Cash conversion remains strong with operating cash flow at 1.6x net income and a 36.9% FCF margin, but working capital swings and heavy buybacks create quarterly volatility.
Verisk Analytics, Inc. (VRSK) cash flow statement — 19-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 1.37B | 1.44B | 1.14B | 1.06B | 1.06B | 1.16B | 1.07B | 956.3M | 934.4M | 743.5M | 577.5M | 663.8M | 489.4M | 506.92M | 468.23M | 375.72M | 336.03M | 326.4M | 247.91M | 248.52M |
| Operating CF Margin % | - | 46.73% | 39.7% | 39.56% | 42.41% | 46.93% | 47.07% | 36.68% | 39.01% | 34.66% | 28.94% | 37.7% | 34.2% | 31.77% | 33.26% | 31.54% | 29.52% | 31.78% | 27.74% | 30.98% |
| Operating CF Growth % | 38.12% | 25.52% | 7.85% | 0.16% | -8.37% | 8.19% | 11.7% | 2.34% | 25.68% | 28.74% | -13% | 35.64% | -3.46% | 8.26% | 24.62% | 11.81% | 2.95% | 31.66% | -0.25% | - |
| Net Income | 879.2M | 908.3M | 957.5M | 614.4M | 954.3M | 666.3M | 712.7M | 449.9M | 598.7M | 555.1M | 591.2M | 507.6M | 400M | 348.38M | 329.14M | 282.76M | 242.55M | 126.61M | 158.23M | 150.37M |
| Depreciation & Amortization | 327.7M | 326.7M | 305.9M | 281.4M | 340M | 383.6M | 358.1M | 323.7M | 296.1M | 237.4M | 224.6M | 215.4M | 143.5M | 134.58M | 104.2M | 78.62M | 68.13M | 71.2M | 64.87M | 65.76M |
| Stock-Based Compensation | 60M | 54.2M | 47.9M | 54M | 56.5M | 55.7M | 47.6M | 42.7M | 38.5M | 31.8M | 44.5M | 44.6M | 35.6M | 36.02M | 37.81M | 35.27M | 32.87M | 12.74M | 9.88M | 8.24M |
| Deferred Taxes | 43.8M | 41.3M | -20.7M | 52.7M | -261M | 49.8M | 31.1M | -29.3M | 18.3M | -73.6M | 14.8M | -4.1M | 24.6M | 44.14M | 63.26M | 21.32M | 10.29M | 12.19M | 19.89M | -5.7M |
| Other Non-Cash Items | 105.4M | 69.4M | -63.4M | 131.6M | -7.3M | 153.5M | -3.9M | 16.7M | -2.1M | 6.3M | -258.5M | -85.5M | -82.9M | -103.58M | -56.08M | -52.73M | -46.32M | 65.39M | 3.06M | 19.04M |
| Working Capital Changes | -49.2M | 36.1M | -83.2M | -73.4M | -23.5M | -153.2M | -77.4M | 152.6M | -15.1M | -13.5M | -39.1M | -14.2M | -31.4M | 47.39M | -10.1M | 10.48M | 28.51M | 38.27M | -8.04M | 10.8M |
| Change in Receivables | 5.7M | -1.3M | -116.6M | -83M | -57.7M | -29.7M | 1.8M | -70.3M | -17.4M | -45.5M | -5.7M | -14.6M | -54.5M | 2.11M | -6.42M | -25.93M | -24.56M | -1.99M | 3.61M | 3.91M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -1.5M | 0 | 0 | 0 | 0 | 0 | 24.3M | 150.9M | 58.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -209.9M | -358.1M | -124.8M | 2.75B | 301.4M | -592M | -595.8M | -927.9M | -265.4M | -1.11B | 493.2M | -3.01B | -35.5M | -145.63M | -883.58M | -204.13M | -243.69M | -185.34M | -130.47M | -110.83M |
| Capital Expenditures | -266.5M | -244.1M | -223.9M | -230M | -274.7M | -268.4M | -246.8M | -216.8M | -231M | -183.5M | -156.5M | -166.1M | -146.8M | -145.98M | -74.37M | -59.83M | -38.64M | -38.69M | -30.65M | -32.94M |
| CapEx % of Revenue | 8.39% | 7.94% | 7.77% | 8.58% | 11% | 10.9% | 10.88% | 8.32% | 9.64% | 8.55% | 7.84% | 9.43% | 10.26% | 9.15% | 5.28% | 5.02% | 3.39% | 3.77% | 3.43% | 4.11% |
| Acquisitions | 55.5M | -111.3M | -18M | 2.98B | 578.4M | -314.6M | -347.5M | -703.7M | -153.1M | -914.9M | 640.5M | -2.94B | 116M | -703K | -806.86M | -141.28M | -205.28M | -68.99M | -18.95M | -50.66M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.1M | -2.7M | 3.8M | -4.4M | -2.3M | -9M | 93.3M | -7.4M | -2.7M | -6.8M | 9M | 400K | 0 | -561K | -250K | -3.2M | 0 | -77.97M | -96.43M | -6M |
| Cash from Financing | -2.7B | 795.2M | -1.03B | -3.79B | -1.33B | -498.9M | -445.2M | 10.9M | -669.8M | 362.5M | -1.06B | 2.44B | -579.1M | -284.47M | 313.56M | -34.78M | -108.79M | -102.81M | -107.38M | -212.59M |
| Debt Issued (Net) | -266M | 1.7B | 193.8M | -894.8M | 430M | 110M | 49.8M | 369.7M | -300M | 615M | -770M | 1.73B | 160M | -190M | 357.22M | 261.56M | 250M | -79.24M | 228.71M | -21.01M |
| Equity Issued (Net) | -2.12B | -567.1M | -925.2M | -2.66B | -1.53B | -390.7M | -260.8M | -305.5M | -351.3M | -241.3M | -285.7M | 739.2M | -753.84M | -197.04M | -93.89M | -338.43M | -384.58M | -39.03M | -362.19M | -204.38M |
| Dividends Paid | -257.5M | -251.1M | -221.3M | -196.8M | -195.2M | -188.2M | -175.8M | -163.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.15B | -624M | -1.05B | -2.8B | -1.66B | -475M | -348.8M | -305.5M | -438.6M | -276.3M | -326.8M | -20.4M | -778.48M | -277.41M | -162.28M | -381.78M | -420.06M | -46.74M | -392.56M | -204.77M |
| Other Financing | -58.8M | -82.8M | -75.8M | -37M | -35M | -30M | -58.4M | 110.2M | -18.5M | -11.2M | -8.5M | -32.3M | 14.76M | 102.57M | 50.22M | 42.09M | 25.79M | 15.47M | 26.1M | 12.8M |
| Net Change in Cash | -1.55B | 1.89B | -11.5M | 10M | 12.4M | 61.5M | 34.2M | 14.4M | -2.8M | 7.2M | -3.2M | 99M | -126.5M | 75.98M | -101.78M | 136.63M | -16.55M | 38.34M | 9.14M | -75.1M |
| Free Cash Flow | 1.1B | 1.19B | 920.1M | 830.7M | 784.3M | 887.3M | 821.4M | 739.5M | 703.4M | 560M | 421M | 497.7M | 342.6M | 360.94M | 393.86M | 315.89M | 297.39M | 287.71M | 217.25M | 215.58M |
| FCF Margin % | 34.64% | 38.79% | 31.93% | 30.98% | 31.41% | 36.03% | 36.19% | 28.36% | 29.37% | 26.1% | 21.1% | 28.27% | 23.94% | 22.62% | 27.98% | 26.51% | 26.12% | 28.01% | 24.31% | 26.87% |
| FCF Growth % | -1.38% | 29.54% | 10.76% | 5.92% | -11.61% | 8.02% | 11.08% | 5.13% | 25.61% | 33.02% | -15.41% | 45.27% | -5.08% | -8.36% | 24.68% | 6.22% | 3.37% | 32.43% | 0.78% | - |
| FCF per Share | 8.52 | 8.57 | 6.44 | 5.64 | 4.93 | 5.43 | 4.97 | 4.44 | 4.18 | 3.32 | 2.46 | 2.95 | 2.03 | 2.10 | 2.29 | 1.82 | 1.60 | 1.58 | 1.14 | 1.29 |
| FCF Conversion (FCF/Net Income) | 1.25x | 1.58x | 1.19x | 1.73x | 1.11x | 1.73x | 1.50x | 2.13x | 1.56x | 1.34x | 0.98x | 1.31x | 1.22x | 1.46x | 1.42x | 1.33x | 1.39x | 2.58x | 1.57x | 1.65x |
| Interest Paid | 252.9M | 150.3M | 131.6M | 111.2M | 134.3M | 129M | 134.3M | 119.9M | 125.2M | 113.9M | 116.6M | 106.1M | 67.2M | 75.08M | 60.98M | 48.16M | 32.99M | 34.2M | 28.98M | 22.75M |
| Taxes Paid | 283.5M | 218M | 287.7M | 276M | 324.5M | 175M | 156.5M | 139.8M | 103.2M | 186.3M | 289.2M | 158.5M | 205.5M | 126.85M | 47.52M | 117.72M | 113.61M | 111.46M | 99.32M | 94.26M |
Quick answers to the most common questions about buying VRSK stock.
Verisk Analytics, Inc. (VRSK) generated $1.44B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Verisk Analytics, Inc. (VRSK) generated $1.19B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Verisk Analytics, Inc. (VRSK) spent $244.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Verisk Analytics, Inc. (VRSK) returned $251.1M to shareholders via cash dividends and spent $624.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Insurance cyclicality and regulation
Metrics are mathematically derived from official filings.
Cash Conversion Remains Strong
Verisk's operating cash flow exceeded net income by 60% in Q2 2026, with OCF/NI at 1.60, indicating high earnings quality, as per recent SEC filings.
The consistent OCF/NI ratio above 1.0, except for Q2 2025 and Q2 2024, suggests that reported earnings are backed by actual cash generation, with non-cash charges like D&A and SBC providing a cushion. The occasional dips below 1.0 coincide with working capital outflows, but the overall trend indicates robust conversion, reinforcing the durability of the subscription-based model.
FCF Margin Stability Amidst Divestitures
Free cash flow margin averaged 36.9% in Q2 2026, up from 21.5% in Q2 2024, reflecting operational discipline and a simplified portfolio, based on reported figures.
The FCF margin has shown a generally upward trajectory, with quarterly volatility driven by working capital swings, but the underlying trend is stable. The recent divestitures of non-core segments appear to have improved overall cash generation efficiency, as capital intensity remains low and revenue growth is steady, though investors should monitor whether this margin is sustainable as the company focuses on its core insurance data business.
Capital Intensity Remains Low
Capital expenditures as a percentage of revenue have held steady around 8% over the past ten quarters, indicating a low capital-intensive model, as reported in financial statements.
The consistent CapEx/Rev ratio of approximately 8% suggests that Verisk's growth does not require significant capital reinvestment, typical of data and analytics providers. This low capital intensity supports high FCF conversion and allows for substantial capital returns to shareholders, though the modest increase from 7.1% in Q1 2025 to 8.4% in Q2 2026 may indicate slight investment in cloud infrastructure or product development, which warrants monitoring.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes have ranged from -$89.7M to +$117.4M over the last ten quarters, causing quarterly cash flow variability, as per quarterly cash flow statements.
The significant fluctuations in working capital, particularly in Q1 2025 and Q2 2025, appear to be driven by timing of collections and payables, common in subscription-based businesses with annual billing cycles. While these swings do not indicate a structural issue, they can obscure underlying cash generation trends, and investors should focus on annualized figures to assess the true efficiency of the company's cash conversion cycle.
Aggressive Buybacks Offset Dividend Growth
Verisk returned over $2.1 billion to shareholders in the last four quarters, with buybacks totaling $2.1 billion and dividends growing steadily, based on reported cash flow data.
The company has been aggressively repurchasing shares, with buybacks in Q1 2026 reaching $1.6 billion, likely funded by the $2.1 billion cash balance from divestitures. This capital deployment strategy suggests management's confidence in the core business and a commitment to returning excess cash, though the pace of buybacks may be unsustainable without continued strong cash generation. Dividends have increased modestly, reflecting a balanced approach to shareholder returns.
SBC and Capitalization Mask True Cash Flow
Stock-based compensation averaged $14 million per quarter, while D&A averaged $80 million, indicating that reported operating cash flow may overstate underlying cash generation, as per financial statements.
While SBC is a non-cash expense, it represents a real cost to shareholders through dilution, and the company's practice of capitalizing software development costs may defer expenses, inflating current operating cash flow. The consistent gap between net income and operating cash flow, though positive, is partly due to these non-cash items, and investors should adjust for SBC to assess true cash earnings. The lack of explicit disclosure on capitalized software costs warrants further investigation into the sustainability of reported FCF.