Verisk Analytics, Inc.

Previous wording

We use year-over-year EBITDA growth and EBITDA margin as metrics to measure our performance. EBITDA and EBITDA margin are non-GAAP financial measures. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization of fixed and intangible assets. We calculate EBITDA margin as EBITDA divided by revenues. The respective nearest applicable GAAP financial measures are net income and net income margin. Although EBITDA is a non-GAAP financial measure, EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies; EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for an analysis of our operating income, net income, or cash flow from operating activities reported under GAAP. Management uses EBITDA and EBITDA margin in conjunction with traditional GAAP operating performance measures as part of its overall assessment company performance. We believe these measures are useful and meaningful because they help us allocate resources, make business decisions, allow for greater transparency regarding our operating performance, and facilitate period-to-period comparisons. Some of these limitations involved in the use of EBITDA are:

Current wording

We use year-over-year EBITDA growth and EBITDA margin as metrics to measure our performance. EBITDA and EBITDA margin are non-GAAP financial measures. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization of fixed and intangible assets. We calculate EBITDA margin as EBITDA divided by revenues. The respective nearest applicable GAAP financial measures are net income and net income margin. Although EBITDA is a non-GAAP financial measure, EBITDA is frequently used by securities analysts, lenders, and others in their evaluation of companies; EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for an analysis of our operating income, net income, or cash flow from operating activities reported under GAAP. Management uses EBITDA and EBITDA margin in conjunction with traditional GAAP operating performance measures as part of its overall assessment of company performance. We believe these measures are useful and meaningful because they help us allocate resources, make business decisions, allow for greater transparency regarding our operating performance, and facilitate period-to-period comparisons. Some of these limitations involved in the use of EBITDA are:

Previous wording

EBITDA growth. We use EBITDA growth as a measure of our ability to balance the size of revenue growth with cost management and investing for future growth. EBITDA growth allows for greater transparency regarding our operating performance and facilitate period-to-period comparison.

Current wording

EBITDA growth. We use EBITDA growth as a measure of our ability to balance the size of revenue growth with cost management and investing for future growth. EBITDA growth allows for greater transparency regarding our operating performance and facilitates period-to-period comparison.

Previous wording

We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring. Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year and automatically renewed each year. As a result, the timing of our cash flows generally precedes our recognition of revenues and income and our cash flow from operations tends to be higher in the first quarter as we receive subscription payments. Examples of these arrangements include subscriptions that allow our customers to access our standardized coverage language, our claims fraud database, or our actuarial services throughout the subscription period. In general, we experience minimal revenue seasonality within the business. For thesix months ended June 30, 2026 and 2025, approximately 84% and 83% of our insurance revenues were derived from hosted subscriptions through agreements (generally one to five years) for our solutions, respectively.

Current wording

We earn revenues through agreements for hosted subscriptions, advisory/consulting services, and for transactional solutions, recurring and non-recurring. Subscriptions for our solutions are generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year and automatically renewed each year. As a result, the timing of our cash flows generally precedes our recognition of revenues and income and our cash flow from operations tends to be higher in the first quarter as we receive subscription payments. Examples of these arrangements include subscriptions that allow our customers to access our standardized coverage language, our claims fraud database, or our actuarial services throughout the subscription period. In general, we experience minimal revenue seasonality within the business. For thenine months ended September 30, 2026 and 2025, approximately 84% and 83% of our insurance revenues were derived from hosted subscriptions through agreements (generally one to five years) for our solutions, respectively.

Previous wording

We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions. In addition, certain of our solutions are paid for by our customers on a transactional basis, recurring and non-recurring. For example, we have solutions that allow our customers to access property-specific rating and underwriting information to price a policy on a commercial building, or compare a property & casualty insurance or a workers' compensation claim with information in our databases, or use our repair cost estimation solutions on a case-by-case basis. For thesix months ended June 30, 2026 and 2025, approximately 16% and 17% of our insurance revenues were derived from providing transactional and advisory/consulting solutions, respectively.

Current wording

We also provide advisory/consulting services, which help our customers get more value out of our analytics and their subscriptions. In addition, certain of our solutions are paid for by our customers on a transactional basis, recurring and non-recurring. For example, we have solutions that allow our customers to access property-specific rating and underwriting information to price a policy on a commercial building, or compare a property & casualty insurance or a workers' compensation claim with information in our databases, or use our repair cost estimation solutions on a case-by-case basis. For thenine months ended September 30, 2026 and 2025, approximately 16% and 17% of our insurance revenues were derived from providing transactional and advisory/consulting solutions, respectively.

