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Verisign (VRSN)
NASDAQ:VRSN
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Verisign (VRSN) AI Stock Analysis

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VRSN

Verisign

(NASDAQ:VRSN)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
$269.00
▲(8.87% Upside)
Verisign's strong earnings performance and robust cash flow generation are key strengths, supporting a positive outlook. However, high leverage and negative equity on the balance sheet, along with bearish technical indicators, present significant risks. The high valuation further tempers the overall attractiveness of the stock.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Verisign's services and effective market positioning, supporting long-term business expansion.
Cash Flow Generation
Strong cash flow generation enhances Verisign's ability to invest in growth opportunities, service debt, and return value to shareholders, ensuring financial stability.
Domain Name Base Growth
Growth in the domain name base reflects Verisign's sustained market leadership and ability to attract new customers, which is crucial for long-term revenue stability.
Negative Factors
High Leverage
High leverage and negative equity can limit financial flexibility and increase risk, potentially impacting Verisign's ability to invest in future growth.
Increased Operating Expenses
Rising operating expenses may pressure margins and reduce profitability, challenging Verisign's ability to maintain its strong financial performance over time.
Slower Growth in Asia Pacific
Slower growth in a key region could hinder Verisign's global expansion efforts, potentially limiting future revenue opportunities in emerging markets.

Verisign (VRSN) vs. SPDR S&P 500 ETF (SPY)

Verisign Business Overview & Revenue Model

Company DescriptionVerisign, Inc. (VRSN) is a global leader in domain name registry services and internet infrastructure. The company operates a diverse range of services across the internet ecosystem, primarily focusing on the management of the authoritative registry for .com, .net, and other top-level domains (TLDs). Verisign provides various security services and solutions, including DNS services, DDoS protection, and other cybersecurity offerings, which are essential for the reliable operation of online businesses and services.
How the Company Makes MoneyVerisign generates revenue primarily through domain name registration and renewal fees, focusing on the .com and .net TLDs, which constitute its core revenue stream. The company earns recurring revenue as domain names are registered and renewed, with most registrations occurring on an annual basis. Additionally, Verisign offers various internet security services, including Managed DNS and DDoS mitigation services, which contribute to its revenue. The company benefits from exclusive contracts with the Internet Corporation for Assigned Names and Numbers (ICANN) to manage these TLDs, ensuring a steady demand for its services. Partnerships with registrars and resellers further enhance its distribution and market reach, allowing Verisign to capture a significant share of the domain registration market.

Verisign Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Chart InsightsVerisign's revenue growth in the United States and EMEA regions remains robust, reflecting strong market engagement and strategic initiatives. However, the 'Other' and China segments show significant declines, with China facing challenges due to a shrinking domain name base. Despite these regional pressures, the company is optimistic about future growth, supported by new marketing strategies and improved domain renewal rates. The earnings call highlights a positive response to these initiatives, suggesting potential stabilization in the domain name base, which could mitigate regional revenue declines.
Data provided by:Main Street Data

Verisign Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with increased revenue, EPS, and domain name base, alongside improved renewal rates and shareholder returns. Despite some challenges with increased operating expenses and slower growth in the Asia Pacific region, the company remains optimistic about the positive impact of AI on its business. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.
Q3-2025 Updates
Positive Updates
Increase in Domain Name Base
The domain name base for .com and .net totaled 171.9 million domain names, up 1.4% year-over-year, with 10.6 million new registrations.
Revenue and EPS Growth
Revenue increased by 7.3% year-over-year to $419 million, and EPS grew by 9.7% year-over-year.
Strong Shareholder Returns
Returned $72 million through dividends and $215 million through share repurchases, totaling $287 million returned to shareholders.
Improved Renewal Rates
The renewal rate for the third quarter of 2025 is expected to be 75.3%, up from 72.2% a year ago.
Positive Cash Flow and Liquidity Position
Operating cash flow was $308 million and free cash flow was $303 million. Cash, cash equivalents, and marketable securities totaled $618 million.
AI as a Growth Driver
AI is positively impacting domain name registrations and DNS resolution services, with infrastructure processing over 450 billion DNS transactions per day.
Negative Updates
Increased Operating Expenses
Operating expenses increased to $135 million, up from $129 million last quarter and $121 million a year ago, due to incentive compensation and legal costs.
Slower Growth in Asia Pacific Region
While domain base in Asia Pacific grew, it wasn't as strong as the growth seen during the first half of 2025.
Company Guidance
During VeriSign's Third Quarter 2025 Earnings Call, the company provided updated financial guidance and highlighted several key metrics. VeriSign reported a 7.3% year-over-year increase in revenue, reaching $419 million, and a 9.7% increase in EPS. The domain name base for .com and .net grew to 171.9 million, a 1.4% increase year-over-year, with 10.6 million new registrations in the quarter. The expected renewal rate for the third quarter of 2025 is 75.3%, up from 72.2% the previous year. The company returned $287 million to shareholders through dividends and share repurchases. For the full year 2025, VeriSign expects revenue between $1.652 billion and $1.657 billion, and operating income between $1.119 billion and $1.124 billion. Capital expenditures are projected to be between $25 million and $35 million, with a GAAP effective tax rate of 21% to 24%. The company noted a stable financial position with $618 million in cash, cash equivalents, and marketable securities at the end of the quarter.

