Verisk's Q3 Revenue Climbs 5.9%, Net Income Up Slightly

TL;DR

**VRSK's revenue is solid, but watch that debt pile and declining investment gains; it's a mixed bag, but the core business looks strong.**

AI Summary

Verisk Analytics, Inc. reported a revenue increase to $768.3 million for the three months ended September 30, 2025, up from $725.3 million in the prior year, representing a 5.9% growth. Net income attributable to Verisk also saw a modest rise to $225.5 million, compared to $220.1 million in the same period of 2024, an increase of 2.5%. For the nine months ended September 30, 2025, revenues reached $2,293.9 million, up from $2,146.1 million in 2024, a 6.9% increase. However, net income attributable to Verisk for the nine-month period decreased to $711.1 million from $747.8 million in 2024, a 4.9% decline, primarily due to a significant reduction in investment gains from $102.4 million in 2024 to $10.1 million in 2025 and increased interest expense. The company significantly increased its cash and cash equivalents to $2,107.9 million as of September 30, 2025, from $291.2 million at December 31, 2024, largely driven by proceeds from short-term debt issuance of $1,497.9 million. Total liabilities surged to $5,864.4 million from $4,159.7 million, mainly due to increased short-term and long-term debt. Strategic outlook includes continued focus on data analytics and technology for the global insurance industry, with ongoing evaluation of new accounting standards like ASU 2024-03 and ASU 2025-06.

Why It Matters

Verisk's consistent revenue growth, despite a dip in nine-month net income due to lower investment gains, signals resilience in its core data analytics business for the insurance sector. For investors, the substantial increase in debt and cash reserves suggests potential for future acquisitions or share repurchases, but also higher financial leverage. Employees benefit from a stable, growing company, while customers continue to rely on Verisk's critical data and technology for risk assessment and operational efficiency. In a competitive landscape, Verisk's ability to maintain revenue momentum underscores its strong market position and the essential nature of its services.

Risk Assessment

Risk Level: medium — The company's total liabilities increased significantly to $5,864.4 million as of September 30, 2025, from $4,159.7 million at December 31, 2024, primarily driven by a substantial increase in short-term debt to $1,488.9 million from $514.2 million. This increased leverage, coupled with a notable decline in investment gains from $102.4 million in the nine months ended September 30, 2024, to $10.1 million in the same period of 2025, indicates a higher financial risk profile.

Analyst Insight

Investors should closely monitor Verisk's debt management strategies and future capital allocation, particularly given the significant increase in short-term debt and treasury stock repurchases. Evaluate the impact of rising interest expenses on future profitability and assess whether the company's core business growth can sustainably offset increased financial leverage and reduced investment income.

Financial Highlights

revenue

$768.3M

total Assets

$6,241.9M

total Debt

$4,718.1M

net Income

$225.5M

cash Position

$2,107.9M

revenue Growth

+5.9%

Revenue Breakdown

Key Numbers

• $768.3M — Q3 2025 Revenues (Increased from $725.3M in Q3 2024, a 5.9% growth.)
• $225.5M — Q3 2025 Net Income Attributable to Verisk (Increased from $220.1M in Q3 2024, a 2.5% growth.)
• $2,293.9M — Nine-Month 2025 Revenues (Increased from $2,146.1M in nine-month 2024, a 6.9% growth.)
• $711.1M — Nine-Month 2025 Net Income Attributable to Verisk (Decreased from $747.8M in nine-month 2024, a 4.9% decline.)
• $2,107.9M — Cash and Cash Equivalents (Increased significantly from $291.2M at December 31, 2024.)
• $1,488.9M — Short-term Debt (Increased from $514.2M at December 31, 2024.)
• $5,864.4M — Total Liabilities (Increased from $4,159.7M at December 31, 2024.)
• $10.1M — Nine-Month 2025 Investment Gain (Significantly down from $102.4M in nine-month 2024.)
• $114.0M — Nine-Month 2025 Interest Expense, net (Increased from $90.1M in nine-month 2024.)
• 139,372,570 — Shares Outstanding (As of October 24, 2025.)

