Verisign Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. Guidance figures: 1 raised, 1 kept. The quarter’s numbers.

Key takeaways

Revenue rose 6.6 percent: Revenue was $429 million, up 6.6% from the first quarter of 2025. The statements show revenues of $428.9 million against $402.3 million. Source
Operating income rose to $294 million: Operating income was $294 million against $271 million a year earlier. Income before income taxes was $279.4 million against $258.4 million. Source
Domain base reached 176.1 million: The .com and .net domain name base grew 3.7 percent from a year earlier, with a net increase of 2.54 million domain names in the quarter. Source
New registrations rose to 11.5 million: Verisign processed 11.5 million new .com and .net registrations in the quarter, against 10.1 million in the first quarter of 2025. Source
Operating cash flow fell to $272 million: Cash flow from operations was $272 million, against $291 million a year earlier. The cash flow statement shows $272.4 million and $291.3 million. Source
Cash and securities down $24 million: Cash, cash equivalents and marketable securities were $556 million at March 31, 2026, down $24 million from year-end 2025. Source
Repurchased $214 million of stock: Verisign repurchased 0.9 million shares for $214 million in the quarter. Cash paid for repurchases of common stock was $225.4 million. Source

“Through the first quarter of 2026 we continued to execute on our primary mission, extending into its 29th year our unparalleled record of providing 100% availability of our resolution service for the .com/.net domains.”
Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Registry wholesale fee (.com) Source	New and renewal .com registrations from Nov. 1, 2026	$10.97	Raised from $10.26
Quarterly dividend Source	Declared April 20, 2026	$0.81 per share	Kept

What changed from last quarter

New: A higher annual registry-level wholesale fee for .com registrations was announced, from $10.26 to $10.97, effective Nov. 1, 2026. Source
New: The title given for Jim Bidzos now includes President. The prior release gave Executive Chairman and Chief Executive Officer. Source

Results and growth drivers

Revenue rose 6.6 percent: Revenue was $429 million, up 6.6% from the first quarter of 2025. The statements show revenues of $428.9 million against $402.3 million. Source
Operating income rose to $294 million: Operating income was $294 million against $271 million a year earlier. Income before income taxes was $279.4 million against $258.4 million. Source
Diluted EPS rose to $2.34: Net income was $215 million against $199 million. Diluted EPS was $2.34, against $2.10 for the same quarter of 2025. Source
Deferred revenues up $45 million: Deferred revenues were $1.43 billion at March 31, 2026, up $45 million from year-end 2025. Long-term deferred revenues were $358.2 million. Source

Domain base and registrations

Domain base reached 176.1 million: The .com and .net domain name base grew 3.7 percent from a year earlier, with a net increase of 2.54 million domain names in the quarter. Source
New registrations rose to 11.5 million: Verisign processed 11.5 million new .com and .net registrations in the quarter, against 10.1 million in the first quarter of 2025. Source
Fourth-quarter renewal rate higher: The final renewal rate for Q4 2025 was 75.0 percent, against 74.0 percent a year earlier. Renewal rates are not fully measurable until 45 days after quarter end. Source

“For the quarter, we delivered both steady growth in registrations and solid financial results,”
Jim Bidzos, Executive Chairman, President and Chief Executive Officer

Costs and operating expenses

Total costs rose to $135.3 million: Total costs and expenses were $135.3 million against $131.1 million. Operating income was $293.6 million against $271.2 million. Source
Cost of revenues edged lower: Cost of revenues was $49.2 million against $49.4 million. Research and development rose to $27.5 million from $26.0 million. Source
Selling and administrative costs rose: Selling, general and administrative expense was $58.6 million, up from $55.7 million in the first quarter of 2025. Source

Cash flow and working capital

Operating cash flow fell to $272 million: Cash flow from operations was $272 million, against $291 million a year earlier. The cash flow statement shows $272.4 million and $291.3 million. Source
Deferred revenue inflow smaller: Deferred revenues added $44.9 million to operating cash flow, against $57.2 million. Other liabilities used $16.2 million, against a $6.6 million source. Source
Depreciation and stock compensation: Depreciation of property and equipment was $6.4 million, against $8.9 million. Stock-based compensation expense was $19.1 million, against $17.5 million. Source

