VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the third quarter of 2025.
VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $419 million for the third quarter of 2025, up 7.3 percent from the same quarter in 2024. Operating income was $284 million for the third quarter of 2025, compared to $269 million for the same quarter of 2024. Verisign reported net income of $213 million and diluted earnings per share (diluted “EPS”) of $2.27 for the third quarter of 2025, compared to net income of $201 million and diluted EPS of $2.07 for the same quarter of 2024.
“In the quarter we delivered both growth in the domain name base and solid financial performance. We also continued our consistent return of value to shareholders through dividends and share repurchases,” said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.
Financial Highlights
- Verisign ended the third quarter of 2025 with cash, cash equivalents and marketable securities of $618 million, an increase of $18 million from year-end 2024.
- Cash flow from operations was $308 million for the third quarter of 2025, compared to $253 million for the same quarter of 2024.
- Deferred revenues as of September 30, 2025 totaled $1.38 billion, an increase of $80 million from year-end 2024.
- During the third quarter of 2025, Verisign repurchased 0.8 million shares of its common stock for $215 million. As of September 30, 2025, there was $1.33 billion remaining for future share repurchases under the share repurchase program, which has no expiration.
- On October 21, 2025, Verisign’s Board of Directors approved a cash dividend of $0.77 per share of Verisign’s outstanding common stock to stockholders of record as of the close of business on November 18, 2025, payable on November 25, 2025.
Business Highlights
- Verisign ended the third quarter of 2025 with 171.9 million .com and .net domain name registrations in the domain name base, a 1.4 percent increase from the end of the third quarter of 2024, and a net increase of 1.45 million domain names during the third quarter of 2025.
- During the third quarter of 2025, Verisign processed 10.6 million new domain name registrations for .com and .net, compared with 9.3 million for the third quarter of 2024.
- The final .com and .net renewal rate for the second quarter of 2025 was 75.5 percent compared to 72.7 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after the end of the quarter.
Today’s Conference Call
Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the third quarter 2025 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (786) 789-4797 (international), conference ID: Verisign. A listen-only live web cast of the conference call and accompanying slide presentation will also be available at https://investor.verisign.com. An audio archive of the call will be available at https://investor.verisign.com/events.cfm. This news release and the financial information discussed on today’s conference call are available at https://investor.verisign.com.
About Verisign
Verisign (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, enables internet navigation for many of the world’s most recognized domain names. Verisign helps enable the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services, operating two of the 13 global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains, which support the majority of global e-commerce. To learn more please visit verisign.com.
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems or services; vulnerabilities in the global routing system; system interruptions or system failures; damage or interruptions to our data centers, data center systems or resolution systems; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the U.S. or other applicable non-U.S. jurisdictions; new laws, regulations, directives or ICANN policies that require us to obtain and maintain personal information of registrants; economic, legal, regulatory, and political risks associated with our international operations; unfavorable changes in, or interpretations of, tax rules and regulations; risks from the adoption of ICANN’s consensus and temporary policies, technical standards and other processes; the weakening of, or changes to, the multi-stakeholder model of internet governance; the outcome of claims, lawsuits, audits or investigations; lower economic growth; our ability to compete in the highly competitive business environment in which we operate; changes in internet practices and behavior and the adoption of substitute technologies, or the negative impact of wholesale price increases; our ability to expand our services into developing and emerging economies; our ability to maintain strong relationships with registrars and their resellers; the continuity of our quarterly dividend; our ability to attract, retain and motivate highly skilled employees; and our ability to protect and enforce our intellectual property rights. More information about potential factors that could affect our business and financial results is included in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Verisign undertakes no obligation to update any of the forward-looking statements after the date of this announcement.
©2025 VeriSign, Inc. All rights reserved. VERISIGN, the VERISIGN logo, and other trademarks, service marks, and designs are registered or unregistered trademarks of VeriSign, Inc. and its subsidiaries in the United States and in foreign countries. All other trademarks are property of their respective owners.
VERISIGN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value) (Unaudited) |
|||||||
|
September 30,
|
|
December 31,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
