Total Revenue

+8.7% YoY

Total revenue increased from $677.2M in Q4 2023 to $735.6M in Q4 2024 as a result of broad-based growth in high-margin subscription solutions and strengthened underwriting and claims segments; this builds on the previous period’s gains which were driven by similar revenue mix improvements. " "

Operating Income

+26.7% YoY

Operating income improved from $250.5M to $316.3M, benefiting from disciplined cost management and operational leverage that allowed expenses to grow at a slower pace than revenues, thereby boosting margins relative to the prior period’s performance. " "

Net Income

+21% YoY

Net income increased from $173.8M to $210.4M due to revenue growth combined with lower operating expenses and the elimination of items such as the prior litigation reserve expense, which, together with a favorable effective tax rate, positively impacted the bottom line compared to Q4 2023. " "

Basic Earnings Per Share

+25% YoY

Basic EPS rose from $1.20 to $1.50, reflecting the increase in net income and a reduction in the weighted average shares outstanding—largely driven by accelerated share repurchase programs—which amplified the per-share gains from the company’s improved profitability. " "

U.S. Revenue

+8.8% YoY

U.S. revenue grew from $558.2M to $607.3M, driven by robust performance in subscription solutions and enhancements in auto, underwriting, and claims services; this is consistent with the previous trend of leveraging innovative solutions to solidify market position. "

U.K. Revenue

+17% YoY

U.K. revenue increased from $49.7M to $58.2M, reflecting a significant improvement likely due to strategic focus on high-growth insurance segments—possibly after divestitures or asset realignment in previous periods—which boosted underwriting and claims performance in the region. "

Adjusted EPS

FY 2025

$6.30 to $6.60 "

$6.80 to $7.10 "

raised

Consolidated Revenue

FY 2025

$2.84 billion to $2.9 billion "

$3.03 billion to $3.08 billion "

raised

Adjusted EBITDA

FY 2025

$1.55 billion to $1.6 billion "

$1.67 billion to $1.72 billion "

raised

Adjusted EBITDA Margin

FY 2025

54% to 55% "

55% to 55.8% "

raised

Capital Expenditures

FY 2025

no prior guidance

$245 million to $265 million "

no prior guidance

Depreciation and Amortization of Fixed Assets

FY 2025

no prior guidance

$250 million to $270 million "

no prior guidance

Amortization of Intangibles

FY 2025

no prior guidance

approximately $65 million "

no prior guidance

Interest Expense

FY 2025

no prior guidance

$145 million to $165 million "

no prior guidance

Tax Rate

FY 2025

no prior guidance

23% to 25% "

no prior guidance

Subscription Revenue Growth

Q1: 7.8% OCC growth driven by renewals and new solution sales. " Q2: 8.3% OCC growth noted with deceleration concerns partly due to the shift from transactional models. " " " "

Q4: 11% OCC growth driven by strong conversion of transactional contracts and technical factors, bolstering the outlook. " "

Upward momentum with improved performance and confidence in growth; acceleration from previous periods.

Transition from Transactional to Subscription-Based Models

Q1: Notable conversion in the anti-fraud business with most shifts already completed, supporting subscription revenue. " " " Q2: Broad-based conversion providing more predictable revenue, though transactional revenues showed decline. " " " "

Q4: Continued rigorous conversion with transactional revenue declining 1.1% and subscriptions now comprising 82% of total revenue, reinforcing the long‐term model. " "

Strengthening structural shift toward subscriptions evident across periods.

Pricing Realization and Premium Growth Contract Contributions

Q1: Strong renewals and improved pricing outcomes were highlighted, supporting subscription growth. " " Q2: Emphasis on strong price realization driven by product innovations such as the “Reimagine” initiative and the early stages of the Experience Index rollout. " " "

Q4: Value-driven price increases were emphasized through core initiatives and structural changes, with premium growth contracts continuing to contribute significantly. " " "

Ongoing improvement in pricing strategies with a clear trend toward value-based price realization.