Previous wording

Personnel expenses are the major component of both our cost of revenues and selling, general and administrative expenses. Personnel expenses, which represented approximately 56% of our total operating expenses for both thesix months ended June 30, 2026 and 2025, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.

Current wording

Personnel expenses are the major component of both our cost of revenues and selling, general and administrative expenses. Personnel expenses, which represented approximately 55% and 56% of our total operating expenses for thenine months ended September 30, 2026 and 2025, respectively, include salaries, benefits, incentive compensation, equity compensation costs, sales commissions, employment taxes, recruiting costs, and outsourced temporary agency costs.

Previous wording

Our acquisition (SuranceBay within the underwriting category of the Insurance segment) and disposition (Verisk Marketing Solutions ("VMS") within the underwriting category of our Insurance segment) resulted in a net decrease in revenue of $10.8 million, while the remaining Insurance revenues increased $44.5 million or 5.9%. Our underwriting revenue increased $30.3 million or 5.7%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions. Our claims revenue increased $14.2 million or 6.3%, primarily due to anti-fraud analytics and property and restoration solutions.

Current wording

Revenues were$809.0 million for thethree months ended September 30, 2026, compared to$768.3 million for thethree months ended September 30, 2025, an** **increase of$40.7 million or 5.3%. Our underwriting revenue increased$25.9 million or 4.8%. Our claims revenue increased$14.8 million or 6.6%. Our acquisitions (SuranceBay and McKenzie Intelligence Services within the underwriting category of our Insurance segment) and disposition (Verisk Marketing Solutions ("VMS") within the underwriting category of our Insurance segment) resulted in a net decrease in revenue of $14.0 million, while the remaining Insurance revenues increased $54.7 million or 7.3%. Our underwriting revenue increased $39.8 million or 7.6%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions. Our claims revenue increased $14.9 million or 6.6%, primarily due tostrong price realization and adoption of new innovations in anti-fraud analytics, as well as growth in property and restoration solutions.

Previous wording

Cost of revenues was$233.4 million for thethree months ended June 30, 2026 compared to$229.5 million for thethree months ended June 30, 2025, anincreaseof$3.9 million or 1.7%. Our recent acquisition and disposition accounted for a netdecrease of$5.5 million in cost of revenues. The remaining increase of $9.4 million or 4.2% was primarily due to increases in salaries and employee benefits, data, andinformation technology expenses, partially offset by a reduction in provision for credit losses.

Current wording

Cost of revenues was$242.0 million for thethree months ended September 30, 2026 compared to$229.5 million for thethree months ended September 30, 2025, anincreaseof$12.5 million or 5.4%. Our recent acquisitions and disposition accounted for a netdecrease of$5.8 million in cost of revenues. The remaining increase of $18.3 million or 8.3% was primarily due to increases in salaries and employee benefits, and information technology expenses, partially offset by a reduction in rent expense.

Previous wording

Selling, general and administrative expenses were$128.6 million for thethree months ended June 30, 2026 compared to$106.5 million for thethree months ended June 30, 2025, an increase of$22.1 million or 20.8%. Our recent acquisition, disposition, and AccuLynx related costs accounted for a net increase of$16.3 million in selling, general, and administrative expenses. The remaining increase of $5.8 million or 5.7%was primarily due to an increase in professional consulting fees, and salaries and employee benefits, partially offset by a reduction in rent expense.

Current wording

Selling, general and administrative expenses were$117.8 million for thethree months ended September 30, 2026 compared to$110.6 million for thethree months ended September 30, 2025, an increase of$7.2 million or 6.5%. Our recent acquisitions, disposition, and AccuLynx-related costs accounted for a net increase of$3.6 million in selling, general, and administrative expenses. The remaining increase of $3.6 million or 3.5%was primarily due to an increase in salaries and employee benefits, and insurance expense, partially offset by a reduction in professional consulting fees.

Previous wording

Amortization of intangible assets was$14.3 millionand$16.3 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of$2.0 million or 12.3%. The decrease was primarily due to the disposition of VMS and certain intangible assets becoming fully amortized, partially offset by an increase in amortization expense associated with our 2025 acquisitions.

