Verisk Analytics NASDAQ: VRSK reviewed fourth quarter and full-year 2025 results and outlined its 2026 outlook, highlighting continued subscription-led growth, expanding adoption of AI-enabled products in claims workflows, and recent portfolio changes that included the termination of the planned AccuLynx acquisition and the sale of Verisk Marketing Solutions.
2025 results and fourth-quarter performance
CEO Lee Shavel said Verisk delivered “solid financial results” in 2025, posting organic constant currency (OCC) revenue growth of 6.6% and OCC adjusted EBITDA growth of 8.5%, alongside “strong free cash flow growth.” Shavel noted results were in line with the company’s guidance and came despite “temporary headwinds,” including a year of very low weather activity.
CFO Elizabeth Mann reported fourth-quarter GAAP revenue of $779 million, up 5.9% year over year. Net income was $197 million, down 6.2%, and diluted GAAP EPS was $1.42, down 1%. Mann attributed the decline in net income and GAAP EPS to non-operating items, including costs related to early debt extinguishment and prior-year investment settlement gains.
On an OCC basis, Mann said fourth-quarter revenue growth was 5.2%, with underwriting up 7.2% and claims up 0.5%. She said low weather activity and a reduction in a government contract together reduced overall OCC revenue growth by approximately 1% in the quarter.
Subscription strength and transactional pressure
Mann emphasized subscription revenue as a key indicator of business health. Subscription revenue represented 84% of total fourth-quarter revenue and grew 7.7% on an OCC basis. She cited strength across several major subscription businesses, including forms, rules, and loss costs; catastrophe and risk offerings (a segment the company renamed from Extreme Event Solutions); and anti-fraud.
In forms, rules, and loss costs, management pointed to progress in the Core Lines Reimagine program. Mann said Verisk released 22 customer-facing modules in 2025, ahead of a target of 20, and has 25 modules planned for 2026. After those 2026 releases, she said the company expects to have delivered the original scope of the Reimagine investment program, while continuing to enhance proprietary content with additional tools and AI-driven functionality.
In Catastrophe and Risk Solutions, Mann said Verisk posted another quarter of double-digit growth, driven by contract expansions, solid renewals, and new logos, including competitive wins. She added that clients are showing strong interest in Verisk Synergy Studio and expanding hosting relationships ahead of the platform’s planned launch later in 2026.
Anti-fraud results were supported by an “ecosystem strategy,” with Mann citing 18 integrations that added features to the ClaimSearch platform. She also said the company is seeing early-stage interest in newer offerings such as Claims Coverage Identifier and Digital Media Forensics.
Transactional revenue, which represented 16% of total revenue, declined 6.5% OCC in the fourth quarter. Mann said the primary driver was lower volumes in property estimating solutions due to low weather activity, noting that the fourth quarter of 2024 included a benefit from Hurricanes Helene and Milton. She also cited softness in personal lines auto as another negative factor.
Asked about a potential recovery in transactional revenue, Mann said the fourth-quarter decline was largely tied to storm-related comparisons and noted additional factors that have moved through the business over recent periods, including a conversion of some transactional revenue to subscription revenue in 2024 and 2025. She said the company expects to work through these dynamics in the first half of 2026 and still expects transactional revenue to be a long-term source of strength.
Margins, cash flow, and shareholder returns
Fourth-quarter OCC adjusted EBITDA grew 6.2%, and adjusted EBITDA margin was 56.1%, up 200 basis points year over year. Mann said about 50 basis points of the margin benefit came from favorable foreign currency translation, with the remainder driven by leverage on sales growth and ongoing cost discipline.
For full-year 2025, Mann reported OCC adjusted EBITDA growth of 8.5% and adjusted EBITDA margin of 56.2%, up 150 basis points. She said foreign currency translation improved 2025 margins by 40 basis points and cited a “normalized” 2025 operating margin of 55.8%. She added the company has taken balance sheet actions to reduce foreign exchange-related margin volatility going forward.
Free cash flow increased to $276 million in the quarter and rose 30% to $1.19 billion for the full year. Mann said the full-year free cash flow increase reflected operating profit growth and timing benefits related to cash taxes and interest flows. Verisk returned $286 million via repurchases and dividends in the quarter.
