Verisk Analytics 2025 Q2 Earnings Net Income Declines 17.7% Amid Revenue Increase

Verisk Analytics (VRSK) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Verisk Analytics reported a mixed quarter with revenue outperforming expectations, growing by 7.8% to $772.60 million, surpassing the anticipated $768.5 million. However, the decline in net income and EPS was noticeable, missing expectations. The company raised its full-year 2025 revenue and adjusted EBITDA guidance, indicating confidence in future performance.

Revenue
The total revenue of Verisk Analytics increased by 7.8% to $772.60 million in 2025 Q2, up from $716.80 million in 2024 Q2.

Earnings/Net Income
Verisk Analytics's EPS declined 16.2% to $1.81 in 2025 Q2 from $2.16 in 2024 Q2. Meanwhile, the company's net income declined to $253.30 million in 2025 Q2, down 17.7% from $307.80 million reported in 2024 Q2. The company has sustained profitability for 19 years over the corresponding fiscal quarter, reflecting stable business performance. The decline in EPS indicates a challenging quarter for earnings.

Price Action
The stock price of Verisk Analytics has dropped 6.87% during the latest trading day, has dropped 7.34% during the most recent full trading week, and has tumbled 10.75% month-to-date.

Post Earnings Price Action Review
The strategy of buying Verisk Analytics (VRSK) shares after a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has generated moderate returns but underperformed the market. With a compound annual growth rate (CAGR) of 5.94%, the strategy trails the benchmark by 54.43%. Although it presents a maximum drawdown of 0.00% and a Sharpe ratio of 0.26, indicating low risk, the returns remain modest. This makes the strategy more suitable for investors seeking stability rather than aggressive growth. Considering the recent price action, the stock's decline suggests that the market's reaction to the earnings report was negative, focusing on the drop in net income and EPS despite the revenue growth.

CEO Commentary
Lee M. Shavel, CEO, highlighted that Verisk Analytics experienced strong operating momentum with organic constant currency revenue growth of 7.9%, driven by a subscription-based business model that creates significant value for clients. He noted, "I'm confident that this year is on track to be another solid year for Verisk," emphasizing ongoing structural and cultural changes that have led to strong financial and operational growth. Shavel discussed the strategic acquisition of AccuLynx, which enhances Verisk’s property estimating solutions, and reaffirmed a commitment to innovation, particularly with advancements in generative AI to improve efficiency and insights for clients.

Guidance
Verisk raised its full-year 2025 revenue outlook to a range of $3.09 billion to $3.13 billion, including an expected contribution of $40 million to $50 million from acquisitions. The company increased its adjusted EBITDA guidance to a range of $1.7 billion to $1.74 billion, expecting adjusted EBITDA margins to remain between 55% and 55.8%. Diluted adjusted earnings per share are projected to be in the range of $6.80 to $7, reflecting strong core business results and initial dilution from acquisitions.

Additional News
Recently, Verisk Analytics announced acquisitions and strategic collaborations aimed at expanding its capabilities in the insurance sector. The company signed a definitive agreement to acquire AccuLynx, enhancing its property estimating solutions, and acquired SuranceBay to boost its life and annuity offerings. Furthermore, Verisk welcomed Christopher Perry and Sabra Purtill to its Board of Directors, signaling a commitment to strengthening leadership. Additionally, Verisk set a precedent by completing the Wildfire Catastrophe Model Review Process in California for insurance ratemaking, showcasing its innovative approach to risk modeling. These moves align with industry trends and bolster Verisk's position as a leader in integrated technology solutions.