Why Is Verisk (VRSK) Up 2.9% Since Last Earnings Report?

A month has gone by since the last earnings report for Verisk Analytics (VRSK). Shares have added about 2.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Verisk due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Verisk Analytics, Inc. before we dive into how investors and analysts have reacted as of late.

Verisk Q3 Earnings Surpass Estimates

Verisk has reported impressive third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

VRSK’s adjusted earnings were $1.72 per share, surpassing the Zacks Consensus Estimate by 1.8% and increasing 3% from the year-ago quarter. Total revenues of $768.3 million missed the consensus estimate marginally but increased 5.9% on a year-over-year basis.

Quarterly Details of Verisk

Underwriting and Rating revenues witnessed a year-over-year increase of 6.9% on a reported basis and 5.8% at organic constant currency (OCC) to $542 million, surpassing our estimate of $536 million. Claim revenues gained 3.6% on a reported basis and 5% at OCC to $226 million, and beat our estimate of $237.5 million.

Adjusted EBITDA gained 7.2% from the year-ago quarter on a reported basis and 8.8% an OCC basis to $429 million, surpassing our estimate of $426.9 million. The adjusted EBITDA margin was 55.8%, increasing from the year-ago quarter’s 55.2%.

Verisk exited the reported quarter with cash and cash equivalents of $2.1 billion compared with $628.7 million at the end of the second quarter of fiscal 2025. The long-term debt was $3.2 billion, flat with the preceding quarter.

Net cash utilized from operating activities was $404 million. The free cash flow used during the quarter was $336 million. The company repurchased shares worth $100 million in the quarter and returned $62.6 million as dividends to shareholders.

VRSK’s 2025 Guidance

For fiscal 2025, Verisk lowered the revenue view to $3.05-$3.08 billion from the $3.09-$3.12 billion provided in the preceding quarter. The adjusted EBITDA forecast is decreased to $1.69-$1.72 billion from the preceding quarter’s view of $1.70-$1.74. The adjusted EBITDA margin is anticipated to be 55-55.8%. The adjusted earnings per share growth view is kept at $6.80-$7.00.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Verisk has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Verisk has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Verisk is part of the Zacks Business - Information Services industry. Over the past month, TransUnion (TRU), a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended September 2025 more than a month ago.

TransUnion reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.10 for the same period compares with $1.04 a year ago.

For the current quarter, TransUnion is expected to post earnings of $1.02 per share, indicating a change of +5.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

TransUnion has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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