Verisk Analytics, Inc. (VRSK) 2024 10-K Earnings Analysis
Verisk Analytics, Inc.2024 Earnings Analysis
81/100
Verisk Analytics, Inc. entered FY2024 with a business model defined more by operating discipline than by financial engineering, and the filing for the period ended December 31, 2024 still points in that direction: $2.88B of revenue, $958M of net income, and $920M of free cash flow. ISO Subsidiary, AIR Worldwide, and ISO Advisory Rates remain the clearest way to understand where the economics come from and why margin durability looks different here than it would at a generic peer. The combination of 68.7% gross margin and 43.5% operating margin suggests ISO Subsidiary was still pricing and executing well. What matters most from here is whether the existing economics can hold through the next turn in demand.
Filing analysis
Verisk Analytics, Inc. 2024 10-K Analysis
This page reads Verisk Analytics, Inc.'s 2024 10-K annual report through the EarningsMoat framework: earnings quality, economic moat strength, capital allocation, and key risks. The current overall score is 81/100, or grade B.
VRSK Earnings Quality
The earnings-quality module scores 85/100, with Gross Margin: 68.7%, Operating Margin: 43.5%. The core question is whether reported profit is backed by operating cash flow and recurring business economics. See the earnings quality analysis guide.
VRSK Economic Moat Analysis
The moat-strength module scores 87/100, with ISO Advisory Rates: Industry standard, Catastrophe Modeling: AIR Worldwide. The test is whether the advantage can protect returns after competitors react. Read the economic moat analysis guide.
VRSK Free Cash Flow vs Net Income
CF/Net Income: 1.19x is the fastest read on whether accounting earnings turn into cash. The capital-allocation module scores 78/100. For the diagnostic, start with cash flow vs net income.
VRSK Key Risks from the Annual Report
The risk module scores 73/100, with Insurance-Cycle Exposure: P&C linked, Customer Concentration: Top P&C carriers. The goal is to separate ordinary disclosure from risks that can change margins, cash flow, leverage, or the moat itself.
Is VRSK a High Quality Earnings Stock?
Based on this 2024 filing, VRSK passes the first screen for high-quality earnings: the overall grade is B, and the earnings-quality score is 85/100. This is a research screen, not investment advice.
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Evaluating competitive strength across earnings quality, moat strength, and risk sustainability
Overall Score Trend
Earnings Quality
Gross Margin matters here because gross Margin matters here because gross margin of 68.7% reflects the disclosed insurance data and analytics subscription mix.
A better way to read operating margin is to notice that a better way to read operating margin is to notice that the 43.5% operating margin reflects the disclosed Insurance-segment fixed cost leverage structure.
CF / Net Income is not just a statistic here; it shows that CF / Net Income is not just a statistic here; it shows that OCF of $1.14B is 1.19x net income of $958M — reflecting depreciation and intangible-amortization per the cash-flow reconciliation.
The earnings file is readable because ISO Subsidiary keeps margins and cash pointing in the same direction: 68.7% gross margin, 43.5% operating margin, and 1.19x cash conversion. The mix around ISO Subsidiary and AIR Worldwide kept the economics intact even while end-market conditions stayed uneven. 43.5% operating margin and 7.8% capex intensity are a coherent pair once ISO Subsidiary is put at the center of the business model. ISO Subsidiary is still turning accounting profit into cash at a healthy rate, which makes the FY2024 result easier to trust.
Moat Strength
Per SEC and company filings, the practical value of iso advisory rates is that the practical value of iso advisory rates is that ISO produces advisory loss costs and policy-language standards used as inputs by P&C insurers as described in the regulatory filing and bureau data arrangements.
Catastrophe Modeling helps explain why catastrophe Modeling helps explain why AIR Worldwide (Verisk subsidiary) is one of the leading catastrophe risk modeling platforms used by P&C insurers and reinsurers as described in the customer-deployment communications.
Read goodwill / assets as evidence that read goodwill / assets as evidence that goodwill of $1.7B on $4.26B assets equals 40.5% per the FY2024 balance sheet — moderate, reflecting the disclosed long-term acquisition history (ISO, Wood Mackenzie [later divested], and others).
A better way to frame the moat question is to start with ISO Subsidiary and AIR Worldwide. The picture gets stronger once ISO Advisory Rates and Insurance-Cycle Exposure are added, because they make the advantage broader than one single product cycle. The numbers back the qualitative case because ISO Subsidiary still shows up in 957.2% ROE and solid cash generation at the same time. The conclusion is not invincibility; it is that the next rival still has to beat ISO Subsidiary inside a real workflow advantage.
Capital Allocation
Free Cash Flow tells you that free Cash Flow tells you that FCF of $920M (OCF $1.14B minus capex $224M) supports the disclosed share-repurchase and dividend program.
The reason to focus on portfolio refocus is that the reason to focus on portfolio refocus is that verisk refocused the portfolio on Insurance.
Net Debt / EBITDA matters in capital allocation because net Debt / EBITDA matters in capital allocation because long-term borrowings of $3.09B against $1.14B OCF per the FY2024 balance sheet and cash-flow statement implies leverage in the disclosed investment-grade range per the capital-structure footnote.
The allocation question begins with $920M of free cash flow and with how much cash ISO Subsidiary leaves behind, not with headline EPS. The company still spends enough on capex at 7.8% of revenue that maintenance and growth discipline matter. Cash at $291M does not erase debt at $3.09B, so the balance sheet still leans on a durable cash engine. Both the dividend and repurchases remain in play, so capital allocation around ISO Subsidiary is balanced rather than one-dimensional.
Key Risks
Insurance-Cycle Exposure matters as a risk because insurance-Cycle Exposure matters as a risk because insurance-segment revenue tracks P&C insurance industry premium volumes as described in the customer-base concentration.
What customer concentration adds to the risk case is that what customer concentration adds to the risk case is that but the customer base concentrates among the top US P&C insurance carriers.
Subscription Renewal is worth tracking because subscription Renewal is worth tracking because customer-renewal rates on ISO and AIR products have been historically high as described in the customer-retention communications.
The filing points to a cluster of risks around Insurance-Cycle Exposure and execution pressure rather than one neat red flag. A modest miss around Insurance-Cycle Exposure can still show up in margins and cash faster than investors expect. The balance sheet adds its own watch item because goodwill is 40.5% of assets and keeps attention on ISO Subsidiary-related follow-through. What matters most from here is whether the existing economics can hold through the next turn in demand.
Management
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This analysis is for educational purposes only and does not constitute investment advice.