Financial Health Snapshot
What do Verisk Analytics latest financial snapshot metrics show?
Strong overall. The strongest factor is free cash flow and margin strength, while the main concern is debt service and refinancing cost in a high interest rate environment.
The latest verified period is Q1 2026 for revenue growth and FY2025 for profitability, cash flow, and leverage. This verdict combines growth, profitability, cash generation, balance-sheet capacity, and capital efficiency, which is why Verisk Analytics looks financially resilient even with meaningful debt.
For a deeper strategy read, see Mission Statement, Vision, & Core Values (2026) of Verisk Analytics, Inc. (VRSK); if you want to compare strategy with numbers, the free cash flow metric deserves deeper analysis first.
Revenue and earnings quality
Is Given Company’s revenue growth producing quality earnings?
Strong. FY2025 and Q1 2026 both show sharp revenue and earnings growth, and the clearest confirmation is that subscription-based revenue and higher net income aligned with stronger diluted adjusted EPS.
Growth looks strong in both quantity and quality because revenue, net income, and diluted adjusted EPS all moved higher in the latest periods. Investors compare revenue durability with operating income, net income, and EPS across compatible annual periods to see whether growth is turning into real profit, not just bigger sales. For more context, see Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who's Buying and Why?
| Measure | Latest Period | Previous Period | Quality Test | Investor Meaning |
|---|---|---|---|---|
| Revenue | $7826M, 390% year-over-year, Q1 2026 | $307B, FY2025 | Organic constant currency growth of 470%; subscription-based revenue supports visibility | The growth source looks repeatable because subscription revenue is recurring, but the customer base still ties results to the P&C insurance cycle |
| Operating Income | Latest verified operating income was not supplied | Previous comparable value was not supplied | Operating leverage cannot be verified from the supplied data | Revenue quality is harder to confirm without operating income, but subscription visibility still supports durable economics |
| Net Income | $2342M, 080% year-over-year, Q1 2026 | Previous comparable value was not supplied | Verified net income improved; no operating, interest, tax, or unusual-item detail was supplied | Higher bottom-line profit confirms that revenue growth is flowing through to earnings |
| Diluted EPS | $182, 520% year-over-year, Q1 2026 | Previous comparable diluted EPS was not supplied | Per-share growth improved, but the supplied data do not separate share count effects from profit growth | Shareholders appear to have received stronger per-share results, not just higher company-wide revenue |
How durable is Given Company’s revenue?
Durability looks strong because subscription-based revenue supports visibility, and 100 of the top 100 US P&C providers are customers. The main limitation is concentration in the P&C insurance ecosystem.
- Demand Quality: Revenue appears recurring and visible because it is subscription-based, which usually reduces short-term volatility.
- Pricing and Volume: The supplied data show growth and organic constant currency growth, but they do not split price, volume, or mix.
- Diversification: Customer stickiness is high with 100 of the top 100 US P&C providers, but that also signals concentration in one industry.
That mix usually supports profit stability and stronger cash conversion.
Profitability and cash
Does Verisk convert earnings into reliable free cash flow?
Yes, Verisk Analytics, Inc. showed stronger cash quality in FY2025 because free cash flow was $1.19B and adjusted EBITDA margin expanded by 150 basis points over 2024. Operating cash flow was not supplied, so free cash flow is the clearest confirmation here.
Gross margin and operating margin were not provided, so the cleanest read is on adjusted EBITDA, net income, and free cash flow. FY2025 net income was $9,083M, but that figure was weighed by non-recurring gains in the prior year and debt retirement costs. Q1 2026 adjusted EBITDA was $4380M and free cash flow remained the best quality signal.
