Verisign Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 23 October 2025: press release. The quarter’s numbers.

Key takeaways

Revenue grew 7.3 percent: Revenue was $419 million, up 7.3 percent from the third quarter of 2024. Operating income was $284 million, compared with $269 million a year earlier. Source
Net income and diluted EPS rose: Net income was $213 million, compared with $201 million a year earlier. Diluted EPS was $2.27, compared with $2.07. Source
Domain base reached 171.9 million: The .com and .net domain name base ended the quarter at 171.9 million registrations, up 1.4 percent from the end of the third quarter of 2024, with a net increase of 1.45 million in the quarter. Source
Renewal rate rose to 75.5 percent: The final .com and .net renewal rate for the second quarter of 2025 was 75.5 percent, compared with 72.7 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after quarter end. Source
Operating cash flow rose to $308 million: Cash flow from operations was $308 million for the third quarter of 2025, compared with $253 million for the same quarter of 2024. Source
Deferred revenues rose $80 million: Deferred revenues were $1.38 billion at September 30, 2025, up $80 million from year-end 2024. Current deferred revenues were $1,036.1 million and long-term deferred revenues were $348.2 million. Source
Repurchased $215 million of stock: Third-quarter repurchases totaled 0.8 million shares at a cost of $215 million, up from $163 million for 0.6 million shares in the second quarter. Source
Quarterly dividend held at $0.77: The $0.77 dividend matches the amount in the prior release, which said the board approved it on July 22, 2025. Nine-month dividend payments were $144.1 million. Source

“In the quarter we delivered both growth in the domain name base and solid financial performance.”
Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Results and growth drivers

Revenue grew 7.3 percent: Revenue was $419 million, up 7.3 percent from the third quarter of 2024. Operating income was $284 million, compared with $269 million a year earlier. Source
Net income and diluted EPS rose: Net income was $213 million, compared with $201 million a year earlier. Diluted EPS was $2.27, compared with $2.07. Source
Nine-month revenue and operating income: For the nine months ended September 30, 2025, revenue was $1,231.3 million, against $1,162.0 million. Operating income was $836.2 million, against $794.4 million. Source

Domain base and registrations

Domain base reached 171.9 million: The .com and .net domain name base ended the quarter at 171.9 million registrations, up 1.4 percent from the end of the third quarter of 2024, with a net increase of 1.45 million in the quarter. Source
New registrations rose to 10.6 million: Verisign processed 10.6 million new .com and .net registrations in the third quarter, compared with 9.3 million in the third quarter of 2024. Source
Renewal rate rose to 75.5 percent: The final .com and .net renewal rate for the second quarter of 2025 was 75.5 percent, compared with 72.7 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after quarter end. Source

“We also continued our consistent return of value to shareholders through dividends and share repurchases”
Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Costs and operating expenses

Total costs and expenses rose: Total costs and expenses were $134.8 million, against $121.3 million. Selling, general and administrative expense was $60.6 million, against $51.3 million. Research and development was $25.4 million, against $23.2 million. Source
Cost of revenues rose to $48.8 million: Cost of revenues was $48.8 million, against $46.8 million in the third quarter of 2024. Source
Non-operating income fell: Non-operating income, net was $6.3 million, against $10.5 million. Interest expense was $18.9 million in both periods. Source
Income tax expense was lower: Income tax expense was $58.9 million, against $59.6 million. Income before income taxes was $271.7 million, against $260.9 million. Source

Cash flow and balance sheet

Operating cash flow rose to $308 million: Cash flow from operations was $308 million for the third quarter of 2025, compared with $253 million for the same quarter of 2024. Source
Cash and securities totaled $618 million: Cash, cash equivalents and marketable securities totaled $618 million, up $18 million from year-end 2024. Cash and cash equivalents were $235.4 million at September 30, 2025. Source
Deferred revenues rose $80 million: Deferred revenues were $1.38 billion at September 30, 2025, up $80 million from year-end 2024. Current deferred revenues were $1,036.1 million and long-term deferred revenues were $348.2 million. Source
Senior notes rose, current notes repaid: Long-term senior notes rose to $1,787.6 million from $1,492.5 million at year-end 2024. Current senior notes went to nil from $299.8 million. Nine-month repayment of borrowings was $500.0 million, and senior note proceeds were $493.3 million. Source

Capital returns to shareholders

Repurchased $215 million of stock: Third-quarter repurchases totaled 0.8 million shares at a cost of $215 million, up from $163 million for 0.6 million shares in the second quarter. Source
$1.33 billion repurchase authority remains: $1.33 billion remained under the share repurchase program at September 30, 2025, and the program has no expiration. Nine-month repurchases of common stock were $627.2 million. Source
Quarterly dividend held at $0.77: The $0.77 dividend matches the amount in the prior release, which said the board approved it on July 22, 2025. Nine-month dividend payments were $144.1 million. Source

Share count and per-share results

Diluted share count fell: Weighted diluted shares were 93.6 million in the third quarter, against 97.3 million a year earlier. Source
Basic EPS was $2.28: Basic EPS was $2.28 for the quarter, against $2.07 a year earlier. Nine-month diluted EPS was $6.58, against $6.00. Source
Outstanding shares fell to 92.9 million: Outstanding shares were 92.9 million at September 30, 2025, against 95.0 million at December 31, 2024. Source

Registry scope and role

Registration and resolution for .com and .net: Verisign provides registration services and authoritative resolution for the .com and .net top-level domains, which the release says support the majority of global e-commerce. Source
Root zone maintainer and root servers: The release describes root zone maintainer services and operation of two of the 13 global internet root servers. Source
Role in DNS security and stability: Verisign says it helps enable the security, stability, and resiliency of the Domain Name System and the internet. Source

Coming up, as management said on 23 October 2025

Dividend record and payment dates: The dividend has a November 18, 2025 record date and a November 25, 2025 payment date. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Verisign Reports Third Quarter 2025 Results

RESTON, VA - Oct. 23, 2025 - 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.

Forward-looking statements notice

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.

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

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

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

Contacts
Investor Relations: David Atchley, datchley@verisign.com, 703-948-3447
Media Relations: David McGuire, davmcguire@verisign.com, 703-948-3800