Verisk also announced plans for a $1.5 billion accelerated share repurchase program, supported by an increased share repurchase authorization to $2.5 billion. The board approved an 11% dividend increase to $2 per share annually.
Portfolio actions and AccuLynx financing unwind
Shavel addressed two portfolio actions taken late in the quarter. Verisk terminated its definitive agreement to purchase AccuLynx after the Federal Trade Commission indicated its review would be extended. Shavel said Verisk made extensive efforts to address FTC requests, but concluded that “the opportunity cost of waiting on the sidelines through a long, uncertain, and costly approval process was too high.”
Separately, Verisk sold Verisk Marketing Solutions, which Shavel described as part of the company’s “ongoing active portfolio management” and focus on data, analytics, and technology solutions for the global insurance industry.
Mann said that on Jan. 6, 2026, Verisk redeemed $1.5 billion of senior notes that had been issued in connection with the planned AccuLynx acquisition, using the notes’ special mandatory redemption feature after the deal was terminated. Pro forma for the redemption, she said leverage would have been 1.9x at year-end.
AI strategy, client engagement, and 2026 guidance
Management described AI as a major area of client discussion and product investment. Shavel said Verisk submits more than 2,000 regulatory product filings annually and interacts with regulators across all 50 states, positioning data quality and compliance as key enablers of “practical, safe, and regulatorily approved applications” of AI. He said Verisk has more than 35 AI-powered projects and solutions in use today and plans to introduce “many more” during 2026.
Shavel highlighted new and evolving claims products showcased at the company’s Elevate conference, including:
- XactXpert (launched in 2023), which uses rules-based logic and machine learning to help identify estimating discrepancies; Shavel said it has been adopted by seven of the top ten homeowners insurers and serves tens of thousands of adjusters and estimators.
- XactAI (launched in October 2025), which applies generative AI to produce initial estimates using inputs from the Xactware platform.
- XactGen, positioned as the next-generation AI-enabled estimating offering that uses agentic AI to gather content from sources including aerial imagery providers, policyholder photos, and carrier policy information to generate near-complete estimates and facilitate claim settlement.
Shavel also said Steven Kauderer joined Verisk to lead the claims business, bringing experience advising insurers on workflow transformations using data, technology, and AI.
For 2026, Mann provided guidance that reflects the divestiture of Verisk Marketing Solutions, which contributed $68 million of revenue in 2025. Verisk expects:
- Revenue of $3.19 billion to $3.24 billion
- Adjusted EBITDA of $1.79 billion to $1.83 billion
- Adjusted EBITDA margin of 56% to 56.5%
- Interest expense of $190 million to $200 million
- Capital expenditures of $260 million to $280 million
- Tax rate of 23% to 26%
- Adjusted EPS of $7.45 to $7.75 (with an 11-cent headwind from the sale of Verisk Marketing Solutions)
Mann said the first quarter of 2026 is expected to be a “trough” for reported revenue dollars and growth rates, citing tougher comparisons from a strong subscription renewal cycle in early 2025, a lower run rate in property estimating volumes following low weather activity in the second half of 2025, and a work stoppage on a government contract. She said first-quarter 2026 reported revenue is expected to be down a low single-digit percentage versus fourth-quarter 2025 reported revenue due to the divestiture, while still growing year over year and sequentially when normalized for the sale.
Verisk said it plans to provide more detail on strategy and business drivers at its Investor Day on March 5.
About Verisk Analytics NASDAQ: VRSK
Verisk Analytics, Inc NASDAQ: VRSK is a data analytics and decision‑support provider that helps organizations assess and manage risk. The company supplies data, predictive models and software to customers in insurance, reinsurance, financial services, government, energy and other commercial markets. Its offerings are designed to support underwriting, pricing, claims management, catastrophe modeling, fraud detection and regulatory compliance, enabling clients to make more informed operational and strategic decisions.
Verisk's product portfolio combines large proprietary datasets with analytics platforms and industry‑specific applications.
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