Current wording

Amortization of intangible assets was$14.4 million for thethree months ended September 30, 2026 compared to$18.3 million for thethree months ended September 30, 2025, respectively, a decrease of$3.9 million or 21.3%. The decrease was primarily due to the disposition of VMS and certain intangible assets becoming fully amortized.

Previous wording

Investment loss was$7.5 million for thethree months ended June 30, 2026 compared to a gain of$9.1 million for thethree months ended June 30, 2025, a change of$16.6 million. The loss for the three months ended June 30, 2026 was primarily driven by $6.5 million of loss from equity method investments, while the gain in the prior year period was primarily due to the effects of foreign currency fluctuations.

Current wording

Investment loss was$17.5 million for thethree months ended September 30, 2026 compared to a loss of$1.6 million for thethree months ended September 30, 2025, a change of$15.9 million. The loss for thethree months ended September 30, 2026 was primarily driven by a $16.7 million loss on cost-based investments and the effects of foreign currency fluctuations.

Previous wording

Interest expense, net was$52.8 million for thethree months ended June 30, 2026 compared to$35.5 million for thethree months ended June 30, 2025, an increase of$17.3 million or 48.7%. The increase was primarily driven by higher interest expense related to the issuance of our 2031 and 2036 Senior Notes in February 2026, interest incurred on our Term Loan Facility, and lower interest income compared to the prior-year period.

Current wording

Interest expense, net was$53.0 million for thethree months ended September 30, 2026 compared to$42.2 million for thethree months ended September 30, 2025, an increase of$10.8 million or 25.6%. The increase was primarily driven by higher interest expense related to the issuance of our 2031 and 2036 Senior Notes in February 2026, interest incurred on our Term Loan Facility, and lower interest income compared to the prior-year period.

Previous wording

The provision for income taxes was$74.8 million and the effective tax rate was 24.6% for thethree months ended June 30, 2026, compared to$74.6 million and 22.7% for thethree months ended June 30, 2025, respectively. The increase in the effective tax rate was primarily due to lower tax benefits from equity compensation in the current period versus the prior period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Current wording

The provision for income taxes was$75.6 million and the effective tax rate was 25.7% for thethree months ended September 30, 2026, compared to$76.6 million and 25.3% for thethree months ended September 30, 2025, respectively. The increase in the effective tax rate was primarily due to the loss on cost-based investments for which limited tax benefit was recognized in the current period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Previous wording

Net income was$228.6 million for thethree months ended June 30, 2026 compared to$253.3 million for thethree months ended June 30, 2025, a decrease of$24.7 million or 9.8%. The net income margin was 28.4% for thethree months ended June 30, 2026 compared to 32.8% for thethree months ended June 30, 2025. The decrease in net income margin was primarily driven by the increases in our effective tax rate and net interest expense, as well as the AccuLynx-related legal fees discussed above.

Current wording

Net income was$219.2 million for thethree months ended September 30, 2026 compared to$225.5 million for thethree months ended September 30, 2025, a decrease of$6.3 million or 2.8%. The net income margin was 27.1% for thethree months ended September 30, 2026 compared to 29.3% for thethree months ended September 30, 2025. The decrease in net income margin was primarily driven by the increases in our investment losses and net interest expense, as well as the AccuLynx-related costs discussed above.

Previous wording

EBITDA was$436.8 million for thethree months ended June 30, 2026 compared to$445.7 million for thethree months ended June 30, 2025. The EBITDA margin for our consolidated results was 54.2% for thethree months ended June 30, 2026 compared to 57.7% for thethree months ended June 30, 2025. The decrease in EBITDA margin was primarily attributable to higher legal fees incurred in connection with the AccuLynx transaction, partially offset by revenue growth and continued cost discipline across our business.

Current wording

EBITDA was$431.7 million for thethree months ended September 30, 2026 compared to$426.6 million for thethree months ended September 30, 2025. The EBITDA margin for our consolidated results was 53.4% for thethree months ended September 30, 2026 compared to 55.5% for thethree months ended September 30, 2025. The decrease in EBITDA margin was primarily attributable to costs incurred in connection with the AccuLynx transaction and the above-mentioned loss on cost-based investments, partially offset by revenue growth and continued cost discipline across our business.

