AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Specialized data and licensed models/content have demonstrated commercial value through broad insurer adoption and annual price increases. Data ownership and relative competitor quality remain incomplete.
durability · 2/4 · Client breadth persists from 2023 to 2025 and pricing increases continue into 2026. Short supplier agreements and generally non-owned repository information constrain protection over longer periods.
customer dependency · 2/4 · Workflow integration, preparation periods and one-to-five-year agreements suggest meaningful reliance. They do not quantify migration expense or prove customers cannot substitute individual solutions.
erosion resilience · 2/4 · First-half 2026 growth excluding acquisitions and disposition supports current resilience. Supplier competition, inexpensive information and the shareholder proposal's account of transactional weakness temper that evidence without establishing company-wide erosion.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 3/4 · Annual price increases contributed to 2024 underwriting growth and continued in 2026 underwriting and anti-fraud analytics. Price effects are combined with enhancements and sales expansion, so their isolated magnitude is unavailable.
retention · 3/4 · Repeat demand is assessed indirectly from top-100 insurer coverage in 2023 and 2025, existing-customer expansion, multi-year agreements and prepayment for most services. These support durable demand but are not a measured renewal rate.
margin resilience · 2/4 · First-half 2026 operating income rose from $684.4 million to $715.9 million while revenue rose from $1,525.6 million to $1,588.9 million, implying a broadly stable operating margin. Second-quarter operating margin narrowed as operating expenses grew faster than revenue. This is mixed resilience, not standalone proof of a moat.
contractual freedom · — · Realized increases show pricing outcomes, but one-to-five-year agreements do not disclose unilateral repricing rights, caps, escalators or termination provisions sufficient to assess contractual freedom.
Predictability90
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 10.35
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.22
Financial strength54
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 57.51
- netDebtEbitGrade
- 61.92
- interestCoverageGrade
- 62.40
- currentRatioGrade
- 36.18
- Debt / FCF (x)
- 3.97
- Net debt / operating income (x)
- 1.90
- Interest coverage (x)
- 7.86
- Current ratio (x)
- 1.20
Capital allocation100
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 39.22
- 3-year average dilution (%)
- -3.98
- 3-year average SBC / revenue (%)
- 1.81
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation and disclosed reinvestment support productive allocation capacity. Against this, first-half 2026 repurchases reached $1,827.0 million with borrowing among funding sources, and terminated acquisition financing produced a $33.9 million loss. Repurchase value creation and acquisition returns are not established.
incentive alignment · 3/4 · Actual January 2025 grants included relative-TSR and ROIC PSUs, options and restricted stock, with three-year PSU measurement periods and adopted equity holding requirements. Committee adjustment discretion and missing final award outcomes limit the assessment; grants are not treated as vested payouts.
execution · 2/4 · Execution is assessed from operating outcomes: 2025 revenue increased 6.6%, and first-half 2026 revenue excluding acquisitions and disposition increased 5.7%. Operating income also grew, but net income fell and the terminated acquisition generated financing losses and unresolved litigation. The record is mixed.
governance · 3/4 · Disclosed practices include an independent chair, independent committees, annual elections, proxy access and compensation safeguards. Simple-majority voting and special-meeting rights were implemented, and the auditor found effective financial-reporting controls. The 25% special-meeting threshold and officer liability limitation temper the shareholder-rights improvements.
Evidence
We use our proprietary and contributory data assets to develop predictive analytics and transformative models for our clients; • Deep Insurance Industry Expertise and Focus – We have specialized and in-depth knowledge in insurance and risk management that drives our engagement with our clients; • Long-standing Industry Relationships – Our early beginnings as an insurance rating bureau have established us as a trusted partner for the industry, as well as a source of insights for our clients; and • Scale to Drive Broad Distribution of Innovation – Our scale enables us to innovate on behalf of the insurance industry and deliver solutions that strive to solve our clients’ biggest challenges.
Business: proprietary and contributory data, expertise and industry relationships · Filed 18/02/2026
Using advanced technologies to collect and analyze billions of records, we draw on unique data assets, insurance industry knowledge, and technological expertise to provide valuable solutions that are integrated into client workflows.
Business: records and integration into client workflows · Filed 18/02/2026
In 2025, our clients included all of the top 100 property and casualty ("P&C") insurance providers in the U.S.
Business: 2025 top-100 U.S. P&C insurer client coverage · Filed 18/02/2026
In 2023, our clients included all of the top 100 property and casualty ("P&C") insurance providers in the U.S.
Business: 2023 top-100 U.S. P&C insurer client coverage · Filed 21/02/2024
To maintain control of our intellectual property, we enter into contractual agreements with our customers, granting each customer limited licenses to our solutions and services, including our software and databases.
Business: limited customer licenses for software and databases · Filed 18/02/2026
Our underwriting revenue increased $131.9 million or 7.0%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within extreme event solutions, underwriting data and analytic solutions, and specialty business solutions.
