VeriSign demonstrates structural efficiency with gross margins consistently hovering around 88% and operating margins maintained between 66% and 69% over the last two years.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 1.68B | 1.66B | 1.56B | 1.49B | 1.42B | 1.33B | 1.27B | 1.23B | 1.21B | 1.17B | 1.14B | 1.06B | 1.01B | 965.09M | 873.59M | 771.98M | 680.58M | 1.03B | 961.74M | 1.5B | 1.58B | 1.61B | 1.17B | 1.05B | 1.22B | 983.56M | 474.77M | 84.78M | 38.9M | 9.4M |
| Revenue Growth % | 6.84% | 6.37% | 4.31% | 4.79% | 7.33% | 4.94% | 2.71% | 1.37% | 4.28% | 2.01% | 7.82% | 4.88% | 4.67% | 10.47% | 13.16% | 13.43% | -33.96% | 7.16% | -35.73% | -5.01% | -2.13% | 37.98% | 10.59% | -13.66% | 24.21% | 107.17% | 460.02% | 117.93% | 313.83% | - |
| Cost of Goods Sold | 196.1M | 196.3M | 191.4M | 197.3M | 200.7M | 191.93M | 180.18M | 180.47M | 192.13M | 193.33M | 198.24M | 192.79M | 188.43M | 187.01M | 167.6M | 165.25M | 156.68M | 233.04M | 227.35M | 596.52M | 580.74M | 512.23M | 444.76M | 446.21M | 571.37M | 343.72M | 133.47M | 26.49M | 15.5M | 5.2M |
| COGS % of Revenue | - | 11.85% | 12.29% | 13.21% | 14.09% | 14.46% | 14.24% | 14.65% | 15.81% | 16.59% | 17.36% | 18.2% | 18.65% | 19.38% | 19.19% | 21.41% | 23.02% | 22.61% | 23.64% | 39.87% | 36.87% | 31.83% | 38.13% | 42.3% | 46.77% | 34.95% | 28.11% | 31.25% | 39.85% | 55.32% |
| Gross Profit | 1.49B | 1.46B | 1.37B | 1.3B | 1.22B | 1.14B | 1.08B | 1.05B | 1.02B | 971.77M | 943.92M | 866.58M | 821.69M | 778.07M | 705.99M | 606.73M | 523.9M | 797.58M | 734.38M | 899.77M | 994.51M | 1.1B | 721.7M | 608.57M | 650.3M | 639.84M | 341.29M | 58.28M | 23.4M | 4.2M |
| Gross Margin % | 88.35% | 88.15% | 87.71% | 86.79% | 85.91% | 85.54% | 85.76% | 85.35% | 84.19% | 83.41% | 82.64% | 81.8% | 81.35% | 80.62% | 80.81% | 78.59% | 76.98% | 77.39% | 76.36% | 60.13% | 63.13% | 68.17% | 61.87% | 57.7% | 53.23% | 65.05% | 71.89% | 68.75% | 60.15% | 44.68% |
| Gross Profit Growth % | - | 6.9% | 5.42% | 5.85% | 7.8% | 4.68% | 3.2% | 2.77% | 5.25% | 2.95% | 8.93% | 5.46% | 5.61% | 10.21% | 16.36% | 15.81% | -34.31% | 8.61% | -18.38% | -9.53% | -9.37% | 52.04% | 18.59% | -6.42% | 1.63% | 87.48% | 485.59% | 149.07% | 457.14% | - |
| Operating Expenses | 343.7M | 339.3M | 307.8M | 295.2M | 281.1M | 268.84M | 260.67M | 245.07M | 255.44M | 264.05M | 257.35M | 260.63M | 257.26M | 249.84M | 249.43M | 261.83M | 274.76M | 467.64M | 555.64M | 1.16B | 886.46M | 872.12M | 565.19M | 762.19M | 5.36B | 14.05B | 3.49B | 61.59M | 42.9M | 23.2M |
| OpEx % of Revenue | - | 20.48% | 19.76% | 19.77% | 19.73% | 20.25% | 20.61% | 19.9% | 21.02% | 22.66% | 22.53% | 24.6% | 25.47% | 25.89% | 28.55% | 33.92% | 40.37% | 45.37% | 57.77% | 77.73% | 56.27% | 54.19% | 48.45% | 72.26% | 439.02% | 1428.55% | 734.59% | 72.65% | 110.28% | 246.81% |
| Selling, General & Admin | 238.6M | 235.7M | 211.1M | 204.2M | 195.4M | 188.31M | 186M | 184.26M | 197.56M | 211.71M | 198.25M | 196.91M | 189.49M | 179.54M | 187.74M | 208.55M | 221.09M | 359.02M | 373.48M | 552.76M | 634.35M | 675.14M | 418.4M | 363.71M | 420.29M | 402.88M | 227.82M | 42.88M | 30.6M | 15.4M |