Previous wording

Our acquisitions (Simplitium and SuranceBay within the underwriting category of the Insurance segment) and disposition (VMS)within the underwriting category of our Insurance segment) resulted in a net decrease in revenue of $21.7 million, while the remaining Insurance revenues increased $85.0 million or 5.7%. Our underwriting revenue increased $61.4 million or 5.9%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions. Our claims revenue increased $23.6 million or 5.3%, primarily due to our anti-fraud analytics and property and restoration solutions.

Current wording

Revenues were$2,397.9 million for thenine months ended September 30, 2026, compared to$2,293.9 million for thenine months ended September 30, 2025, an** **increase of$104.0 million or 4.5%. Our underwriting revenue increased$65.5 million or 4.0%. Our claims revenue increased$38.5 million or 5.8%. Our acquisitions (Simplitium, SuranceBay and McKenzie Intelligence Services within the underwriting category of our Insurance segment) and disposition (VMS within the underwriting category of our Insurance segment) resulted in a net decrease in revenue of $35.8 million, while the remaining Insurance revenues increased $139.8 million or 6.2%. Our underwriting revenue increased $101.2 million or 6.5%, primarily due to an annual increase in prices derived from continued enhancements to the models and content of the solutions within our forms, rules and loss cost services, as well as selling expanded solutions to new and existing customers within catastrophe and risk solutions. Our claims revenue increased $38.6 million or 5.8%, primarily due to strong price realization and adoption of new innovations in anti-fraud analytics, as well as growth in property and restoration solutions.

Previous wording

Cost of revenues was$470.0 million for thesix months ended June 30, 2026 compared to$460.3 million for thesix months ended June 30, 2025, anincreaseof$9.7 million or 2.1%. Our recent acquisitions and disposition accounted for a netdecrease of$11.2 million in cost of revenues. The remaining increase of $20.9 million or 4.7% was primarily due to increases in salaries and employee benefits, andinformation technology expense, partially offset by a reduction in the provision for credit losses.

Current wording

Cost of revenues was$712.0 million for thenine months ended September 30, 2026 compared to$689.8 million for thenine months ended September 30, 2025, anincreaseof$22.2 million or 3.2%. Our recent acquisitions and disposition accounted for a netdecrease of$16.5 million in cost of revenues. The remaining increase of $38.7 million or 5.8% was primarily due to increases in salaries and employee benefits, and information technology expense, partially offset by a reduction in rent expense and professional consulting fees.

Previous wording

Selling, general and administrative expenses were$238.1 million for the six months ended June 30, 2026 compared to$215.4 million for thesix months ended June 30, 2025, an increase of$22.7 million or 10.5%. Our recent acquisitions, disposition, and AccuLynx related costs accounted for a net increase of$13.4 million in selling, general, and administrative expenses. The remaining increase of $9.3 million or 4.5%was primarily due to higher salaries and employee benefit expenses, and professional consulting fees.

Current wording

Selling, general and administrative expenses were$355.9 million for the nine months ended September 30, 2026 compared to$326.0 million for thenine months ended September 30, 2025, an increase of$29.9 million or 9.2%. Our recent acquisitions, disposition, and AccuLynx-related costs accounted for a net increase of$16.9 million in selling, general, and administrative expenses. The remaining increase of $13.0 million or 4.2%was primarily due to higher salaries and employee benefit expenses, and insurance expense.

Previous wording

Depreciation and amortization of fixed assets were$136.2 million for thesix months ended June 30, 2026 compared to$133.4 million for thesix months ended June 30, 2025, an increase of$2.8 million or 2.1%. The increase was primarily due to internally developed software projects that were completed and placed into service.

Current wording

Depreciation and amortization of fixed assets were$205.7 million for thenine months ended September 30, 2026 compared to$197.4 million for thenine months ended September 30, 2025, an increase of$8.3 million or 4.2%. The increase was primarily due to internally developed software projects that were completed and placed into service.

Previous wording

Amortization of intangible assets was $28.7 million and $32.1 million for the six months ended June 30, 2026 and 2025, respectively, a decrease of $3.4 million or 10.6%. The decrease was primarily due to the disposition of VMS and certain intangible assets becoming fully amortized, partially offset by an increase in amortization expense associated with our 2025 acquisitions.

Current wording

Amortization of intangible assets was$43.1 million and$50.4 million for thenine months ended September 30, 2026 and 2025, respectively, a decrease of$7.3 million or 14.5%. The decrease was primarily due to the disposition of VMS and certain intangible assets becoming fully amortized, partially offset by an increase in amortization expense associated with our recent acquisitions.

