“Through the first quarter of 2026 we continued to execute on our primary mission, extending into its 29th year our unparalleled record of providing 100% availability of our resolution service for the .com/.net domains. For the quarter, we delivered both steady growth in registrations and solid financial results,” said
Financial Highlights
-
Verisign ended the first quarter of 2026 with cash, cash equivalents and marketable securities of$556 million , a decrease of$24 million from year-end 2025. -
Cash flow from operations was
$272 million for the first quarter of 2026, compared to$291 million for the same quarter of 2025. -
Deferred revenues as of
March 31, 2026 totaled$1.43 billion , an increase of$45 million from year-end 2025. -
During the first quarter of 2026,
Verisign repurchased 0.9 million shares of its common stock for$214 million . As ofMarch 31, 2026 , there was$863 million remaining for future share repurchases under the share repurchase program, which has no expiration. -
On
April 20, 2026 , Verisign’s Board of Directors approved a cash dividend of$0.81 per share of Verisign’s outstanding common stock to stockholders of record as of the close of business onMay 19, 2026 , payable onMay 27, 2026 .
Business Highlights
-
Verisign ended the first quarter of 2026 with 176.1 million .com and .netdomain name registrations in the domain name base, a 3.7 percent increase from the end of the first quarter of 2025, and a net increase of 2.54 million domain names during the first quarter of 2026. -
During the first quarter of 2026,
Verisign processed 11.5 million new domain name registrations for .com and .net, compared with 10.1 million for the first quarter of 2025. - The final .com and .net renewal rate for the fourth quarter of 2025 was 75.0 percent compared to 74.0 percent for the same quarter of 2024. Renewal rates are not fully measurable until 45 days after the end of the quarter.
-
Verisign announces that it will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from$10.26 to$10.97 effectiveNov. 1, 2026 .
Today’s Conference Call
About
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These statements involve risks and uncertainties that could cause our actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, attempted security breaches, cyber-attacks, and DDoS attacks against our systems and services; the introduction of undetected or unknown defects in our systems or services; vulnerabilities in the global routing system; system interruptions or system failures; damage or interruptions to our data centers, data center systems or resolution systems; risks arising from our operation of root servers and our performance of the Root Zone Maintainer functions; any loss or modification of our right to operate the .com and .net gTLDs; changes or challenges to the pricing provisions of the .com Registry Agreement; new or existing governmental laws and regulations in the
©2026
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except par value) (Unaudited)
|
|||||||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
476.7 |
|
|
$ |
307.9 |
|
|
Marketable securities |
|
79.7 |
|
|
|
272.6 |
|
|
Other current assets |
|
69.6 |
|
|
|
72.0 |
|
|
Total current assets |
|
626.0 |
|
|
|
652.5 |
|
|
Property and equipment, net |
|
214.2 |
|
|
|
213.7 |
|
|
|
|
52.5 |
|
|
|
52.5 |
|
|
Deferred tax assets |
|
227.9 |
|
|
|
233.2 |
|
|
Deposits to acquire intangible assets |
|
145.2 |
|
|
|
145.2 |
|
|
Other long-term assets |
|
31.4 |
|
|
|
28.8 |
|
|
Total long-term assets |
|
671.2 |
|
|
673.4 |
|
|
|
Total assets |
$ |
1,297.2 |
|
|
$ |
1,325.9 |
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable and accrued liabilities |
$ |
283.9 |
|
|
$ |
298.0 |
|
|
Deferred revenues |
1,071.2 |
|
|
1,035.1 |
|
||
|
Total current liabilities |
1,355.1 |
|
|
1,333.1 |
|
||
|
Long-term deferred revenues |
358.2 |
|
|
349.4 |
|
||
|
Long-term senior notes |
1,788.8 |
1,788.2 |
|
||||
|
Long-term tax and other liabilities |
