Verisk grew revenue 5.8% on an organic constant-currency basis, faster than Q1, but AccuLynx legal fees, higher interest and a higher tax rate cut net income 9.8% to $228.6M; adjusted EPS rose 5.3% only on buybacks.
Revenue
$806M
+4.3% YoY
Net income
$229M
-9.8% YoY
Diluted EPS
$1.75
-3.3% YoY
Operating margin
45.1%
How VRSK compares with Industrials peers
Figure
VRSK
Peer median
Rank
Revenue growth (YoY)
+4.3%
+8.5%
64th of 79
Operating margin
45.1%
17.9%
1st of 78
EPS growth (YoY)
-3.3%
+13.4%
64th of 77
Rank 1 = fastest revenue growth, highest operating margin, fastest EPS growth. Peers are the other Industrials companies with a 2026 report on this site, each at its latest period we've analyzed; fiscal calendars differ, so periods are not always the same months.
Verisk sells data, software and risk models to insurance companies: the standard policy forms and loss-cost data insurers use to price policies, catastrophe models, and claims tools that estimate repair costs or flag fraud. In the second quarter of 2026 the business itself did better than in the first quarter. Revenue rose 4.3% to $806.3 million, and 5.8% on an organic constant-currency basis, up from 4.7% in Q1. Reported profit fell anyway: net income dropped 9.8% to $228.6 million and diluted EPS fell 3.3% to $1.75. Three things below the revenue line caused the drop. Verisk paid legal fees in its dispute with AccuLynx, the roofing-software company it agreed to buy in 2025 and then walked away from. Its interest bill rose after it borrowed to buy back stock. And its tax rate went up.
At a glance
5.8% organic constant-currency revenue growth, up from 4.7% in Q1. This measure strips out businesses bought or sold and currency swings. The CFO put underlying subscription growth at 8.0%, so the recurring core is growing faster than the headline.
$18.7 million of acquisition-related fees (plus a $2.0 million litigation reserve). The 10-Q ties the rise in SG&A mainly to AccuLynx costs. Without these items, operating margin would have been about 47.7% rather than the reported 45.1%.
Diluted adjusted EPS up 5.3% to $1.98, while adjusted net income fell 1.9%. All of the per-share growth came from a 6.7% drop in the diluted share count after $1.9 billion of buybacks in the first half.
Results table
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$806.3M
$772.6M
+4.3%
Organic constant-currency revenue growth
5.8%
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Operating margin is the share of revenue left after running the business, before interest and tax. Adjusted EBITDA is Verisk's preferred profit measure. It also excludes depreciation, amortization and the items listed below.
Where the growth came from
Verisk reports one segment, Insurance, which it splits into two revenue lines:
Underwriting ($569.1M, +3.5% reported, +5.6% OCC). These are the tools insurers use to decide whether to take on a risk and at what price. The reported figure is held down by the sale of Verisk Marketing Solutions (VMS). Together with the SuranceBay acquisition, that deal cut revenue by a net $10.8 million. Excluding both, underwriting grew 5.7%. The 10-Q attributes the growth to "an annual increase in prices derived from continued enhancements to the models and content" in its forms, rules and loss-cost services, and to selling more catastrophe and risk solutions to new and existing customers.
Claims ($237.2M, +6.3% reported, +6.1% OCC). These are tools insurers use after a loss. Growth came "primarily due to anti-fraud analytics and property and restoration solutions."
By geography, US revenue grew 3.8% to $651.3 million, the UK 5.1% to $66.3 million, and other countries 8.2% to $88.7 million. Currency barely mattered this quarter. Growth excluding acquisitions and disposals was 5.9%, against 5.8% on the organic constant-currency measure. The whole gap between the 4.3% reported figure and the 5.8% organic figure comes from the VMS sale, not from any weakness in the business.
Costs grew more slowly than revenue once the one-off items are removed. Cost of revenues rose 4.2% excluding M&A, driven by salaries, data and IT spending. SG&A excluding M&A and AccuLynx costs rose 5.7%. That is why adjusted EBITDA grew faster than revenue on an organic constant-currency basis (7.4% vs 5.8%).
Why GAAP profit fell
Pre-tax income dropped from $327.9 million to $303.4 million, even though operating income rose $9.4 million. The gap came from four items:
AccuLynx legal costs. Verisk agreed to buy AccuLynx in July 2025 and terminated the agreement on December 26, 2025. AccuLynx says the termination was a breach. Both sides sued in the Delaware Court of Chancery, and the trial ran June 23–26, 2026. SG&A rose 20.8% to $128.6 million, and the 10-Q says acquisition, disposition and AccuLynx costs account for $16.3 million of that $22.1 million increase. Verisk states it "is not possible to reasonably estimate the possible loss" until the court rules. An August 18 8-K says Verisk has filed a notice of appeal to the Delaware Supreme Court, so the case is not over.
