third quarter of 2026
Filed Oct 22, 2026Verisign Reports Third Quarter 2026 Results
Third-quarter revenue rose 5.7 percent year over year to $443 million, operating income increased to $296.5 million, and the domain name base grew 6.1 percent. Net income was essentially unchanged at $212.6 million, while the company recorded a $7.5 million pre-tax operating loss related to assets held for sale that reduced diluted EPS by $0.06.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $443M | – | 5.7 percent |
| Cost of revenues, three months ended September 30, 2026GAAP | $49.8M | – | – |
| Research and development, three months ended September 30, 2026GAAP | $26.5M | – | – |
| Selling, general and administrative, three months ended September 30, 2026GAAP | $70.2M | – | – |
| Total costs and expenses, three months ended September 30, 2026GAAP | $146.5M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $296.5M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $21.2M | – | – |
| Non-operating income, net, three months ended September 30, 2026GAAP | $4.3M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $279.6M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $67M | – | – |
| Net income, three months ended September 30, 2026GAAP | $212.6M | – | – |
| Other comprehensive loss, three months ended September 30, 2026GAAP | $100K | – | – |
| Comprehensive income, three months ended September 30, 2026GAAP | $212.5M | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $2.36 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $2.35 | – | – |
| Shares used to compute basic earnings per share, three months ended September 30, 2026GAAP | 90.1M | – | – |
| Shares used to compute diluted earnings per share, three months ended September 30, 2026GAAP | 90.4M | – | – |
| Operating loss related to certain assets held for sale, three months ended September 30, 2026GAAP | $7.5 million pre-tax | – | – |
| Diluted EPS decrease from operating loss related to certain assets held for sale, three months ended September 30, 2026GAAP | $0.06 | – | – |
| Cash flow from operations, three months ended September 30, 2026GAAP | $268M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $1.31B | – | – |
| Cost of revenues, nine months ended September 30, 2026GAAP | $149M | – | – |
| Research and development, nine months ended September 30, 2026GAAP | $81.5M | – | – |
| Selling, general and administrative, nine months ended September 30, 2026GAAP | $189.6M | – | – |
| Total costs and expenses, nine months ended September 30, 2026GAAP | $420.1M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $886.4M | – | – |
| Interest expense, nine months ended September 30, 2026GAAP | $59.3M | – | – |
| Non-operating income, net, nine months ended September 30, 2026GAAP | $13.5M | – | – |
| Income before income taxes, nine months ended September 30, 2026GAAP | $840.6M | – | – |
| Income tax expense, nine months ended September 30, 2026GAAP | $197M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $643.6M | – | – |
| Other comprehensive loss, nine months ended September 30, 2026GAAP | $200K | – | – |
| Comprehensive income, nine months ended September 30, 2026GAAP | $643.4M | – | – |
| Basic earnings per share, nine months ended September 30, 2026GAAP | $7.08 | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $7.06 | – | – |
| Shares used to compute basic earnings per share, nine months ended September 30, 2026GAAP | 90.8M | – | – |
| Shares used to compute diluted earnings per share, nine months ended September 30, 2026GAAP | 91.1M | – | – |
| .com and .net domain name registrations in the domain name base, end of third quarter of 2026other | 182.5M | – | 6.1 percent |
| Net increase in domain names, three months ended September 30, 2026other | 3.36 million domain names | – | – |
| New .com and .net domain name registrations, three months ended September 30, 2026other | 13.1M | – | – |
| Final .com and .net renewal rate, second quarter of 2026other | 75.2 percent | – | – |
Capital returns
- During the third quarter of 2026, Verisign repurchased 0.7 million shares of its common stock for an aggregate cost of $189 million.
- As of September 30, 2026, there was $1.36 billion remaining for future share repurchases under the share repurchase program, which has no expiration.
- On October 19, 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 on November 17, 2026, payable on November 24, 2026.
- Repurchases of common stock were $620.0 million for the nine months ended September 30, 2026, compared to $627.2 million for the nine months ended September 30, 2025.
- Payment of dividends was $220.8 million for the nine months ended September 30, 2026, compared to $144.1 million for the nine months ended September 30, 2025.
- Payment of excise tax on repurchase of common stock was $7.9 million for the nine months ended September 30, 2026, compared to $11.6 million for the nine months ended September 30, 2025.
What drove it
- The .com and .net domain name base reached 182.5 million registrations, a 6.1 percent increase from the end of the third quarter of 2025.
- Verisign processed 13.1 million new .com and .net domain name registrations during the third quarter of 2026, compared with 10.6 million in the third quarter of 2025.
- The company reported a net increase of 3.36 million domain names during the third quarter of 2026.
- The rollout of the .web top-level domain is on track.
- Verisign opened the limited beta phase of its high-assurance validation service, Verisign Informed™.