| SG&A % of Revenue | - | 14.23% | 13.55% | 13.68% | 13.71% | 14.18% | 14.7% | 14.96% | 16.26% | 18.17% | 17.36% | 18.59% | 18.76% | 18.6% | 21.49% | 27.02% | 32.49% | 34.84% | 38.83% | 36.94% | 40.27% | 41.95% | 35.87% | 34.48% | 34.4% | 40.96% | 47.99% | 50.59% | 78.66% | 163.83% |
| Research & Development | 105.1M | 103.6M | 96.7M | 91M | 85.7M | 80.53M | 74.67M | 60.8M | 57.88M | 52.34M | 59.1M | 63.72M | 67.78M | 70.3M | 61.69M | 53.28M | 53.66M | 96.42M | 91.51M | 160.19M | 129.34M | 95.34M | 67.35M | 55.81M | 48.35M | 78.13M | 41.26M | 13.3M | 8.4M | 5.2M |
| R&D % of Revenue | - | 6.25% | 6.21% | 6.09% | 6.01% | 6.07% | 5.9% | 4.94% | 4.76% | 4.49% | 5.17% | 6.01% | 6.71% | 7.28% | 7.06% | 6.9% | 7.89% | 9.36% | 9.51% | 10.71% | 8.21% | 5.92% | 5.77% | 5.29% | 3.96% | 7.94% | 8.69% | 15.69% | 21.59% | 55.32% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -1.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.2M | 90.65M | 450.1M | 122.77M | 101.64M | 79.44M | 342.67M | 4.89B | 13.57B | 3.22B | 5.4M | 3.9M | 18M |
| Operating Income | 1.14B | 1.12B | 1.06B | 1B | 943.1M | 866.8M | 824.2M | 806.13M | 767.39M | 707.72M | 686.57M | 605.95M | 564.43M | 528.23M | 457.33M | 329.39M | 232.28M | 313.73M | 70.78M | -221.5M | 95.82M | 196.43M | 131.73M | -228.25M | -4.8B | -13.41B | -3.15B | -3.31M | -19.5M | -19M |
| Operating Margin % | 67.93% | 67.67% | 67.95% | 67.01% | 66.19% | 65.29% | 65.15% | 65.45% | 63.16% | 60.74% | 60.11% | 57.2% | 55.88% | 54.73% | 52.35% | 42.67% | 34.13% | 30.44% | 7.36% | -14.8% | 6.08% | 12.2% | 11.29% | -21.64% | -393.04% | -1363.49% | -662.71% | -3.9% | -50.13% | -202.13% |
| Operating Income Growth % | - | 5.93% | 5.76% | 6.1% | 8.8% | 5.17% | 2.24% | 5.05% | 8.43% | 3.08% | 13.31% | 7.36% | 6.85% | 15.5% | 38.84% | 41.8% | -25.96% | 343.25% | 131.95% | -331.16% | -51.22% | 49.12% | 157.71% | 95.25% | 64.2% | -326.24% | -94954.65% | 83.03% | -2.63% | - |
| EBITDA | 1.17B | 1.15B | 1.1B | 1.04B | 990M | 914.74M | 870.55M | 852.46M | 815.76M | 757.6M | 744.74M | 667.44M | 628.12M | 588.89M | 512.15M | 385.1M | 299.94M | 399.99M | 198.81M | 10M | 327.35M | 393.69M | 299.94M | 229.12M | 217.52M | 225.49M | 72.22M | 2.09M | -15.6M | -16.4M |
| EBITDA Margin % | 69.25% | 69.55% | 70.32% | 69.97% | 69.48% | 68.9% | 68.82% | 69.21% | 67.14% | 65.02% | 65.2% | 63% | 62.18% | 61.02% | 58.63% | 49.88% | 44.07% | 38.81% | 20.67% | 0.67% | 20.78% | 24.46% | 25.71% | 21.72% | 17.81% | 22.93% | 15.21% | 2.47% | -40.1% | -174.47% |
| EBITDA Growth % | 5.35% | 5.21% | 4.82% | 5.53% | 8.23% | 5.08% | 2.12% | 4.5% | 7.68% | 1.73% | 11.58% | 6.26% | 6.66% | 14.98% | 32.99% | 28.39% | -25.01% | 101.19% | 1887.3% | -96.94% | -16.85% | 31.25% | 30.91% | 5.33% | -3.54% | 212.24% | 3348.81% | 113.42% | 4.88% | - |
| D&A (Non-Cash Add-back) | 22.3M | 31.2M | 36.9M | 44.1M | 46.9M | 47.94M | 46.35M | 46.33M | 48.37M | 49.88M | 58.17M | 61.49M | 63.69M | 60.66M | 54.82M | 55.71M | 67.66M | 86.27M | 128.03M | 231.5M | 231.53M | 197.26M | 168.22M | 457.37M | 5.02B | 13.64B | 3.22B | 5.4M | 3.9M | 2.6M |
