Verisk Analytics, Inc. (VRSK) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended March 31, 2026. Verisk Analytics, Inc. operates as a strategic data analytics and technology partner to the global insurance industry, providing solutions for underwriting, claims, and risk management. The company reports a single operating segment: Insurance.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenues | $782.6 million | $753.0 million |
| Operating Income | $352.2 million | $330.1 million |
| Net Income | $234.2 million | $232.3 million |
| Diluted EPS | $1.73 | $1.65 |
| EBITDA (Non-GAAP) | $436.0 million | $415.9 million |
| EBITDA Margin | 55.7% | 55.2% |
| Cash from Operations | $390.4 million | $444.7 million |
| Cash & Equivalents (End of Period) | $524.5 million | $1,112.1 million |
| Total Debt (Carrying Value) | $4,475.6 million | $4,737.2 million |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 3.9% year-over-year, driven by a 3.8% increase in Underwriting revenue and a 4.3% increase in Claims revenue. Organic growth was 5.5%, offset by a net $10.9 million decrease from recent acquisitions and dispositions.
- Expense Management: Operating expenses rose 1.8% to $430.4 million. Cost of revenues increased 2.5%, primarily due to higher salaries and IT/data expenses. SG&A increased only 0.6% due to cost discipline.
- Interest Expense: Net interest expense increased 19.0% to $43.2 million, driven by new senior note issuances in February 2026 and accelerated interest payments related to the mandatory redemption of prior notes.
- Tax Rate: The effective tax rate increased to 24.1% from 21.6%, primarily due to lower tax benefits from equity compensation.
- Liquidity: Cash and cash equivalents decreased significantly from $2.18 billion to $524.5 million, largely due to $1.63 billion in share repurchases (including unsettled amounts) and dividend payments.
Guidance, Outlook, and Risks
- Capital Allocation: The company executed a $1.5 billion Accelerated Share Repurchase (ASR) agreement in February 2026, with final settlement expected in Q3 2026. The Board increased the total repurchase authorization to $2.5 billion, with $1.0 billion remaining as of March 31, 2026.
- Dividends: A quarterly cash dividend of $0.50 per share was declared for Q1 2026. A subsequent dividend of $0.50 per share was approved on April 27, 2026, payable in June 2026.
- Debt Restructuring: The company issued $1.0 billion in new senior notes (4.450% due 2031 and 5.125% due 2036) to refinance debt and fund share repurchases. It also redeemed $1.5 billion of prior notes triggered by the termination of the AccuLynx acquisition.
- Legal Contingencies: Significant ongoing litigation includes:
- Telematics Litigation: Class actions regarding vehicle data sharing with insurers; liability cannot be reasonably estimated.
- AccuLynx Merger Dispute: AccuLynx filed counterclaims alleging breach of the terminated merger agreement; trial is scheduled for June 2026.
- Data Privacy: Litigation regarding Daniel's Law and trade secrets claims involving JPMorgan Chase.
Investor Verification Checklist
- Verify the final settlement share count and price impact of the $1.5 billion ASR agreement expected in Q3 2026.
- Monitor the outcome of the AccuLynx merger litigation scheduled for trial in June 2026, which could result in material liabilities.
- Assess the impact of the increased effective tax rate (24.1%) on future net income margins.
- Review the status of the telematics class action lawsuits and potential exposure regarding consumer data privacy.
- Confirm the company's ability to maintain debt covenants given the recent shift in debt maturity profile and interest rate environment.