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Introduction & Market Context
Verisk Analytics Inc (NASDAQ:VRSK) released its second quarter 2025 earnings presentation on July 30, 2025, revealing strong financial performance across key metrics and announcing strategic acquisitions to strengthen its market position. The data analytics provider’s stock was trading at $292.51 in premarket, down 0.52% following the previous day’s close of $294.05.
The company’s Q2 results build on its strong Q1 2025 performance, when it exceeded analyst expectations with EPS of $1.73 against forecasts of $1.69. The latest presentation demonstrates Verisk’s continued momentum in expanding its subscription-based revenue model while making strategic investments in growth areas.
Quarterly Performance Highlights
Verisk reported robust second quarter results with revenue reaching $773 million, representing a 7.9% increase on an organic constant currency (OCC) basis compared to the same period last year. The company’s adjusted EBITDA grew to $445 million, up 9.7% OCC, while adjusted EBITDA margin expanded by 220 basis points to 57.6%.
As shown in the following financial summary chart, Verisk achieved balanced growth across both its Underwriting and Claims segments, with subscription revenue growth of 9.3% OCC accounting for 82% of total revenue:
The company’s diluted adjusted EPS increased by 8.0% to $1.88, while free cash flow grew by 22.6% to $189 million. During the quarter, Verisk returned $163 million to shareholders through dividends and share repurchases, demonstrating its commitment to capital return while investing in growth initiatives.
Detailed Financial Analysis
A year-over-year comparison reveals significant improvements across Verisk’s key financial metrics. Revenue increased from $717 million in Q2 2024 to $773 million in Q2 2025, while adjusted EBITDA grew from $397 million to $445 million, representing an 11.9% increase.
The following chart provides a comprehensive comparison of Q2 2025 results against Q2 2024:
Verisk’s revenue growth has been consistent across quarters, with both the Underwriting and Claims segments contributing to overall performance. The Underwriting segment, which accounts for approximately 71% of total revenue, grew by 7.7% OCC, while the Claims segment grew by 8.3% OCC.
The quarterly revenue breakdown illustrates this steady growth trajectory:
The company’s subscription-based revenue model continues to drive performance, with subscription revenue growing at 9.3% OCC compared to transactional revenue growth of 1.8% OCC. This emphasis on recurring revenue provides Verisk with greater stability and predictability in its financial results.
Verisk’s adjusted EBITDA margin has shown consistent improvement, reaching 57.6% in Q2 2025, up from 55.4% in Q2 2024. This margin expansion reflects the company’s operational efficiency and scale benefits:
Strategic Acquisitions
A significant highlight of Verisk’s Q2 2025 presentation was the announcement of strategic acquisitions to strengthen its market position. The company announced the pending acquisition of AccuLynx for $2.35 billion, which will expand its Property Estimating Solutions ecosystem.
The strategic rationale for the AccuLynx acquisition includes several key benefits:
AccuLynx is a leading end-to-end business management software platform for the residential property restoration industry, with over $150 million in expected 2025 revenue and more than 5,000 customers. The company has impressive financial metrics, including mid-to-high teens revenue growth and over 55% EBITDA margin:
The integration of AccuLynx with Verisk’s Property Estimating Solutions is expected to create significant value across the insurance restoration ecosystem:
In addition to AccuLynx, Verisk also closed the acquisition of SuranceBay, which enhances its Life & Annuity offerings. The strategic rationale for this acquisition includes establishing Verisk Life’s presence in the life & annuity agent/distribution channel and strengthening the company’s existing distribution management system:
The SuranceBay acquisition expands Verisk’s Life & Annuity capabilities by combining existing strengths with new capabilities:
Forward-Looking Statements
Based on its strong performance in the first half of 2025, Verisk has increased its full-year outlook. The company now expects total revenue of $3,090-3,130 million, up from the original guidance of $3,030-3,080 million. Adjusted EBITDA is projected to reach $1,700-1,740 million, compared to the previous guidance of $1,670-1,720 million.
The following chart details the updated 2025 outlook:
The AccuLynx acquisition is expected to be accretive to Verisk’s earnings by year-end 2026. The transaction, valued at $2.35 billion, will be financed with 100% cash consideration through fully committed debt financing. Management anticipates approximately 3.0x LTM gross leverage at closing and intends to delever to the middle of the target range over the next 18 months.
Verisk continues to demonstrate a balanced approach to capital allocation, focusing on strategic acquisitions while maintaining its commitment to returning capital to shareholders through dividends and share repurchases. The company’s dividend per share has steadily increased from $1.00 in 2019 to an expected $1.80 in 2025, reflecting its strong cash flow generation and shareholder-friendly policies.
With strong subscription revenue growth, expanding margins, and strategic acquisitions to enhance its market position, Verisk appears well-positioned to deliver on its increased 2025 outlook and drive long-term shareholder value.
Full presentation:
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