Verisk Analytics Inc. reported fourth‑quarter 2025 revenue of $778.8 million, a 5.9% year‑over‑year increase, and adjusted earnings per share of $1.82, beating the consensus estimate of $1.63 by $0.19. The earnings beat was driven by disciplined cost management and a higher mix of subscription‑based revenue, which grew 7.7% on an organic constant‑currency basis and now accounts for 84% of total revenue.
Revenue fell short of expectations, coming in $10.3 million below the consensus estimate of $789.1 million. The miss reflects a softer weather environment that reduced claims volume and limited growth in legacy product lines, offsetting gains in high‑margin AI‑enabled solutions.
Adjusted EBITDA margin expanded to 56.1%, up 200 basis points from the prior year, largely due to the stronger subscription mix and favorable foreign‑currency translation. The margin improvement demonstrates effective pricing power and operational leverage amid a challenging claims backdrop.
Management guided for full‑year 2026 revenue of $3.19 billion to $3.24 billion, with a midpoint of $3.215 billion—about 1.7% below analyst consensus of $3.27 billion. The cautious outlook signals concern over weather‑related headwinds and slower adoption of some legacy products, while maintaining confidence in profitability.
The company increased its quarterly dividend by 11% to $0.50 per share and expanded its share‑repurchase authorization to $2.5 billion, underscoring strong cash flow generation and a commitment to returning capital to shareholders.
Pre‑market trading showed a 12% decline in the stock, driven by investors’ focus on the revenue miss and conservative guidance despite the earnings beat.
"Verisk delivered solid financial results for 2025 marked by organic constant currency revenue growth of 6.6%, organic constant currency adjusted EBITDA growth of 8.5%, and strong free cash flow growth. This growth was in line with the guidance that we provided at the beginning of the year and was achieved despite some temporary headwinds, including a year of very low weather activity," said CEO Lee Shavel.
"Subscription revenues, which comprised 84% of our total revenues in the quarter, grew 7.7% on an OCC basis, compounding from the 11% organic constant currency increase that we delivered in the fourth quarter of 2024. OCC adjusted EBITDA growth was 6.2% in the quarter, with total adjusted EBITDA margin at 56.1%, up 200 basis points from the prior year period. This quarter's margin benefited by approximately 50 basis points from favorable foreign currency translation, with the balance driven by leverage on solid sales growth and ongoing cost discipline," said CFO Elizabeth Mann.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.