Interest expense, net, up 48.7% to $52.8 million. The causes were new 2031 and 2036 senior notes issued in February 2026, interest on a new term loan, and lower interest income now that the cash pile has been spent.
A $7.5 million investment loss versus a $9.1 million gain a year ago, a $16.6 million swing. This quarter's loss was mainly $6.5 million from equity-method investments (stakes in companies Verisk doesn't control). Last year's gain was mainly currency effects.
A higher tax rate: 24.6% vs 22.7%. The 10-Q attributes this to "lower tax benefits from equity compensation" (smaller tax deductions when employee stock awards vest or are exercised).
What the headline numbers hide
The adjusted EPS growth is all buybacks. Adjusted net income, which adds back intangible amortization, the AccuLynx fees, the litigation reserve and the equity-method loss (all after tax), fell from $264.4 million to $259.3 million, down 1.9%. Diluted shares fell from 140.3 million to 130.9 million. So adjusted EPS rose 5.3% only because the profit is split among fewer shares. Higher interest and the higher tax rate more than cancelled the 7.4% organic constant-currency EBITDA growth.
The buybacks were paid for with debt. In the first half Verisk funded $1.9 billion of repurchases, receiving about 8.5 million shares at an average of $186.32. Most of that was a $1.5 billion accelerated share repurchase in February, paid for partly with its revolving credit line and a term loan. Cash fell from $2,178 million at year-end to $551 million. The year-end cash had largely come from the AccuLynx bond issue, and $1.5 billion of those bonds were redeemed on January 6 at 101% of face value. Total debt is $4,474 million. Verisk now shows a stockholders' deficit of $1,189 million, meaning liabilities exceed book assets. That is common for heavy repurchasers and not a solvency signal on its own, but it leaves less room for error.
Cash conversion is strong, but Q2 is flattered by timing. Operating cash flow was $366.0 million against net income of $228.6 million, and free cash flow rose 57.9%. Management credits higher operating profit and "the timing of certain vendor and tax payments". Receivables also fell $151 million in the quarter. The first-half numbers are the better guide: operating cash flow of $756.4 million (1.6x net income) and free cash flow of $624.3 million, up 7.7%. Customers pay subscriptions upfront, so deferred revenue normally builds in the first half and cash arrives before revenue is booked.
Receivables are not building up. Accounts receivable fell from $422.2 million to $400.0 million in the first half while revenue grew. There is no sign of sales being pulled forward.
Guidance is unchanged. The full-year 2026 outlook is the same as in April: revenue of $3,190–3,240 million, adjusted EBITDA of $1,790–1,830 million (56.0–56.5% margin) and diluted adjusted EPS of $7.45–7.75. First-half adjusted EPS was $3.80, so the range implies $3.65–3.95 for the second half. Interest expense guidance of $190–200 million means the higher debt cost stays for the rest of the year.
Takeaway: Verisk's core business sped up in Q2, with organic constant-currency growth of 5.8% (from 4.7% in Q1) and subscriptions growing 8%. None of that reached GAAP earnings. Legal costs from the abandoned AccuLynx deal, a larger interest bill from debt-funded buybacks, and a higher tax rate cut net income by 9.8%. Even adjusted net income fell. For now, per-share growth depends on shrinking the share count, and the AccuLynx court decision is a liability with no estimate attached.
Outlook
Management reaffirmed all 2026 guidance and pointed to "the sequential acceleration in growth we previously articulated". In Q1, the CFO had said growth would return "to levels consistent with our long-term targets" as the year went on. Q2 is the first evidence of that: 4.7% organic constant-currency growth in Q1, then 5.8% in Q2.
What to watch next:
The AccuLynx appeal and any ruling on damages. The 10-Q gives no estimate of possible loss, and legal fees will keep landing in GAAP results until the case ends. Management's adjusted figures exclude those fees, so GAAP and adjusted EPS will likely stay far apart.
Whether organic growth keeps rising toward the 6%+ range. The 8.0% subscription growth rate is above total growth, which suggests transactional revenue (pay-per-use products) is the drag. That line tends to move with insurers' claims and underwriting activity.
Capital returns versus balance-sheet capacity. $800 million of buyback authorization remains after the $1.9 billion first-half program. With cash down to $551 million and interest expense guided at $190–200 million for the year, further large repurchases would likely need more borrowing. Our view: the underlying business supports the unchanged guidance, and the growth trend is heading in the right direction. But over the next few quarters, earnings per share depend more on the court and the balance sheet than on operations.
Source: Verisk Analytics Form 10-Q for the quarter ended June 30, 2026 (filed July 29, 2026) and the Q2 2026 earnings release (8-K Exhibit 99.1). The subscription growth figure is from the CFO's statement in the release. The 10-Q does not break out subscription revenue as a line item.