Consolidated Revenue

FY 2025

$3.03B–$3.08B "

$3.09B–$3.13B "

raised

Adjusted EBITDA

FY 2025

$1.67B–$1.72B "

$1.70B–$1.74B "

raised

Adjusted EBITDA Margins

FY 2025

55%–55.8% "

55%–55.8% "

no change

Interest Expense

FY 2025

no prior guidance

$190M–$210M "

no prior guidance

Effective Tax Rate

FY 2025

23%–25% "

23%–25% "

no change

EPS

FY 2025

$6.80–$7.10 "

$6.8–$7 "

lowered

Pricing Power

Q1 emphasized improved price realization and a structural shift in pricing with innovations (e.g., automation and generative AI tools) " " " ; Q4 highlighted the Core Lines Reimagined investments driving value and renewals "

Q2 reiterated the ability to maintain pricing power using the Core Lines Reimagine program, long‐term deal structuring, and consistent organic growth of 6%-8% "

Consistent positive emphasis with a steady narrative on value‐driven pricing and long‐term contract stability. " " "

Recurring Revenue Growth

Q1 noted strong subscription revenue growth (83% of total revenue, 10.6% OCC growth) driven by renewals and conversion of transactional contracts " ; Q4 reported 82% revenue from subscriptions with 11% OCC growth "

Q2 reported subscription revenues at 82% of total revenue with 9.3% OCC growth, demonstrating predictable performance despite industry headwinds "

Steady focus across periods with minor variations in growth rates, reflecting consistent investor appeal. " " "

Sustained Organic Growth and Operational Efficiency

Q1 detailed 7.9% organic growth supported by innovation and margin expansion (55.3% EBITDA margin, 130 bps expansion) " " ; Q4 emphasized OCC revenue growth, margin expansion (120–70 bps gains), and strong free cash flow generation " " "

Q2 reported 7.9% organic growth driven by client engagement and innovation, alongside 9.7% adjusted EBITDA growth and margin improvements (57.6% margin, 220 bps upswing) " " "

Consistent narrative on sustainable organic performance and disciplined cost management, with innovations reinforcing operational efficiency. " " "

Strategic Acquisitions and Integration Risks

Q1 discussed the acquisition of Simplitium as an example of strategic M&A, emphasizing integration into Extreme Events and data enrichment " " " ; Q4 did not mention specific acquisitions or risks "

Q2 introduced major acquisitions – Acculinks and AssuranceBay – highlighting integration with existing platforms, high recurring revenue profiles, and an expected accretive impact by 2026 " " "

An increased focus on larger, strategic acquisitions in Q2, signaling growth ambitions and careful integration risk management. " " "

Emerging High Adoption of AI-Driven Solutions and Advanced Analytics

Q1 mentioned a generative AI tool for form management and innovations under the Core Lines Reimagine initiative, along with enhanced data integration " " " ; Q4 referenced advanced analytics in property estimating (e.g., Exact Experts, Actuarial Hub) but not explicitly AI-driven solutions " "

Q2 introduced Underwriting Assistant, an AI-powered solution that automates underwriting processes and improves data accuracy through interactive chatbots "

An accelerating adoption of AI-led innovations in Q2, building on previous analytics initiatives and underscoring a sharper technological transformation. " " "

Transactional Revenue Volatility and Declining Contract Conversions

Q1 reported a 4% year-on-year decline in transactional revenue tied to contract conversions (impact of 200-250 bps) " ; Q4 noted volatility from storm-related events, ongoing conversion of transactional to subscription revenue, and challenging comps " " " "

Q2 reported a modest 1.8% growth in transactional revenue but acknowledged headwinds from lower contract conversions and seasonal challenges " " "

Mixed performance persists with volatility; while some recovery is seen in growth, challenges in maintaining conversion rates continue to affect performance. " " "

Macroeconomic and Market Headwinds

Q1 discussed tariff pressures, rising costs, and CapEx impacts alongside client conversations on inflation and economic sensitivity " " " ; Q4 mentioned higher interest expenses and planned CapEx increases amid refinancing needs " " "

Q2 did not specifically mention issues like tariff pressures or rising costs [N/A]

A reduced emphasis on macroeconomic headwinds in Q2 contrasts with more detailed discussions in earlier periods, suggesting a temporary de-emphasis of external market pressures. " "

Competitive Pressures in Key Segments

Q1 highlighted challenges in the auto segment (declining transactional revenues, non-rate action dynamics) and pressures in noninsurance/marketing segments due to economic pressures " " ; Q4 briefly noted tough comps in auto and mixed performance in the marketing business " "

Q2 detailed competitive pressures in the auto segment (fierce competition and customer mix challenges) and noted weakness in the sustainability business within noninsurance/marketing " "

Persistent concerns in key segments—especially auto—remain, with consistent competitive pressures noted across periods. " "

Reduced Emphasis on Subscription Revenue and Dividend/Cash Flow Messaging

Q1 emphasized robust subscription growth (83% revenue, 10.6% growth) and highlighted dividend increases and share repurchases with strong cash flow " ; Q4 reinforced strong subscription revenue growth (82% revenue, 11% growth) and increased dividends, along with significant free cash flow generation " " "

Q2 maintained focus on subscription revenues (82% of revenue with 9.3% growth) and communicated a 15% dividend increase along with share repurchase activity and improved free cash flow " "

There is a consistent, positive emphasis on subscription revenue and shareholder returns, with no sign of a reduced focus over time. " " "

Regional Customer Attrition Concerns

Q1 did not directly address attrition but mentioned progress on the wildfire model for California, implying proactive measures " ; Q4 also referenced potential customer pullback in California amid other external factors "

Q2 explicitly mentioned attrition concerns in California due to insurers’ reduced discretionary spending impacting the auto segment "

Emerging/regional concerns are now more directly addressed in Q2, with California highlighted as a potential risk area. " "

Rising Interest Expenses and Financing Challenges

Q1 noted rising net interest expenses from higher debt and interest rates (e.g., $36M vs. $29M), with refinancing and debt issuance activities explained " ; Q4 discussed increased net interest expense ($35M vs. $28M), refinancing plans, and guidance for 2025 showing higher expenses " " "

Q2 reported net interest expense of $36M, discussed the impact of acquiring Acculinks on debt levels, and outlined plans to deleverage by 2026 while balancing share repurchases " " "

A consistent concern over rising interest expenses and financing challenges persists, with acquisitions in Q2 adding complexity while strategic deleveraging plans are in place. " " "