Verisign Stock Earnings Reports

VeriSign reported solid Q3 2025 results driven by continued improvement in its .com and .net domain name base. Key operational highlights: domain base reached 171.9 million names (up 1.4% YoY) with 10.6 million new registrations in the quarter and a preliminary renewal rate of 75.3% (vs. 72.2% a year ago). Management raised its full-year 2025 domain base growth expectation to 2.2%–2.5%. Financials: revenue was $419 million (up 7.3% YoY), diluted EPS $2.27 (up 9.7% YoY), operating cash flow $308 million and free cash flow $303 million. Operating expense rose modestly (driven by incentive compensation and legal costs). Updated full-year guidance: revenue $1.652–1.657 billion; operating income $1.119–1.124 billion; interest and nonoperating expense $50–60 million; capex $25–35 million; GAAP tax rate 21–24%. Capital allocation: returned $287 million this quarter ($215M buybacks, $72M dividends); $1.33 billion remains available under the repurchase program; Board declared a $0.77/share quarterly dividend. Strategic/market commentary: management attributes improved domain trends to enhanced registrar/channel programs and some favorable cyclical shifts; sees AI as an incremental driver of both registrations and DNS resolution activity (infrastructure now averages ~450 billion DNS transactions/day). Legal/portfolio notes: no new developments on the .web litigation ahead of a mid-November hearing; monitoring ICANN’s next new gTLD round (expected to open in 2Q 2026). Overall tone: disciplined financially, continuing investment in registrar programs, positive secular tailwinds from AI and improved renewal dynamics.