Verisk Analytics : First Quarter 2025 Earnings Conference Call Press Release
VRSK
Published on 05/07/2025 at 09:39
Verisk Reports First-Quarter 2025 Financial Results
First quarter revenue of $753 million, up 7.0%, and up 7.9% on an organic constant currency (OCC) basis.
Net income of $232 million, up 5.9%.
Adjusted EBITDA, a non-GAAP measure, of $417 million, up 9.5%, and up 9.5% on an OCC basis.
Diluted GAAP earnings per share of $1.65, up 8.6%.
Diluted adjusted EPS, a non-GAAP measure, of $1.73, up 6.1%.
JERSEY CITY, N.J., May 7, 2025 - Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today announced results for the first quarter ended March 31, 2025. The earnings release is available on the company's Investor Relations website at investor.verisk.com.
Lee Shavel, President and CEO, Verisk:
"I am pleased to share that 2025 is off to a solid start at Verisk as we delivered broad-based top line growth across underwriting and claims and healthy profit growth. In an increasingly uncertain risk environment, we are keenly focused on supporting our clients with more insights and solutions that drive efficiency and automation to improve their operations. We continue to build on our role as a key strategic partner for the industry, investing in invention and innovation that moves the industry forward and creates long term value for clients and shareholders alike."
Elizabeth Mann, CFO, Verisk:
"Verisk delivered organic constant currency revenue growth of 7.9% and organic constant currency adjusted EBITDA growth of 9.5% in the first quarter of 2025. We returned over $250 million to shareholders through dividends and repurchases while continuing to invest in our business, demonstrating confidence in our resilient business model and the strength of our balance sheet. To that end, we are reiterating our financial guidance for 2025."
Financial Highlights
Summary of Results (GAAP and Non-GAAP) from Continuing Operations (in millions, except per share amounts)
Note: Adjusted EBITDA, diluted adjusted EPS, and free cash flow are non-GAAP measures.
Three Months Ended
March 31,
2025
2024
% Change
Revenues
$
753
$
704
7.0%
Net income
232
219
5.9
Adjusted EBITDA
417
380
9.5
Diluted EPS attributable to Verisk
1.65
1.52
8.6
Diluted adjusted EPS
1.73
1.63
6.1
Net cash provided by operating activities
445
372
19.5
Free cash flow
391
317
23.3
Dividends per share
1
0.45
0.39
15.4
Revenue
($ in millions)
Note: OCC revenue growth is a non-GAAP measure See "Non-GAAP Reconciliations" below for a reconciliation to the nearest GAAP measure.
*During the first quarter of 2025, an immaterial component of our Insurance segment was transferred from Claims to Underwriting in calculating the OCC change percentage. The transfer has no impact on the OCC growth rates for our Insurance Segment
Three Months Ended
March 31, % Change
2025
2024
Reported
OCC*
Underwriting
$ 532 $
498
6.8%
7.2%
Claims
221
206
7.5
9.6
Insurance
$ 753 $
704
7.0
7.9
Underwriting revenues increased 6.8% in the quarter and 7.2% on an OCC basis, primarily due to our forms, rules and loss cost services and extreme event solutions. Specialty business and life solutions also contributed to the growth. On December 2, 2024, we sold Atmospheric and Environmental Research ("AER"), which was a business within Underwriting. AER is included in our revenue from disposition.
Claims revenues grew 7.5% in the quarter and 9.6% on an OCC basis, primarily due to growth in our property estimating solutions and anti-fraud solutions.
Net Income, Adjusted EBITDA and Adjusted EBITDA Margin
($ in millions)
Note: Adjusted EBITDA is a non-GAAP measure. Margin is calculated as a percentage of revenues. See "Non-GAAP Reconciliations" below for a reconciliation to the nearest GAAP measure.
Net income was $232 million, an increase of 5.9% in the quarter.
Three Months Ended March 31,
2025 2024
% Change Reported
OCC
Margin
2025
2024
Adjusted EBITDA
$ 417
$ 380
9.5%
9.5%
55.3%
54.0%
The increase in net income of 5.9% reflects strong operational performance, partially offset by a higher provision for income taxes, interest expense and depreciation expense.
Adjusted EBITDA increased 9.5% on an OCC basis, primarily due to operating leverage on the solid revenue growth and cost discipline.
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Diluted Earnings Per Share
Note: Adjusted earnings per share is a non-GAAP measure. See "Non-GAAP Reconciliations" below for a reconciliation to the nearest GAAP measure.