| Measure | Latest Period | Previous Period | Verified Driver | Investor Meaning |
|---|---|---|---|---|
| Gross Margin | Unavailable | Unavailable | No verified gross margin data supplied. | Product economics cannot be assessed from the provided data. |
| Operating Margin | Unavailable | Unavailable | No verified operating margin data supplied. | Operating efficiency cannot be confirmed from the provided data. |
| Net Margin | Q1 2026 net income: $2342M | FY2025 net income: $9083M | Prior-year non-recurring gains and debt retirement costs affected FY2025. | Final profitability is strong, but one-time items limit comparability. |
| Operating Cash Flow | Unavailable | Unavailable | No verified operating cash flow data supplied. | Cash conversion from earnings cannot be fully tested. |
| Free Cash Flow | FY2025: $1.19B | 2024: unavailable | Verified free cash flow improvement, with no supplied capex detail. | Remaining cash generation supports reinvestment and financial flexibility. |
What most affects Verisk Analytics, Inc. cash conversion?
The strongest verified driver is free cash flow generation, helped by higher adjusted EBITDA margin and fewer distortions from prior-year non-recurring gains. Interest expense also matters, with Q1 2026 interest expense at $4320M.
- Main Driver: Margin expansion looks structural so far, but the data still points to earnings quality more than working-capital detail.
- Evidence Gap: The supplied data does not show operating cash flow, capex, or working-capital movements.
- Metric to Monitor: Watch free cash flow and adjusted EBITDA margin next.
Balance Sheet Risk
Is Verisk Analytics, Inc. liquid enough to support its debt and investment needs?
Mixed. Verisk Analytics, Inc. has enough liquidity to cover near-term needs, helped by $218B in cash and a $130B revolving credit facility, but leverage and refinancing costs remain the main concern.
Cash by itself does not settle the question. Investors also need to look at working capital, asset quality, debt service, solvency, liquidity, and refinancing together. For Verisk Analytics, Inc., the key issue is whether available cash and credit lines can offset $475B of total debt without squeezing investment or raising financing stress.
| Area | Latest Evidence | Assessment | Investor Meaning |
|---|---|---|---|
| Cash and Working Capital | $218B cash and cash equivalents at December 31, 2025; $130B five-year senior unsecured revolving credit facility and $7500M three-year term loan facility added August 15, 2025. | Mixed | Near-term obligations look manageable, but the margin of safety is not large enough to ignore funding pressure. |
| Total and Net Debt | $475B total debt at December 31, 2025; net debt is about $257B. | Mixed | Leverage is meaningful, so debt reduces flexibility even with a sizable cash balance. |
| Debt Service and Refinancing | Debt rose after new senior notes were issued and $5000M in 4.00% notes due June 2025 were retired; higher interest rates lifted debt service costs, partly offset by interest income on cash balances. | Mixed | Interest burden and refinancing terms matter more now, especially if rates stay high. |
| Asset Quality | No material impairment or inventory pressure was supplied; the balance sheet appears driven more by cash, receivables, and debt than by heavy physical assets. | Mixed | Asset quality does not look like the main risk, but investors should watch for changes in receivables or intangibles. |
| Liabilities and Equity | Latest verified liabilities and shareholders' equity were not supplied in the prompt. | Mixed | The capital base cannot be fully judged here, so debt coverage should be tracked through liquidity and cash generation. |
For related investor context, see Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who's Buying and Why?. If you’re using this topic for a paper or case study, a structured SWOT Analysis, PESTLE Analysis, or Business Model Canvas can help organize the evidence.
Which balance-sheet risk matters most for Verisk Analytics, Inc.?
Refinancing and interest-cost pressure rank first. The biggest issue is whether $475B of debt can be carried and refinanced without eroding cash flow or flexibility.
- Current Exposure: $218B cash versus $475B total debt, with a $130B revolver and $7500M term loan facility.
- Protection: Interest income on $218B cash balances and access to new financing provide a buffer.
- Warning Signal: Watch refinancing costs and whether higher rates keep debt service above cash generation.
Cash Return Discipline
Are Verisk Analytics, Inc. (VRSK) shareholder returns funded by internal cash?
Yes, capital efficiency looks Strong, and internal cash appears sufficient for reinvestment needs. FY2025 Free Cash Flow of $119B provides the funding base for dividends, buybacks, and ongoing investment, including the company’s capital return plan.
