The GAAP earnings decline and flat margins cap upside, but the adjusted EPS beat, strong cash flow, and reaffirmed guidance provide a floor. Watch for the Q3 print to see if the 'sequential acceleration' narrative materializes into higher GAAP profitability. The ongoing litigation costs are a risk to monitor.
Price Chart
Executive Summary
Verisk reported Q2 2026 revenue of $806M (+4.3% YoY) and diluted adjusted EPS of $1.98 (+5.3% YoY), beating consensus estimates of $1.93. However, GAAP net income fell 9.8% to $229M and GAAP EPS declined 3.3% to $1.75, dragged by higher interest expense, a higher tax rate, and legal fees. Full-year guidance was reaffirmed, and the company highlighted 8.0% underlying subscription growth and a strong cash flow rebound (+57.9% FCF). The mixed picture of a headline GAAP earnings decline alongside a non-GAAP beat and reaffirmed guidance keeps the stock in a neutral-to-slightly-positive range for now.
Key Financial Metrics
Key Facts
- Revenue was $806M, up 4.3% YoY (5.8% OCC), vs consensus of $804M.
- Diluted adjusted EPS was $1.98, up 5.3% YoY and beating consensus of $1.93.
- GAAP net income fell 9.8% to $229M; GAAP diluted EPS fell 3.3% to $1.75.
- Full-year 2026 guidance reaffirmed: revenue $3.19B-$3.24B, adjusted EBITDA $1.79B-$1.83B, diluted adjusted EPS $7.45-$7.75.
- Operating cash flow surged 49.7% to $366M; free cash flow rose 57.9% to $298M.
- Underlying subscription revenue grew 8.0% in the quarter.
- Executed a $200M ASR in Q2; $800M remaining under repurchase authorization.
- Adjusted EBITDA margin was 57.5%, roughly flat vs 57.6% a year ago.
Financial Impact
Adjusted EPS beat consensus by ~2.6% ($1.98 vs $1.93). GAAP EPS declined 3.3% YoY. Guidance unchanged.
Risk Factors
- GAAP net income and EPS declined YoY due to higher interest expense, tax rate, and legal fees.
- Adjusted EBITDA margin was essentially flat YoY (57.5% vs 57.6%), indicating limited operating leverage.
- Ongoing litigation costs were cited as a drag on net income.
- High debt levels ($4.5B total debt) and rising interest expense ($52.8M in Q2 vs $35.5M a year ago) pressure GAAP earnings.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-024748 |
| Document: vrsk20260526_8k.htm | 0001437749-26-024748 |
| Document: 0001437749-26-024748-index-headers.html | 0001437749-26-024748 |
| Document: 0001437749-26-024748-index.html | 0001437749-26-024748 |
| Document: 0001437749-26-024748.txt | 0001437749-26-024748 |
| 8-K Data (Synthetic) | 0001437749-26-024748 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 4w ago | Press Release | $194.35 $177.99 | ▼ −8.42% | ▼ −8.50% | $164.87 (−15.17%) |
Sep 1, 2026 4w ago | Press Release | $194.35 $177.99 | ▼ −8.42% | ▼ −8.50% | $164.87 (−15.17%) |
Aug 18, 2026 6w ago | 8-K | $186.45 $187.87 | ▲ +0.76% | ▲ +1.15% | $164.87 (−11.57%) |
Aug 7, 2026 8w ago | Court Ruling | $191.82 $181.67 | ▲ +5.29% | ▲ +5.69% | $164.87 (+14.05%) |
Aug 3, 2026 8w ago | Insider Cluster | $193.11 $181.18 | ▼ −6.18% | ▼ −8.21% | $164.87 (−14.62%) |
Jul 31, 2026 9w ago | Insider Cluster | $194.85 $191.82 | ▼ −1.55% | ▼ −5.07% | $164.87 (−15.39%) |
Jul 29, 2026 9w ago | 8-K | $213.15 $188.75 | ▼ −11.45% | ▼ −16.98% | $164.87 (−22.65%) |
Jul 29, 2026 9w ago | Press Release | $213.15 $188.75 | ▼ −11.45% | ▼ −16.98% | $164.87 (−22.65%) |
Jul 21, 2026 10w ago | Institutional Cluster | $195.25 $206.66 | ▲ +5.84% | ▲ +7.07% | $164.87 (−15.56%) |
Jun 9, 2026 16w ago | 144 | $183.13 $179.61 | ▼ −1.92% | ▼ −5.35% | $164.87 (−9.97%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access