second quarter 2026
Filed Jul 29, 2026Revenue was $806 million, up 4.3%, while adjusted EBITDA was $464 million, up 4.2%, and diluted adjusted EPS was $1.98, up 5.3%.
Organic constant currency revenue growth accelerated sequentially as previously articulated, adjusted EBITDA and adjusted EPS increased, and operating cash flow and free cash flow rose sharply. GAAP net income and diluted EPS declined due to a higher effective tax rate, higher net interest expense, and legal fees.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, second quarterGAAP | $806 million | – | 4.3% |
| Revenue, first six monthsGAAP | $1,589 million | – | 4.1% |
| Organic constant currency revenue growth, second quarternon-GAAP | 5.8% | – | – |
| Organic constant currency revenue growth, first six monthsnon-GAAP | 5.2% | – | – |
| Net income, second quarterGAAP | $229 million | – | (9.8)% |
| Net income margin, second quarterGAAP | 28.4% | – | – |
| Net income, first six monthsGAAP | $463 million | – | (4.7)% |
| Net income margin, first six monthsGAAP | 29.1% | – | – |
| Adjusted EBITDA, second quarternon-GAAP | $464 million | – | 4.2% |
| Organic constant currency adjusted EBITDA growth, second quarternon-GAAP | 7.4% | – | – |
| Adjusted EBITDA margin, second quarternon-GAAP | 57.5% | – | – |
| Adjusted EBITDA, first six monthsnon-GAAP | $901 million | – | 4.6% |
| Organic constant currency adjusted EBITDA growth, first six monthsnon-GAAP | 6.6% | – | – |
| Adjusted EBITDA margin, first six monthsnon-GAAP | 56.7% | – | – |
| Diluted EPS attributable to Verisk, second quarterGAAP | $1.75 | – | (3.3)% |
| Diluted adjusted EPS, second quarternon-GAAP | $1.98 | – | 5.3% |
| Diluted EPS attributable to Verisk, first six monthsGAAP | $3.48 | – | 0.9% |
| Diluted adjusted EPS, first six monthsnon-GAAP | $3.80 | – | 5.0% |
| Effective tax rate, second quarterGAAP | 24.6% | – | 1.9 |
| Effective tax rate, first six monthsGAAP | 24.4% | – | 2.2 |
| Net cash provided by operating activities, second quarterGAAP | $366.0 million | – | 49.7% |
| Capital expenditures, second quarterGAAP | $(68.1) million | – | 22.0% |
| Free cash flow, second quarternon-GAAP | $297.9 million | – | 57.9% |
| Net cash provided by operating activities, first six monthsGAAP | $756.4 million | – | 9.8% |
| Capital expenditures, first six monthsGAAP | $(132.1) million | – | 20.6% |
| Free cash flow, first six monthsnon-GAAP | $624.3 million | – | 7.7% |
| Dividends per share, second quarterother | $0.50 | – | 11.1% |
| Dividends per share, first six monthsother | $1.00 | – | 11.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Underwriting, second quarterPrimarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions. | $569 million | – | 3.5% |
| Claims, second quarterPrimarily due to anti-fraud analytics and property and restoration solutions. | $237 million | – | 6.3% |
| Underwriting, first six monthsThe filing reported 5.5% organic constant currency growth. | $1,121 million | – | 3.7% |
| Claims, first six monthsThe filing reported 4.7% organic constant currency growth. | $468 million | – | 5.3% |
Full Year 2026 outlook
- Revenue$3,190 million to $3,240 million
- Tax rate23.0% to 26.0%
- NoteAdjusted EBITDA: $1,790 million to $1,830 million
- NoteAdjusted EBITDA margin: 56.0% to 56.5%
- NoteDiluted adjusted EPS: $7.45 to $7.75
- NoteCapital expenditures: $260 million to $280 million
- NoteFixed asset depreciation & amortization: $270 million to $290 million
- NoteIntangible amortization: $60 million to $60 million
- NoteInterest expense: $190 million to $200 million
- NoteDividend per share: $2.00 to $2.00
Capital returns
- Paid a cash dividend of 50 cents per share on June 30, 2026.
- In the second quarter of 2026, entered into a $200.0 million accelerated share repurchase program and received an initial delivery of 949,190 shares of common stock at an initial price of $179.10, representing approximately 85 percent of the aggregate purchase price.
- As of June 30, 2026, had $800.0 million remaining under the share repurchase authorization.
- During the first six months of 2026, funded aggregated share repurchases of $1.9 billion, including repurchases not yet settled, and received initial delivery of approximately 8.5 million shares at an average price of $186.32 per share.
- On July 27, 2026, the Board of Directors approved a cash dividend of 50 cents per share, payable on September 30, 2026, to holders of record as of September 15, 2026.
What drove it
- Second-quarter revenue increased 5.8% on an organic constant currency basis, with 8.0% underlying subscription growth.