Cash, debt and investing

Cash and securities down $24 million: Cash, cash equivalents and marketable securities were $556 million at March 31, 2026, down $24 million from year-end 2025. Source
Stockholders' deficit widened: Total stockholders’ deficit was $2,213.4 million at March 31, 2026, against $2,154.2 million at December 31, 2025. Total liabilities were $3,510.6 million. Source
Capital spending rose: Purchases of property and equipment were $7.2 million in the quarter, against $5.8 million a year earlier. Source

Share repurchases and dividends

Repurchased $214 million of stock: Verisign repurchased 0.9 million shares for $214 million in the quarter. Cash paid for repurchases of common stock was $225.4 million. Source
$863 million left on buyback: $863 million remained under the share repurchase program at March 31, 2026. The program has no expiration. Source
Dividend payments in financing outflows: Payment of dividends was $74.2 million in the quarter. Repurchases of common stock used $225.4 million in financing activities. Source

Coming up, as management said on 23 April 2026

Dividend record and payment dates: The $0.81 dividend is payable to stockholders of record on May 19, 2026, with payment due on May 27, 2026. Source
Higher wholesale fee takes effect: The higher .com wholesale fee applies to new and renewal registrations from Nov. 1, 2026. Source

Figures management reported

Figure	Reported
Domain name registrations in the base (.com and .net) Source	176.1 million
New .com and .net registrations processed in the quarter Source	11.5 million
Final .com and .net renewal rate, Q4 2025 Source	75.0 percent

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 First Quarter 2026 Results

RESTON, VA - April 23, 2026 - VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the first quarter of 2026.

VeriSign, Inc. and its subsidiaries (“Verisign”) reported revenue of $429 million for the first quarter of 2026, up 6.6 percent from the same quarter in 2025. Operating income was $294 million for the first quarter of 2026, compared to $271 million for the same quarter of 2025. Verisign reported net income of $215 million and diluted earnings per share (diluted “EPS”) of $2.34 for the first quarter of 2026, compared to net income of $199 million and diluted EPS of $2.10 for the same quarter of 2025.

“Through the first quarter of 2026 we continued to execute on our primary mission, extending into its 29th year our unparalleled record of providing 100% availability of our resolution service for the .com/.net domains. For the quarter, we delivered both steady growth in registrations and solid financial results,” said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Financial Highlights

Verisign ended the first quarter of 2026 with cash, cash equivalents and marketable securities of $556 million, a decrease of $24 million from year-end 2025.
Cash flow from operations was $272 million for the first quarter of 2026, compared to $291 million for the same quarter of 2025.
Deferred revenues as of March 31, 2026 totaled $1.43 billion, an increase of $45 million from year-end 2025.
During the first quarter of 2026, Verisign repurchased 0.9 million shares of its common stock for $214 million. As of March 31, 2026, there was $863 million remaining for future share repurchases under the share repurchase program, which has no expiration.
On April 20, 2026, Verisign’s Board of Directors approved a cash dividend of $0.81 per share of Verisign’s outstanding common stock to stockholders of record as of the close of business on May 19, 2026, payable on May 27, 2026.

Business Highlights

Verisign ended the first quarter of 2026 with 176.1 million .com and .net domain name registrations in the domain name base, a 3.7 percent increase from the end of the first quarter of 2025, and a net increase of 2.54 million domain names during the first quarter of 2026.
During the first quarter of 2026, Verisign processed 11.5 million new domain name registrations for .com and .net, compared with 10.1 million for the first quarter of 2025.
The final .com and .net renewal rate for the fourth quarter of 2025 was 75.0 percent compared to 74.0 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after the end of the quarter.
Verisign announces that it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $10.26 to $10.97 effective Nov. 1, 2026.

