Verisk Analytics (VRSK) Q4 2025 earnings summary

Executive summary

• Achieved organic constant currency revenue growth of 6.6% and adjusted EBITDA growth of 8.5% for 2025, with adjusted EBITDA margin expanding to 56.2% and normalized margin at 55.8%.

• Crossed $3.07 billion in annual revenue, demonstrating robust business and economic model, and strong returns on invested capital.

• Returned $875 million to shareholders in FY25 through dividends and share repurchases.

• Terminated the AccuLynx acquisition due to extended FTC review and sold Verisk Marketing Solutions to focus on core insurance data and analytics.

• Introduced advanced AI-powered products and expanded ecosystem partnerships, driving innovation and efficiency for clients.

Financial highlights

• FY25 revenue reached $3,073 million, up 6.6% OCC; adjusted EBITDA was $1,727 million, up 8.5% OCC.

• Q4 2025 revenue was $779 million, up 5.9% year-over-year; net income was $197 million, down 6.2% due to non-operating items.

• Subscription revenues (83–84% of total) grew 9.1% OCC for the year; transactional revenues declined 4.3% OCC.

• Adjusted net income increased 11.3% to $253 million; diluted adjusted EPS up 13% for Q4 and 7.8% for the year.

• Free cash flow for 2025 increased 29.5% to $1,192 million.

Outlook and guidance

• 2026 revenue guidance: $3,190–$3,240 million; adjusted EBITDA: $1,790–$1,830 million; margin: 56–56.5%.

• Adjusted EPS guidance: $7.45–$7.75, with an 11-cent headwind from the Verisk Marketing Solutions sale.

• Dividend per share to increase 11% to $2.00 annually in 2026.

• Q1 2026 revenue expected to be lower sequentially due to divestiture, with growth resuming in subsequent quarters.