| EBIT | 861.6M | 1.14B | 1.1B | 1.05B | 955.5M | 865.47M | 840.39M | 849.39M | 840.83M | 732.09M | 693.83M | 593.16M | 569.3M | 531.53M | 462.89M | 340.92M | 253.02M | 171.9M | 67.88M | -82.03M | 29.66M | 219.37M | 99.01M | -166.8M | -4.71B | -13.41B | -3.15B | -3.31M | -19.5M | -18.5M |
| Net Interest Income | -38.1M | -56.4M | -37.9M | -29.2M | -60.4M | -82.7M | -82.33M | -64.02M | -88.36M | -118.39M | -109.37M | -105.5M | -85.07M | -72.86M | -47.24M | -142.31M | -150.01M | -44.71M | -29.64M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 18.6M | 20.6M | 37.4M | 46.1M | 14.9M | 582K | 7.82M | 26.6M | 26.49M | 17.94M | 6.19M | 2.13M | 922K | 1.9M | 2.96M | 5.02M | 7.65M | 4.37M | 14.75M | 0 | 0 | 0 | 10.15M | 0 | 0 | 0 | 0 | 7.37M | 0 | 0 |
| Interest Expense | 37.8M | 77M | 75.3M | 75.3M | 75.3M | 83.25M | 90.14M | 90.61M | 114.84M | 136.34M | 115.56M | 107.63M | 85.99M | 74.76M | 50.2M | 147.33M | 157.67M | 47.35M | 44.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -53.9M | -52.5M | -36.3M | -24.1M | -62.9M | -84.58M | -73.96M | -47.35M | -37.88M | -108.71M | -105.4M | -118.3M | -81.12M | -71.46M | -44.63M | -135.8M | -136.93M | -32.44M | -47.29M | 65.74M | 40.87M | 51.97M | 82.08M | -21.46M | -148.87M | -23.05M | -20.48M | 7.26M | -1.5M | -2.2M |
| Pretax Income | 1.09B | 1.07B | 1.02B | 976.5M | 880.2M | 782.22M | 750.24M | 758.78M | 729.52M | 599.01M | 581.17M | 487.65M | 483.31M | 456.77M | 412.69M | 193.59M | 95.35M | 281.29M | 123.25M | -127.74M | 136.69M | 243.23M | 213.81M | -236.53M | -4.95B | -13.43B | -3.17B | 3.96M | -21M | -20.7M |
| Pretax Margin % | 64.73% | 64.5% | 65.62% | 65.4% | 61.77% | 58.92% | 59.31% | 61.61% | 60.04% | 51.41% | 50.88% | 46.03% | 47.85% | 47.33% | 47.24% | 25.08% | 14.01% | 27.29% | 12.82% | -8.54% | 8.68% | 15.11% | 18.33% | -22.42% | -405.23% | -1365.84% | -667.02% | 4.67% | -53.98% | -220.21% |
| Income Tax | 118.8M | 242.8M | 236.2M | 158.9M | 206.4M | -2.61M | -64.64M | 146.48M | 147.03M | 141.76M | 140.53M | 112.41M | 128.05M | -87.68M | 100.21M | 55.03M | 25.32M | 80.11M | 42.8M | 11.08M | -241.28M | 104.66M | 27.58M | 23.35M | 10.38M | -77.92M | -30.84M | 0 | 200K | 200K |
| Effective Tax Rate % | 10.9% | 22.72% | 23.11% | 16.27% | 23.45% | -0.33% | -8.62% | 19.3% | 20.15% | 23.67% | 24.18% | 23.05% | 26.49% | -19.2% | 24.28% | 28.43% | 26.56% | 28.48% | 34.73% | -8.67% | -176.53% | 43.03% | 12.9% | -9.87% | -0.21% | 0.58% | 0.97% | 0% | -0.95% | -0.97% |
| Net Income | 840.9M | 825.7M | 785.7M | 817.6M | 673.8M | 784.8M | 814.89M | 612.3M | 582.49M | 457.25M | 440.64M | 375.24M | 355.26M | 544.45M | 320.03M | 142.89M | 830.97M | 245.55M | -374.69M | -139.5M | 379.01M | 406.46M | 186.22M | -259.88M | -4.96B | -13.36B | -3.12B | 3.96M | -19.7M | -19.2M |
| Net Margin % | 49.96% | 49.84% | 50.45% | 54.76% | 47.29% | 59.12% | 64.42% | 49.71% | 47.94% | 39.25% | 38.58% | 35.42% | 35.17% | 56.41% | 36.63% | 18.51% | 122.1% | 23.83% | -38.96% | -9.32% | 24.06% | 25.25% | 15.96% | -24.64% | -406.11% | -1357.91% | -656.21% | 4.67% | -50.64% | -204.26% |