Return measures should still be read alongside leverage, asset intensity, capital expenditure, working capital, and any external funding need. Verisk Analytics, Inc. (VRSK) is also a useful case for a capital allocation review, especially alongside Verisk Analytics, Inc. (VRSK): History, Ownership, Mission, How It Works & Makes Money.
| Capital Measure | Latest Evidence | Quality Test | Investor Meaning |
|---|---|---|---|
| ROIC | Unavailable in the supplied data. | Cannot be assessed without a verified ROIC figure. | Use operating margins and capital intensity together, but do not infer ROIC from incomplete fields. |
| ROE and ROA | Unavailable in the supplied data. | Cannot be tested without verified ROE and ROA values. | Do not treat leverage as proof of strength; these ratios need direct data to judge shareholder and asset returns. |
| Maintenance and Growth Investment | $150B Accelerated Share Repurchase program in Q1 2026, board authorization raised to $250B, quarterly cash dividend of $0.50 per share, an 11.0% increase from $0.45; reinvestment includes Core Lines Reimagine, cloud modernization, SuranceBay acquired for $1630M in cash, and Simplitium for an undisclosed sum. | Growth and capital return are both clearly funded, but maintenance spending is not separately disclosed. | Verisk appears able to fund expansion while still returning cash, which supports a shareholder-friendly capital policy. |
| Internal Funding Capacity | FY2025 Free Cash Flow: $119B. | Internally funded overall, with cash generation supporting dividends, buybacks, and reinvestment. | Internal cash appears to cover planned capital returns and strategic investment without obvious dependence on outside capital. |
Are Verisk Analytics, Inc. (VRSK) returns on capital sustainable?
Probably yes, because strong free cash flow and recurring capital returns support durability. The main weakness would be a heavier reinvestment burden from cloud modernization, Core Lines Reimagine, or acquisitions that outpace cash generation.
- Operating Source: Strong free cash flow and a growing dividend support return durability.
- Funding Requirement: The largest verified capital need is the $150B share repurchase program, plus reinvestment in modernization and acquisitions.
- Durability Test: Returns would weaken if free cash flow falls below buybacks, dividends, and reinvestment needs, or if external funding becomes necessary.
Financial Resilience
What could weaken Verisk Analytics, Inc. financial health and which warning signs matter most?
Resilience is Strong. The main buffer is recurring demand for catastrophe modeling and insurance workflow data. The most important verified warning sign is slower organic revenue growth if AI-driven commoditization or in-house analytics starts to pressure pricing and retention.
Verisk Analytics, Inc. has a useful mix of recurring analytics demand, proprietary data, and workflow integration, which helps protect liquidity and debt service even if conditions soften. It can still be pressured if revenue growth slows, capex or product investment rises, or refinancing gets more expensive in a higher-rate market.
| Pressure | Financial Effect | Existing Protection | Warning Signal |
|---|---|---|---|
| Revenue or Margin Pressure | AI commoditization or client in-house analytics could reduce pricing power, retention, operating leverage, earnings, cash flow, and debt capacity. | Proprietary data, integrated workflows, and generative AI integrations such as Claude AI model use in insurance workflows can support stickiness. | Slower organic revenue growth, weaker margins, or softer cash flow would confirm deterioration. |
| Working-Capital or Investment Pressure | More spending on product development, analytics, or expansion could absorb cash and reduce free cash flow. | Recurring cash generation and internal funding capacity help limit strain. | Rising operating cash outflow, heavier investment, or weaker conversion of earnings into cash would be a concern. |
| Interest or Refinancing Pressure | A high interest rate environment and Total Debt of $475B could lift interest expense, refinancing cost, and reduce financing flexibility. | $218B cash balances and a $130B revolving credit facility provide liquidity support. | Higher interest expense, tighter maturity coverage, or lower liquidity would show rising pressure. |
What financial warning signs should investors monitor at Verisk Analytics, Inc.?
