Verisk Generates $200 Million In Quarterly Free Cash Flow — Down 40.5% Despite Sales Growth
Collection timing and higher interest payments hurt cash generation, while buybacks helped lift adjusted earnings per share.
Verisk Analytics, which sells insurance data, analytics and software, generated $200 million in third-quarter free cash flow — cash remaining after capital spending — down 40.5% from a year earlier, according to results accompanying its Thursday SEC filing. Revenue grew, but collection timing, higher interest payments and a tax refund received a year earlier that did not recur reduced cash generation.
Less Cash, Higher Per-Share Earnings
Quarterly revenue totaled $809 million, a 5.3% reported increase from a year earlier. Growth was 7.4% excluding currency changes and recent acquisitions and disposals.
Operating cash flow fell 33.8% to $267 million. Capital spending barely changed, at $67.2 million against $67.4 million a year earlier; for the first nine months of 2026, free cash flow fell 10.0% to $824 million.
Net income dropped 2.8% to $219 million. Investment losses reached $17.5 million against $1.6 million a year earlier, and net interest expense rose to $53.0 million from $42.2 million. Operating income increased to $365.3 million from $345.9 million.
A smaller share count helped earnings per share rise 5.6% to $1.70 despite the lower net income. Adjusted earnings per share increased 14.0% to $1.96, with operating growth and buybacks helping, partly offset by higher interest expense and a higher effective tax rate. VRSK shares fell about 3% to $204.56 in Friday trading.
Pricing And Anti-Fraud Tools Lift Sales
Underwriting brought in $568 million, up 4.8% as reported and 7.7% excluding currency changes and recent deals. Verisk attributed growth to annual price increases tied to improved models and content, along with sales of expanded catastrophe and risk tools to new and existing customers.
Claims revenue reached $241 million, growing 6.6% as reported and 6.7% on the same adjusted basis. Higher prices, adoption of new anti-fraud analytics and growth in property and restoration tools supported the business.
Verisk helps insurers choose and price risks, process claims and model hurricanes, earthquakes and wildfires. Annual subscriptions and long-term agreements supplied over 80% of its 2025 revenue. Its clients that year included all the top 100 U.S. property and casualty insurers for the services it offers.
Adjusted earnings before interest, taxes, depreciation and amortization reached $459 million, up 7.0% as reported and 7.5% excluding currency changes and recent deals. The corresponding margin increased to 56.7% from 55.8%, with Verisk crediting revenue growth and cost discipline.
$1.9 Billion In Buybacks, Outlook Intact
Verisk funded $1.9 billion of share repurchases during the first nine months of 2026 and received approximately 10.5 million shares. The third quarter included a $100 million accelerated repurchase program; $700 million remained authorized at September 30.
Management kept its forecast for 2026 revenue at $3,190 million–$3,240 million and adjusted earnings per share at $7.45–$7.75. The adjusted earnings-before-interest-and-other-costs outlook remained $1,790 million–$1,830 million, with a margin of 56.0%–56.5%.
Elizabeth Mann, Verisk's chief financial officer, said, “As we close out the year, we continue to expect that 2026 will be another year of performance in line with our Investor Day targets and maintain our annual guidance for this year.”
Verisk paid a $0.50-per-share dividend on September 30. Its next approved dividend, also $0.50 per share, is payable December 31 to shareholders of record December 15.
Sources
- 8-K Filing — Verisk Analytics, Inc. (VRSK) — SEC EDGAR
- Exhibit ex_1007822.htm — Verisk Analytics, Inc. 8-K exhibit — SEC EDGAR
- Verisk Reports Third Quarter 2026 Financial Results — globenewswire.com