| Net Income Growth % | 6.32% | 5.09% | -3.9% | 21.34% | -14.14% | -3.69% | 33.09% | 5.12% | 27.39% | 3.77% | 17.43% | 5.62% | -34.75% | 70.12% | 123.97% | -82.8% | 238.41% | 165.53% | -168.59% | -136.81% | -6.75% | 118.26% | 171.66% | 94.76% | 62.85% | -328.7% | -78873.05% | 120.08% | -2.6% | - |
| Net Income (Continuing) | 840.9M | 825.7M | 785.7M | 817.6M | 673.8M | 784.83M | 814.89M | 612.3M | 582.49M | 457.25M | 440.64M | 375.24M | 355.26M | 544.45M | 312.49M | 138.56M | 70.03M | 201.19M | 73.21M | -138.82M | 361.74M | 161.93M | 176.22M | -267.91M | -4.96B | -13.36B | -3.12B | 3.96M | -19.7M | -18.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.55M | 4.33M | 0 | -109.57M | -459.6M | 0 | 0 | 0 | 12.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 48.92M | 49.21M | 54.48M | 47.72M | 41.48M | 36.28M | 28.83M | 0 | 0 | 0 | 128K | 1M | 2.2M |
| EPS (Diluted) | 9.16 | 8.81 | 8.00 | 7.90 | 6.24 | 7.00 | 7.07 | 5.15 | 4.75 | 3.68 | 3.42 | 2.82 | 2.52 | 3.49 | 1.95 | 0.86 | 4.64 | 1.28 | -1.87 | -0.59 | 1.53 | 1.63 | 0.60 | -1.20 | -20.97 | -65.64 | -19.57 | 0.03 | -0.24 | -0.23 |
| EPS Growth % | 10.64% | 10.13% | 1.27% | 26.6% | -10.86% | -0.99% | 37.28% | 8.42% | 29.08% | 7.6% | 21.28% | 11.9% | -27.79% | 78.97% | 126.74% | -81.47% | 262.5% | 168.45% | -216.95% | -138.56% | -6.13% | 171.67% | 150% | 94.28% | 68.05% | -235.41% | -65333.33% | 112.5% | -4.35% | - |
| EPS (Basic) | - | 8.83 | 8.01 | 7.91 | 6.24 | 7.01 | 7.08 | 5.17 | 4.75 | 4.56 | 4.12 | 3.29 | 2.80 | 3.77 | 2.04 | 0.87 | 4.68 | 1.28 | -1.90 | -0.59 | 1.55 | 1.67 | 0.61 | -1.20 | -20.97 | -65.64 | -19.57 | 0.04 | -0.24 | -0.23 |
| Diluted Shares Outstanding | 91.8M | 92.6M | 98.2M | 103.5M | 108M | 112.17M | 115.3M | 118.97M | 122.66M | 124.18M | 128.83M | 133.03M | 140.9M | 155.79M | 163.91M | 166.89M | 178.97M | 192.57M | 200.6M | 237.71M | 247.07M | 263.69M | 254.7M | 216.57M | 236.55M | 203.48M | 159.17M | 114.61M | 83.49M | 82.97M |
| Basic Shares Outstanding | 91.6M | 92.4M | 98.1M | 103.4M | 107.9M | 112.02M | 115.06M | 118.51M | 122.63M | 100.33M | 107M | 114.16M | 126.71M | 144.59M | 156.95M | 165.41M | 177.53M | 191.82M | 197.2M | 237.71M | 244.42M | 257.37M | 250.52M | 216.57M | 236.55M | 203.48M | 159.17M | 100.53M | 83.49M | 82.97M |
| Dividend Payout Ratio | - | 26.06% | - | - | - | - | - | - | - | - | - | - | - | - | - | 324.37% | 62.36% | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory contract renewal uncertainty
According to recent financial disclosures, VeriSign's revenue growth has trended upward from 3.0% in 2023Q4 to 6.6% by 2026Q1, suggesting that the company is successfully leveraging its contractual pricing authority to offset the maturation of new domain registration volumes across its core registry business.
The acceleration in top-line growth appears primarily driven by periodic price increases for .com and .net domains rather than organic expansion of the domain base. Investors should monitor whether this reliance on pricing power reaches a ceiling, as the lack of volume growth may eventually limit the sustainability of these revenue gains.
