01—Abstract
Summary
Summary of the 10-Q filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Verisk Analytics, Inc. reported first-quarter 2025 revenues of $753.0 milliona, up from $704.0 million in the prior-year quarter, an increase of 7.0%.
Operating income rose to $330.1 millionb from $307.4 million, and net income attributable to Verisk was $232.3 million, compared with $219.6 million a year earlier. Diluted EPS was $1.65 versus $1.52. EBITDA was $415.9 million, a 9.4% increase, and the EBITDA margin was 55.2% compared with 54.0%.
Growth was led by underwriting revenue of $532.0 millionc (up 6.8%) and claims revenue of $221.0 million (up 7.5%). Management attributed the underwriting gains to annual price increases and extreme event solutions, and the claims gains to anti-fraud and property estimating solutions. Cash flow and balance sheet activity were significant in the quarter.
Net cash from operating activities was $444.7 milliond, up from $372.2 million. The company issued $700.0 million of 5.250% senior notes due 2035 and ended the quarter with $1,112.1 million of cash and cash equivalents. Total debt rose to $3,752.5 million from $3,061.1 million.
Shareholders used cash for $200.1 million of share repurchases, including $30.0 million not yet settled, and $63.0 million of dividends. Management stated that cash from operations funded the repurchases. Subsequent to quarter-end, the company repaid $500.0 million of its 4.000% senior notes due 2025 in April 2025 and completed the $20.0 million acquisition of Simplitium Limited.
The filing also discloses several pending lawsuits, including telematics class actions, an indemnification claim, a commercial earn-out dispute, and Daniel's Law litigation. For each, the company states it cannot reasonably estimate the potential liability because the cases are at early stages.
02—Key points
Key Highlights
- Revenue rose 7.0% to $753.0 million, with underwriting up 6.8% to $532.0 million and claims up 7.5% to $221.0 million.
- Operating income increased to $330.1 million from $307.4 million, and net income attributable to Verisk grew to $232.3 million from $219.6 million.
- Diluted EPS was $1.65 compared with $1.52, and EBITDA reached $415.9 million, up 9.4%, with EBITDA margin of 55.2% versus 54.0%.
- Operating cash flow was $444.7 million, up from $372.2 million, and cash and cash equivalents ended the quarter at $1,112.1 million.
- The company issued $700.0 million of 5.250% senior notes due 2035, and total debt rose to $3,752.5 million from $3,061.1 million.
- Shareholders received $63.0 million in dividends paid, and the company repurchased $200.1 million of stock including amounts not yet settled.
- Subsequent events include the April 2025 repayment of $500.0 million of 2025 senior notes and the $20.0 million acquisition of Simplitium Limited.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Verisk Analytics kept $0.31.
- Revenue$753.0M100.0%
- Cost of revenue−$230.8M30.7%
- Gross profit$522.2M69.3%
- Operating costs−$192.1M25.5%
- Operating income$330.1M43.8%
- Interest, other & tax−$97.8M13.0%
- Net income$232.3M30.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 7, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $753.00M$704.00M | +7.0% |
| Cost of Revenue | $230.80M$227.80M | +1.3% |
| Gross Profit | $522.20M$476.20M | +9.7% |
| SG&A Expenses | $108.90M$92.90M | +17.2% |
| Operating Expenses | $422.90M$396.60M | +6.6% |
| Operating Income | $330.10M$307.40M | +7.4% |
| Net Income | $232.30M$219.60M | +5.8% |
| EPS (Basic) | $1.66$1.53 | +8.5% |
| EPS (Diluted) | $1.65$1.52 | +8.6% |
| Shares Outstanding (Basic) | 140.29M143.30M | −2.1% |
| Shares Outstanding (Diluted) | 140.94M143.97M | −2.1% |
05—Questions
Frequently Asked Questions
How did Verisk's revenue and profitability trend in the first quarter of 2025?
Revenues increased 7.0% to $753.0 million from $704.0 million. Operating income rose to $330.1 million from $307.4 million, and net income attributable to Verisk was $232.3 million compared with $219.6 million. Diluted EPS was $1.65, up from $1.52. The filing attributes underwriting growth mainly to annual price increases and expanded extreme event solutions, and claims growth mainly to anti-fraud and property estimating solutions.
Why did interest expense and the effective tax rate change?
Interest expense, net increased 25.6% to $36.3 million, primarily driven by the 2034 and 2035 senior notes, partly offset by higher interest income. The effective tax rate was 21.6% compared with 20.3% in the prior-year quarter, primarily because of a nonrecurring tax benefit recognized in the prior period.
What did Verisk do with its debt and cash during the quarter?
In March 2025 the company issued $700.0 million of 5.250% senior notes due 2035, with net proceeds of $698.3 million. Cash and cash equivalents rose to $1,112.1 million. In April 2025 it repaid the $500.0 million 4.000% senior notes due 2025. The $1.0 billion syndicated revolving credit facility had $995.4 million of available capacity at quarter-end.
How much did Verisk return to shareholders, and what remains under its buyback authorization?
Verisk paid $63.0 million in dividends and recorded $200.1 million of share repurchases, including $30.0 million not yet settled. The Board declared a $0.45 per share cash dividend. As of March 31, 2025, $1,391.5 million remained available under the repurchase authorization, which includes an additional $1.0 billion approved on February 19, 2025.
What legal matters could affect Verisk's future results?
The filing describes telematics class action lawsuits involving General Motors, OnStar, LexisNexis and Verisk, a Nepalese tax indemnification claim tied to a 2016 divestiture, a Delaware commercial lawsuit over earn-out targets, and Daniel's Law litigation in New Jersey. For each matter, the company states it cannot reasonably estimate the potential liability because the cases are at early stages.
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