8.5 |
|
|
|
9.4 |
|
|
|
Total long-term liabilities |
2,155.5 |
|
|
2,147.0 |
|
||
|
Total liabilities |
3,510.6 |
|
|
3,480.1 |
|
||
|
Commitments and contingencies |
|
|
|
||||
|
Stockholders’ deficit: |
|
|
|
||||
|
Preferred stock—par value |
|
— |
|
|
— |
|
|
|
Common stock and additional paid-in capital—par value |
9,349.9 |
|
|
9,623.5 |
|
||
|
Accumulated deficit |
|
(11,560.5 |
) |
|
|
(11,775.0 |
) |
|
Accumulated other comprehensive loss |
|
(2.8 |
) |
|
|
(2.7 |
) |
|
Total stockholders’ deficit |
|
(2,213.4 |
) |
|
|
(2,154.2 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
1,297.2 |
|
|
$ |
1,325.9 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions, except per share data) (Unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Revenues |
$ |
428.9 |
|
|
$ |
402.3 |
|
|
Costs and expenses: |
|
|
|
||||
|
Cost of revenues |
|
49.2 |
|
|
|
49.4 |
|
|
Research and development |
|
27.5 |
|
|
|
26.0 |
|
|
Selling, general and administrative |
|
58.6 |
|
|
|
55.7 |
|
|
Total costs and expenses |
|
135.3 |
|
|
|
131.1 |
|
|
Operating income |
|
293.6 |
|
|
|
271.2 |
|
|
Interest expense |
|
(18.9 |
) |
|
|
(20.3 |
) |
|
Non-operating income, net |
|
4.7 |
|
|
|
7.5 |
|
|
Income before income taxes |
|
279.4 |
|
|
|
258.4 |
|
|
Income tax expense |
|
(64.9 |
) |
|
|
(59.1 |
) |
|
Net income |
|
214.5 |
|
|
|
199.3 |
|
|
Other comprehensive loss |
|
(0.1 |
) |
|
|
(0.3 |
) |
|
Comprehensive income |
$ |
214.4 |
|
|
$ |
199.0 |
|
|
|
|
|
|
||||
|
Earnings per share: |
|
|
|
||||
|
Basic |
$ |
2.34 |
|
|
$ |
2.11 |
|
|
Diluted |
$ |
2.34 |
|
|
$ |
2.10 |
|
|
Shares used to compute earnings per share |
|
|
|
||||
|
Basic |
|
91.6 |
|
|
|
94.6 |
|
|
Diluted |
|
91.8 |
|
|
|
94.8 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
|
|||||||
|
|
Three Months Ended |
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Cash flows from operating activities: |
|
|
|
||||
|
Net income |
$ |
214.5 |
|
|
$ |
199.3 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation of property and equipment |
|
6.4 |
|
|
|
8.9 |
|
|
Stock-based compensation expense |
|
19.1 |
|
|
|
17.5 |
|
|
Amortization of discount on investments in debt securities |
|
(1.6 |
) |
|
|
(3.6 |
) |
|
Other, net |
|
0.4 |
|
|
|
1.1 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Other assets |
|
(0.4 |
) |
|
|
0.2 |
|
|
Other liabilities |
|
(16.2 |
) |
|
|
6.6 |
|
|
Deferred revenues |
|
44.9 |
|
|
|
57.2 |
|
|
Net deferred income taxes |
|
5.3 |
|
|
|
4.1 |
|
|
Net cash provided by operating activities |
|
272.4 |
|
|
|
291.3 |
|
|
Cash flows from investing activities: |
|
|
|
||||
|
Proceeds from maturities and sales of marketable securities |
|
273.8 |
|
|
|
358.6 |
|
|
Purchases of marketable securities |
|
(79.4 |
) |
|
|
(35.2 |
) |
|
Purchases of property and equipment |
|
(7.2 |
) |
|
|
(5.8 |
) |
|
Net cash provided by investing activities |
|
187.2 |
|
|
|
317.6 |
|
|
Cash flows from financing activities: |
|
|
|
||||
|
Repurchases of common stock |
|
(225.4 |
) |
|
|
(241.7 |
) |
|
Payment of dividends |
|
(74.2 |
) |
|
|
— |
|
|
Proceeds from employee stock purchase plan |
|
8.5 |
|
|
|
7.9 |
|
|
Repayment of borrowings |
|
— |
|
|
|
(500.0 |
) |
|
Proceeds from senior note issuance, net of issuance costs |
|
— |
|
|
|
493.9 |
|
|
Net cash used in financing activities |
|
(291.1 |
) |
|
|
(239.9 |
) |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
0.3 |
|
|
|
(0.3 |
) |
|
Net increase in cash, cash equivalents, and restricted cash |
|
168.8 |
|
|
|
368.7 |
|
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
309.5 |
|
|
|
212.1 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
478.3 |
|
|
$ |
580.8 |
|
|
Supplemental cash flow disclosures: |
|
|
|
||||
|
Cash paid for interest |
$ |
13.1 |
|
|
$ |
26.2 |
|
|
Cash paid for income taxes, net of refunds received |
$ |
28.7 |
|
|
$ |
20.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260423135311/en/
Investor Relations:
Media Relations:
Source:
