Verisk Analytics, Inc.

Verisk reported second-quarter 2026 revenue of $806 million, up 4% year over year, with net income of $229 million and diluted GAAP EPS of $1.75, down 3% year over year. Organic constant-currency revenue grew 5.8%, comping against 7.9% growth in the prior-year period, while OCC adjusted EBITDA grew 7.4%; total adjusted EBITDA margin was 57.5%, down 10 basis points, though management said the prior year benefited from a 120-basis-point FX tailwind. Adjusted net income was $259 million and diluted adjusted EPS was $1.98, up 5.3%; operating cash flow rose 50% to $366 million and free cash flow rose 58% to $298 million. For 2026, Verisk reaffirmed revenue guidance of $3.19 billion to $3.24 billion, adjusted EBITDA of $1.79 billion to $1.83 billion, adjusted EBITDA margin of 56% to 56.5%, net interest expense of $190 million to $200 million, an effective tax rate of 23% to 26%, and adjusted EPS of $7.45 to $7.75.

Lee Shavel framed the quarter as evidence that the expected growth rebound is underway, with management citing stronger client engagement and a rising role for AI in product value and pricing realization. He emphasized that Verisk is moving AI from experimentation to production with clients, pointing to Anthropic Claude connectors, Premium Audit AI, XactAI, and new agentic initiatives as proof points. His tone was confident and constructive, while acknowledging that soft property markets and low catastrophe activity are still affecting transactional demand.

Elizabeth Mann detailed the quarter’s financial performance and pointed to revenue mix, expense discipline, and capital return as key drivers. She noted subscription revenue made up 83% of total revenue and grew 8% OCC, while transactional revenue declined 4.2% OCC; adjusted EBITDA margin was 57.5%, with the year-over-year comparison helped by a prior-year FX benefit. She also cited net interest expense of $53 million, an effective tax rate of 24.6%, free cash flow of $298 million, a 11% increase in the quarterly dividend to $0.50 per share, a $200 million ASR, and approximately $800 million remaining under the share repurchase authorization.

Analysts focused on whether soft insurance markets and lower hurricane activity could pressure growth, how AI might change monetization and sales cycles, and whether new products like Synergy Studio and MCP connectors would create incremental revenue. Management said the full-year guide assumes an average year of weather and hurricane activity, while lighter activity would mainly pressure transactional revenue; they also said the Q2 ILS benefit will not repeat in Q3. On AI, management said monetization will likely come through better subscription renewal pricing, possible transactional pricing in some cases, and eventual software/license fees, while also stressing that data security, governance, and client trust remain central and that data in Claude is kept within the client session and not used for model training.