Verisk Analytics, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 10 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 7.4% organically: Revenue was $809 million, up 5.3% reported and 7.4% on an organic constant currency basis; nine-month revenue was $2,398 million, up 4.5%. Source
• Subscription revenue grew 8.2%: Within 7.4% OCC revenue growth, the CFO cited subscription growth of 8.2% and transactional growth of 3.2%. Source
• Adjusted EBITDA margin rose to 56.7%: Adjusted EBITDA was $459 million, up 7.0% reported and 7.5% on an OCC basis; margin was 56.7% against 55.8%. Source
• Net income fell on investment losses: Net income was $219 million, down 2.8%; management cited losses on cost-based investments and higher net interest expense, partly offset by operating leverage. Source
• Free cash flow fell 40.5%: Operating cash flow was $267 million, down 33.8%; free cash flow was $200 million, down 40.5%, attributed to tax, interest and collection timing. Source
• Accelerated buyback of $100 million: The company executed a $100.0 million accelerated share repurchase, receiving 2.0 million shares at an average price of $181.76 less a discount; $700.0 million remains authorized. Source
• Full-year guidance kept unchanged: Management kept the full-year 2026 guidance unchanged and said 2026 remains in line with Investor Day targets. Source

“We are executing with discipline against our strategic priorities by deepening client partnerships, accelerating AI-powered innovation at scale, and expanding the network effects that connect participants and enhance value across the insurance value chain”

Lee Shavel, President and CEO, Verisk

Guidance

What changed from last quarter

• New: Executed a $100.0 million accelerated share repurchase program in the third quarter. Source
• Ended: Final settlement of previously announced accelerated share repurchase programs was completed in the quarter. Source
• New: Adjusted EBITDA definition now lists adjustments of cost-based investments, which the prior release did not. Source

Results and growth drivers

• Revenue rose 7.4% organically: Revenue was $809 million, up 5.3% reported and 7.4% on an organic constant currency basis; nine-month revenue was $2,398 million, up 4.5%. Source
• Subscription revenue grew 8.2%: Within 7.4% OCC revenue growth, the CFO cited subscription growth of 8.2% and transactional growth of 3.2%. Source
• Organic revenue reached $801.7 million: Organic revenue was $801.7 million against $746.9 million a year earlier, excluding acquisitions and the disposition. Source
• Per-share results rose on fewer shares: Diluted GAAP EPS was $1.70, up 5.6%; diluted adjusted EPS was $1.96, up 14.0%, with a lower average share count. Source

Segments and regions

• Underwriting revenue up 4.8%: Underwriting revenue was $568 million, up 4.8% reported and 7.7% on an OCC basis, against $542 million a year earlier. Source
• Claims revenue up 6.6%: Claims revenue was $241 million, up 6.6% reported and 6.7% on an OCC basis, against $226 million a year earlier. Source
• Nine-month segment revenue: Nine-month underwriting revenue was $1,689 million, up 4.0% reported and 6.2% OCC; claims revenue was $709 million, up 5.8% reported and 5.4% OCC. Source

“I'm pleased to share that Verisk delivered third-quarter financial results that returned to levels in line with our annual Investor Day targets and reflect the continued sequential acceleration in growth we previously articulated.”

Elizabeth Mann, CFO, Verisk

Products and customers

• Annual price increases lifted underwriting: Underwriting growth was primarily due to an annual price increase from continued enhancements to models and content within forms, rules and loss cost services. Source
• Expanded catastrophe and risk solutions sold: Underwriting also reflected sales of expanded solutions to new and existing customers within catastrophe and risk solutions. Source
• Anti-fraud analytics drove claims: Claims growth was attributed to price realization, adoption of new anti-fraud analytics innovations, and growth in property and restoration solutions. Source

