VeriSign (NasdaqGS:VRSN) Q4 2025 Earnings call February 05, 2026 04:30 PM ET Company ParticipantsAlexei Gogolev - Executive DirectorDavid Atchley - VP of Investor Relations and Corporate TreasurerJim Bidzos - Executive Chairman, President, and CEOJohn Calys - EVP and CFOConference Call ParticipantsJamesmichael Sherman-Lewis - VP and Equity Research AnalystRob Oliver - Managing Director and Senior Research Analyst of SoftwareOperatorGood day, everyone. Welcome to Verisign's fourth quarter and full-year 2025 ...

Financial Data and Key Metrics Changes - In 2025, the company generated revenues of $1.66 billion, reflecting a year-over-year growth of 6.4% [10] - Operating income for the year totaled $1.12 billion, up 5.9% from the previous year [10] - Full year EPS was reported at $8.81, with Free Cash Flow reaching $1.07 billion [10] - For Q4 2025, revenue was $425 million, an increase of 7.5% compared to the same quarter in the previous year [10] - Net income for Q4 totaled $206 million, down from $213 million in the previous quarter but up from $191 million in Q4 2024 [12] Business Line Data and Key Metrics Changes - New registrations in 2025 totaled 41.7 million names, the highest since 2021, with a domain name base growth of 4.5 million names or 2.6% [4] - Q4 saw net registrations of 1.58 million names, driven by new registrations of 10.7 million, up from 9.5 million in Q4 2024 [6] - The preliminary Q4 renewal rate was 75%, compared to 74% a year ago, indicating solid demand for domain names [6] Market Data and Key Metrics Changes - The company experienced sustained strength in new registrations, renewal rates, and domain name base growth across the US, EMEA, and APAC regions [5] - The financial and liquidity position remained stable with $581 million in cash and equivalents at the end of the quarter [8] Company Strategy and Development Direction - The company plans to continue enhancing functionality and security services aligned with its core mission, leveraging its history in DNS and security technology [16] - New services are being evaluated that could help reduce vulnerabilities and contribute to information trust [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of domain name metrics and the increasing utilization of infrastructure as internet use and traffic expand [21] - For 2026, the company expects domain name base growth between 1.5% and 3.5% [7] Other Important Information - The Board of Directors declared a cash dividend of $0.81 per share, a 5.2% increase consistent with net income growth [8] - Capital expenditures for 2026 are expected to be between $55 million and $65 million, higher than typical due to equipment replacement and planned capacity expansion [14] Q&A Session Summary Question: Impact of AI on domain base - Management acknowledged that AI is having an impact on the business, contributing to increased traffic and queries, thus enhancing the value of domain names [21][23] Question: Marketing programs effectiveness - The company has adjusted its marketing programs to better meet the evolving needs of registrars, allowing them flexibility in choosing effective programs [27] Question: Guidance assumptions for domain growth - Management indicated that guidance reflects observed trends and discussions with channels, with expectations for continued growth [37] Question: ICANN auction insights - The company is studying the upcoming ICANN auction for new gTLDs and is interested in opportunities that align with its strategic role [44][45] Question: Pricing strategy for .com - Management stated that while they do not guide on pricing, the first opportunity for a price increase would be in April 2026, requiring six months' notice [59]

VeriSign (NasdaqGS:VRSN) Q4 2025 Earnings call February 05, 2026 04:30 PM ET Speaker5Good day, everyone. Welcome to Verisign's fourth quarter and full year 2025 earnings call. Today's conference is being recorded. Recording of this call is not permitted unless pre-authorized. At this time, I would like to turn the conference over to Mr. David Atchley, Vice President of Investor Relations and Corporate Treasurer. Please go ahead, sir.Speaker1Thank you, Operator. Welcome to VeriSign's fourth quarter and full ...

RESTON, Va.--(BUSINESS WIRE)--VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today announced that, according to the latest Domain Name Industry Brief Quarterly Report from DNIB.com, the fourth quarter of 2025 closed with 386.9 million domain name registrations across all top-level domains (TLDs), an increase of 8.4 million domain name registrations, or 2.2% compared to the third quarter of 2025. Domain name registrations a. ...

Financial Performance - The company recorded revenues of $1,656.6 million in 2025, representing a 6% increase compared to 2024[159] - Operating income for 2025 was $1,121.0 million, also reflecting a 6% increase from the previous year[159] - Revenues from the U.S. market were $1,093.1 million in 2025, a 6% increase from 2024[169] - Cash flows from operating activities amounted to $1,091.1 million in 2025, a 21% increase compared to 2024[164] - Net cash provided by operating activities increased to $1,091.1 million in 2025 from $902.6 million in 2024, primarily due to higher cash received from customers[187] Domain Registrations - The total number of .com and .net registrations reached 173.5 million as of December 31, 2025, marking a 2.6% increase from 2024[159] - The company processed 41.7 million new domain name registrations in 2025, up from 37.4 million in 2024[159] - The renewal rate for .com and .net domains in Q3 2025 was 75.4%, an increase from 72.2% in Q3 2024[159] Expenses - Cost of revenues increased by 3% to $196.3 million in 2025, primarily due to higher compensation and benefits expenses[171] - Research and development expenses increased to $103.6 million in 2025, a 7% increase from $96.7 million in 2024, primarily due to higher compensation and benefits expenses[172] - Selling, general and administrative expenses rose to $235.7 million in 2025, a 12% increase from $211.1 million in 2024, driven by higher compensation, stock-based compensation, and legal expenses[174] Share Repurchase - The company repurchased 3.4 million shares of common stock for a total cost of $858.6 million in 2025[159] - The company repurchased 3.4 million shares at an average price of $252.42 for a total cost of $858.6 million in 2025, with approximately $1.08 billion remaining for future repurchases[182] Non-Operating Income and Expenses - Total non-operating income decreased to $24.5 million in 2025 from $39.0 million in 2024, primarily due to lower interest income from reduced investments in debt securities[177] - Interest expense increased slightly in 2025 due to the overlap of issuing $500.0 million of senior unsecured notes and repaying $500.0 million of outstanding notes[176] Taxation - Income tax expense for 2025 was $242.8 million, with an effective tax rate of 22.7%, slightly lower than 23.1% in 2024[178] Cash and Securities - Cash and cash equivalents increased to $307.9 million in 2025 from $206.7 million in 2024, while marketable securities decreased to $272.6 million from $393.2 million[181] Debt and Interest Rate Risk - As of December 31, 2025, the aggregate fair value of the senior notes was $1.75 billion[199] - The fair market values of senior notes are subject to interest rate risk, with fixed interest rate debt values increasing as interest rates fall[199] - The fair market value of fixed interest rate debt will decrease as interest rates rise[199] Foreign Currency Contracts - As of December 31, 2025, the company held foreign currency forward contracts totaling $67.7 million to mitigate exchange rate fluctuations[197]

