Verisk Analytics, Inc. (VRSK): BCG Matrix [Dec-2025 Updated]

You're looking for the hard truth on where Verisk Analytics, Inc. stands right now, late in 2025, beyond the press releases. We've mapped their entire portfolio using the classic four-quadrant framework to show you exactly what's printing money, what's poised to explode, what's draining resources, and where the big, uncertain bets are being placed. Honestly, seeing the 70% revenue driver-the Underwriting core-juxtaposed against the massive $2.35 billion AccuLynx gamble makes the strategy crystal clear. Let's dive into the Stars, Cash Cows, Dogs, and Question Marks below to see where your focus should be.

Background of Verisk Analytics, Inc. (VRSK)

You're looking to map out Verisk Analytics, Inc. (VRSK) against the BCG framework, so let's first ground ourselves in what the company is and where it stands as of late 2025. Verisk Analytics, Inc. is a Jersey City, New Jersey-based firm that serves as a key provider of data analytics and technology solutions, primarily focused on the insurance markets. Honestly, they are an industry standard, offering data, statistical, and actuarial services, alongside standardized insurance policy programs, underwriting information, and rating-integrity tools across property, casualty, and mortgage sectors.

The business model has clearly shifted toward recurring revenue, which is a big deal for stability. For the third quarter of 2025, subscription revenues made up 84% of the total revenue. This recurring stream is showing strong momentum; for instance, in the first quarter of 2025, subscription revenue surged by 10.6% organically.

Looking at the primary segments through Q3 2025, the Underwriting division remains the larger piece, contributing 70% of Q1 revenue, totaling $532 million, and showing organic constant currency (OCC) growth of 7.2% in Q1 and 5.8% in Q3. The Claims segment, while smaller, posted stronger OCC growth at 9.6% in Q1, driven by anti-fraud tools. However, you should note that transactional revenue, which is part of these segments, actually declined by 4.0% in Q1 2025.

Financially, Verisk Analytics, Inc. is tracking toward a full-year 2025 revenue target between $3.05 billion and $3.08 billion. The third quarter ended September 30, 2025, saw consolidated revenue hit $768 million, which was a 5.9% increase year-over-year. Management is projecting adjusted earnings per share (EPS) for the full year to land between $6.80 and $7.00. Still, the company faced some near-term headwinds; a historically low level of severe weather events in 2025 temporarily impacted growth by about 1% in the third quarter.

Strategically, Verisk is heavily investing in AI-enhanced solutions, like XactXpert and XactAI, to deepen client insights. They also made a move in mid-2025, acquiring SuranceBay on July 17, 2025, for $163 million. On the other hand, a major planned acquisition, AccuLynx for $2.35 billion, is currently held up, facing a Second Request from the FTC, meaning Verisk has prudently removed any expected material benefit from its 2025 guidance.

Verisk Analytics, Inc. (VRSK) - BCG Matrix: Stars

You're looking at the engine room of Verisk Analytics, Inc. (VRSK) right now, the areas showing high market share in growing markets-the Stars. These units are leaders, but they definitely consume cash to maintain that growth trajectory.

The Claims segment's property estimating solutions are clearly a Star performer, showing an organic constant currency (OCC) growth of 9.6% in the first quarter of 2025. That's strong momentum for a core workflow solution.

Also shining here is Extreme Event Solutions. This part of the business is seeing double-digit subscription growth as of the third quarter of 2025, which makes sense when you see the market context. The global modeled insured average annual property loss (AAL) from natural catastrophes rose to $152 billion in 2025, according to Verisk's own report. That's a high-demand risk modeling market, for sure.

We're seeing new sales momentum driven by the rapid adoption of AI-enhanced tools in the claims workflow. Management noted that year-to-date sales performance is now more than double original quotas. This is fueled by solutions like XactXpert and the recently launched XactAI suite, which rolled out on September 30, 2025, to automate tasks like note summarization and photo labeling.