Previous wording

Investment loss was$8.0 million for thesix months ended June 30, 2026 compared to a gain of$11.7 million for thesix months ended June 30, 2025, a change of$19.7 million. The loss for the six months ended June 30, 2026 was primarily driven by $6.5 million of losses from equity method investments, while the gain in the prior year period was primarily due to the effects of foreign currency fluctuations.

Current wording

Investment loss was$25.5 million for thenine months ended September 30, 2026 compared to a gain of$10.1 million for thenine months ended September 30, 2025, a change of$35.6 million. The loss for thenine months ended September 30, 2026 was primarily driven by losses from equity method investments and cost-based investments, while the gain in the prior year period was primarily due to the effects of foreign currency fluctuations.

Previous wording

Interest expense, net was$96.0 million for thesix months ended June 30, 2026 compared to$71.8 million for thesix months ended June 30, 2025, an increase of$24.2 million or 33.7%. The increase was primarily driven by higher interest expense related to the issuance of our 2031 and 2036 Senior Notes in February 2026, interest incurred on our Term Loan Facility, accelerated interest payments associated with the special mandatory redemption of the 4.500% 2030 Senior Notes and 5.125% 2036 Senior Notes, and lower interest income compared to the prior-year period.

Current wording

Interest expense, net was$149.0 million for thenine months ended September 30, 2026 compared to$114.0 million for thenine months ended September 30, 2025, an increase of$35.0 million or 30.7%. The increase was primarily driven by higher interest expense related to the issuance of our 2031 and 2036 Senior Notes in February 2026, interest incurred on our Term Loan Facility, accelerated interest payments associated with the special mandatory redemption of the 4.500% 2030 Senior Notes and 5.125% 2036 Senior Notes, and lower interest income compared to the prior-year period.

Previous wording

The provision for income taxes was$149.1 million and the effective tax rate was 24.4% for thesix months ended June 30, 2026, compared to$138.7 million and 22.2% for thesix months ended June 30, 2025, respectively. The increase in the effective tax rate was primarily due to lower tax benefits from equity compensation in the current period versus the prior period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Current wording

The provision for income taxes was$224.7 million and the effective tax rate was 24.8% for thenine months ended September 30, 2026, compared to$215.3 million and 23.2% for thenine months ended September 30, 2025, respectively. The increase in the effective tax rate was primarily due to lower tax benefits from equity compensation in the current period versus the prior period as well the loss on cost-based investments for which limited tax benefit was recognized in the current period. The difference between statutory tax rates and our effective tax rate is primarily due to state and local taxes, partially offset by tax benefits attributable to equity compensation.

Previous wording

Net income was$462.8 million for thesix months ended June 30, 2026 compared to$485.6 million for thesix months ended June 30, 2025, a decrease of$22.8 million or 4.7%. The net income margin was 29.1% for thesix months ended June 30, 2026 compared to 31.8% for thesix months ended June 30, 2025. The decrease in net income margin was primarily driven by the increases in our effective tax rate and net interest expense, as well as the AccuLynx-related legal fees discussed above.

Current wording

Net income was$682.0 million for thenine months ended September 30, 2026 compared to$711.1 million for thenine months ended September 30, 2025, a decrease of$29.1 million or 4.1%. The net income margin was 28.4% for thenine months ended September 30, 2026 compared to 31.0% for thenine months ended September 30, 2025. The decrease in net income margin was primarily driven by the increases in our investment losses and net interest expense, as well as the AccuLynx-related costs discussed above.

Previous wording

EBITDA was $872.8 million for thesix months ended June 30, 2026 compared to $861.6 million for thesix months ended June 30, 2025. The EBITDA margin for our consolidated results was 54.9% for thesix months ended June 30, 2026 compared to 56.5% for thesix months ended June 30, 2025. The decrease in EBITDA margin was primarily attributable to higher legal fees incurred in connection with the AccuLynx transaction, partially offset by revenue growth and continued cost discipline across our business.

Current wording

EBITDA was$1,304.5 million for thenine months ended September 30, 2026 compared to$1,288.2 million for thenine months ended September 30, 2025. The EBITDA margin for our consolidated results was 54.4% for thenine months ended September 30, 2026 compared to 56.2% for thenine months ended September 30, 2025. The decrease in EBITDA margin was primarily attributable to costs incurred in connection with the AccuLynx transaction and the above-mentioned investment losses, partially offset by revenue growth and continued cost discipline across our business.

