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 robust free cash flow, in line with long-term targets.

• Crossed $3 billion in annual revenue, demonstrating a strong business model and positioning for continued AI-driven innovation.

• Returned $875M to shareholders in FY25 through dividends and share repurchases, with board approval for a $2.5B share repurchase authorization and an 11% dividend increase for 2026.

• 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-enabled products and expanded ecosystem partnerships, driving industry adoption and efficiency.

Financial highlights

• FY25 revenue reached $3,073M, up 6.6% OCC; Q4 revenue was $779M, up 5.9% year-over-year.

• Adjusted EBITDA was $1,727M for FY25, up 8.5% OCC; Q4 adjusted EBITDA was $437M, up 9.8%.

• Diluted adjusted EPS for FY25 was $7.16, up 7.8%; Q4 diluted adjusted EPS was $1.82, up 13.0%.

• Free cash flow for FY25 was $1,192M, up 29.5%; Q4 free cash flow was $276M, up 38.0%.

• Subscription revenues (83–84% of total) grew 7.7–9.1% OCC, while transactional revenues (16% of total) declined 4.3–6.5% OCC.

Outlook and guidance

• 2026 revenue guidance: $3,190M–$3,240M; adjusted EBITDA: $1,790M–$1,830M; margin: 56.0%–56.5%.

• Adjusted EPS guidance: $7.45–$7.75; dividend per share to increase 11% to $2.00 annually in 2026.

• Q1 2026 expected to be the trough for revenue and growth rates due to tough comps, divestiture, and contract headwinds.

• Interest expense: $190–$200M; capex: $260–$280M; tax rate: 23–26%.