VeriSign's Q3 Revenue Jumps 7.3%, Boosts Shareholder Returns

TL;DR

**VRSN is a cash-generating machine, buying back shares and paying dividends, making it a solid long-term hold.**

AI Summary

VeriSign, Inc. reported robust financial performance for the three and nine months ended September 30, 2025. Revenues increased by 7.3% to $419.1 million for the three months, and by 6.0% to $1,231.3 million for the nine months, compared to the same periods in 2024. Net income also saw significant growth, rising 5.7% to $212.8 million for the quarter and 4.3% to $619.5 million for the nine-month period. Basic earnings per share climbed to $2.28 for the quarter and $6.60 for the nine months, up from $2.07 and $6.00 respectively in 2024. The company strategically refinanced debt by issuing $500.0 million of 5.25% senior unsecured notes due June 1, 2032, and used the proceeds to repay $500.0 million of 2025 Notes. VeriSign also expanded its share repurchase program by $913.1 million, bringing the total authorization to $1.50 billion, and initiated a quarterly cash dividend of $0.77 per share in April 2025. Geographically, U.S. revenues grew to $275.9 million for the quarter, while EMEA revenues increased to $71.2 million, demonstrating broad-based growth.

Why It Matters

VeriSign's consistent revenue growth and increased profitability, coupled with its expanded share repurchase program and new dividend, signal strong financial health and a commitment to shareholder returns. This performance is crucial for investors seeking stable, dividend-paying tech stocks, especially given VeriSign's essential role in the internet's infrastructure as the exclusive registry for .com and .net domains. In a competitive digital landscape, VeriSign's ability to maintain pricing power and grow its domain base reinforces its market dominance, potentially attracting more institutional investment and solidifying its position against any emerging alternatives in the domain registry space. Employees benefit from a stable, profitable company, while customers can rely on continued investment in the core infrastructure.

Risk Assessment

Risk Level: low — VeriSign exhibits a low risk profile due to its consistent revenue growth, with revenues increasing by 7.3% to $419.1 million for the quarter and 6.0% to $1,231.3 million for the nine months ended September 30, 2025. The company also maintains a strong cash position, with cash and cash equivalents at $235.4 million as of September 30, 2025, up from $206.7 million at December 31, 2024, indicating robust liquidity and operational stability.

Analyst Insight

Investors should consider VeriSign a stable, income-generating investment given its consistent revenue and net income growth, coupled with its new quarterly dividend of $0.77 per share and ongoing $1.50 billion share repurchase program. This indicates a strong commitment to returning capital to shareholders, making it attractive for long-term portfolios seeking both growth and yield.

Financial Highlights

revenue

$419.1M

total Assets

$1,403.7M

total Debt

$2,147.1M

net Income

$212.8M

eps

$2.28

cash Position

$235.4M

revenue Growth

+7.3%

Revenue Breakdown

Key Numbers

• $419.1M — Revenues (Q3 2025) (Increased 7.3% from $390.6M in Q3 2024)
• $1,231.3M — Revenues (9 Months 2025) (Increased 6.0% from $1,162.0M in 9 Months 2024)
• $212.8M — Net Income (Q3 2025) (Increased 5.7% from $201.3M in Q3 2024)
• $619.5M — Net Income (9 Months 2025) (Increased 4.3% from $594.2M in 9 Months 2024)
• $2.28 — Basic EPS (Q3 2025) (Increased from $2.07 in Q3 2024)
• $6.60 — Basic EPS (9 Months 2025) (Increased from $6.00 in 9 Months 2024)
• $1.50B — Share Repurchase Authorization (Total authorized, including $913.1M added in July 2025)
• $0.77 — Quarterly Cash Dividend (Initiated in April 2025 and declared again in October 2025)
• $500.0M — Senior Unsecured Notes (Issued 2032 Notes and repaid 2025 Notes in March 2025)
• 92.7 million — Shares Outstanding (As of October 17, 2025, reflecting repurchases)

Key Players & Entities

• VERISIGN INC/CA (company) — registrant of the 10-Q filing
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• Board of Directors (person) — authorized share repurchases and declared dividends
• ICANN (company) — receives prepaid registry fees for domain names
• $419.1 million (dollar_amount) — total revenues for the three months ended September 30, 2025
• $212.8 million (dollar_amount) — net income for the three months ended September 30, 2025
• $1.50 billion (dollar_amount) — total share repurchase authorization
• $0.77 (dollar_amount) — quarterly cash dividend per share
• $500.0 million (dollar_amount) — principal amount of 2032 Notes issued and 2025 Notes repaid

FAQ

Industry Context

VeriSign operates in the domain name system (DNS) and internet infrastructure services sector. The company's primary revenue driver is the registration and renewal of .com and .net domain names, which are essential for online presence. The industry is characterized by stable, recurring revenue streams, but also faces potential regulatory scrutiny and competition from alternative domain extensions and services.

