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November 15, 2025 ā¢ 4 min read
Verisk Analytics (VRSK), a key player in providing data analytics and risk assessment services to the global insurance industry, recently released its financial results for the third quarter of 2025. To understand the company's current standing and future direction, let's dive into the key details from its latest quarterly report filed with the SEC.
Verisk posted a solid quarter, with total revenues climbing 5.9% to $768.3 million, up from $725.3 million in the same period last year. This growth was driven by both of its core insurance-focused service lines:
The company noted this growth was primarily organic, stemming from price increases tied to enhanced solutions and expanded sales to both new and existing customers.
To get a clearer picture of how Verisk generates revenue and manages its expenses, the following flow diagram visualizes the company's quarterly income statement.
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While revenue growth is crucial, profitability tells a more complete story. Here, Verisk demonstrated impressive operational efficiency. The company's operating income jumped 11.0% to $345.9 million.
A useful metric for assessing a company's core operational profitability, excluding the effects of financing and accounting decisions, is EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Verisk's EBITDA for the quarter rose 8.3% to $426.6 million. More importantly, its EBITDA margin expanded to 55.5%, up from 54.3% in the third quarter of 2024, indicating that the company is successfully growing its top line while effectively managing costs.
However, net income only grew by a modest 2.5% to $225.5 million. This was mainly due to a 31.5% increase in interest expense, a direct result of the company taking on new debt to fuel its ambitious acquisition strategy.
Perhaps the most significant development is Verisk's aggressive M&A activity. The company is in the process of acquiring AccuLynx, a leading software platform for residential roofing contractors, for a hefty $2.35 billion in cash. This move aims to deepen Verisk's integration into the insurance claims and restoration ecosystem.
To finance this and other initiatives, Verisk has taken on substantial new debt. In August 2025 alone, it issued $1.5 billion in new senior notes. This new debt comes with an interesting condition: if the AccuLynx acquisition is not completed by early January 2026, Verisk must redeem the notes at a premium (101% of the principal amount), signaling a strong commitment to closing the deal.
Alongside acquisitions, Verisk continues to return capital to its shareholders. The company repurchased $100.1 million of its common stock during the quarter and still has approximately $1.2 billion remaining under its share repurchase authorization.
In today's data-driven world, legal and regulatory risks are ever-present. Verisk is currently facing several class-action lawsuits related to telematics data. The plaintiffs allege that Verisk, in partnership with automakers, collected and shared driver behavior data with insurance companies without the drivers' consent. These cases have been consolidated into a single multi-district litigation and are still in their early stages. While Verisk believes it has strong defenses, this litigation highlights the critical importance of data privacy in its business model.
Verisk's third-quarter results paint a picture of a healthy, growing company with strong operational discipline. The expanding EBITDA margin is a testament to the strength of its core business. However, the company is simultaneously making a significant bet on future growth through the multi-billion-dollar acquisition of AccuLynx, a move that increases both its capabilities and its financial leverage. Investors will be watching closely to see how Verisk integrates this major acquisition while navigating the increasingly complex landscape of data privacy litigation.
Last updated: November 15, 2025