Previous wording

As of June 30, 2026 and December 31, 2025, we had cash and cash equivalents and avai lable-for-sale securities totaling $552.2 million and $2,178.9 million, respectively. We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of June 30, 2026 and December 31, 2025, a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A. and JPMorgan Chase N.A.. Subscriptions for our solutions are billed and generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year. Subscriptions are automatically renewed at the beginning of each calendar year. We have historically generated significant cash flows from operations. As a result of this factor, as well as the availability of funds under our Syndicated Revolving Credit Facility, we expect that we will have sufficient cash to meet our working capital and capital expenditure needs and to fuel our future growth plans.

Current wording

As of September 30, 2026 and December 31, 2025, we had cash and cash equivalents and available-for-sale securities totaling $557.4 million and $2,178.9 million, respectively. We maintain our cash and cash equivalents in higher credit quality financial institutions in order to limit the amount of credit exposure. As of September 30, 2026 and December 31, 2025, a vast majority of our domestic cash and cash equivalents is with TD Bank, N.A., JPMorgan Chase N.A., and Northern Trust Corporation. Subscriptions for our solutions are billed and generally paid in advance of rendering services either quarterly or in full upon commencement of the subscription period, which is usually for one year. Subscriptions are automatically renewed at the beginning of each calendar year. We have historically generated significant cash flows from operations. As a result of this factor, as well as the availability of funds under our Syndicated Revolving Credit Facility, we expect that we will have sufficient cash to meet our working capital and capital expenditure needs and to fuel our future growth plans.

Previous wording

We have also historically used a portion of our cash for repurchases of our common stock from our stockholders. During thesix months ended June 30, 2026 and 2025, we repurchased$1,827.0 million (inclusive of$255.1 million in treasury stock not yet settled) and$300.1 million, respectively, of our common stock. The repurchase of our common stock was funded using cash from operations and proceeds from our Syndicated Revolving Credit Facility and Term Loan Facility. For thesix months ended June 30, 2026 and 2025, we also paid dividends of$130.9 million and$126.0 million, respectively.

Current wording

We have also historically used a portion of our cash for repurchases of our common stock from our stockholders. During thenine months ended September 30, 2026 and 2025, we repurchased $1,927.1 millionand $400.2 million, respectively, of our common stock. The repurchase of our common stock was funded using cash from operations and proceeds from our Syndicated Revolving Credit Facility and Term Loan Facility. For thenine months ended September 30, 2026 and 2025, we also paid dividends of$195.0 million and$188.6 million, respectively.

Previous wording

We had total debt, excluding finance lease liabilities, unamortized discounts and premium, and debt issuance costs of $4,500.0 million and $4,750.0 million at June 30, 2026 and December 31, 2025, respectively, and we were in compliance with our financial and other covenants. The debt at June 30, 2026, primarily consists of senior notes issued in 2026, 2025, 2024, 2023, 2020, 2019, and 2015. Interest on the senior notes is payable semi-annually each year. The unamortized discount and debt issuance costs were recorded as "Short-term debt and current portion of long-term debt" and "Long-term debt" in the accompanying consolidated balance sheets, and will be amortized to "Interest expense" in the accompanying consolidated statements of operations within this Form 10-Q over the life of the respective senior notes. The indenture governing the senior notes restricts our ability to, among other things, create certain liens, enter into sale/leaseback transactions, and consolidate with, sell, lease, convey, or otherwise transfer all or substantially all of our assets, or merge with or into, any other person or entity. We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding notes, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise. See Note 6. for additional information on our financing activities.

Current wording

We had total debt, excluding finance lease liabilities, unamortized discounts and premium, and debt issuance costs of $4,500.0 million and $4,750.0 million at September 30, 2026 and December 31, 2025, respectively, and we were in compliance with our financial and other covenants. The debt at September 30, 2026, primarily consists of senior notes issued in 2026, 2025, 2024, 2023, 2020, 2019, and 2015. Interest on the senior notes is payable semi-annually each year. The unamortized discount and debt issuance costs were recorded as "Short-term debt and current portion of long-term debt" and "Long-term debt" in the accompanying consolidated balance sheets, and will be amortized to "Interest expense" in the accompanying consolidated statements of operations within this Form 10-Q over the life of the respective senior notes. The indenture governing the senior notes restricts our ability to, among other things, create certain liens, enter into sale/leaseback transactions, and consolidate with, sell, lease, convey, or otherwise transfer all or substantially all of our assets, or merge with or into, any other person or entity. We have made, and may from time to time in the future make, optional repayments on our debt obligations, which may include repurchases or exchanges of our outstanding notes, depending on various factors, such as market conditions. Any such repurchases may be effected through privately negotiated transactions, market transactions, tender offers, redemptions or otherwise. See Note 7. Debt for additional information on our financing activities.