Q4 and Full Year 2025 Earnings Conference Call February 5, 2026 Safe Harbor Disclosure Statements in this presentation 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, including, but not limited to, statements regarding (i) Q4 2025 renewal rate expectations, (ii) Domain Name Base change expectations, (iii) our full year 2026 financial ...

Verisign Reports Fourth Quarter and Full Year 2025 Results RESTON, VA - Feb. 5, 2026 - VeriSign, Inc. (NASDAQ: VRSN), a global provider of critical internet infrastructure and domain name registry services, today reported financial results for the fourth quarter and full year 2025. Fourth Quarter Financial Results 2025 Financial Results Verisign reported revenue of $1.66 billion for 2025, up 6.4 percent from 2024. Operating income was $1.12 billion for 2025 compared to $1.06 billion in 2024. Verisign report ...

Group 1: Company Overview - VeriSign, Inc. (NASDAQ:VRSN) operates the core infrastructure behind the .com and .net internet domains worldwide, managing domain name registry databases to ensure reliable website connections [3] - The company has maintained its core services without downtime for nearly three decades, which is crucial for internet reliability [4] Group 2: Financial Performance and Market Trends - JPMorgan analyst Alexei Gogolev raised the price target for VeriSign to $271 from $270, citing steady improvement in the .com domain business, with the .com domain base reaching 161 million total domains as of December 31, reflecting a 3% increase from the previous year [2] - The firm expressed encouragement regarding the gradually stronger trends in the .com domain, which have been incorporated into their financial model [2] Group 3: Strategic Focus and Compliance - Trust is central to VeriSign's business, with key drivers including contract renewals, strong operational security, and the company's dominant position in its core registries [4] - Regulatory compliance is a constant focus for the company, especially as global rules evolve and cyber threats become more complex, supported by targeted spending on research and development [5]

Core Viewpoint - VeriSign, Inc. (VRSN) is a key player in domain name registry services and internet infrastructure, with a market cap of $23.1 billion, and is set to announce its fiscal fourth-quarter earnings for 2025 on February 5 [1] Financial Performance - Analysts expect VRSN to report a profit of $2.29 per share on a diluted basis for the upcoming quarter, reflecting a 14.5% increase from $2 per share in the same quarter last year [2] - For the full fiscal year, VRSN is projected to report an EPS of $8.87, which is a 10.9% increase from $8 in fiscal 2024, and an EPS of $9.50 is anticipated for fiscal 2026, indicating a year-over-year growth of 7.1% [3] Stock Performance - Over the past 52 weeks, VRSN stock has increased by 17.6%, slightly underperforming the S&P 500 Index's gains of 17.7% and the Technology Select Sector SPDR Fund's gains of 25% [4] - Following the Q3 results announcement, VRSN shares closed down more than 1%, despite reporting revenue of $419.1 million, which exceeded analyst estimates of $416.8 million, and an EPS of $2.27, beating estimates by 1.3% [5] Analyst Ratings - The consensus opinion on VRSN stock is moderately bullish, with a "Moderate Buy" rating. Among four analysts, two recommend a "Strong Buy," one suggests a "Hold," and one advises a "Strong Sell." The average analyst price target for VRSN is $311, indicating a potential upside of 24.9% from current levels [6]

Core Viewpoint - VeriSign, Inc. will hold its live earnings teleconference for the fourth quarter and full year 2025 on February 5, 2026, at 4:30 p.m. (EST) [1] Group 1: Earnings Teleconference Details - The earnings news release will be distributed at approximately 4:05 p.m. (EST) on the same day [1] - The teleconference can be accessed via direct dial at (888) 676-VRSN for U.S. callers and (646) 769-9200 for international callers, with the conference ID being Verisign [2] - A listen-only live webcast of the earnings conference call will be available on the company's investor website [2] Group 2: Company Overview - VeriSign is a global provider of critical internet infrastructure and domain name registry services, enabling internet navigation for many recognized domain names [3] - The company supports the security, stability, and resiliency of the Domain Name System and the internet by providing root zone maintainer services and operating two of the 13 global internet root servers [3] - VeriSign offers registration services and authoritative resolution for the .com and .net top-level domains, which are essential for global e-commerce [3]