Verisign Financial Statement Overview

Summary
Verisign demonstrates strong profitability and cash flow generation, with high-profit margins and efficient cash conversion. However, the balance sheet shows high leverage and negative equity, posing financial risks despite stable assets and cash reserves.
Income Statement
82
Very Positive
Verisign demonstrates strong profitability with a robust gross profit margin of 87.9% and a net profit margin of 50.0% in the TTM. The company shows healthy revenue growth, with a 2.6% increase from the previous year, and maintains solid EBIT and EBITDA margins of 67.9% and 70.9%, respectively. These metrics indicate a well-managed cost structure and efficient operations, although the net income has slightly fluctuated over recent years.
Balance Sheet
45
Neutral
Verisign's balance sheet reflects high leverage with a negative stockholders' equity, leading to a challenging debt-to-equity ratio scenario. The equity ratio is negative due to the company's significant liabilities surpassing its assets, posing potential financial risk. However, the company has managed to maintain stable total assets and cash reserves over the years, indicating some balance sheet resilience despite the high debt levels.
Cash Flow
78
Positive
The company exhibits strong cash flow generation, with a 8.6% growth in free cash flow in the TTM. The operating cash flow to net income ratio is favorable at 1.22, indicating efficient conversion of profits into cash. Additionally, the free cash flow to net income ratio of 1.19 demonstrates robust cash flow management. These metrics highlight Verisign's ability to generate substantial cash flows to support its operations and debt obligations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.60B1.56B1.49B1.42B1.33B1.27B
Gross Profit1.40B1.37B1.30B1.22B1.14B1.08B
EBITDA1.15B1.13B1.10B1.00B913.41M886.74M
Net Income799.50M785.70M817.60M673.80M784.80M814.89M
Balance Sheet
Total Assets1.41B1.41B1.75B1.73B1.98B1.77B
Cash, Cash Equivalents and Short-Term Investments593.80M599.90M926.40M980.40M1.21B1.17B
Total Debt1.79B1.80B1.80B1.79B1.79B1.80B
Total Liabilities3.40B3.36B3.33B3.30B3.24B3.16B
Stockholders Equity-1.99B-1.96B-1.58B-1.56B-1.26B-1.39B
Cash Flow
Free Cash Flow950.00M874.50M808.00M803.70M754.12M686.79M
Operating Cash Flow978.70M902.60M853.80M831.10M807.15M730.18M
Investing Cash Flow144.40M286.30M-97.40M355.70M-269.25M-72.26M
Financing Cash Flow-1.06B-1.22B-889.80M-1.04B-719.13M-764.88M

Verisign Technical Analysis

Technical Analysis Sentiment
Negative
Last Price247.08
Price Trends
50DMA
273.59
Negative
100DMA
276.72
Negative
200DMA
260.34
Negative
Market Momentum
MACD
-6.51
Positive
RSI
26.23
Positive
STOCH
27.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSN, the sentiment is Negative. The current price of 247.08 is below the 20-day moving average (MA) of 266.07, below the 50-day MA of 273.59, and below the 200-day MA of 260.34, indicating a bearish trend. The MACD of -6.51 indicates Positive momentum. The RSI at 26.23 is Positive, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRSN.