Previous wording

We have a syndicated revolving credit facility ("Syndicated Revolving Credit Facility") with a borrowing capacity of $1,250.0 million with Bank of America N.A., HSBC Bank USA, N.A., The Toronto-Dominion Bank, N.A., Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., and The Northern Trust Company. The Syndicated Revolving Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the share repurchase program (the "Repurchase Program"). As of June 30, 2026, we were in compliance with all financial and other debt covenants under our Syndicated Revolving Credit Facility. During the first quarter, we drew $750.0 million under our Syndicated Revolving Credit Facility for share repurchases under the accelerated share repurchase agreements, general corporate purposes, and to pay related fees and expenses, and subsequently repaid the full amount prior to the end of the first quarter. As of June 30, 2026 and December 31, 2025, the available capacity under the Syndicated Revolving Credit Facility was $1,245.1 million and $1,245.4 million, which takes into account outstanding letters of credit of $4.9 million and $4.6 million, respectively.

Current wording

We have a syndicated revolving credit facility ("Syndicated Revolving Credit Facility") with a borrowing capacity of $1,250.0 million with Bank of America N.A., HSBC Bank USA, N.A., The Toronto-Dominion Bank, N.A., Wells Fargo Bank, National Association, JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Royal Bank of Canada, and The Northern Trust Company. The Syndicated Revolving Credit Facility may be used for general corporate purposes, including working capital needs and capital expenditures, acquisitions, dividend payments, and the share repurchase program (the "Repurchase Program"). As of September 30, 2026, we were in compliance with all financial and other debt covenants under our Syndicated Revolving Credit Facility. During the first quarter, we drew $750.0 million under our Syndicated Revolving Credit Facility for share repurchases under the accelerated share repurchase agreements, general corporate purposes, and to pay related fees and expenses, and subsequently repaid the full amount prior to the end of the first quarter. As of September 30, 2026 and December 31, 2025, the available capacity under the Syndicated Revolving Credit Facility was $1,245.1 million and $1,245.4 million, which takes into account outstanding letters of credit of $4.9 million and $4.6 million, respectively.

Previous wording

On February 18, 2026, we entered into a term loan credit agreement (the “Term Loan Facility”) with Wells Fargo Bank, National Association. The Term Loan Facility provides for a 364-day senior unsecured delayed draw term loan facility in an aggregate committed principal amount of $500.0 million and carries an interest rate of SOFR plus 95 basis points or a base rate. The financial covenants require that, at the end of any fiscal quarter, we have a consolidated interest rate coverage ratio of not less than 3.00 to 1.00, and a maximum consolidated funded debt leverage ratio of not greater than 3.75 to 1.00. At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.00 (no more than once) and to 4.25 to 1.00 (no more than once) in connection with the closing of a permitted acquisition. Proceeds of the Term Loan Facility, together with the $750.0 million borrowed under the Company's existing Syndicated Revolving Credit Facility, were used to finance share repurchases under the accelerated share repurchase agreements, to fund general corporate purposes, and to pay related fees and expenses. As of June 30, 2026, we had $250.0 million outstanding under the Term Loan Facility.

Current wording

On February 18, 2026, we entered into a term loan credit agreement (the “Term Loan Facility”) with Wells Fargo Bank, National Association. The Term Loan Facility provides for a 364-day senior unsecured delayed draw term loan facility in an aggregate committed principal amount of $500.0 million and carries an interest rate of SOFR plus 95 basis points or a base rate. The financial covenants require that, at the end of any fiscal quarter, we have a consolidated interest coverage ratio of not less than 3.00 to 1.00, and a maximum consolidated funded debt leverage ratio of not greater than 3.75 to 1.00. At our election, the maximum consolidated funded debt leverage ratio could be permitted to increase to 4.50 to 1.00 (no more than once) and to 4.25 to 1.00 (no more than once) in connection with the closing of a permitted acquisition. Proceeds of the Term Loan Facility, together with the $750.0 million borrowed under the Company's existing Syndicated Revolving Credit Facility, were used to finance share repurchases under the accelerated share repurchase agreements, to fund general corporate purposes, and to pay related fees and expenses. As of September 30, 2026, we had $250.0 million outstanding under the Term Loan Facility.