The strongest signals are organic revenue growth, interest expense, and operating cash flow. Confirmed deterioration would show up first in slower growth; higher borrowing costs are more of a future risk unless liquidity or debt coverage starts to weaken.
Organic growth loses momentum
If organic revenue growth slows, it may mean pricing power or retention is slipping as clients use in-house tools or AI more heavily. The next metric to watch is whether data and workflow revenue still expands steadily.
Debt service becomes more expensive
A high-rate backdrop can raise interest expense and refinancing costs. Verisk Analytics, Inc. has cash balances and revolving credit support, but investors should monitor interest expense and liquidity if borrowing costs keep rising.
Legal uncertainty around the AccuLynx dispute
The ExactLogix, Inc. claim tied to the terminated AccuLynx acquisition could create uncertainty and management distraction. The key metric is any change in legal reserves, cash use, or disclosed exposure.
Financial Scorecard
What does Verisk Analytics, Inc. financial health mean for investors?
Verisk Analytics, Inc. scores Strong overall. The strongest factor is cash generation, while the weakest is leverage. The most important condition for the investment case is whether recurring subscription revenue keeps converting into free cash flow fast enough to offset debt pressure.
| Financial Factor | Rating | Evidence and Investor Meaning |
|---|---|---|
| Revenue and Earnings Quality | Strong | Recurring, subscription-based revenue supported 8200% of the mix; Q1 2026 Total Revenue of $7826M and Q1 2026 Organic Constant Currency Revenue Growth of 470% point to durable growth conversion. |
| Profitability and Cash | Strong | FY2025 Adjusted EBITDA Margin of 5620% and FY2025 Free Cash Flow of $119B show strong margin quality and cash conversion, which supports reinvestment and shareholder returns. |
| Balance Sheet and Liquidity | Mixed | $218B cash and $130B revolving credit capacity help, but $475B Total Debt remains material and makes refinancing conditions important. |
| Capital Efficiency | Strong | Shareholder returns are tied to at least 7500% of Free Cash Flow, so capital use looks efficient as long as cash generation stays steady. |
| Financial Resilience | Mixed | Recurring workflows support resilience, but AI commoditization and debt service are watch items, so flexibility is good but not unlimited. |
- What Supports the Thesis: Strong subscription revenue, high EBITDA margin, and $119B in Free Cash Flow; Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who's Buying and Why? adds investor context.
- What Challenges the Thesis: $475B of debt is the main weakness, especially if rates stay higher and cash generation slows.
- What to Monitor: Organic Constant Currency Revenue Growth, Free Cash Flow, Total Debt versus Cash and Cash Equivalents.
Forecasts and scenarios should test whether Verisk Analytics, Inc. can keep converting recurring revenue into cash fast enough to support valuation while carrying its debt load.
FAQ
What Do Investors Ask About 's Financial Health?
Investors most often ask about the company's revenue quality, profitability, cash generation, debt, liquidity, capital efficiency, and ability to withstand financial pressure.
How much cash does Verisk have versus debt?
Verisk reported Cash and Cash Equivalents of $218B and Total Debt of $475B at December 31, 2025 That leaves meaningful net debt, so liquidity looks adequate but not cash-free
Does Verisk free cash flow cover shareholder returns?
FY2025 Free Cash Flow was $119B, and management set a target to return at least 7500% of Free Cash Flow through dividends and buybacks Investors should compare future returns with free cash flow, not net income alone
What risks could pressure Verisk subscription margins?
AI-driven commoditization of data assets and clients developing in-house analytics could pressure pricing or renewal economics Verisk’s mitigation is its proprietary data, insurance workflow integration, and continued cloud and AI product modernization
How resilient is Verisk in high rates?
Verisk has liquidity from $218B cash balances and a $130B revolving credit facility, but Total Debt of $475B makes interest expense important Higher rates can pressure free cash flow after debt service
Why does recurring revenue matter for Verisk?
Verisk’s 8200% subscription-based revenue improves visibility because customers use its data and analytics inside insurance workflows Recurring revenue does not remove risk, but it helps stabilize growth and cash flow compared with transaction-only revenue