01—Abstract
Summary
Summary of the 10-Q filed July 24, 2025. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported second-quarter 2025 revenues of $409.9 milliona, up from $387.1 million a year earlier, and six-month revenues of $812.2 million versus $771.4 million.
Operating income rose to $280.7 millionb for the quarter and $551.9 million for the six months, and net income was $207.4 million for the quarter (diluted EPS $2.21) and $406.7 million for the six months (diluted EPS $4.31). Management attributed the revenue increase primarily to .com and .net price increases, partially offset by a slight decline in the domain name base, which ended the quarter at 170.5 million registrations. Cash flow and capital return remained central.
Net cash provided by operating activities was $493.8 millionc for the six months, versus $417.7 million a year earlier. The company repurchased $408.5 million of common stock in the first half, paid a $0.77 per share dividend totaling $72.1 million, and on July 24, 2025 authorized an additional $913.1 million of repurchases, bringing total authorization to up to $1.50 billion. The balance sheet shows a total stockholders' deficit of $1,993.8 million, with senior notes of $1,786.9 million long-term.
In March 2025 the company issued $500.0 milliond of 5.25% notes due 2032 and used the proceeds, with cash on hand, to repay $500.0 million of 2025 notes. The filing reports that a legal proceeding involving an Independent Review Process against ICANN continues, with Verisign granted participation in aspects of it, and that the company expects its existing resources to meet working capital, capital expenditure, dividend and debt service needs for the next 12 months and beyond. The company also noted it is evaluating the impact of the One Big Beautiful Bill Act, enacted July 4, 2025.
02—Key points
Key Highlights
- Revenues of $409.9 million in Q2 2025 versus $387.1 million in Q2 2024; six-month revenues of $812.2 million versus $771.4 million
- Operating income of $280.7 million for the quarter and $551.9 million for the six months, versus $266.2 million and $525.1 million a year earlier
- Net income of $207.4 million for Q2 2025 (diluted EPS $2.21) versus $198.8 million (diluted EPS $2.01) in Q2 2024
- Net cash from operating activities of $493.8 million for the six months, up from $417.7 million
- Share repurchases of $408.5 million in the first half of 2025, and a new $913.1 million authorization effective July 24, 2025, for a total of up to $1.50 billion under the program
- Quarterly cash dividend of $0.77 per share declared in April and again in July 2025 (payable August 27, 2025)
- Issued $500.0 million of 5.25% senior notes due 2032 and repaid $500.0 million of 2025 notes at maturity; total stockholders' deficit was $1,993.8 million at June 30, 2025
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Verisign kept $0.51.
- Revenue$409.9M100.0%
- Cost of revenue−$49.1M12.0%
- Gross profit$360.8M88.0%
- Operating costs−$80.1M19.5%
- Operating income$280.7M68.5%
- Interest, other & tax−$73.3M17.9%
- Net income$207.4M50.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 24, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $409.90M$387.10M | +5.9% |
| Cost of Revenue | $49.10M$47.10M | +4.2% |
| Gross Profit | $360.80M$340.00M | +6.1% |
| R&D Expenses | $25.70M$23.80M | +8.0% |
| SG&A Expenses | $54.40M$50.00M | +8.8% |
| Operating Expenses | $129.20M$120.90M | +6.9% |
| Operating Income | $280.70M$266.20M | +5.4% |
| Interest Expense | $18.90M$18.80M | +0.5% |
| Net Income | $207.40M$198.80M | +4.3% |
| EPS (Basic) | $2.21$2.01 | +10.0% |
| EPS (Diluted) | $2.21$2.01 | +10.0% |
| Shares Outstanding (Basic) | 93.80M98.90M | −5.2% |
| Shares Outstanding (Diluted) | 94.00M99.00M | −5.1% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue?
The filing states that revenues increased during the three and six months ended June 30, 2025, primarily due to .com and .net price increases, partially offset by a slight decline in the .com and .net domain name base compared to June 30, 2024.
How many domain name registrations does the company have, and how did they change?
As of June 30, 2025, there were 170.5 million .com and .net registrations in the domain name base, compared to 170.6 million at June 30, 2024. The base increased by a net 0.7 million registrations from March 31, 2025.
How is the company returning capital to shareholders?
In the first half of 2025 the company repurchased $408.5 million of common stock and paid $72.1 million in dividends. It declared a $0.77 per share quarterly dividend in July 2025 and, effective July 24, 2025, authorized an additional $913.1 million of repurchases, with $630.1 million remaining as of June 30, 2025 before that authorization.
What is the status of the Afilias/ICANN legal matter?
The filing states that on May 22, 2025, the IRP panel granted Verisign's application to participate in aspects of an Independent Review Process filed by Afilias Domains No. 3 Limited (now called Altanovo Domains Limited) against ICANN. The company also states that other claims and lawsuits are not expected to have a material adverse effect.
How will the new tax legislation affect the company?
The filing states that the One Big Beautiful Bill Act was enacted on July 4, 2025, and that the company is currently evaluating the impact of its tax regulations on its financial statements. No estimate of the impact is provided.
06—Continue