Previous wording

Net cash provided by operating activities was$366.0 million for thethree months ended June 30, 2026, compared to$244.5 million for thethree months ended June 30, 2025, an increase of$121.5 million, or 49.7%. The increase in operating cash flow was primarily due to an increase in operating profit and the timing of certain vendor and cash tax payments.

Current wording

Net cash provided by operating activities was$267.2 million for thethree months ended September 30, 2026, compared to$403.5 million for thethree months ended September 30, 2025, a decrease of$136.3 million, or 33.8%. The decrease in operating cash flow was primarily due to higher cash tax payments, increased interest payments, as well as unfavorable working capital movements related to the timing of cash collections.

Previous wording

Net cash provided by operating activities was$756.4 million for thesix months ended June 30, 2026, compared to$689.2 million for thesix months ended June 30, 2025, an increase of$67.2 million, or 9.8%. The increase in operating cash flow was primarily due to an increase in operating profit and an improvement in working capital, offset by higher cash tax payments, due to a tax refund received in the first quarter of the prior year that did not recur in the current year, and higher interest payments due to the issuance of senior notes in the second quarter of the prior year.

Current wording

Net cash provided by operating activities was$1,023.6 million for thenine months ended September 30, 2026, compared to$1,092.7 million for thenine months ended September 30, 2025, a decrease of$69.1 million, or 6.3%. The decrease in operating cash flow was primarily due to a tax refund received in the first quarter of the prior year that did not recur in the current year and higher interest payments due to the issuance of senior notes in the first and third quarter of the prior year.

Previous wording

Net cash used in investing activities was$68.1 million for thethree months ended June 30, 2026, compared to $80.6 million for thethree months ended June 30, 2025, a decrease of$12.5 million, or 15.5%. The decrease in investing cash outflows was primarily due to an acquisition and purchase of an additional controlling interest totaling $20.3 million and investments in non-public companies of $4.5 million in the prior year, partially offset by an increase of $12.3 million in capital expenditures.

Current wording

Net cash used in investing activities was$92.2 million for thethree months ended September 30, 2026, compared to $234.5 million for thethree months ended September 30, 2025, a decrease of$142.3 million, or 60.7%. The decrease in investing cash outflows was primarily due to lower acquisition activity and lower investments in nonpublic companies compared to the prior year.

Previous wording

Net cash used in investing activities was$132.5 million for thesix months ended June 30, 2026, compared to$138.4 million for thesix months ended June 30, 2025, a decrease of$5.9 million, or 4.3%. The decrease in investing cash outflows was primarily due to an acquisition and purchase of an additional controlling interest totaling $24.4 million in the prior year and lower investments in non-public companies compared to the prior year, partially offset by an increase of $22.6 million in capital expenditures.

Current wording

Net cash used in investing activities was$224.7 million for thenine months ended September 30, 2026, compared to$372.9 million for thenine months ended September 30, 2025, a decrease of$148.2 million, or 39.7%. The decrease in investing cash outflows was primarily due to lower acquisition activity and lower investments in nonpublic companies compared to the prior year, partially offset by higher capital expenditures.

Previous wording

Net cash used in financing activities was $2,246.9 million for the six months ended June 30, 2026, compared to $225.7 million for the six months ended June 30, 2025, an increase of $2,021.2 million, or 895.5%. The increase in financing cash outflows was primarily due to an increase of $1,526.9 million of common stock repurchases (inclusive of treasury stock not yet settled). Additionally, there was a net repayment of debt of $266.0 million in the six months ended June 30, 2026, compared to net debt proceeds of $198.3 million in the six months ended June 30, 2025.

Current wording

Net cash used in financing activities was$2,416.1 million for thenine months ended September 30, 2026, compared to$1,079.6 million of net cash provided by financing activities for thenine months ended September 30, 2025, a change of $3,495.7 million, or 323.8%. The change in financing activity was primarily due to an increase of $1,526.9 million of common stock repurchases. Additionally, there was a net repayment of debt of $266.0 million in the nine months ended September 30, 2026, compared to net debt proceeds of $1,696.2 million in the nine months ended September 30, 2025.