AI Takeaway
VeriSign delivered solid FY2025 results with revenue growing 6.4% to $1.66B and operating cash flow surging 20.9% to $1.09B, while maintaining an exceptional ~68% operating margin despite a deeply negative stockholders' equity driven by aggressive share buybacks.
Revenue
$1.66B
++6.37% YoY
Operating Income
$1.12B
++5.93% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 6.4% year-over-year to $1,656.6M in FY2025 from $1,557.4M in FY2024, reflecting VeriSign's continued pricing power and stable demand for its .com and .net domain name registry services.
Source: Source: 10-K Income Statement
Operating income rose 5.9% to $1,121.0M, sustaining an operating margin of approximately 67.7%, one of the highest among S&P 500 companies, demonstrating the highly scalable and capital-light nature of VeriSign's registry monopoly.
Source: Source: 10-K Income Statement
SG&A expenses grew 11.7% to $235.7M, faster than the 6.4% revenue growth rate, representing a modest margin headwind; R&D also increased 7.1% to $103.6M, reflecting continued investment in infrastructure and security.
Source: Source: 10-K Income Statement
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Upgrade to unlockStockholders' equity stood at -$2,154.2M in FY2025, worsening from -$1,957.9M in FY2024, driven by aggressive share repurchases and dividend payments that exceed retained earnings. While this is a deliberate capital structure choice, it leaves the company technically insolvent on a book-value basis and could limit financial flexibility in a stress scenario.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.23 versus the $2.33 analyst consensus — a -4.3% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.66B | $1.56B | +6.37% |
Cost of Revenue | $196.3M | $191.4M | +2.56% |
Operating Income | $1.12B | $1.06B | +5.93% |
R&D Expense | $103.6M | $96.7M | +7.14% |
SG&A Expense | $235.7M | $211.1M | +11.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $1.33B | $1.41B | -5.73% |
Current Assets | $652.5M | $663.8M | -1.70% |
Total Liabilities | $3.48B | $3.36B | +3.44% |
Current Liabilities | $1.33B | $1.53B | -12.93% |
Stockholders' Equity | $-2.15B | $-1.96B | -10.03% |
Cash & Equivalents | $307.9M | $206.7M | +48.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.09B | $902.6M | +20.88% |
Investing Cash Flow | $109.1M | $286.3M | -61.89% |
Financing Cash Flow | $-1.1B | $-1.22B | +9.72% |
Dividends Paid | $215.2M | $0 | — |
Share Buybacks | $881.6M | $1.23B | -28.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 67.7% | 67.9% | -0.28% |
Current Ratio | $0.489 | — | — |
Debt to Equity | $-1.615 | — | — |
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VeriSign's revenue grew 6.4% year-over-year to $1,656.6M in FY2025, up from $1,557.4M in FY2024. This growth reflects the company's pricing power in its regulated .com and .net domain name registry business, which operates under long-term agreements with ICANN.
The key takeaways from VeriSign's FY2025 results are: revenue grew 6.4% to $1.66B, operating margin held near 68%, and operating cash flow surged 20.9% to $1.09B. The company also initiated a dividend program ($215.2M paid) while continuing to repurchase $881.6M in shares, returning over $1.09B to shareholders in total.
Yes, VeriSign paid $215.2M in dividends in FY2025, compared to $0 in dividends in FY2024, marking the initiation of a formal dividend program. This was in addition to $881.6M in share repurchases, making FY2025 a significant year for shareholder capital returns.
Key risks include VeriSign's deeply negative stockholders' equity of -$2,154.2M and total liabilities of $3,480.1M far exceeding total assets of $1,325.9M, reflecting the financial leverage from years of buybacks. Additionally, the company's near-total revenue dependence on its ICANN-regulated .com and .net registry contracts represents significant concentration risk if regulatory terms change.
VeriSign's operational health is excellent, with a ~68% operating margin and $1.09B in operating cash flow, but its balance sheet is unconventional with negative stockholders' equity of -$2,154.2M and a current ratio of just 0.49. This structure is intentional, driven by aggressive capital returns, and is sustainable as long as the company's highly predictable registry cash flows continue.