Verisign Risk Analysis

Verisign disclosed 22 risk factors in its most recent earnings report. Verisign reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verisign Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$20.98B25.0330.30%6.27%7.14%
76
Outperform
$64.96B33.79165.17%14.46%48.06%
71
Outperform
$49.13B-2.70%23.31%31.04%
65
Neutral
$23.53B29.910.62%5.47%-0.03%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
$18.32B23.60288.03%8.09%-54.94%
53
Neutral
$12.25B25.99%-25.47%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRSN
Verisign
247.08
66.83
37.08%
CHKP
Check Point
192.00
-15.16
-7.32%
FTNT
Fortinet
84.93
4.59
5.71%
GDDY
GoDaddy
130.94
-29.59
-18.43%
ZS
Zscaler
323.00
138.04
74.63%
SAIL
SailPoint, Inc.
22.35
-2.20
-8.96%

Verisign Corporate Events

Verisign Reports Strong Q3 2025 Financial Results
Oct 24, 2025

Verisign, Inc., a global leader in internet infrastructure and domain name registry services, plays a crucial role in enabling internet navigation and maintaining the security and stability of the Domain Name System. In its third-quarter 2025 earnings report, Verisign announced a revenue increase of 7.3% year-over-year, reaching $419 million. The company also reported a net income of $213 million, with diluted earnings per share rising to $2.27 from $2.07 in the same quarter of the previous year.

Private Placements and FinancingRegulatory Filings and Compliance
Verisign Enters Stock Sale Agreement with Berkshire Hathaway
Neutral
Jul 30, 2025

On July 28, 2025, VeriSign, Inc. entered into an underwriting agreement with Berkshire Hathaway Consolidated Pension Plan Master Trust and Burlington Northern Santa Fe, LLC Master Retirement Trust for the sale of 4,300,000 shares of common stock at $285.00 per share. The offering aims to reduce Berkshire Hathaway Inc.’s ownership below the ten percent regulatory threshold, with the closing expected on July 30, 2025. VeriSign will not receive any proceeds from this transaction, and Berkshire Hathaway has agreed to a 365-day lock-up on remaining shares.

The most recent analyst rating on (VRSN) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Verisign stock, see the VRSN Stock Forecast page.

Verisign’s Earnings Call: Strong Growth Amid Caution
Jul 29, 2025

Verisign’s latest earnings call reflects a positive sentiment, driven by strong financial performance, growth in domain registrations, and substantial shareholder returns. The Asia-Pacific region’s impressive performance contributed significantly to these results. However, the company remains cautious due to rising operating expenses and ongoing economic and geopolitical uncertainties.

Verisign’s 2025 Dividend Program: Potential Risks and Market Implications for Investors
Jul 25, 2025

Verisign’s announcement of a dividend program set to begin in the second quarter of 2025 introduces a potential risk factor for investors, as the payment of dividends is not guaranteed. The Board’s decision to declare dividends will depend on various factors such as market conditions, financial performance, and existing contractual restrictions. This uncertainty could lead to a reduction or elimination of dividends, which may adversely impact the market price of Verisign’s common stock. Investors should be aware of the potential volatility in dividend payments and its implications for stock value.

Verisign Reports Strong Q2 2025 Financial Results
Jul 25, 2025

Verisign, Inc., a global leader in internet infrastructure and domain name registry services, plays a crucial role in enabling internet navigation and e-commerce through its management of the .com and .net top-level domains. In its latest earnings report for the second quarter of 2025, Verisign announced a revenue increase to $410 million, marking a 5.9% rise from the previous year. The company also reported an operating income of $281 million and a net income of $207 million, reflecting a steady financial performance.

Stock BuybackDividendsFinancial Disclosures
Verisign Expands Share Repurchase Program by $913.1 Million
Positive
Jul 24, 2025

On July 24, 2025, Verisign‘s Board of Directors approved an additional $913.1 million for the company’s share repurchase program, bringing the total authorization to $1.5 billion. The company reported a 5.9% increase in revenue for the second quarter of 2025 compared to the same period in 2024, with net income rising to $207 million. Verisign also declared a quarterly dividend and highlighted its 28-year record of 100% availability for its .com and .net domain name resolution system. The company ended the quarter with 170.5 million domain name registrations and processed 10.4 million new registrations, reflecting its strong market position.

The most recent analyst rating on (VRSN) stock is a Buy with a $250.00 price target. To see the full list of analyst forecasts on Verisign stock, see the VRSN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 24, 2025