01—Abstract
Summary
Summary of the 8-K filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Verisk Analytics, Inc. filed this Form 8-K on May 7, 2025 under Item 2.02 (Results of Operations and Financial Condition) to furnish its press release announcing results for the quarter ended March 31, 2025.
First-quarter revenue was $753 milliona, up 7.0% reported and 7.9% on an organic constant currency basis, with Underwriting revenue up 6.8% and Claims revenue up 7.5% (reported). Net income rose 5.9% to $232 million, adjusted EBITDA (non-GAAP) rose 9.5% to $417 million, and diluted GAAP EPS was $1.65, up 8.6%. Diluted adjusted EPS was $1.73, up 6.1%.
Cash generation was strong: net cash provided by operating activities was $444.7 millionb, up 19.5%, and free cash flow was $391.0 million, up 23.3%. Management attributed the free cash flow increase to higher operating profit and a federal tax refund received in the quarter. The company returned over $250 million to shareholders through dividends and repurchases, completed a $200 million accelerated share repurchase in April 2025, and had $1.4 billion remaining under its repurchase authorization as of March 31, 2025.
Total debt rose on a $698.3 millionc net debt issuance during the quarter, and cash and equivalents increased to $1,112.1 million. Management reiterated full-year 2025 guidance, including total revenue of $3.03 to $3.08 billion, adjusted EBITDA of $1.67 to $1.72 billion, and diluted adjusted EPS of $6.80 to $7.10. The Board approved a quarterly dividend of 45 cents per share, payable June 30, 2025.
02—Key points
Key Highlights
- Revenue of $753 million, up 7.0% reported and 7.9% on an organic constant currency basis, led by Underwriting (up 6.8%) and Claims (up 7.5%).
- Net income of $232 million, up 5.9%; diluted GAAP EPS of $1.65, up 8.6%.
- Adjusted EBITDA (non-GAAP) of $417 million, up 9.5%, with adjusted EBITDA margin of 55.3% versus 54.0% a year earlier.
- Diluted adjusted EPS (non-GAAP) of $1.73, up 6.1%.
- Free cash flow of $391.0 million, up 23.3%, aided by a federal tax refund received in the quarter.
- Returned over $250 million to shareholders via dividends and repurchases; completed a $200 million accelerated share repurchase in April 2025 and had $1.4 billion remaining under the authorization.
- Full-year 2025 guidance reiterated: total revenue of $3.03 to $3.08 billion and adjusted EBITDA of $1.67 to $1.72 billion.
03—Questions
Frequently Asked Questions
Did Verisk change its full-year 2025 outlook?
No. Management stated it is reiterating its 2025 financial guidance, which includes total revenue of $3.03 to $3.08 billion, adjusted EBITDA of $1.67 to $1.72 billion, an adjusted EBITDA margin of 55.0% to 55.8%, and diluted adjusted EPS of $6.80 to $7.10.
What drove the growth in first-quarter revenue?
Underwriting revenue rose 6.8% reported (7.2% organic constant currency), primarily due to forms, rules and loss cost services and extreme event solutions, with specialty business and life solutions also contributing. Claims revenue rose 7.5% reported (9.6% organic constant currency), primarily due to property estimating solutions and anti-fraud solutions. The company sold its AER business on December 2, 2024, which is included in revenue from disposition.
How did free cash flow change, and what affected it?
Free cash flow was $391.0 million, up 23.3% from $317.0 million. Net cash from operating activities was $444.7 million, up 19.5%, and capital expenditures were $53.7 million. Management attributed the increase to higher operating profit and a federal tax refund, partially offset by timing of certain cash payments.
What capital return actions did Verisk take?
Verisk paid a 45-cent dividend on March 31, 2025, and its Board approved another 45-cent dividend payable June 30, 2025, to holders of record as of June 13, 2025. It initiated a $200 million accelerated share repurchase in the first quarter, completed in April 2025 with 0.7 million shares purchased at an average price, less a discount, of $288.09. As of March 31, 2025, $1.4 billion remained under the repurchase authorization.
Is the company's reported figure GAAP or non-GAAP?
Revenue and net income are GAAP measures, and diluted GAAP EPS was $1.65. Adjusted EBITDA, diluted adjusted EPS, free cash flow, and organic constant currency growth are non-GAAP measures, and the filing provides reconciliations to the nearest GAAP measures in the press release's non-GAAP section. The filing states that projected adjusted EBITDA and adjusted EPS cannot be reconciled to GAAP without unreasonable effort.
04—Continue