Verisign(US:VRSN)2026-02-05 21:41Financial 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]