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VRSK · Verisk Analytics, Inc.

Last updated Nov 05, 2026
Recommendation
BUY
12-Month Target
$245.00
+18.9% return
Reference Price
$206.02
November 05, 2026
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INSTITUTIONAL MEMORANDUM · VRSK NASDAQ 100

Can Data Outrun the Deal Risk?

Subscription acceleration and AI monetization outweigh a forced acquisition overhang.

L2 Capital Institutional Verdict

Verisk Analytics, Inc. (VRSK) is currently rated BUY with a 12-month valuation target of $245.00 (implied return: +18.9%). Based on forensic analysis of SEC filings and audited cash flows, Medium-High conviction reflects Q3 organic constant-currency revenue growth accelerated to 7.4%, led by 8.2% subscription growth; management reaffirmed all 2026....

Executive Thesis

BUY: at 27.1x midpoint 2026 adjusted EPS, Verisk is priced below data-quality peers despite a restored 7.4% OCC growth cadence. Its moat rests on regulatory content, contributory insurance datasets, embedded workflows, and 84% subscription revenue. The forensic offset is real: Q3 free cash flow fell 41%, leverage is 2.5x, and the $2.35 billion AccuLynx transaction is court-compelled but still FTC-dependent. Build a 2%-3% position below $210, add on execution, and cap exposure until financing and antitrust outcomes are visible.

Key Actionable Findings

Click any finding to interrogate with Andy ↗
Q3 organic constant-currency revenue growth accelerated to 7.4%, led by 8.2% subscription growth; management reaffirmed all 2026 guidance but expects results near the midpoint.
Adjusted EBITDA margin expanded 90 basis points to 56.7%, while adjusted EPS rose 14% as operating leverage and a sharply lower share count offset higher interest expense.
Nine-month free cash flow fell 10% to $824 million while share repurchases reached $1.9 billion, making capital returns materially dependent on balance-sheet capacity.
The Delaware Supreme Court affirmed the AccuLynx ruling, forcing continued pursuit of the $2.35 billion transaction subject to FTC clearance and closing conditions.

Frequently Asked Questions: VRSK

What is L2 Capital's investment rating and price target for VRSK?

L2 Capital currently maintains an institutional rating of BUY on Verisk Analytics, Inc. (VRSK) with a 12-month target price of $245.00 (implied return: +18.9%), backed by Medium-High conviction.

What is the core investment thesis for VRSK?

BUY: at 27.1x midpoint 2026 adjusted EPS, Verisk is priced below data-quality peers despite a restored 7.4% OCC growth cadence. Its moat rests on regulatory content, contributory insurance datasets, embedded workflows, and 84% subscription revenue. The forensic offset is real: Q3 free cash flow fell 41%, leverage is 2.5x, and the $2.35 billion AccuLynx transaction is court-compelled but still FTC-dependent. Build a 2%-3% position below $210, add on execution, and cap exposure until financing and antitrust outcomes are visible.

What are VRSK's latest audited financial fundamentals?

According to audited SEC EDGAR filings, Verisk Analytics, Inc. reported total revenue of $3.07B (+6.6% YoY), Gross Margin of N/A, Free Cash Flow of $1.19B, and Net Debt of $2.60B.

What key risks and catalyst factors should investors monitor for VRSK?
  • Q3 organic constant-currency revenue growth accelerated to 7.4%, led by 8.2% subscription growth; management reaffirmed all 2026 guidance but expects results near the midpoint.
  • Adjusted EBITDA margin expanded 90 basis points to 56.7%, while adjusted EPS rose 14% as operating leverage and a sharply lower share count offset higher interest expense.
  • Nine-month free cash flow fell 10% to $824 million while share repurchases reached $1.9 billion, making capital returns materially dependent on balance-sheet capacity.
  • The Delaware Supreme Court affirmed the AccuLynx ruling, forcing continued pursuit of the $2.35 billion transaction subject to FTC clearance and closing conditions.