VRSK earnings analysis
What we found in VRSK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Verisk delivered Q2 revenue of $806.3 million, up 4.3% year over year and approximately 3.0% sequentially from $783 million in Q1, while gross margin improved to 71.1%. Operating margin was broadly stable sequentially at 45.1%, but down about 80 basis points year over year, and GAAP EPS of $1.75 was down from $1.81 a year ago despite being up from $1.73 in Q1. Stronger operating cash flow and continued growth in Claims were offset by legal costs, sharply higher interest expense, a higher tax rate, and a substantial reduction in cash after accelerated share repurchases.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Organic-like Insurance revenue grew 5.9%
- Q2 revenue increased $33.7 million, or 4.3%, to $806.3 million. Excluding the net $10.8 million revenue impact of acquisitions and the VMS disposition, Insurance revenue grew $44.5 million, or 5.9%.
- Both core revenue categories expanded
- Claims revenue grew 6.3% to $237.2 million, led by anti-fraud analytics and property-and-restoration solutions; underwriting revenue increased 3.5% to $569.1 million.
- Gross margin expanded year over year
- Cost of revenues rose only 1.7% to $233.4 million, versus 4.3% revenue growth. This produced an implied gross margin of 71.1%, up from approximately 70.3% a year earlier.
- Operating income still grew despite SG&A
- Operating income rose $9.4 million, or 2.7%, to $363.7 million. Operating margin was 45.1%, versus approximately 45.9% in the prior-year quarter, as SG&A increased 20.8% to $128.6 million.
- Cash generation accelerated sharply
- Operating cash flow increased $121.5 million, or 49.7%, to $366.0 million. Free cash flow was $297.9 million, supported by higher operating profit and vendor and cash-tax payment timing.
- Large shareholder-return program
- The company repurchased $1.827 billion of stock in the first six months of 2026 and paid $130.9 million in dividends. It retained $800.0 million of authorization at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- GAAP earnings and net margin declined
- GAAP net income fell $24.7 million, or 9.8%, to $228.6 million, and diluted EPS declined $0.06 to $1.75. Net-income margin contracted to 28.4% from 32.8%.
- EBITDA margin compressed 350 basis points
- EBITDA declined 2.0% to $436.8 million and EBITDA margin compressed 350 basis points to 54.2%, primarily due to higher AccuLynx-related legal fees.
- Interest and tax burdens increased
- Net interest expense rose $17.3 million, or 48.7%, to $52.8 million, driven by 2031 and 2036 senior notes and the Term Loan Facility. The effective tax rate also increased to 24.6% from 22.7%.
- Buybacks reduced liquidity and retained leverage
- Cash, cash equivalents, and available-for-sale securities fell to $552.2 million at June 30, 2026 from $2.179 billion at December 31, 2025, following $1.827 billion of six-month share repurchases. Total debt remained substantial at $4.500 billion, including $250.0 million outstanding on the term loan.
- No formal risk-factor update; legal-cost pressure
- Risk-factor disclosure itself did not change: Item 1A states there was no material change from the 2025 10-K. However, the filing reports $16.3 million of acquisition, disposition, and AccuLynx-related SG&A costs in Q2, evidencing transaction-related expense pressure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.75
- Gross margin
- 71.1%
- Operating margin
- 45.1%
- Segment
- Insurance—Underwriting: $569.1 million, up 3.5% year over year (5.7% excluding acquisitions/disposition).
- Segment
- Insurance—Claims: $237.2 million, up 6.3% year over year.
- Segment
- Total Insurance: $806.3 million, up 4.3% year over year (5.9% excluding acquisitions/disposition).
What they said about what is next.
The 10-Q MD&A does not provide quantitative full-year guidance; quantitative outlook was deferred to the separately issued earnings materials.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- Verisk Analytics reported Q1 2026 revenues of $782.6 million, representing a 3.9% increase from the prior year and slightly above consensus estimates of $773 million. Diluted EPS at $1.73 marginally missed expectations…
- 10-K · February 18, 2026
- Verisk positions itself as a data-and-analytics moat for the P&C insurance ecosystem, emphasizing proprietary data assets, embedded subscription solutions and scale to drive product innovation. The 2025 filing…
- 10-K · February 26, 2025
- Verisk Analytics reported strong growth in 2024 with total revenue reaching approximately $2.9 billion, an increase of about 7.4% from the previous year. The company also noted improvements in its operating efficiency…
- 10-Q · October 30, 2024
- Verisk reported Q3 revenue of $725.3 million, up $47.7 million (+7.0%) versus $677.6 million in Q3 2023, with operating income rising to $311.5 million (from $281.1) and diluted EPS from continuing operations of $1.54…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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