revenue
3.05–3.08 $billion
FY 2025
official guidance
| Revenue | $710.1M |
|---|---|
| Operating income | $39.7M |
| Net income | $34.7M |
| Free cash flow | $38.6M |
| Operating margin | 5.6% |
| Net margin | 4.9% |
| Return on equity | 7.8% |
| Period | TTM 2026-06-30 |
OpenFilings analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong subscription economics and AI adoption are offset by decelerating reported growth, auto competition, and unresolved AccuLynx execution risk.
Latest call · Q2 2026HOLD: Verisk remains a high-quality compounder, but Q3 exposed a less clean near-term setup.
Q3 organic constant-currency revenue growth was 5.5% versus 8.7% subscription growth, with 55.8% adjusted EBITDA margin and 8.8% EBITDA growth; however, auto competitive pressure, a government-contract reduction, unusually weak weather, and a tough Q4 hurricane comparison cloud the growth trajectory. AccuLynx also faces FTC delay and contributes nothing to 2025 guidance, which now calls for $3.05-$3.08 billion revenue, $1.69-$1.72 billion adjusted EBITDA, 55%-55.8% margins, and $6.80-$7.00 adjusted EPS.
Q4 faces a difficult comparison against Hurricanes Helene and Milton, while 2025 weather activity has been unusually light.
The market will need evidence that the underlying business can return toward the 6%-8% long-term organic growth framework after adjusting for temporary factors.
AccuLynx FTC review and the second request remain a major stock catalyst; Verisk cannot integrate the asset before approval.
Subscription growth, AI upsell activity, and conversion of the record 2025 sales pipeline into 2026 revenue are the most important offsets.
Subscription revenue was 84% of quarterly revenue and grew 8.7% OCC, supporting the durability of Verisk's data, workflow, and pricing model.
AI could strengthen the moat if proprietary insurance data drives paid workflow adoption; XactXpert has more than 40 clients, including six of the top 10 carriers, while XactAI had 273 users shortly after launch.
Competitive pressure in personal-lines auto has persisted for two quarters. Management cited deeper data and analytics as the response but did not quantify share recovery or the financial exposure.
The opportunity to monetize contributory data, benchmarking, and AI-enabled productivity is credible, but current evidence is primarily adoption and pipeline commentary rather than material disclosed revenue contribution.
Margin expansion remains a strength: adjusted EBITDA margin reached 55.8% in Q3 and management says AI and technology investment are being self-funded.
Analysts repeatedly pressed management on the deceleration: reported OCC growth was 5.5%, and even after adding back the disclosed temporary factors, one analyst estimated only about 6.5% versus 7.9% in Q2. Management attributed the gap to temporary factors but did not provide a detailed bridge.
Auto competitive pressure is described as broader than a single lost client and has now been flagged for multiple quarters; management offered no quantified path to stabilization.
The FTC issued a second request for AccuLynx information, and management could not provide deal timing, quantify the guidance impact, or conduct pre-close integration.
Management emphasized AI startups' lack of proprietary data, but did not quantify AI revenue, retention, pricing uplift, or displacement risk from carriers building on their own data.
revenue
3.05–3.08 $billion
FY 2025
official guidance
ebitda
1.69–1.72 $billion
FY 2025
official guidance
operating margin
55–55.8 pct
FY 2025
official guidance
adjusted eps
6.8–7 $per share
FY 2025
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
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