Concerns
- The final .com and .net renewal rate for the second quarter of 2026 was 75.2 percent, compared to 75.5 percent for the same quarter of 2025.
- Cash flow from operations was $268 million in the third quarter of 2026, compared to $308 million in the same quarter of 2025.
- Verisign recognized a pre-tax operating loss of $7.5 million related to certain assets held for sale, decreasing diluted EPS by $0.06.
- Selling, general and administrative expense was $70.2 million in the third quarter of 2026, compared to $60.6 million in the same quarter of 2025.
- Interest expense was $21.2 million in the third quarter of 2026, compared to $18.9 million in the same quarter of 2025.
What to watch
- The final .com and .net renewal rate, which is not fully measurable until 45 days after the end of the quarter.
- Domain name base growth and new .com and .net domain name registrations.
- Progress of the .web top-level-domain rollout.
- Development of the limited beta phase of Verisign Informed™.
- Execution of the authorized share repurchase program, with $1.36 billion remaining as of September 30, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $206.8 million at September 30, 2026, compared to $307.9 million at December 31, 2025.
- Marketable securities were $269.3 million at September 30, 2026, compared to $272.6 million at December 31, 2025.
- Cash, cash equivalents and marketable securities were $476 million at the end of the third quarter of 2026, a decrease of $104 million from year-end 2025.
- Other current assets were $97.4 million at September 30, 2026, compared to $72.0 million at December 31, 2025.
- Total current assets were $573.5 million at September 30, 2026, compared to $652.5 million at December 31, 2025.
- Property and equipment, net, was $221.2 million at September 30, 2026, compared to $213.7 million at December 31, 2025.
- Goodwill was $52.5 million at September 30, 2026 and December 31, 2025.
- Intangible assets were $171.4 million at September 30, 2026, compared to $0 at December 31, 2025.
- Deposits to acquire intangible assets were $0 at September 30, 2026, compared to $145.2 million at December 31, 2025.
- Deferred tax assets were $218.1 million at September 30, 2026, compared to $233.2 million at December 31, 2025.
- Other long-term assets were $43.4 million at September 30, 2026, compared to $28.8 million at December 31, 2025.
- Total assets were $1,280.1 million at September 30, 2026, compared to $1,325.9 million at December 31, 2025.
- Accounts payable and accrued liabilities were $286.8 million at September 30, 2026, compared to $298.0 million at December 31, 2025.
- Deferred revenues were $1,094.4 million current and $368.9 million long-term at September 30, 2026, compared to $1,035.1 million current and $349.4 million long-term at December 31, 2025.
- Total current liabilities were $1,381.2 million at September 30, 2026, compared to $1,333.1 million at December 31, 2025.
- Long-term senior notes were $1,785.9 million at September 30, 2026, compared to $1,788.2 million at December 31, 2025.
- Other long-term liabilities were $28.8 million at September 30, 2026, compared to $9.4 million at December 31, 2025.
- Total long-term liabilities were $2,183.6 million at September 30, 2026, compared to $2,147.0 million at December 31, 2025.
- Total liabilities were $3,564.8 million at September 30, 2026, compared to $3,480.1 million at December 31, 2025.
- Total stockholders’ deficit was $(2,284.7) million at September 30, 2026, compared to $(2,154.2) million at December 31, 2025.
- Outstanding shares were 89.8 million at September 30, 2026, compared to 91.9 million at December 31, 2025.
- Net cash provided by operating activities was $772.3 million for the nine months ended September 30, 2026, compared to $801.5 million for the nine months ended September 30, 2025.
- Depreciation of property and equipment was $19.8 million for the nine months ended September 30, 2026, compared to $24.5 million for the nine months ended September 30, 2025.
- Stock-based compensation expense was $58.8 million for the nine months ended September 30, 2026, compared to $51.8 million for the nine months ended September 30, 2025.
- Amortization of discount on investments in debt securities was $(5.3) million for the nine months ended September 30, 2026, compared to $(8.2) million for the nine months ended September 30, 2025.
- Other, net, was $10.2 million for the nine months ended September 30, 2026, compared to $2.4 million for the nine months ended September 30, 2025.
- Other assets were $(40.4) million for the nine months ended September 30, 2026, compared to $(3.2) million for the nine months ended September 30, 2025.
- Other liabilities were $(8.5) million for the nine months ended September 30, 2026, compared to $20.6 million for the nine months ended September 30, 2025.
- Deferred revenues were $78.9 million for the nine months ended September 30, 2026, compared to $80.1 million for the nine months ended September 30, 2025.
- Net deferred income taxes were $15.2 million for the nine months ended September 30, 2026, compared to $14.0 million for the nine months ended September 30, 2025.