Free Cash Flow Generation, Dividend Increases, and CapEx/OpEx Pressures

Q1: Free cash flow increased by 4.2% with a 15% elevated dividend, indicating steady performance despite legacy adjustments. " Q2: No specific mention in the available details.

Q4: Achieved double‐digit FCF growth (11%), with a 15% dividend increase and anticipation of a 15% year‐on‐year rise in CapEx for 2025, highlighting strong cash flow alongside investment pressures. " " "

Enhanced cash generation and shareholder returns, with increased investment pressure moving forward.

Market Conditions and Insurance Cycle Impacts

Q1: Described a strong P&C environment featuring robust premium growth and a hard market, despite volatility from catastrophic losses. " " " Q2: Noted a hard market marked by strong premium growth but also underscored property headwinds due to catastrophic events. " "

Q4: Continued strong premium growth with the introduction of proactive wildfire models and adjustments for regional challenges, such as California wildfires and hurricane impacts. " " " "

Stable industry fundamentals with evolving regional risks; consistent strength with nuanced headwinds.

Technological Innovation and Product Enhancements

Q1: Focused on generative AI pilots, launch of Next Generation Models (NGM), and the debut of the ISO Experience Index as part of an integrated digital strategy. " " " " Q2: Emphasized further rollout of the ISO Experience Index, new product updates (e.g. roof analytics) and a stronger focus on generative AI-driven solutions. " " " " "

Q4: Continued innovation with a global suite of next-generation models in Extreme Events, plans for expanding the ISO Experience Index across commercial lines, and digital delivery enhancements through Future of Forms initiatives. " " " "

Sustained commitment to technology with expanding innovation initiatives that build on previous progress.

Strategic M&A and Targeted Capital Deployment

Q1: Actively pursued small-to-medium M&A opportunities despite high valuations; executed capital return via a $200 million accelerated share repurchase and 15% dividend increase. " " " Q2: Continued focus on M&A opportunities that complement existing capabilities alongside disciplined capital deployment, supported by significant cash and repurchase authorizations. " "

Q4: Maintained a robust M&A pipeline with strategic evaluations in a high-value market, while returning capital through share repurchases and a 15% dividend increase, reinforcing disciplined capital allocation. " " "

Consistent strategic focus with capital returns and measured M&A activities sustained over time.

Customer Attrition and Retention Risks

Q1: Briefly mentioned potential attrition risks due to market consolidation with limited regional detail. " Q2: Noted that smaller and midsized clients showed strong retention, though regional challenges were acknowledged in passing. "

Q4: More detailed discussion highlighting potential attrition risks in regions such as California, and normalized attrition trends in specific segments (e.g., InsurTech auto). " " "

Emerging focus on regional attrition risks, particularly in high-risk geographies, representing a shift towards increased scrutiny of customer retention.

Rising Interest Expenses and Broader Macroeconomic Cost Pressures

Q1: A slight increase in net interest expenses was observed, reflecting lower cash balances relative to the prior year. " Q2: Mixed messaging with net interest expense down from prior year levels due to higher interest income, despite anticipated higher run rates due to refinancing activities. "

Q4: Clearly higher interest expenses reported (from $28M to $35M) with forecasts for even more significant increases in 2025, driven by refinancing needs and increased debt balances. " "

Growing pressure from rising interest expenses is a consistent theme with an accelerating trend due to higher debt costs.

Declining Reliance on Transactional Revenue

Q1: Transactional revenue comprised 20% of total revenue with modest growth partly offset by conversion to subscriptions and strong performance in specific segments. " Q2: Noted a 3% OCC decline in transactional revenue alongside conversion trends, reinforcing a gradual shift. " " "

Q4: Transactional revenue declined by 1.1% on an OCC basis with subscription revenue now capturing 82% of total revenue, underscoring an ongoing structural shift. " " "

Continued decline in transactional revenue reinforces the strategic conversion toward a subscription-based model over time.