01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported first-quarter 2026 revenues of $428.9 milliona, up from $402.3 million in the prior-year quarter, and operating income of $293.6 million versus $271.2 million.
Net income rose to $214.5 millionb, or $2.34 per diluted share, compared with $199.3 million and $2.10 per diluted share a year earlier. The filing attributes the revenue increase to a larger domain name base as of March 31, 2026 and the .com and .net price increases. The .com and .net domain name base reached 176.1 million, with 11.5 million new registrations processed in the quarter compared with 10.1 million a year earlier.
The final .com and .net renewal rate for the fourth quarter of 2025 was 75.0%, up from 74.0%. Operating cash flow was $272.4 millionc, down from $291.3 million, which management attributes mainly to timing of payments from large customers, higher employee and vendor payments, and higher income tax payments. Cash and marketable securities totaled $556.4 million at March 31, 2026, down from $580.5 million at December 31, 2025.
Stockholders' deficit widened to $(2,213.4) million. During the quarter the company repurchased 0.9 million shares for $214.4 milliond and paid $74.2 million in dividends, and $862.8 million remained available under the repurchase program. On April 20, 2026, the Board declared a quarterly dividend of $0.81 per share, payable May 27, 2026.
On April 23, 2026, the company announced that the annual registry-level wholesale fee for each new and renewal .com registration will rise from $10.26 to $10.97 effective November 1, 2026. Management states that current liquidity should be sufficient for working capital, capital expenditures, the quarterly dividend, and debt service for the next 12 months and beyond.
02—Key points
Key Highlights
- Revenues of $428.9 million for Q1 2026, up from $402.3 million; operating income of $293.6 million, up from $271.2 million.
- Net income of $214.5 million, or $2.34 per diluted share, versus $199.3 million, or $2.10 per diluted share, in Q1 2025.
- The .com and .net domain name base reached 176.1 million as of March 31, 2026, up from 169.8 million a year earlier; 11.5 million new registrations were processed in the quarter versus 10.1 million.
- Operating cash flow was $272.4 million, compared with $291.3 million in the prior-year quarter.
- The company repurchased 0.9 million shares for $214.4 million and paid $74.2 million in dividends; $862.8 million remained under the repurchase authorization at quarter end.
- A quarterly dividend of $0.81 per share was declared April 20, 2026, payable May 27, 2026.
- Effective November 1, 2026, the .com registry-level wholesale fee will increase from $10.26 to $10.97.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Verisign kept $0.50.
- Revenue$428.9M100.0%
- Cost of revenue−$49.2M11.5%
- Gross profit$379.7M88.5%
- Operating costs−$86.1M20.1%
- Operating income$293.6M68.5%
- Interest, other & tax−$79.1M18.4%
- Net income$214.5M50.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $428.90M$402.30M | +6.6% |
| Cost of Revenue | $49.20M$49.40M | −0.4% |
| Gross Profit | $379.70M$352.90M | +7.6% |
| R&D Expenses | $27.50M$26.00M | +5.8% |
| SG&A Expenses | $58.60M$55.70M | +5.2% |
| Operating Expenses | $135.30M$131.10M | +3.2% |
| Operating Income | $293.60M$271.20M | +8.3% |
| Interest Expense | $18.90M$20.30M | −6.9% |
| Net Income | $214.50M$199.30M | +7.6% |
| EPS (Basic) | $2.34$2.11 | +10.9% |
| EPS (Diluted) | $2.34$2.10 | +11.4% |
| Shares Outstanding (Basic) | 91.60M94.60M | −3.2% |
| Shares Outstanding (Diluted) | 91.80M94.80M | −3.2% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue this quarter?
The filing attributes the $428.9 million in revenues, up from $402.3 million, primarily to a larger domain name base as of March 31, 2026 compared with a year earlier and to the .com and .net price increases.
Is the company's cash position weaker than a year ago?
Cash and cash equivalents plus marketable securities totaled $556.4 million at March 31, 2026, versus $580.5 million at December 31, 2025. Operating cash flow was $272.4 million in Q1 2026, compared with $291.3 million in Q1 2025, and the company states that existing liquidity should cover working capital, capital expenditures, the quarterly dividend and debt service for the next 12 months and beyond.
How is the company returning capital to shareholders?
In Q1 2026 the company repurchased 0.9 million shares for $214.4 million and paid $74.2 million in dividends. It had $862.8 million remaining under its repurchase program at March 31, 2026, and declared a $0.81 per share quarterly dividend on April 20, 2026, payable May 27, 2026, with the intention to continue quarterly dividends subject to market conditions and Board approval.
Will the price of .com domain names change?
Yes. The company announced on April 23, 2026 that the annual registry-level wholesale fee for each new and renewal .com registration will increase from $10.26 to $10.97 effective November 1, 2026.
Are there any material pending legal matters?
The filing notes that Afilias Domains No. 3 Limited (now called Altanovo Domains Limited), a losing bidder in the .web auction, filed an Independent Review Process against ICANN on July 14, 2023, and that post-hearing briefing was completed in April 2026. The company also states that its other claims and lawsuits are not expected to have a material adverse effect on its financial condition, results of operations, or cash flows.
06—Continue