Costs, margins and net income

• Adjusted EBITDA margin rose to 56.7%: Adjusted EBITDA was $459 million, up 7.0% reported and 7.5% on an OCC basis; margin was 56.7% against 55.8%. Source
• Net income fell on investment losses: Net income was $219 million, down 2.8%; management cited losses on cost-based investments and higher net interest expense, partly offset by operating leverage. Source
• Interest expense climbed: Net interest expense was $53.0 million against $42.2 million a year earlier; the effective tax rate was 25.7% against 25.3%. Source
• Investment loss in other expense: Investment loss was $17.5 million in the quarter, against a $1.6 million loss a year earlier. Source
• Acquisition fees rose sharply: Acquisition-related fees were $10.4 million in the quarter against $3.9 million; nine-month fees were $29.6 million. Source

“As we close out the year, we continue to expect that 2026 will be another year of performance in line with our Investor Day targets and maintain our annual guidance for this year.”

Elizabeth Mann, CFO, Verisk

Cash flow, balance sheet and capital returns

• Free cash flow fell 40.5%: Operating cash flow was $267 million, down 33.8%; free cash flow was $200 million, down 40.5%, attributed to tax, interest and collection timing. Source
• Prior-year tax refund did not recur: The release headline cited collection timing, higher interest payments and a prior-year tax refund that did not recur as drivers of the decline. Source
• Accelerated buyback of $100 million: The company executed a $100.0 million accelerated share repurchase, receiving 2.0 million shares at an average price of $181.76 less a discount; $700.0 million remains authorized. Source
• Nine-month buybacks reached $1.9 billion: Nine-month share repurchases were $1.9 billion, with about 10.5 million shares delivered at an average price, less a discount, of $185.46. Source
• Dividend paid September 30: A 50-cent dividend was paid September 30, 2026; dividends per share were $1.50 for the first nine months. Source
• Cash balance fell from year-end: Cash and equivalents were $556.8 million at September 30, 2026, against $2,178.2 million at December 31, 2025. Source

Full-year 2026 guidance

• Full-year guidance kept unchanged: Management kept the full-year 2026 guidance unchanged and said 2026 remains in line with Investor Day targets. Source
• Revenue and EBITDA ranges: Full-year total revenue is guided at $3,190 million to $3,240 million, and adjusted EBITDA at $1,790 million to $1,830 million, a 56.0% to 56.5% margin. Source
• Diluted adjusted EPS and tax rate: Diluted adjusted EPS is guided at $7.45 to $7.75, with a tax rate of 23.0% to 26.0%. Source
• Capital spending and depreciation ranges: Capital expenditures are guided at $260 million to $280 million; fixed asset depreciation and amortization at $270 million to $290 million. Source
• Interest, amortization and dividend guidance: Interest expense is guided at $190 million to $200 million, intangible amortization at $60 million, and dividend per share at $2.00. Source

Strategy and investment

• Client partnerships and network effects: The CEO said Verisk is expanding network effects that connect participants across the insurance value chain, alongside deeper client partnerships. Source
• AI innovation at scale: Management said these investments strengthen its market position and support sustainable growth and long-term value creation for shareholders. Source
• Capital spending rose over nine months: Capital expenditures were $67.2 million in the quarter, flat year over year, and $199.3 million for nine months, up 12.7%. Source

Coming up, as management said on 5 November 2026

• Quarterly dividend payable December 31: Board approved a 50-cent dividend on November 2, payable December 31, 2026 to holders of record December 15. Source

Figures management reported

Risks management discussed

• Financial: Unfavorable working capital tied to collection timing reduced operating cash flow and free cash flow in the quarter. Source
• Financial: Losses on cost-based investments reduced net income in the quarter, alongside higher net interest expense. Source
• Financial: A higher effective tax rate partly offset the growth in diluted EPS and diluted adjusted EPS. Source

Earlier plans management reported on

• Met: The prior release expected growth to return to Investor Day target levels in the second half; this release reports results in line with those targets.
• Not stated: Management says it continues to expect 2026 performance in line with Investor Day targets and maintains annual guidance. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.