As reported in quarterly filings, VeriSign maintains a remarkably stable gross margin profile, consistently hovering around 88% over the last ten quarters, which underscores the company's unique position as a high-margin infrastructure utility with minimal variable costs associated with each additional domain registration processed.
This structural margin profile is indicative of a business model where the primary cost of goods sold is largely fixed, allowing for significant operating leverage. The consistency of these margins suggests that the company faces little competitive pressure to lower prices, reinforcing its status as a digital toll-booth.
Based on the provided income statement data, VeriSign has maintained operating margins consistently between 66% and 69% over the past two years, demonstrating that the company effectively manages its SG&A and R&D expenses relative to the steady growth of its high-margin registry service revenue.
The ability to keep operating expenses tightly controlled while revenue scales suggests a disciplined approach to overhead. This efficiency allows the company to convert a substantial portion of its gross profit into operating income, providing a reliable foundation for its aggressive capital allocation strategy.
Analysis of recent SEC filings reveals that VeriSign's EPS growth has been significantly bolstered by consistent share repurchases, which often decouple reported earnings per share from the underlying operational performance, as evidenced by the volatility in net income compared to the steady growth in operating income.
While the company reports strong net margins, the impact of stock-based compensation and non-operating items warrants careful scrutiny. Investors should be aware that the reduction in share count is a primary driver of EPS expansion, which may obscure the reality of a maturing core business.
As noted in industry risk assessments, the market's valuation of VeriSign as a stable utility may be premature, given that the company's entire revenue stream is contingent upon periodic ICANN contract renewals that are increasingly subject to geopolitical scrutiny and potential calls for DNS decentralization.
Short-sellers would likely focus on the potential for regulatory intervention to cap future price increases or alter the registry model entirely. The reliance on a government-sanctioned monopoly creates a binary risk profile that is not fully captured by the current steady-state financial performance.
Quick answers to the most common questions about buying VRSN stock.
For fiscal year 2025, VeriSign, Inc. (VRSN) reported total revenue of $1.66B. This represents a 17523.4% increase compared to $9.4M in 1997.
VeriSign, Inc. (VRSN) is profitable, generating $825.7M in net income for the fiscal year ending 2025 with a net profit margin of 49.8%.
VeriSign, Inc. (VRSN) reported an operating income of $1.12B, resulting in an operating profit margin of 67.7%. This margin reflects the operational efficiency of the business before interest and taxes.
VeriSign, Inc. (VRSN) generated $1.46B in gross profit for the year, representing a gross profit margin of 88.2%. This demonstrates the company's core pricing power and production efficiency.