Verisk Analytics, Inc. (VRSK) - 10-Q Summary
Business Context and Reporting Period
This filing covers the quarterly period ended June 30, 2026. Verisk Analytics, Inc. operates as a strategic data analytics and technology partner to the global insurance industry, providing solutions for underwriting, claims, catastrophe risk, and global risk analytics. The company reports a single operating segment: Insurance.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenues | $806.3M | $772.6M | $1,588.9M | $1,525.6M |
| Net Income | $228.6M | $253.3M | $462.8M | $485.6M |
| Diluted EPS | $1.75 | $1.81 | $3.48 | $3.45 |
| Operating Income | $363.7M | $354.3M | $715.9M | $684.4M |
| EBITDA (Non-GAAP) | $436.8M | $445.7M | $872.8M | $861.6M |
| EBITDA Margin | 54.2% | 57.7% | 54.9% | 56.5% |
| Cash from Operations | $366.0M | $244.5M | $756.4M | $689.2M |
| Cash & Equivalents | $551.4M | $628.7M | $551.4M | $628.7M |
| Total Debt | $4,473.5M | $4,737.2M | $4,473.5M | $4,737.2M |
Note: Total Debt includes short-term and long-term debt, net of issuance costs. Cash equivalents decreased significantly year-over-year due to capital return activities.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 4.3% in Q2 and 4.1% YTD, driven by growth in Underwriting (+3.5% Q2) and Claims (+6.3% Q2). Organic growth was offset by a net revenue decrease of $10.8M in Q2 due to the disposition of Verisk Marketing Solutions (VMS) and acquisition impacts.
- Profitability Decline: Net income decreased 9.8% in Q2 and 4.7% YTD. Margins compressed due to higher interest expenses, an increased effective tax rate (24.6% vs 22.7% in Q2), and legal fees related to the terminated AccuLynx acquisition.
- Expense Increases: SG&A expenses rose 20.8% in Q2, primarily due to AccuLynx-related costs and professional fees. Interest expense increased 48.7% in Q2 due to new senior notes issued in February 2026 and a new Term Loan Facility.
- Capital Structure: The company redeemed $1.5 billion of senior notes in January 2026 (triggered by the AccuLynx deal termination) and issued $1.0 billion in new senior notes in February 2026. Total debt decreased slightly from year-end 2025.
Guidance, Outlook, and Risks
- Capital Allocation: The company remains aggressive on capital returns. In the first six months of 2026, it repurchased approximately $1.83 billion of common stock (including $255.1M unsettled) and paid $130.9 million in dividends. As of June 30, 2026, $800.0 million remained under the share repurchase authorization.
- Legal Contingencies: Significant litigation risks include:
- Telematics Litigation: Class actions regarding vehicle driving data sharing with insurers. Discovery is ongoing; liability is currently indeterminable.
- AccuLynx Merger Litigation: Following the termination of the AccuLynx acquisition, the target filed counterclaims. A trial was held in June 2026, with post-trial briefing ongoing.
- Data Privacy: Ongoing litigation regarding Daniel's Law and trade secrets claims involving JPMorgan Chase.
- Outlook: Management expects continued revenue growth driven by price increases and expanded solutions, though margins may be pressured by investments in new solutions and legal costs.
Investor Verification Checklist
- Share Count Impact: Verify the final share count impact of the Accelerated Share Repurchase (ASR) agreements settled in July 2026, which were initiated in February and June.
- Legal Exposure: Monitor the outcome of the AccuLynx merger litigation and the Telematics MDL, as potential settlements could materially impact future earnings.
- Debt Servicing: Review the impact of the new 2031 and 2036 Senior Notes on future interest expense and cash flow coverage ratios.
- Organic Growth: Assess the sustainability of the 5.9% organic revenue growth rate reported for Q2, excluding the impact of acquisitions and dispositions.