Three Months Ended March 31,
2025 2024
% Change
Diluted EPS attributable to Verisk
$ 1.65
$ 1.52
8.6%
Diluted adjusted EPS $ 1.73 $ 1.63 6.1%
Diluted EPS increased 8.6% in the quarter, reflecting strong operational performance and a lower share count, partially offset by a higher provision for income taxes, interest expense and depreciation expense.
Diluted adjusted EPS increased 6.1%, reflecting strong operational performance and a lower average share count, partially offset by a higher provision for income taxes, interest expense and depreciation expense.
Cash Flow and Capital Return
($ in millions)
Note: Free cash flow is a non-GAAP measure. See "Non-GAAP Reconciliations" below for a reconciliation to the nearest GAAP measure.
Three Months Ended
March 31,
2025
2024
% Change
Net cash provided by operating activities
$ 444.7
$ 372.2
19.5%
Capital expenditures
(53.7)
(55.2)
(2.7)%
Free cash flow
$ 391.0
$ 317.0
23.3%
Net cash provided by operating activities grew 19.5% in the quarter, while free cash flow increased 23.3%.
Free cash flow growth was driven by an increase in operating profit and a federal tax refund received in the quarter, partially offset by the timing of certain cash payments throughout the quarter.
On March 31, 2025, we paid a cash dividend of 45 cents per share of common stock issued and outstanding to the holders of record as of March 14, 2025.
On April 30, 2025, our Board of Directors approved a cash dividend of 45 cents per share of common stock issued and outstanding. The dividend is payable on June 30, 2025, to holders as of June 13, 2025.
During the first quarter, we initiated a $200 million Accelerated Share Repurchase program, which was completed in April 2025, resulting in the purchase of 0.7 million shares, at an average price, less a discount, of $288.09. As of March 31, 2025, we had
$1.4 billion remaining under our share repurchase authorization.
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Full Year 2025 Outlook
Metric
2025 Guidance
Total revenue
$3.03 - $3.08B
Adjusted EBITDA
$1.67 - $1.72B
Adjusted EBITDA margin
55.0% -55.8%
Diluted adjusted EPS
$6.80 - $7.10
Tax rate
23% -25%
Capital expenditures
$245 - $265M
Fixed asset depreciation & amortization
$250 - $270M
Intangible amortization
$65M
Interest expense
$145 - $165M
Dividend per share
Conference Call
$0.45
Our management team will host a live audio webcast to discuss the financial results and business highlights on Wednesday, May 7, 2025, at 8:30 a.m.
EDT (5:30 a.m. PDT, 12:30 p.m. GMT). All interested parties are invited to listen to the live event via webcast on our investor website
at https://http://investor.verisk.com. The discussion will also be available through dial-in number 800-715-9871 for U.S./Canada participants or 646-307-1963 for international participants.
A replay of the webcast will be available for 30 days on our investor website and through the conference call number 800-770-2030 for U.S./Canada participants or 647-362-9199 for international participants using Conference ID #1730953.
About Verisk
Verisk is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong.
Verisk is traded on the Nasdaq exchange and is a part of the S&P 500 Index and the Nasdaq-100 Index. For more information, please visit https://www.verisk.com.
Stacey Brodbar
Head of Investor Relations Verisk
201-469-4327
Alberto Canal
Verisk Public Relations 201-469-2618
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Forward-Looking Statements
This release contains forward-looking statements, including those related to our financial guidance. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. This includes, but is not limited to, our expectation and ability to pay a cash dividend on our common stock in the future, subject to the determination by our Board of Directors and based on an evaluation of our earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "target," "seek," "anticipate," "believe," "estimate," "predict," "potential," or "continue" or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements, because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance or achievements.
Other factors that could materially affect actual results, levels of activity, performance, or achievements can be found in our quarterly reports on Form 10-Q, annual reports on Form 10-K, and current reports on Form 8-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement in this release reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise except as required by law.
Notes Regarding the Use of Non-GAAP Financial Measures
We have provided certain non-GAAP financial information as supplemental information regarding our operating results. These measures are not in accordance with, or an alternative for, U.S. GAAP and may be different from non-GAAP measures reported by other companies. We believe that our presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. In addition, our management uses these measures for reviewing our financial results, for budgeting and planning purposes, and for evaluating the performance of senior management.
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Disclaimer
Verisk Analytics Inc. published this content on May 07, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2025 at 13:38 UTC.