Verisk Analytics (VRSK) Q2 2026 earnings summary

Executive summary

• Organic constant currency revenue grew 5.8% year-over-year, with balanced growth across underwriting and claims, and sequential acceleration as anticipated.

• Subscription revenues increased 8% on an OCC basis, comprising 83% of total revenue, while transactional revenues declined 4.2% OCC due to lower commercial property volumes, weather impacts, and travel disruptions.

• Net income was $229 million, down 9.8% year-over-year, primarily due to higher tax rate, increased interest expense, and legal fees.

• Adjusted EBITDA grew 7.4% on an OCC basis to $464 million, with total adjusted EBITDA margins at 57.5%.

• AI-driven product innovation and client engagement are driving improved price realization and operational momentum.

Financial highlights

• Second quarter revenue was $806 million, up 4.3% year-over-year, with OCC revenue growth of 5.8%.

• Diluted GAAP EPS was $1.75, down 3.3% year-over-year; diluted adjusted EPS grew 5.3% to $1.98.

• Adjusted net income decreased 1.9% to $259 million; net income margin declined to 28.4%.

• Net cash from operating activities increased 49.7% to $366 million; free cash flow rose 57.9% to $298 million.

• Domestic revenue accounted for 81% and international for 19% of total revenue.

Outlook and guidance

• 2026 financial guidance reaffirmed: consolidated revenue expected at $3.19–$3.24 billion, adjusted EBITDA at $1.79–$1.83 billion, and adjusted EPS at $7.45–$7.75.

• Adjusted EBITDA margin guidance is 56%–56.5%; net interest expense expected at $190–$200 million; effective tax rate at 23%–26%.

• Capex projected at $260–$280 million; dividend per share expected to rise to $2.00.

• Gradual recovery in OCC growth rate expected in the second half, with more acceleration anticipated in Q4.

• Transactional revenue headwinds expected to persist due to lower storm activity and commercial property softness.