Still, it's not just Claims driving the growth; Specialty Business Solutions and Life Solutions are also contributing nicely. They helped push the broader Underwriting segment to an OCC growth rate of 7.2% in Q1 2025. That's solid performance across the board.

Here's a quick look at how these key revenue drivers performed in the first quarter of 2025:

These Stars are demanding investment to keep their market share, but they are the ones that will mature into the Cash Cows when the high-growth phase for these specific solutions eventually slows down. The strategy here is definitely to invest in them now.

Key growth indicators supporting the Star classification include:

• Claims OCC growth reached 9.6% in Q1 2025.
• Subscription revenue was 83% of total Q1 2025 revenue.
• Subscription revenue grew 10.6% organically in Q1 2025.
• Extreme Event Solutions subscription growth was double-digit in Q3 2025.
• AI-enhanced solution sales are more than double quotas year-to-date.

If onboarding those new AI features takes longer than expected, adoption speed could defintely slow down, which is a near-term risk to watch.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - BCG Matrix: Cash Cows

You're looking at the bedrock of Verisk Analytics, Inc.'s financial stability, the business units that generate more cash than they consume. These are the Cash Cows, commanding high market share in mature areas of the insurance analytics landscape.

The Underwriting segment is the primary engine here, representing a massive 70% of Verisk Analytics, Inc.'s total revenue in the first quarter of 2025, which totaled $532 million for that segment. This division's strength comes from its core forms, rules, and loss cost services, which are essential, mature offerings. For instance, in Q3 2025, Underwriting revenues were $542 million, showing a 5.8% organic constant currency (OCC) increase, driven by those very services and extreme event solutions.

The predictability of this cash flow is cemented by the overall subscription revenue base. By the third quarter of 2025, subscription revenues comprised 84% of total revenue, a testament to the high-margin, recurring nature of Verisk Analytics, Inc.'s offerings. This recurring stream is what allows the company to fund other areas of the business without strain.

Profitability metrics confirm this high-margin status. Verisk Analytics, Inc. achieved an Adjusted EBITDA margin expansion to 55.3% in Q1 2025, with the Adjusted EBITDA figure reaching $417 million on a reported basis for that quarter. This operational efficiency is key; you're not spending heavily on promotion because market share is already established.

The resulting cash generation is strong. Free cash flow surged 23.3% to $391 million in Q1 2025. This robust flow is exactly what the Cash Cow model is designed to deliver, funding capital returns and necessary infrastructure support. To be fair, Q3 2025 saw an even higher percentage surge, with free cash flow rising 39.6% to $336 million, driven by operating profit and strategic cash timing.

Here's a snapshot of the cash-generating power from the first half of 2025:

The focus for these units is maintaining productivity, not aggressive expansion. You want to invest just enough in supporting infrastructure to keep that cash flow coming efficiently. For example, the company returned $263 million to shareholders in Q1 2025, including a dividend hike to $0.45 per share, a clear sign of milking the gains passively.

• Underwriting segment contributed 70% of Q1 2025 revenue.
• Subscription revenue was 83% of Q1 2025 total revenue.
• Adjusted EBITDA margin reached 55.3% in Q1 2025.
• Free cash flow increased 23.3% to $391 million in Q1 2025.
• Subscription revenue grew 10.6% (OCC) in Q1 2025.

These are the reliable performers that cover the corporate overhead and fund the riskier Question Marks. Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Dogs are in low growth markets and have low market share. Dogs should be avoided and minimized. Expensive turn-around plans usually do not help.

The segment most clearly fitting the Dog profile, based on recent performance and strategic direction, is the transactional revenue stream. In the third quarter of 2025, this segment experienced a decline of 8.8% on an Organic Constant Currency (OCC) basis. This contraction was directly linked to external, low-volatility factors, specifically a historically low level of severe weather events. According to Verisk Analytics, Inc. data, third quarter weather event frequency and severity declined 30% and 78% year-over-year, respectively, according to PCS data. This low activity resulted in lower transactional volumes across property estimating solutions. Transactional revenues comprised 16% of total revenues for the quarter.

