Verisk Analytics (VRSK 1.18%), a leader in data analytics for the insurance industry, released its second quarter 2025 results on July 30, 2025. The headline news: Both revenue (GAAP) and diluted adjusted earnings per share (non-GAAP) exceeded Wall Street expectations, with revenue (GAAP) at $773 million (up 7.8%) and non-GAAP EPS at $1.88 (up 8.0%). Full-year 2025 revenue and adjusted earnings guidance was raised, though it tightened EPS projections due to higher forecast interest costs. Overall, the quarter reflected continued momentum in core insurance analytics, robust margins, and strong cash generation.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.88 | $1.78 | $1.74 | 8.0% |
| Revenue (GAAP) | $773 million | $768.73 million | $717 million | 7.8% |
| Adjusted EBITDA (Non-GAAP) | $445 million | $397 million | 12.1% | |
| Net Income (GAAP) | $253 million | $308 million | (17.9%) | |
| Free Cash Flow (Non-GAAP) | $189 million | $154 million | 22.7% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Overview of Verisk Analytics's Business and Industry Focus
Verisk Analytics provides industry-specific data analytics, mainly serving the property and casualty insurance sector. Its solutions help insurers assess, price, and manage risk using a vast proprietary database—one of the largest in the world, containing more than 36.3 billion statistical records as of 2024.
The company’s focus rests on leveraging these unique datasets to deliver predictive analytics and risk management products. Its reach spans all of the top 100 property and casualty insurers in the U.S. Recent company priorities include enhancing cloud-based platforms, modernizing core solutions, and integrating artificial intelligence for faster, more accurate insights. The transition to committed subscription contracts, strategic acquisitions, and investment in new technology platforms remain central to its growth and efficiency strategy.
Quarter in Detail: Financial and Operational Highlights
Revenue (GAAP) of $773 million reflected a 7.8% increase over the prior year, outpacing analyst consensus by $4.3 million. Revenue growth was broad-based across the company's key reporting segments. The insurance segment, which makes up 100% of the business, saw both underwriting and claims categories post gains. Underwriting solutions, including forms, rules, and loss cost services, rose 8.3%, while claims solutions climbed 6.6%. Growth was driven by higher demand for property estimating tools and anti-fraud analytics.
Profitability metrics showed strong operating leverage. Adjusted EBITDA, a non-GAAP measure that excludes certain non-cash and one-time items, climbed 11.9%, helping Adjusted EBITDA margin (non-GAAP) rose by 2.2 percentage points to 57.6% compared to Q2 2024. Despite this, reported (GAAP) net income decreased 17.7% compared to the previous year, mainly because last year's results included one-time gains from asset sales and debt-related items not repeated this period. Operating cash generation was robust, with free cash flow increasing 22.6% for the three months ended June 30, 2025.
The period saw notable corporate actions. Completed the $162.5 million acquisition of SuranceBay, a provider of compliance and onboarding software for the life and annuity industry, on July 17, 2025. SuranceBay’s technology will be integrated into the life solutions group. Also signed an agreement on July 29, 2025 to buy AccuLynx for $2.35 billion—a provider of cloud-based workflow solutions for property contractors, notably in residential roofing. The AccuLynx deal, still pending regulatory approval, would expand Verisk’s capabilities in property claims and estimating software.
Shareholder returns featured prominently: a $100 million share repurchase program was completed, and the dividend rose 15.4%. $1.3 billion remained under its share buyback authorization as of June 30, 2025. Long-term debt increased to fund deals, rising from $2.55 billion at December 2024 to $3.23 billion at June 30, 2025. Verisk Analytics serves all top 100 U.S. property and casualty insurers, cementing its position as a key industry partner and data provider.
Products, Innovations, and Business Initiatives
Verisk Analytics’s product suite covers multiple analytics tools and platforms for insurance carriers. Key product families include Underwriting solutions (like forms, rules, loss cost services, and extreme event solutions) and Claims solutions (such as property estimating platforms and anti-fraud analytics). The company continues to expand its offerings with cloud-native products—such as Enterprise Exposure Manager, which allows clients to evaluate risk exposure for billions of locations, and Verisk Synergy Studio, a cloud-based catastrophe modeling tool expected to launch in 2026.
During the quarter, Verisk continued its push into artificial intelligence, adding a generative AI tool to the Mozart Form management platform. These tools enhance efficiency by allowing clients to compare changes in insurance forms more quickly and automatically. The acquisition of SuranceBay introduces further automation to compliance and onboarding processes for insurers, while the pending acquisition of AccuLynx bolsters property estimating capabilities. Both deals aim to expand Verisk’s reach into additional points of the insurance value chain.
Subscription sales—long-term, recurring contracts—remained a focus. The shift from transactional to subscription revenue stabilizes cash flows and supports predictable growth. The vast majority of sales now originate from subscription-based agreements. Besides products for underwriting and claims, Verisk continued to invest in platforms that connect regulators, insurers, and service providers, enhancing ecosystem efficiency.
On the operational side, this process increases scalability and disaster recovery capability while helping clients manage large, complex data sets with greater ease. A disciplined emphasis on operational efficiency and innovation was apparent, as the company flagged the likelihood that gains in profit margins may slow slightly as it reinvests for future growth.
Outlook and Guidance
Looking forward, management raised its revenue guidance for fiscal 2025, now forecasting $3.09 billion to $3.13 billion (up from $3.03 billion to $3.08 billion). Adjusted EBITDA expectations increased to a range of $1.70 billion to $1.74 billion. However, diluted adjusted EPS (non-GAAP) guidance narrowed to $6.80 to $7.00 from the earlier $6.80 to $7.10 target. The tighter EPS forecast reflects higher anticipated interest expense of $190 million to $210 million, up from prior assumptions, tied to greater debt balances and rising rates.
The margins, capital spending plans, and dividend outlook were left unchanged. Management cited continued solid operating leverage and comfort with its balance sheet. Investors are encouraged to watch for integration progress on new acquisitions, ongoing development of cloud platforms, and updates in margin performance as reinvestment picks up pace. The quarterly dividend was raised 15.4% to $0.45 per share and management reaffirmed its commitment to consistent capital returns.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