MD&A: 2024 underwriting growth and annual price increases · Filed 18/02/2026
Our underwriting revenue increased $61.4 million or 5.9%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions.
MD&A: first-half 2026 underwriting growth and annual price increases · Filed 29/07/2026
Our claims revenue increased $9.5 million or 4.3%, primarily due to annual price increases in anti-fraud analytics and increased sales in casualty solutions.
MD&A: first-quarter 2026 claims growth and anti-fraud price increases · Filed 29/04/2026
In general, we do not own the information in these data repositories, and the participating organizations could discontinue or materially limit contributing information to the data repositories.
Risk factors: repository information generally not owned and contributions may cease · Filed 26/02/2025
Agreements with our data suppliers are short-term agreements.
Risk factors: short-term data supplier agreements · Filed 18/02/2026
Some suppliers are also competitors, which may make us vulnerable to unpredictable price increases and may cause some suppliers not to renew certain agreements.
Risk factors: competing suppliers and renewal or input-price exposure · Filed 18/02/2026
Public sources of free or relatively inexpensive information have become increasingly available and this trend is expected to continue.
Risk factors: increasing availability of inexpensive public information · Filed 18/02/2026
VRSK’s Personal Lines Auto business also experienced increased competitive pressures, contributing to a decline in transactional revenue.
Item 4 shareholder proposal supporting statement: asserted Personal Lines Auto competitive pressure · Filed 03/04/2026
We recognize revenues through recurring and non-recurring long-term agreements (generally one to five years) for hosted subscriptions, advisory/consulting services, and for transactional solutions.
Revenue recognition: recurring and non-recurring agreements generally lasting one to five years · Filed 18/02/2026
Our acquisitions (Simplitium and SuranceBay within the underwriting category of the Insurance segment) and disposition (VMS) within the underwriting category of our Insurance segment) resulted in a net decrease in revenue of $21.7 million, while the remaining Insurance revenues increased $85.0 million or 5.7%.
MD&A: first-half 2026 revenue growth excluding acquisitions and disposition · Filed 29/07/2026
Unlike these businesses, our cash position is favorably affected by revenue growth, which results in a source of cash due to our customers prepaying for most of our services.
Liquidity: customers prepay for most services · Filed 29/07/2026
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except for share and per share data) Revenues $ 806.3 $ 772.6 $ 1,588.9 $ 1,525.6 Operating expenses: Cost of revenues (exclusive of items shown separately below) 233.4 229.5 470.0 460.3 Selling, general and administrative 128.6 106.5 238.1 215.4 Depreciation and amortization of fixed assets 66.3 66.0 136.2 133.4 Amortization of intangible assets 14.3 16.3 28.7 32.1 Total operating expenses, net 442.6 418.3 873.0 841.2 Operating income 363.7 354.3 715.9 684.4 Other expense: Investment (loss) gain (7.5 ) 9.1 (8.0 ) 11.7 Interest expense, net (52.8 ) (35.5 ) (96.0 ) (71.8 ) Total other expense, net (60.3 ) (26.4 ) (104.0 ) (60.1 ) Income before income taxes 303.4 327.9 611.9 624.3 Provision for income taxes (74.8 ) (74.6 ) (149.1 ) (138.7 ) Net income $ 228.6 $ 253.3 $ 462.8 $ 485.6 Basic net income per share attributable to Verisk: $ 1.75 $ 1.81 $ 3.48 $ 3.47 Diluted net income per share attributable to Verisk: $ 1.75 $ 1.81 $ 3.48 $ 3.45 Weighted-average shares outstanding: Basic 130,762,236 139,818,324 132,891,314 140,056,221 Diluted 130,850,538 140,339,539 133,036,554 140,639,547 The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited statements of operations: first-half and second-quarter 2026 comparisons · Filed 29/07/2026
We typically face a long selling cycle to secure a new contract and there is generally a long preparation period in order to commence providing the services.
Risk factors: long selling cycle and preparation period · Filed 18/02/2026
Net cash provided by operating activities was $1,144.0 million for the year ended December 31, 2024 compared to $1,060.7 million for the year ended December 31, 2023, an increase of $83.3 million, or 7.9%.
MD&A: 2024 and 2023 operating cash generation · Filed 18/02/2026
Net cash used in investing activities of $358.1 million for the year ended December 31, 2025 was primarily related to capital expenditures of $244.1 million, acquisitions of $184.8 million, investments in non-public companies of $6.5 million, and escrow funding associated with acquisitions of $2.7 million, partially offset by proceeds from sale of our Verisk Marketing Solutions business of $80.0 million.
MD&A: 2025 capital expenditures, acquisitions and disposition proceeds · Filed 18/02/2026
During the six months ended June 30, 2026 and 2025, we repurchased $1,827.0 million (inclusive of $255.1 million in treasury stock not yet settled) and $300.1 million, respectively, of our common stock.