235.4 |
|
|
$ |
206.7 |
|
Marketable securities |
|
382.3 |
|
|
|
393.2 |
|
Other current assets |
|
70.7 |
|
|
|
63.9 |
|
Total current assets |
|
688.4 |
|
|
|
663.8 |
|
Property and equipment, net |
|
218.6 |
|
|
|
224.5 |
|
Goodwill |
|
52.5 |
|
|
|
52.5 |
|
Deferred tax assets |
|
267.3 |
|
|
|
281.3 |
|
Deposits to acquire intangible assets |
|
145.0 |
|
|
|
145.0 |
|
Other long-term assets |
|
31.9 |
|
|
|
39.4 |
|
Total long-term assets |
|
715.3 |
|
|
|
742.7 |
|
Total assets |
$ |
1,403.7 |
|
|
$ |
1,406.5 |
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
271.0 |
|
|
$ |
257.8 |
|
Deferred revenues |
|
1,036.1 |
|
|
|
973.5 |
|
Current senior notes |
|
— |
|
|
|
299.8 |
|
Total current liabilities |
|
1,307.1 |
|
|
|
1,531.1 |
|
Long-term deferred revenues |
|
348.2 |
|
|
|
330.7 |
|
Long-term senior notes |
|
1,787.6 |
|
|
|
1,492.5 |
|
Long-term tax and other liabilities |
|
11.3 |
|
|
|
10.1 |
|
Total long-term liabilities |
|
2,147.1 |
|
|
|
1,833.3 |
|
Total liabilities |
|
3,454.2 |
|
|
|
3,364.4 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ deficit: |
|
|
|
||||
Preferred stock—par value $.001 per share; Authorized shares: 5.0; Issued and outstanding shares: none |
|
— |
|
|
|
— |
|
Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000; Issued shares: 355.6 at September 30, 2025 and 355.2 at December 31, 2024; Outstanding shares: 92.9 at September 30, 2025 and 95.0 at December 31, 2024 |
|
9,933.4 |
|
|
|
10,645.3 |
|
Accumulated deficit |
|
(11,981.2 |
) |
|
|
(12,600.7 |
) |
Accumulated other comprehensive loss |
|
(2.7 |
) |
|
|
(2.5 |
) |
Total stockholders’ deficit |
|
(2,050.5 |
) |
|
|
(1,957.9 |
) |
Total liabilities and stockholders’ deficit |
$ |
1,403.7 |
|
|
$ |
1,406.5 |
|
VERISIGN, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, except per share data) (Unaudited) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenues |
$ |
419.1 |
|
|
$ |
390.6 |
|
|
$ |
1,231.3 |
|
|
$ |
1,162.0 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenues |
|
48.8 |
|
|
|
46.8 |
|
|
|
147.3 |
|
|
|
143.0 |
|
Research and development |
|
25.4 |
|
|
|
23.2 |
|
|
|
77.1 |
|
|
|
71.8 |
|
Selling, general and administrative |
|
60.6 |
|
|
|
51.3 |
|
|
|
170.7 |
|
|
|
152.8 |
|
Total costs and expenses |
|
134.8 |
|
|
|
121.3 |
|
|
|
395.1 |
|
|
|
367.6 |
|
Operating income |
|
284.3 |
|
|
|
269.3 |
|
|
|
836.2 |
|
|
|
794.4 |
|
Interest expense |
|
(18.9 |
) |
|
|
(18.9 |
) |
|
|
(58.1 |
) |
|
|
(56.5 |
) |
Non-operating income, net |
|
6.3 |
|
|
|
10.5 |
|
|
|
19.3 |
|
|
|
35.9 |
|
Income before income taxes |
|
271.7 |
|
|
|
260.9 |
|
|
|
797.4 |
|
|
|
773.8 |
|
Income tax expense |
|
(58.9 |
) |
|
|
(59.6 |
) |
|
|
(177.9 |
) |
|
|
(179.6 |
) |
Net income |
|
212.8 |
|
|
|
201.3 |
|
|
|
619.5 |
|
|
|
594.2 |
|
Other comprehensive income (loss) |
|
0.1 |
|
|
|
0.4 |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
Comprehensive income |
$ |
212.9 |
|
|
$ |
201.7 |
|
|
$ |
619.3 |
|
|
$ |
594.4 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
2.28 |
|
|
$ |
2.07 |
|
|
$ |
6.60 |
|
|
$ |
6.00 |
|
Diluted |
$ |
2.27 |
|
|
$ |
2.07 |
|
|
$ |
6.58 |
|
|
$ |
6.00 |
|
Shares used to compute earnings per share |
|
|
|
|
|
|
|
||||||||
Basic |
|
93.3 |
|
|
|
97.3 |
|
|
|
93.9 |
|
|
|
99.0 |
|
Diluted |
|
93.6 |
|
|
|
97.3 |
|
|
|
94.1 |
|
|
|
99.1 |
|
VERISIGN, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
|||||||
|
Nine Months Ended September 30, |
||||||
|
2025 |
|
2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
619.5 |
|
|
$ |
594.2 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation of property and equipment |
|
24.5 |
|
|
|
28.1 |
|
Stock-based compensation expense |
|
51.8 |
|
|
|
45.2 |
|
Amortization of discount on investments in debt securities |
|
(8.2 |
) |
|
|
(16.6 |
) |
Other, net |
|
2.4 |
|
|
|
2.1 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Other assets |
|
(3.2 |
) |
|
|
(18.2 |
) |
Other liabilities |
|
20.6 |
|
|
|
(31.9 |
) |
Deferred revenues |
|
80.1 |
|
|
|
52.9 |
|
Net deferred income taxes |
|
14.0 |
|
|
|
15.3 |
|
Net cash provided by operating activities |
|
801.5 |
|
|
|
671.1 |
|
Cash flows from investing activities: |
|
|
|
||||
Proceeds from maturities and sales of marketable securities |
|
412.5 |
|
|
|
1,009.6 |
|
Purchases of marketable securities |
|
(393.6 |
) |
|
|
(684.0 |
) |
Purchases of property and equipment |
|
(18.3 |
) |
|
|
(18.6 |
) |
Net cash provided by investing activities |
|
0.6 |
|
|
|
307.0 |
|
Cash flows from financing activities: |
|
|
|
||||
Repurchases of common stock |
|
(627.2 |
) |
|
|
(963.3 |
) |
Repayment of borrowings |
|
(500.0 |
) |
|
|
— |
|
Proceeds from senior note issuance, net of issuance costs |
|
493.3 |
|
|
|
— |
|
Payment of dividends |
|
(144.1 |
) |
|
|
— |
|
Proceeds from employee stock purchase plan |
|
12.3 |
|
|
|
12.3 |
|
Payment of excise tax on repurchase of common stock |
|
(11.6 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(777.3 |
) |
|
|
(951.0 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
0.1 |
|
|
|
0.1 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
24.9 |
|
|
|
27.2 |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
212.1 |
|
|
|
245.5 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
237.0 |
|
|
$ |
272.7 |
|
Supplemental cash flow disclosures: |
|
|
|
||||
Cash paid for interest |
$ |
55.4 |
|
|
$ |
49.5 |
|
Cash paid for income taxes, net of refunds received |
$ |
169.3 |
|
|
$ |
187.1 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251023052631/en/
Contacts
Investor Relations: David Atchley, datchley@verisign.com, 703-948-3447
Media Relations: David McGuire, davmcguire@verisign.com, 703-948-3800