Regulatory Implications

As a critical internet infrastructure provider, VeriSign is subject to oversight from various governmental bodies and international organizations. Changes in domain name registration policies, pricing regulations, or data privacy laws could impact its revenue and operational costs. The company's reliance on specific country-code top-level domains (ccTLDs) also exposes it to geopolitical risks and varying regulatory environments.

What Investors Should Do

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Key Dates

• 2025-04-01: Initiated quarterly cash dividend — Returned capital to shareholders, signaling financial strength and confidence.
• 2025-03-01: Issued $500.0 million of 5.25% senior unsecured notes due June 1, 2032, and repaid $500.0 million of 2025 Notes — Strategically refinanced debt, extending maturity and potentially lowering interest costs.
• 2025-07-01: Expanded share repurchase program by $913.1 million — Increased capital allocation to share buybacks, signaling management's belief in undervaluation and commitment to shareholder returns.

Glossary

Senior unsecured notes

Debt instruments issued by a company that are not backed by specific collateral, meaning they are repaid from the general assets of the issuer. (VeriSign issued $500.0 million of these notes in March 2025, indicating a significant component of their long-term debt structure.)

Accumulated deficit

The cumulative net losses of a company since its inception, representing the total amount by which expenses have exceeded revenues. (VeriSign has a substantial accumulated deficit of ($11,981.2 million) as of September 30, 2025, which is typical for companies that have historically reinvested heavily or experienced periods of net losses.)

Deferred revenues

Revenue that has been received by a company but not yet earned, typically because the goods or services have not yet been delivered or performed. (VeriSign reported significant deferred revenues ($1,036.1 million current and $348.2 million long-term as of September 30, 2025), reflecting its business model, likely related to multi-year domain name registrations.)

Year-Over-Year Comparison

Compared to the prior year, VeriSign has demonstrated solid top-line growth, with revenues increasing by 7.3% for the quarter and 6.0% for the nine months ended September 30, 2025. Net income and EPS have also seen corresponding increases, indicating improved profitability. The company has proactively managed its balance sheet by refinancing debt and significantly expanding its share repurchase authorization, alongside initiating a quarterly dividend, signaling a strong focus on shareholder returns and financial health.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share VRSN Nasdaq Global

Filing Documents

• vrsn-20250930.htm (10-Q) — 722KB
• exhibit31verisignbylaws10-.htm (EX-3.1) — 207KB
• vrsn-2025930x10qxex3101.htm (EX-31.01) — 9KB
• vrsn-2025930x10qxex3102.htm (EX-31.02) — 9KB
• vrsn-2025930x10qxex3201.htm (EX-32.01) — 5KB
• vrsn-2025930x10qxex3202.htm (EX-32.02) — 4KB
• 0001014473-25-000046.txt ( ) — 4519KB
• vrsn-20250930.xsd (EX-101.SCH) — 29KB
• vrsn-20250930_cal.xml (EX-101.CAL) — 63KB
• vrsn-20250930_def.xml (EX-101.DEF) — 108KB
• vrsn-20250930_lab.xml (EX-101.LAB) — 394KB
• vrsn-20250930_pre.xml (EX-101.PRE) — 265KB
• vrsn-20250930_htm.xml (XML) — 528KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 , 2025 and 2024 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 19 Item 4.

Controls and Procedures

Controls and Procedures 19

—OTHER INFORMATION

PART II—OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20 Item 5. Other Information 20 Item 6. Exhibits 21

Signatures

Signatures 22 2 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS VERISIGN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value) (Unaudited) September 30, 2025 December 31, 2024 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 See accompanying Notes to Condensed Consolidated Financial Statements. 3 Table of Contents 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 $ 4

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS You should read the following discussion in conjunction with the 2024 Form 10-K and the interim unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item I of this Quarterly Report on Form 10-Q. This Quarterly Report on Form 10-Q contains 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 (the "Exchange Act"). These forward-looking statements are based on current expectations and assumptions and involve risks, uncertainties, and other important factors, including, among other things, statements regarding the Company's quarterly dividend and our expectations about the sufficiency of our existing cash, cash equivalents and marketable securities, and funds generated from operations, together with our borrowing capacity under the unsecured revolving credit facility. In some cases, you can identify forward-looking statements by terms such as "assumes," "could," "estimates," "forecasts," "may," "plans," "potential," "predicts," "projects," "should," "targets," "will," "would," "seeks," "expects," "anticipates," "intends," "believes" and similar language intended to identify forward-looking statements. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section titled "Risk Factors" in Part II, Item 1A of the Quarterly Report on Form 10-Q for the period ended March 31, 2025. You should also carefully review the risks described in other documents we file from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q or Current Reports on Form 8-K that we file in 2025. You are cautioned not to place undue reliance on the