaaS are mentioned as prior technology transformations that Verisk capitalized on to drive growth and value for the insurance industry. | Bullish-Leaning Quotes (Short)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. | Bearish-Leaning Quotes (Short)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. | HiringSteve 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 | 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 | -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_7c452c9e | August/September 2026 | 2026-08-01 | 2026-09-30 | Release of "Executive Insights: Commercial Auto" and "Executive Insights: Personal Auto" reports as part of the Core Lines Reimagine initiative. | These releases provide enhanced data insights and analytics to clients, supporting better risk selection and underwriting in key insurance lines, which can drive client engagement and subscription growth. This is bullish for Verisk's competitive position and revenue. | Ticker | 2026-04-29 | 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 |
| 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 |