Today’s Conference Call

Verisign will host a live conference call today at 4:30 p.m. (EDT) to review the first quarter 2026 results. The call will be accessible by direct dial at (888) 676-VRSN (U.S.) or (646) 769-9200 (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 implementation 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; challenging economic conditions; 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; our ability to attract, retain and motivate highly skilled employees; the continuity of our quarterly dividend; our ability to protect and enforce our intellectual property rights; challenges from the use of AI technology by third-parties or us; and the impact on our stock price from the dissemination of false or misleading information by unrelated third parties. 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, 2025 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.

©2026 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)

	March 31, 2026	December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$476.7	$307.9
Marketable securities	79.7	272.6
Other current assets	69.6	72.0
Total current assets	626.0	652.5
Property and equipment, net	214.2	213.7
Goodwill	52.5	52.5
Deferred tax assets	227.9	233.2
Deposits to acquire intangible assets	145.2	145.2
Other long-term assets	31.4	28.8
Total long-term assets	671.2	673.4
Total assets	$1,297.2	$1,325.9
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities	$283.9	$298.0
Deferred revenues	1,071.2	1,035.1
Total current liabilities	1,355.1	1,333.1
Long-term deferred revenues	358.2	349.4
Long-term senior notes	1,788.8	1,788.2
Long-term tax and other liabilities	8.5	9.4
Total long-term liabilities	2,155.5	2,147.0
Total liabilities	3,510.6	3,480.1
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: 355.8 at March 31, 2026 and 355.6 at December 31, 2025; Outstanding shares: 91.1 at March 31, 2026 and 91.9 at December 31, 2025	9,349.9	9,623.5
Accumulated deficit	(11,560.5)	(11,775.0)
Accumulated other comprehensive loss	(2.8)	(2.7)
Total stockholders’ deficit	(2,213.4)	(2,154.2)
Total liabilities and stockholders’ deficit	$1,297.2	$1,325.9

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except per share data)

(Unaudited)

	Three Months Ended March 31,
	2026	2025
Revenues	$428.9	$402.3
Costs and expenses:
Cost of revenues	49.2	49.4
Research and development	27.5	26.0
Selling, general and administrative	58.6	55.7
Total costs and expenses	135.3	131.1
Operating income	293.6	271.2
Interest expense	(18.9)	(20.3)
Non-operating income, net	4.7	7.5
Income before income taxes	279.4	258.4
Income tax expense	(64.9)	(59.1)
Net income	214.5	199.3
Other comprehensive loss	(0.1)	(0.3)
Comprehensive income	$214.4	$199.0
Earnings per share:
Basic	$2.34	$2.11
Diluted	$2.34	$2.10
Shares used to compute earnings per share
Basic	91.6	94.6
Diluted	91.8	94.8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Three Months Ended March 31,
	2026	2025
Cash flows from operating activities:
Net income	$214.5	$199.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	6.4	8.9
Stock-based compensation expense	19.1	17.5
Amortization of discount on investments in debt securities	(1.6)	(3.6)
Other, net	0.4	1.1
Changes in operating assets and liabilities:
Other assets	(0.4)	0.2
Other liabilities	(16.2)	6.6
Deferred revenues	44.9	57.2
Net deferred income taxes	5.3	4.1
Net cash provided by operating activities	272.4	291.3
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities	273.8	358.6
Purchases of marketable securities	(79.4)	(35.2)
Purchases of property and equipment	(7.2)	(5.8)
Net cash provided by investing activities	187.2	317.6
Cash flows from financing activities:
Repurchases of common stock	(225.4)	(241.7)
Payment of dividends	(74.2)	-
Proceeds from employee stock purchase plan	8.5	7.9
Repayment of borrowings	-	(500.0)
Proceeds from senior note issuance, net of issuance costs	-	493.9
Net cash used in financing activities	(291.1)	(239.9)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	0.3	(0.3)
Net increase in cash, cash equivalents, and restricted cash	168.8	368.7
Cash, cash equivalents, and restricted cash at beginning of period	309.5	212.1
Cash, cash equivalents, and restricted cash at end of period	$478.3	$580.8
Supplemental cash flow disclosures:
Cash paid for interest	$13.1	$26.2
Cash paid for income taxes, net of refunds received	$28.7	$20.0

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