- Proceeds from maturities and sales of marketable securities were $354.7 million for the nine months ended September 30, 2026, compared to $412.5 million for the nine months ended September 30, 2025.
- Purchases of marketable securities were $(346.3) million for the nine months ended September 30, 2026, compared to $(393.6) million for the nine months ended September 30, 2025.
- Purchases of property and equipment were $(33.6) million for the nine months ended September 30, 2026, compared to $(18.3) million for the nine months ended September 30, 2025.
- Other investing activities were $(7.7) million for the nine months ended September 30, 2026, compared to $0 for the nine months ended September 30, 2025.
- Net cash used in investing activities was $(32.9) million for the nine months ended September 30, 2026, compared to $0.6 million provided by investing activities for the nine months ended September 30, 2025.
- Repayment of borrowings was $(550.0) million for the nine months ended September 30, 2026, compared to $(500.0) million for the nine months ended September 30, 2025.
- Proceeds from senior note issuance, net of issuance costs, were $545.0 million for the nine months ended September 30, 2026, compared to $493.3 million for the nine months ended September 30, 2025.
- Proceeds from employee stock purchase plan were $12.7 million for the nine months ended September 30, 2026, compared to $12.3 million for the nine months ended September 30, 2025.
- Net cash used in financing activities was $(841.0) million for the nine months ended September 30, 2026, compared to $(777.3) million for the nine months ended September 30, 2025.
- Effect of exchange rate changes on cash, cash equivalents, and restricted cash was $0.5 million for the nine months ended September 30, 2026, compared to $0.1 million for the nine months ended September 30, 2025.
- Net decrease in cash, cash equivalents, and restricted cash was $(101.1) million for the nine months ended September 30, 2026, compared to a $24.9 million increase for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash at beginning of period was $309.5 million for the nine months ended September 30, 2026, compared to $212.1 million for the nine months ended September 30, 2025.
- Cash, cash equivalents, and restricted cash at end of period was $208.4 million for the nine months ended September 30, 2026, compared to $237.0 million for the nine months ended September 30, 2025.
- Cash paid for interest was $49.9 million for the nine months ended September 30, 2026, compared to $55.4 million for the nine months ended September 30, 2025.
- Cash paid for income taxes, net of refunds received, was $195.5 million for the nine months ended September 30, 2026, compared to $169.3 million for the nine months ended September 30, 2025.
Analysis
Verisign reported third-quarter revenue of $443.0 million, up 5.7 percent from $419.1 million in the same quarter of 2025. Operating income was $296.5 million, compared with $284.3 million, while nine-month revenue and operating income were $1,306.5 million and $886.4 million, respectively. The company did not report a gross margin figure.
Demand indicators were favorable. The .com and .net domain name base ended the quarter at 182.5 million registrations, a 6.1 percent increase from the end of the third quarter of 2025, with a 3.36 million net increase during the quarter. New .com and .net registrations were 13.1 million, compared with 10.6 million in the prior-year quarter. The final renewal rate for the second quarter was 75.2 percent, compared with 75.5 percent a year earlier.
Profitability remained strong in dollar terms, but net income was $212.6 million versus $212.8 million a year earlier. The company recognized a $7.5 million pre-tax operating loss related to certain assets held for sale, which decreased diluted EPS by $0.06. Selling, general and administrative expense was $70.2 million versus $60.6 million, and interest expense was $21.2 million versus $18.9 million. Diluted EPS increased to $2.35 from $2.27 as diluted shares used to compute EPS declined to 90.4 million from 93.6 million.
Cash flow from operations was $268 million in the quarter, compared with $308 million in the prior-year quarter. For the first nine months, operating cash flow was $772.3 million compared with $801.5 million. Cash, cash equivalents and marketable securities totaled $476 million at the end of the quarter, while long-term senior notes were $1,785.9 million. Deferred revenues totaled $1.46 billion, an increase of $79 million from year-end 2025.
Capital allocation included $189 million of third-quarter share repurchases covering 0.7 million shares and a board-approved cash dividend of $0.81 per share, payable on November 24, 2026 to stockholders of record on November 17, 2026. The company had $1.36 billion remaining under its repurchase authorization as of September 30, 2026. No forward financial guidance was provided in the filing.
Management, verbatim
We delivered a strong quarter operationally, having grown the domain name base by 6.1% year-over-year. The rollout of the .web top-level domain is on track, and we opened the limited beta phase of our high-assurance validation service, Verisign Informed™, which can strengthen and enhance existing tools of trust that are deployed world-wide for authenticating data and users.
Jim Bidzos, Executive Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- Income tax rate was not reported.
- Segment revenue and segment profit were not reported.
- Non-GAAP financial metrics were not reported.
- Prior-quarter comparisons were not reported for the listed income-statement metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.