Key Players & Entities

• Verisk Analytics, Inc. (company) — registrant
• NASDAQ Global Select Market (regulator) — exchange where VRSK is traded
• $768.3 million (dollar_amount) — revenues for three months ended September 30, 2025
• $725.3 million (dollar_amount) — revenues for three months ended September 30, 2024
• $225.5 million (dollar_amount) — net income attributable to Verisk for three months ended September 30, 2025
• $220.1 million (dollar_amount) — net income attributable to Verisk for three months ended September 30, 2024
• $2,107.9 million (dollar_amount) — cash and cash equivalents as of September 30, 2025
• $291.2 million (dollar_amount) — cash and cash equivalents as of December 31, 2024
• $1,497.9 million (dollar_amount) — proceeds from issuance of short-term debt for nine months ended September 30, 2025
• $5,864.4 million (dollar_amount) — total liabilities as of September 30, 2025

FAQ

Risk Factors

• Increased Debt Levels [medium — financial]: Total liabilities increased to $5,864.4 million from $4,159.7 million, primarily due to a significant rise in short-term debt ($1,488.9M from $514.2M) and long-term debt ($3,229.2M from $2,546.9M). This increase in leverage could heighten financial risk.
• Reduced Investment Gains Impacting Net Income [medium — financial]: Nine-month net income attributable to Verisk decreased by 4.9% to $711.1 million from $747.8 million, largely due to a substantial drop in investment gains from $102.4 million in 2024 to $10.1 million in 2025.
• Increased Interest Expense [medium — operational]: Interest expense, net, for the nine-month period rose to $114.0 million from $90.1 million, reflecting the increased debt burden and potentially higher interest rates.
• New Accounting Standards [low — regulatory]: The company is evaluating new accounting standards, including ASU 2024-03 and ASU 2025-06, which could impact financial reporting and require adjustments to accounting policies and systems.
• Intense Competition in Data Analytics [medium — market]: The data analytics market, particularly for the global insurance industry, is highly competitive. Verisk faces ongoing pressure to innovate and maintain its market position against existing and emerging players.
• Dependence on Technology and Data Integrity [high — operational]: Verisk's business model relies heavily on sophisticated data analytics and technology. Any disruptions to its IT infrastructure, data security breaches, or failures in data integrity could have a material adverse effect on its operations and reputation.

Industry Context

Verisk operates in the data analytics and risk assessment sector, primarily serving the global insurance industry. This sector is characterized by intense competition, rapid technological advancements, and a growing demand for sophisticated data-driven insights. Key trends include the increasing use of AI and machine learning for underwriting and claims processing, and the need for robust data security and privacy measures.

Regulatory Implications

Verisk must navigate evolving regulatory landscapes, particularly concerning data privacy and the use of artificial intelligence in financial services. Compliance with new accounting standards, such as ASU 2024-03 and ASU 2025-06, will also require careful management and potential system adjustments.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Third Quarter 2025 — Reported revenues of $768.3M and net income of $225.5M. Significant increase in cash and cash equivalents to $2,107.9M due to debt issuance.
• 2025-12-31: End of Fiscal Year 2024 — Reported cash and cash equivalents of $291.2M and total liabilities of $4,159.7M, providing a baseline for current period changes.
• 2024-09-30: End of Third Quarter 2024 — Reported revenues of $725.3M and net income of $220.1M. Investment gains were $102.4M for the nine-month period.

Glossary

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its net assets. (Verisk's goodwill increased significantly to $1,878.6 million from $1,726.6 million, indicating acquisitions or revaluations.)

Operating lease right-of-use assets, net

Assets recognized under accounting standards for leases, representing the right to use an asset for a specified period. (These assets decreased slightly, suggesting lease expirations or payments exceeding new lease acquisitions.)

Treasury stock

Stock that a company has repurchased from the open market. (Verisk holds a substantial amount of treasury stock, reducing the number of shares outstanding and impacting per-share metrics.)

Noncontrolling interests

The portion of equity of a subsidiary that is not attributable to the parent company. (A small but present component of Verisk's equity, indicating partial ownership of subsidiaries.)

Accumulated other comprehensive income

The total of all unrealized gains and losses that are not reported as part of net income on the income statement. (This account saw a significant increase, suggesting positive performance in items like foreign currency translation adjustments or unrealized gains on investments.)

Year-Over-Year Comparison

Verisk Analytics reported a 5.9% revenue increase for Q3 2025 compared to the prior year, reaching $768.3 million, and a 6.9% increase year-to-date to $2,293.9 million. However, net income attributable to Verisk saw a 2.5% rise in Q3 to $225.5 million but declined 4.9% year-to-date to $711.1 million, primarily due to a significant drop in investment gains and increased interest expense. Total liabilities surged by over $1.7 billion, driven by substantial increases in both short-term and long-term debt, while cash and cash equivalents also saw a dramatic rise due to debt issuance.

