Verisk shares rise 6.9% as Q3 profit climbs 14%

Verisk (VRSK) reported diluted adjusted EPS of $1.96, up 14% and in line with the $1.96 consensus estimate. Revenue was $809.0 million, up 5.3% and below the $821.68 million consensus estimate.

Shares rose 6.9% at 3:59 p.m. ET, from a $197.85 close.

GAAP diluted EPS rose 5.6%, while net income fell 2.8% as losses on cost-based investments and higher interest expense offset revenue growth.

Here’s how the company did

• Revenue: $809.0 million vs. $768.3 million a year earlier; $821.68 million expected
• Diluted adjusted EPS: $1.96 vs. $1.72 a year earlier; $1.96 expected
• Diluted GAAP EPS: $1.70 vs. $1.61 a year earlier
• Net income: $219.2 million vs. $225.5 million a year earlier
• Free cash flow: $200.0 million vs. $336.1 million a year earlier

On an organic constant currency basis, revenue rose 7.4% and adjusted EBITDA rose 7.5%. Adjusted EBITDA was $459.0 million, up 7.0%.

Revenue has risen in each of the last three quarters, to $806.3 million in the second quarter of 2026.

Segment results

Underwriting revenue was $568 million, up 4.8% and up 7.7% on an organic constant currency basis. The company attributed the growth to annual price increases and expanded catastrophe and risk solutions.

Claims revenue was $241 million, up 6.6%, and up 6.7% on the same basis. The company credited price realization, adoption of anti-fraud analytics, and growth in property and restoration solutions.

2026 guidance

Verisk kept its full-year 2026 outlook unchanged. Total revenue is expected at $3.19 billion to $3.24 billion, adjusted EBITDA at $1.79 billion to $1.83 billion, and diluted adjusted EPS at $7.45 to $7.75.

CFO Elizabeth Mann said, “we continue to expect that 2026 will be another year of performance in line with our Investor Day targets.”

Cash and capital returns

Operating cash flow was $267.2 million, down 33.8%, as higher cash tax payments, increased interest payments and unfavorable working capital tied to the timing of cash collections weighed.

Verisk paid a 50-cent dividend on Sept. 30 and executed a $100.0 million accelerated share repurchase, leaving $700.0 million under its authorization at quarter end. Share repurchases for the first nine months totaled $1.90 billion. On Nov. 2, the board approved a 50-cent dividend payable Dec. 31 to holders of record as of Dec. 15.

Costs and charges

Interest expense, net, was $53.0 million, up from $42.2 million a year earlier. It also recorded an investment loss of $17.5 million and acquisition-related fees of $10.4 million.