Verisk Analytics (VRSK) Q1 2026 earnings summary

Executive summary

• Organic constant currency revenue grew 4.7% year-over-year, with 7% growth in subscription revenues and 5.9% growth in Adjusted EBITDA, resulting in 60 basis points of margin expansion.

• Revenue for Q1 2026 was $783 million, up 3.9% year-over-year, with net income at $234 million and diluted GAAP EPS up 4.8% to $1.73.

• Returned $1.69 billion to shareholders via dividends and share repurchases, including a $1.5 billion Accelerated Share Repurchase Program.

• Innovation in AI and data analytics is driving new product adoption and deeper client engagement, supported by major client events and new product launches.

• The business model's resilience is underpinned by mission-critical solutions, scale-driven economics, and diversified offerings across underwriting and claims.

Financial highlights

• First quarter GAAP revenue was $783 million, up 3.9% year-over-year; net income was $234 million; diluted GAAP EPS rose 4.8% to $1.73; adjusted EBITDA was $438 million, up 5.0%.

• Subscription revenues comprised 84% of total, growing 7% OCC; transactional revenues declined 6.1% OCC.

• Free cash flow for the quarter was $326 million, down from $391 million in Q1 2025, mainly due to a prior-year tax refund and higher interest payments.

• Adjusted EBITDA margin improved to 55.9%, up 60 basis points year-over-year.

• Effective tax rate was 24.1%, up from 21.6% last year, due to lower equity compensation tax benefits.

Outlook and guidance

• 2026 consolidated revenue expected at $3.19–$3.24 billion; Adjusted EBITDA at $1.79–$1.83 billion with margins of 56–56.5%.

• Adjusted EPS guidance is $7.45–$7.75; net interest expense expected at $190–$200 million; effective tax rate 23–26%.

• Q1 2026 is expected to be the trough for revenue growth, with gradual improvement forecasted through the year.

• Guidance reflects the divestiture of Verisk Marketing Solutions, which is an $0.11 EPS headwind.

• Capex expected at $260–$280 million; dividend per share guided at $2.00 for 2026.