Filing Documents

• vrsk20250930_10q.htm (10-Q) — 2146KB
• ex_856084.htm (EX-31.1) — 10KB
• ex_856085.htm (EX-31.2) — 10KB
• ex_856086.htm (EX-32.1) — 10KB
• 0001437749-25-032073.txt ( ) — 9858KB
• vrsk-20250930.xsd (EX-101.SCH) — 76KB
• vrsk-20250930_cal.xml (EX-101.CAL) — 66KB
• vrsk-20250930_def.xml (EX-101.DEF) — 498KB
• vrsk-20250930_lab.xml (EX-101.LAB) — 501KB
• vrsk-20250930_pre.xml (EX-101.PRE) — 550KB
• vrsk20250930_10q_htm.xml (XML) — 1750KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Comprehensive Income 3 Condensed Consolidated Statements of Changes in Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 37

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 39

SIGNATURES

SIGNATURES 41 Exhibit 31.1 Exhibit 31.2 Exhibit 32.1 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements VERISK ANALYTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2025 December 31, 2024 (in millions, except for share and per share data) ASSETS: Current assets: Cash and cash equivalents $ 2,107.9 $ 291.2 Accounts receivable, net of allowance for doubtful accounts of $ 33.9 and $ 22.5 , respectively 436.8 434.4 Prepaid expenses 85.2 72.8 Income taxes receivable 35.8 83.3 Other current assets 29.4 29.9 Total current assets 2,695.1 911.6 Noncurrent assets: Fixed assets, net 591.0 605.9 Operating lease right-of-use assets, net 143.9 156.0 Intangible assets, net 447.6 392.4 Goodwill 1,878.6 1,726.6 Deferred income tax assets 36.7 34.3 Other noncurrent assets 449.0 437.9 Total assets $ 6,241.9 $ 4,264.7 LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Accounts payable and accrued liabilities $ 229.2 $ 249.8 Short-term debt and current portion of long-term debt 1,488.9 514.2 Deferred revenues 505.0 447.2 Operating lease liabilities 26.7 26.0 Income taxes payable 9.2 1.7 Total current liabilities 2,259.0 1,238.9 Noncurrent liabilities: Long-term debt 3,229.2 2,546.9 Deferred income tax liabilities 209.8 191.6 Operating lease liabilities 144.0 158.7 Other noncurrent liabilities 22.4 23.6 Total liabilities 5,864.4 4,159.7 Commitments and contingencies (Note 16) Stockholders' equity: Common stock, $ .001 par value; 2,000,000,000 shares authorized; 544,003,038 shares issued; 139,370,402 and 140,414,637 shares outstanding, respectively 0.1 0.1 Additional paid-in capital 3,095.8 2,994.0 Treasury stock, at cost, 404,632,636 and 403,588,401 shares, respectively ( 10,497.0 ) ( 10,062.4 ) Retained earnings 7,675.9 7,153.4 Accumulated other comprehensive income 101.9 15.0 Total Verisk stockholders' equity 376.7 100.1 Noncontrolling interests 0.8 4.9 Total stockholders' equity 377.5 105.0 Total liabilities

Underwriting

Underwriting $ 542.1 $ 506.9 $ 1,623.7 $ 1,512.8 Claims 226.2 218.4 670.2 633.3 Total revenues $ 768.3 $ 725.3 $ 2,293.9 $ 2,146.1 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues: United States $ 631.9 $ 604.1 $ 1,880.9 $ 1,778.8 United Kingdom 63.7 53.3 186.8 156.2 Other countries 72.7 67.9 226.2 211.1 Total revenues $ 768.3 $ 725.3 $ 2,293.9 $ 2,146.1 Contract assets are defined as an entity's right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time. As of September 30, 2025 and December 31, 2024 , we had no contract assets. Contract liabilities are defined as an entity's obligation to transfer goods or services to a customer for which the entity has received consideration (or an amount of consideration is due) from the customer. As of September 30, 2025 and December 31, 2024 , we had contract liabilities that primarily related to unsatisfied performance obligations to provide customers with the right to use and update the online content over the remaining contract term of $ 507.0 million and $ 451.1 million, respecti vely. Contract liabilities, which are current and noncurrent, are included in "Deferred revenues" and "Other noncurrent liabilities" in our condensed consolidated balance sheets, as of September 30, 2025 and December 31, 2024 . The following is a summary of the change in contract liabilities from December 31, 2024 through September 30, 2025 : Contract liabilities at December 31, 2024 $ 451.1 Additions to contract liabilities 2,347.5 Total revenues ( 2,293.9 ) Foreign currency translation adjustment 2.3 Contract liabilities at September 30, 2025 $ 507.0 Our most significant remaining performance obligations relate to providing customers with the right to use and update the online content over the remaining contract term. Our disclosure o