- Underwriting growth reflected annual price increases from continued enhancements to models and content, plus expanded catastrophe and risk solutions sold to new and existing customers.
- Claims growth was primarily driven by anti-fraud analytics and property and restoration solutions.
- Adjusted EBITDA increased 7.4% on an organic constant currency basis, primarily due to revenue growth and continued cost discipline.
- Diluted adjusted EPS increased primarily due to strong operational performance and a lower share count.
Concerns
- Second-quarter net income decreased 9.8% and diluted GAAP EPS decreased 3.3%.
- Net income was mainly affected by increases in the effective tax rate, net interest expense, and legal fees incurred in connection with ongoing litigation.
- Adjusted EBITDA margin was 57.5%, compared with 57.6% in the prior-year quarter.
- Capital expenditures increased 22.0% in the second quarter.
What to watch
- Whether growth returns to levels consistent with Investor Day targets in the second half of the year, as management stated.
- Execution against unchanged Full Year 2026 total revenue guidance of $3,190 million to $3,240 million.
- Adjusted EBITDA margin performance against Full Year 2026 guidance of 56.0% to 56.5%.
- The effects of net interest expense, the effective tax rate, and ongoing litigation legal fees on GAAP earnings.
- Continued capital deployment under the remaining $800.0 million share repurchase authorization.
Balance sheet and cash flow
- Net cash provided by operating activities was $366.0 million in the second quarter, up 49.7%.
- Free cash flow was $297.9 million in the second quarter, up 57.9%.
- The increase in net cash provided by operating activities and free cash flow was primarily driven by an increase in operating profit and the timing of certain vendor and tax payments.
- Capital expenditures were $(68.1) million in the second quarter and $(132.1) million in the first six months of 2026.
Analysis
Verisk reported second-quarter revenue of $806 million, up 4.3%, with organic constant currency revenue growth of 5.8%. Management said growth accelerated sequentially, supported by 8.0% underlying subscription growth. Claims revenue grew 6.3%, ahead of Underwriting revenue growth of 3.5%. Underwriting benefited from annual price increases tied to model and content enhancements and expanded catastrophe and risk solutions, while Claims was driven by anti-fraud analytics and property and restoration solutions.
Profitability was mixed between GAAP and adjusted measures. Net income fell 9.8% to $229 million, and diluted GAAP EPS fell 3.3% to $1.75. The company attributed the GAAP earnings decline to a higher effective tax rate, higher net interest expense, and legal fees related to ongoing litigation. By contrast, adjusted EBITDA increased 4.2% to $464 million and rose 7.4% on an organic constant currency basis, while diluted adjusted EPS increased 5.3% to $1.98. Adjusted EBITDA margin was 57.5%, compared with 57.6% in the prior-year quarter.
Cash generation strengthened materially in the quarter. Net cash provided by operating activities increased 49.7% to $366.0 million, and free cash flow increased 57.9% to $297.9 million. The company cited increased operating profit and the timing of certain vendor and tax payments. Capital expenditures rose 22.0% to $(68.1) million. Verisk used its cash generation for shareholder returns, paying a 50-cent per-share dividend and entering a $200.0 million accelerated share repurchase program.
Capital allocation remained active through the first half. The company funded aggregated share repurchases of $1.9 billion, including repurchases not yet settled, and had $800.0 million remaining under its authorization at June 30, 2026. It also approved a further 50-cent per-share cash dividend payable on September 30, 2026. The lower average share count was cited as a partial support for adjusted EPS growth.
The Full Year 2026 outlook was reaffirmed without change. Guidance calls for total revenue of $3,190 million to $3,240 million, adjusted EBITDA of $1,790 million to $1,830 million, adjusted EBITDA margin of 56.0% to 56.5%, and diluted adjusted EPS of $7.45 to $7.75. The principal points for the second half are whether organic constant currency growth returns to Investor Day target levels and whether higher interest expense, tax rates, and litigation fees continue to weigh on GAAP earnings.
Management, verbatim
Our solid second-quarter financial performance reflects the durability of Verisk’s economic model and the operational discipline with which we are managing the business.
Lee Shavel, President and CEO, Verisk
I am pleased to share that Verisk delivered second-quarter financial results that reflect the sequential acceleration in growth we previously articulated.
Elizabeth Mann, CFO, Verisk
We are reaffirming our financial outlook for 2026 and continue to have confidence that as we move into the second half of the year, our growth should return to levels consistent with our Investor Day targets.
Elizabeth Mann, CFO, Verisk
Not in the filing
stated, not guessed- GAAP gross margin
- Non-GAAP gross margin
- GAAP operating income
- Non-GAAP operating income
- Operating expenses
- Cash and cash equivalents balance
- Total debt balance
- Net debt balance
- Prior-quarter comparisons for reported metrics
- Full Year 2026 GAAP EPS guidance
- Full Year 2026 free cash flow guidance
- Prior outlook figures for comparison with actual results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.