You're looking at a clear divergence in performance when you compare this segment to the core subscription business. It helps to see the numbers side-by-side to understand the strategic shift away from these lower-growth, event-dependent areas.

The strategic exit from the Atmospheric and Environmental Research (AER) business is a textbook move for minimizing exposure to a Dog. Verisk Analytics, Inc. completed the sale of AER to JANUS Research Group on December 2, 2024. The transaction value was reported at $7.1 million. This divestiture was a clear signal of sharpening the focus toward core insurance analytics, effectively shedding a non-core, lower-growth asset that likely required disproportionate management attention relative to its financial contribution.

Furthermore, the operational strategy points to minimizing investment in older, less integrated technology. The company is actively channeling resources toward its 'Core Lines Reimagine' program and leveraging GenAI across more than 40 product use cases. This implies that certain older, non-integrated legacy systems are being systematically phased out in favor of these new platform solutions. The minimal investment focus is now squarely on subscription-based offerings, which delivered 8.7% OCC growth in Q3 2025, representing 84% of total revenue. This contrasts sharply with the transactional segment, which is inherently more volatile and less predictable.

The units categorized here are those that do not align with the current growth vectors. Management is prioritizing areas where data can be integrated more deeply into client systems for efficiency. The characteristics of these Dog candidates include:

• Transactional revenue streams that declined 8.8% in Q3 2025 (OCC).
• The recently divested AER business, sold for $7.1 million in late 2024.
• Legacy data services receiving minimal capital allocation.
• Older systems being replaced by new platform solutions.

Finance: draft 13-week cash view by Friday.

Verisk Analytics, Inc. (VRSK) - BCG Matrix: Question Marks

You're looking at the high-growth, low-market-share segment of Verisk Analytics, Inc. (VRSK) as of 2025. These are the bets the company is making now, hoping they mature into Stars later. They consume capital because they are in expanding markets, but their current slice of that market is small, meaning returns are low for now. Honestly, these are the areas where you need to watch investment discipline closely.

The pending AccuLynx acquisition represents a significant capital deployment into the contractor workflow space, which is certainly high-growth. Verisk Analytics entered into a definitive agreement to acquire AccuLynx for $2.35 billion in cash on July 29, 2025. This move is intended to augment network capabilities across the insurance claims and restoration ecosystem, complementing the existing Property Estimating Solutions business. The expectation is that this acquisition will be additive to Verisk Analytics' revenue growth and adjusted EBITDA margin, and accretive to adjusted EPS by the end of 2026. The transaction is expected to close by the end of the third quarter of 2025.

To put these major strategic investments into perspective, here's a quick look at the cash outlay for the two largest recent moves:

These large, recent integrations require significant capital and management focus to achieve the necessary market share gains. The SuranceBay deal, valued at $162.5 million in cash, is being folded into the Life Solutions business to streamline producer licensing and onboarding workflows.

Beyond M&A, Verisk Analytics is pushing new product lines and international presence, both classic Question Mark territory:

• New AI-enhanced solutions, such as XactXpert and XactAI, are seeing rapid adoption, with sales teams exceeding original quotas by more than double year-to-date.
• Double-digit subscription growth was noted in the Extreme Event Solutions segment, indicating strong demand in that emerging risk area.
• The company is actively expanding its footprint in new international markets, though dominant market share has not yet been established in these regions.
• The overall business is still heavily reliant on its core, which saw subscription revenues grow 8.7% on an OCC basis in Q2 2025.

The overall financial picture shows the company is investing heavily, which impacts near-term profitability metrics. For instance, Q2 2025 net income was $253.3 million, a decrease of 17.7% compared to Q2 2024. This cash burn, or investment, is necessary to try and convert these Question Marks. The company reaffirmed its full-year 2025 revenue guidance between $3.05 billion and $3.08 billion. You'll want to track the integration success of these two major purchases; if they don't quickly gain traction, they risk becoming Dogs. Finance: draft 13-week cash view by Friday.