01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
VeriSign, Inc. reported higher second-quarter 2026 results, with revenues of $434.6 milliona versus $409.9 million a year earlier and operating income of $296.3 million versus $280.7 million.
Net income rose to $216.5 millionb from $207.4 million, and diluted EPS was $2.38 versus $2.21. For the six months ended June 30, 2026, revenues were $863.5 million, operating income $589.9 million, and net income $431.0 million. The filing attributes revenue growth mainly to a larger domain name base and .com price increases.
The .com and .net domain name base reached 179.1 million registrations, up 5.1% from June 30, 2025, and the company processed 12.7 million new .com and .net registrations in the quarter versus 10.4 million a year earlier. The balance sheet shows cash and cash equivalents of $840.9 millionc and marketable securities of $193.2 million at June 30, 2026, up from $307.9 million and $272.6 million at December 31, 2025. Total stockholders' deficit was $(2,254.1) million, and total liabilities were $4,056.9 million.
In June 2026 the company issued $550.0 milliond of 5.10% senior notes due 2031 and, on July 20, 2026, used those proceeds and cash on hand to redeem its $550.0 million 4.75% notes due 2027. Operating cash flow was $504.0 million for the six months, compared with $493.8 million a year earlier. Capital returns continued.
The company repurchased $196.8 million of stock in the second quarter and paid $147.8 million in dividends for the six months. On July 23, 2026 the board authorized an additional $884.2 million of repurchases, bringing total available authorization to up to $1.50 billion.
A quarterly dividend of $0.81 per share was declared on July 20, 2026, payable August 27, 2026. The filing also notes that the .web TLD was delegated into the root zone on July 22, 2026, and that the .web dispute has been resolved.
02—Key points
Key Highlights
- Q2 2026 revenues rose to $434.6 million from $409.9 million, and six-month revenues rose to $863.5 million from $812.2 million, with the filing citing a 6% increase for both periods.
- Q2 2026 net income was $216.5 million versus $207.4 million, and diluted EPS was $2.38 versus $2.21; six-month diluted EPS was $4.71 versus $4.31.
- The .com and .net domain name base reached 179.1 million, a 5.1% increase from June 30, 2025, with 12.7 million new registrations in Q2 2026 versus 10.4 million in Q2 2025.
- The company issued $550.0 million of 5.10% senior notes due 2031 and redeemed all $550.0 million of its 4.75% 2017 notes on July 20, 2026.
- Stockholders' deficit was $(2,254.1) million at June 30, 2026, versus $(2,154.2) million at December 31, 2025, while cash and marketable securities totaled $1,034.1 million.
- A new $884.2 million buyback authorization brings total repurchase capacity to up to $1.50 billion; $666.0 million remained under the program at June 30, 2026.
- The .com wholesale registry fee will rise from $10.26 to $10.97 effective November 1, 2026, and the board declared a $0.81 quarterly dividend payable August 27, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Verisign kept $0.50.
- Revenue$434.6M100.0%
- Cost of revenue−$50.0M11.5%
- Gross profit$384.6M88.5%
- Operating costs−$88.3M20.3%
- Operating income$296.3M68.2%
- Interest, other & tax−$79.8M18.4%
- Net income$216.5M49.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $434.60M$409.90M | +6.0% |
| Cost of Revenue | $50.00M$49.10M | +1.8% |
| Gross Profit | $384.60M$360.80M | +6.6% |
| R&D Expenses | $27.50M$25.70M | +7.0% |
| SG&A Expenses | $60.80M$54.40M | +11.8% |
| Operating Expenses | $138.30M$129.20M | +7.0% |
| Operating Income | $296.30M$280.70M | +5.6% |
| Interest Expense | $19.20M$18.90M | +1.6% |
| Net Income | $216.50M$207.40M | +4.4% |
| EPS (Basic) | $2.38$2.21 | +7.7% |
| EPS (Diluted) | $2.38$2.21 | +7.7% |
| Shares Outstanding (Basic) | 90.80M93.80M | −3.2% |
| Shares Outstanding (Diluted) | 91.10M94.00M | −3.1% |
05—Questions
Frequently Asked Questions
What drove the revenue increase in the second quarter of 2026?
The filing states that revenues increased primarily due to a larger domain name base as of June 30, 2026 compared with June 30, 2025, and due to .com price increases. Revenues were $434.6 million for the quarter, compared with $409.9 million a year earlier.
How is the company's debt position changing?
In June 2026 the company issued $550.0 million of 5.10% senior unsecured notes due July 15, 2031, at 99.961% of par. On July 20, 2026, it used those proceeds and cash on hand to redeem all $550.0 million of its 4.75% 2017 notes. As of June 30, 2026, the company had no outstanding borrowings under its $200.0 million credit facility, which matures in 2028.
How much is the company returning to shareholders?
In the six months ended June 30, 2026, the company repurchased $426.8 million of common stock and paid $147.8 million in dividends. On July 23, 2026 the board authorized an additional $884.2 million of repurchases, for total authorization of up to $1.50 billion, and declared a $0.81 per share dividend payable August 27, 2026.
Are there any upcoming pricing changes that could affect future revenue?
The filing states that the annual registry-level wholesale fee for each new and renewal .com domain name registration will increase from $10.26 to $10.97 effective November 1, 2026. The company also notes it may increase .com prices by up to 7% in each of the final four years of each six-year period under its agreement with ICANN.
Why is the stockholders' deficit still negative, and does it affect liquidity?
Total stockholders' deficit was $(2,254.1) million at June 30, 2026, and total liabilities were $4,056.9 million. Current liabilities of $1,899.1 million include deferred revenues of $1,084.8 million and current senior notes of $549.3 million. The company states that existing cash, marketable securities, and operating cash flows should be sufficient for working capital, capital expenditures, the quarterly dividend, and debt service for the next 12 months and beyond.
06—Continue