Verisk Analytics (NASDAQ:VRSK) reported higher third-quarter revenue and adjusted earnings per share as subscription growth and stronger-than-expected transactional revenue helped offset pressure from lighter weather activity and softer property insurance markets.
The company maintained its full-year 2026 guidance, though Chief Financial Officer Elizabeth Mann said elongated sales cycles and lower weather-related activity would likely keep results toward the midpoint of its forecast ranges.
Revenue rose 5% from a year earlier to $809 million. Net income fell 3% to $219 million, primarily because of losses on adjustments to two cost-based investments and higher net interest expense. Diluted earnings per share increased 6% to $1.70, helped by a lower average share count.
Subscription growth supports results
On an organic constant currency basis, revenue increased 7.4%, with underwriting up 7.7% and claims up 6.7%. Both businesses improved sequentially from the second quarter, President and Chief Executive Officer Lee Shavel said.
Subscription revenue, which represented 84% of quarterly revenue, grew 8.2% on that basis. Mann cited strength in Forms, Rules & Loss Costs, Catastrophe Risk Solutions and Anti-Fraud Analytics.
Transactional revenue, the remaining 16% of the total, rose 3.2% organically and in constant currency, exceeding the company’s expectations. Mann attributed the performance partly to stronger services revenue in Life Solutions and data usage above contracted levels. She said those overages may not repeat in the fourth quarter and were not specifically related to artificial intelligence.
Adjusted EBITDA grew 7.5% on an organic constant currency basis, while the total adjusted EBITDA margin expanded 90 basis points to 56.7%. Adjusted net income rose 5.4% to $254 million, and diluted adjusted earnings per share increased 14% to $1.96.
Net cash from operating activities fell 34% to $267 million, and free cash flow declined 41% to $200 million. Mann attributed the decreases primarily to higher semiannual interest and cash tax payments, along with the timing of certain collections.
Weather and market conditions weigh on outlook
Verisk continues to forecast full-year revenue of $3.19 billion to $3.24 billion, adjusted EBITDA of $1.79 billion to $1.83 billion and adjusted earnings per share of $7.45 to $7.75. Its projected adjusted EBITDA margin remains 56% to 56.5%.
Shavel described insurance markets as generally stable but softer than in recent years, particularly in commercial lines, property and reinsurance. He said lighter weather activity has reduced repair and restoration demand for contractor and adjuster customers, which account for about 10% of consolidated revenue.
Mann said Verisk had seen one or two bankruptcies among contractors and was monitoring the pressure on those customers. The issue is included in the company’s guidance and could be a minor factor in early 2027, she said.
Despite the recent lighter catastrophe activity, Shavel said Verisk’s latest modeled losses report estimates that the insurance industry should be prepared for an average of $171 billion in insured catastrophe losses annually, up $19 billion from the prior year’s estimate.
AI adoption and data initiatives
Shavel said insurers are showing broad interest in AI tools but are taking a measured approach as they assess the reliability of the technology and the data behind it. He expects adoption to develop over the next 12 to 24 months as clients become more familiar with the applications.
Verisk has added nine customers this year for its Mozart Form Composer platform, including its largest agreement for the product with a tier-one carrier, Shavel said. Its Forms AI Builder, initially available for general liability, had 14 companies using it following a beta release in mid-September.
The company also reported growth in its data assets. Commitments from 21 contributors have brought its excess and surplus dataset to $36 billion in premium, up from $18 billion at the time of the previous quarterly call. Its Digital Media Forensics library has grown to more than 800 million images from 600 million in March.
Mann said access to certain data through the Claude MCP connector and expanded offerings with Microsoft and Amazon is currently included primarily in existing core lines contracts and monetized through price increases. Verisk may charge separately in the future as it better understands usage, she said.
AccuLynx and capital allocation
Shavel addressed the Delaware Supreme Court’s October 23 order affirming the Delaware Chancery Court’s judgment regarding AccuLynx. He said Verisk would proceed in accordance with the order, but the transaction remains subject to customary closing conditions and Federal Trade Commission review. There is no guarantee it will be completed, he added.
Asked about the effect on capital allocation, Shavel said there was no meaningful change to Verisk’s priorities of investing in the business, evaluating opportunities and returning capital to shareholders. The company repurchased 10.5 million shares in the first nine months of 2026 and had approximately $700 million remaining under its repurchase authorization, Mann said.
About Verisk Analytics (NASDAQ:VRSK)
Verisk Analytics, Inc (NASDAQ: VRSK), doing business as Verisk, is a global data analytics and technology company serving the insurance industry and other risk-focused markets. Its platforms help organizations use data, statistical models and workflow tools to evaluate risk, make decisions and improve operational efficiency.
Verisk’s insurance offerings support underwriting, pricing, claims management, fraud detection, catastrophe modeling and regulatory compliance. Its products include industry data, predictive analytics, property and casualty risk solutions, claims-estimating tools and information used by insurers to assess property, vehicles, businesses and other exposures.
