Fewer shares drive most of Verisk's per-share profit gain
Sales growth is picking up at the insurance-data company. Cash generation has weakened, even as buybacks lift earnings per share.
Verisk's adjusted profit rose 5.4% in the third quarter. Adjusted earnings per share climbed 14%. The insurance-data company's heavy share repurchases help explain why those growth rates are so far apart.
Research by Ticker Byline shows that roughly three-fifths of the per-share increase came from having fewer shares, rather than earning more in total.
Spread over last year's average share count, this quarter's adjusted profit would have produced about $1.81 per share. Verisk reported $1.96, against $1.72 a year earlier. Its adjusted figures exclude costs such as intangible-asset amortization and acquisition fees, along with specified investment gains and losses.
The average diluted share count fell 7.7% to 129.2 million. Verisk spent $1.93 billion repurchasing shares in the first nine months of 2026, reducing the pool of shares that divide up its profit.
The business is growing faster, too
Revenue increased 5.3% to $809 million. Growth excluding currency movements and recent acquisitions and disposals accelerated to 7.4%, from 5.8% in the second quarter.
Subscription revenue grew 8.2% on that basis, helped by pricing and customers buying more services. Transactional revenue returned to growth, but management said some extra service work and usage above contracted levels might not repeat in the fourth quarter.
Reported net income fell to $219.2 million, from $225.5 million. Investment losses and higher net interest expense outweighed the increase in operating profit.
Cash generation takes a different turn
Free cash flow, operating cash flow less capital spending, fell 40.5% to $200 million. Higher cash interest and tax payments, along with the timing of customer collections, weighed on the quarter.
There is a customer issue behind some of the collection pressure. Management said quieter weather had reduced repair work for contractors and adjusters, putting some clients under strain and contributing to a small number of bankruptcies.
The third quarter also reversed the earlier cash-flow trend. At midyear, free cash flow was ahead of the previous year. After nine months, it was $824.3 million, down 10%.
Verisk kept its 2026 guidance unchanged. Management expects results toward the middle of its range, with quieter weather and longer sales cycles still affecting the outlook.
Our Verisk company profile follows its quarterly results, share repurchases, financing and the still-pending AccuLynx acquisition.