Liquidity: first-half 2026 share repurchases · Filed 29/07/2026
The repurchase of our common stock was funded using cash from operations and proceeds from our Syndicated Revolving Credit Facility and Term Loan Facility.
Liquidity: operating cash and borrowing used for repurchases · Filed 29/07/2026
As a result, we recognized a total loss of $33.9 million related to the redemption of the 4.500% 2030 Senior Notes and 5.125% 2036 Senior Notes consisting of a 1.0% redemption premium of $15.0 million charged to "Net (loss) gain on early extinguishment of debt" and the amortization of deferred issuance costs and original issuance discounts of $18.9 million to "Interest expense, net" within the accompanying consolidated statements of operations for the year ended December 31, 2025.
Debt note: realized loss associated with acquisition-financing redemption · Filed 29/07/2026
Post-trial briefing is ongoing. It is not possible to reasonably estimate the possible loss related to this matter until a final decision is issued by the court.
Commitments and contingencies: acquisition litigation after trial · Filed 29/07/2026
Accordingly, the 2025 LTI award mix for our senior executives, including our NEOs, was: (i) Relative TSR PSUs (40%), (ii) ROIC PSUs (20%), (iii) restricted stock awards (20%), and (iv) stock options (20%).
Executive compensation: actual 2025 long-term incentive mix · Filed 03/04/2026
2025 LTI awards were granted on January 15, 2025.
Executive compensation: January 2025 award grant date · Filed 03/04/2026
Each of the Relative TSR PSUs and ROIC PSUs vests over a three-year performance period, subject to the recipient’s continued service with our Company, with potential payouts ranging from 0% to 200% of target levels.
Executive compensation: three-year PSU performance periods and payout range · Filed 03/04/2026
Our Talent Management and Compensation Committee has adopted strict minimum equity holding requirements applicable to our executive officers, including our NEOs, as a multiple of their annual base salary, to further align their long-term interests with those of our shareholders.
Executive compensation: adopted minimum equity holding requirements · Filed 03/04/2026
As may be applicable, in calculating revenue and adjusted EBITDA, the Talent Management and Compensation Committee had discretion to eliminate the financial impact of certain items, including, among others, recent acquisitions and dispositions (including businesses held for sale), the cost of earn-out payments related to acquisitions, the effect of new accounting pronouncements, certain nonrecurring expenses and the impact of changes in foreign currency exchange rates.
Executive compensation: committee discretion over incentive metric adjustments · Filed 03/04/2026
Highlights of our corporate governance practices include the following: Corporate Governance Highlights • Annual election of directors • Proxy access for qualifying shareholders to nominate directors • Majority voting in uncontested director elections • Separate roles of Independent Chair and CEO • 100% independent members on the Audit; Finance and Investment; Governance, Corporate Sustainability and Nominating; Talent Management and Compensation; Risk; and Executive Committees • Board refreshment with nine new directors nominated since 2022 • Mandatory director retirement age of 75 • Annual Say-on-Pay vote • No Poison Pill • Simple majority shareholder voting standards • Shareholder right to call special meetings • Robust stock ownership guidelines for directors and executive officers • Mandatory “clawback” policy for accounting restatements with additional discretionary recoupment for executive misconduct • No hedging or pledging of Company securities permitted • Annual Board and Committee Evaluations • Executive and Independent Director sessions after every Board and Committee Meeting • Periodic reviews of Committee Charters, Corporate Governance Guidelines and Code of Business Conduct and Ethics Actions Taken in 2025 and 2026 to Strengthen Corporate Governance Our Board, in coordination with our Governance, Corporate Sustainability and Nominating Committee, deliberates on and discusses the appropriate governance structure of our Company.
Corporate governance: board independence, elections, shareholder rights and compensation safeguards · Filed 03/04/2026
During 2025 and early 2026, the Governance, Corporate Sustainability and Nominating Committee reviewed and made recommendations to the Board, and the Board approved changes and updates to the following governance practices and policies of the Company: • Upon the Board’s recommendation and shareholder approval, (1) eliminated supermajority voting standards and shifted to simple majority voting standards, (2) limited certain liability of officers as permitted by Delaware law, and (3) enabled shareholders as a group owning 25% of Company stock to call special meetings of shareholders.
Corporate governance: implemented voting changes, special-meeting rights and officer liability limitation · Filed 03/04/2026
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
Independent auditor report: effective internal control over financial reporting · Filed 18/02/2026
Revenues were $3,072.7 million for the year ended December 31, 2025 compared to $2,881.7 million for the year ended December 31, 2024, an increase of $191.0 million or 6.6%.
MD&A: 2025 revenue growth · Filed 18/02/2026
for the lines of P&C services we offer.
Business: qualification of top-100 coverage to offered P&C service lines · Filed 18/02/2026
for the lines of P&C services we offer.
Business: qualification of 2023 top-100 coverage to offered P&C service lines · Filed 21/02/2024
