01—Abstract
Summary
Summary of the 10-Q filed October 23, 2025. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported third-quarter 2025 revenues of $419.1 milliona, up 7% from $390.6 million a year earlier, and nine-month revenues of $1,231.3 million, up 6% from $1,162.0 million.
Operating income rose to $284.3 millionb for the quarter (from $269.3 million) and $836.2 million for the nine months (from $794.4 million). Net income was $212.8 million for the quarter and $619.5 million for the nine months, compared with $201.3 million and $594.2 million in the prior-year periods. Diluted EPS was $2.27 for the quarter and $6.58 for the nine months, versus $2.07 and $6.00 a year earlier.
The filing attributes revenue growth primarily to .com and .net price increases and a larger domain name base, which stood at 171.9 million registrations, up 1.4% from September 30, 2024. Cash flow and capital returns were central to the period. Net cash from operating activities was $801.5 millionc for the nine months, versus $671.1 million a year earlier.
The company repurchased 0.8 million shares for $215.0 milliond in the quarter and paid $144.1 million in dividends over the nine months after initiating a quarterly dividend in April 2025. The Board authorized a total repurchase program of up to $1.50 billion effective July 24, 2025, with $1.33 billion remaining at September 30, 2025, and declared a further $0.77 per share dividend on October 21, 2025. The balance sheet remains in a stockholders' deficit of $2,050.5 million, with total liabilities of $3,454.2 million against total assets of $1,403.7 million.
Long-term senior notes rose to $1,787.6 million after the company issued $500.0 million of 5.25% notes due 2032 in March 2025 and used the proceeds, with cash on hand, to repay $500.0 million of notes maturing in April 2025. Management states that existing cash, marketable securities and operating cash flows should be sufficient for working capital, capital expenditures, quarterly dividends and debt service for at least the next 12 months.
02—Key points
Key Highlights
- Revenue of $419.1 million for Q3 2025 (up 7%) and $1,231.3 million for nine months (up 6%), driven mainly by .com and .net price increases and a larger domain name base
- Operating income of $284.3 million for Q3 2025 and $836.2 million for nine months, up 6% and 5% respectively
- Diluted EPS of $2.27 for Q3 2025 versus $2.07 a year earlier; nine-month diluted EPS of $6.58 versus $6.00
- Net cash provided by operating activities of $801.5 million for nine months 2025, compared with $671.1 million in 2024
- Repurchased $627.2 million of common stock in the nine months and paid $144.1 million in dividends; $1.33 billion remains under the $1.50 billion repurchase authorization
- Quarterly dividend declared at $0.77 per share on October 21, 2025, payable November 25, 2025
- Stockholders' deficit of $2,050.5 million at September 30, 2025; long-term senior notes of $1,787.6 million after the March 2025 issuance of $500.0 million 5.25% notes due 2032
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Verisign kept $0.51.
- Revenue$419.1M100.0%
- Cost of revenue−$48.8M11.6%
- Gross profit$370.3M88.4%
- Operating costs−$86.0M20.5%
- Operating income$284.3M67.8%
- Interest, other & tax−$71.5M17.1%
- Net income$212.8M50.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 23, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $419.10M$390.60M | +7.3% |
| Cost of Revenue | $48.80M$46.80M | +4.3% |
| Gross Profit | $370.30M$343.80M | +7.7% |
| R&D Expenses | $25.40M$23.20M | +9.5% |
| SG&A Expenses | $60.60M$51.30M | +18.1% |
| Operating Expenses | $134.80M$121.30M | +11.1% |
| Operating Income | $284.30M$269.30M | +5.6% |
| Interest Expense | $18.90M$18.90M | 0.0% |
| Net Income | $212.80M$201.30M | +5.7% |
| EPS (Basic) | $2.28$2.07 | +10.1% |
| EPS (Diluted) | $2.27$2.07 | +9.7% |
| Shares Outstanding (Basic) | 93.30M97.30M | −4.1% |
| Shares Outstanding (Diluted) | 93.60M97.30M | −3.8% |
05—Questions
Frequently Asked Questions
What drove VeriSign's revenue growth in the third quarter of 2025?
The filing attributes the increase in revenues for the three and nine months ended September 30, 2025 primarily to .com and .net price increases and an increase in the domain name base, which reached 171.9 million registrations at September 30, 2025 versus 169.6 million a year earlier. Renewal rates for .com and .net were 75.5% for the second quarter of 2025 versus 72.7% for the second quarter of 2024.
How much is VeriSign returning to shareholders?
In the nine months ended September 30, 2025, the company repurchased $627.2 million of common stock and paid $144.1 million in dividends. The Board authorized up to $1.50 billion under the repurchase program effective July 24, 2025, leaving $1.33 billion available at September 30, 2025. The company also declared a $0.77 per share quarterly dividend on October 21, 2025 and intends to continue paying quarterly dividends subject to market conditions and Board approval.
Does VeriSign have enough liquidity to meet its obligations?
Cash and cash equivalents were $235.4 million and marketable securities were $382.3 million at September 30, 2025, totaling $617.7 million. Management believes these balances, together with operating cash flows and its ability to arrange additional financing, should be sufficient to meet working capital, capital expenditure, dividend and debt service requirements for the next 12 months and beyond. The company had no outstanding borrowings under its credit facility and $200.0 million of borrowing capacity.
What changed in the company's debt during 2025?
On March 11, 2025, VeriSign issued $500.0 million of 5.25% senior unsecured notes due June 1, 2032, at 99.581% of par, with net proceeds of $493.3 million reported in financing cash flows. On March 31, 2025, it used those proceeds and cash on hand to repay all $500.0 million of its 5.25% notes due April 1, 2025. Senior notes outstanding also include $750.0 million of 2.70% notes due 2031 and $550.0 million of 4.75% notes due 2027.
Why does VeriSign have a stockholders' deficit, and how did the deficit change?
The stockholders' deficit was $2,050.5 million at September 30, 2025, compared with $1,957.9 million at December 31, 2024. The filing shows that share repurchases of $627.2 million and dividends of $144.1 million reduced additional paid-in capital during the nine months, while net income of $619.5 million partly offset these reductions. Total liabilities of $3,454.2 million exceeded total assets of $1,403.7 million at period end.
06—Continue