Verisign (VRSN) AI Stock Analysis

• Market Cap: $23.53B
• Dividend Yield: 0.62%
• Average Volume (3M): 707.25K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.60
• Revenue Growth: 5.47%
• EPS Growth: -0.03%
• Country: US
• Employees: 929
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.27
• Shares Outstanding: 93,408,590
• 10 Day Avg. Volume: 737,151
• 30 Day Avg. Volume: 707,245
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $331.00
• Price Target Upside: 33.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

Verisign, 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 Money

Verisign 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.56B	1.49B	1.42B	1.33B	1.27B
Gross Profit	1.40B	1.37B	1.30B	1.22B	1.14B	1.08B
EBITDA	1.15B	1.13B	1.10B	1.00B	913.41M	886.74M
Net Income	799.50M	785.70M	817.60M	673.80M	784.80M	814.89M
Balance Sheet
Total Assets	1.41B	1.41B	1.75B	1.73B	1.98B	1.77B
Cash, Cash Equivalents and Short-Term Investments	593.80M	599.90M	926.40M	980.40M	1.21B	1.17B
Total Debt	1.79B	1.80B	1.80B	1.79B	1.79B	1.80B
Total Liabilities	3.40B	3.36B	3.33B	3.30B	3.24B	3.16B
Stockholders Equity	-1.99B	-1.96B	-1.58B	-1.56B	-1.26B	-1.39B
Cash Flow
Free Cash Flow	950.00M	874.50M	808.00M	803.70M	754.12M	686.79M
Operating Cash Flow	978.70M	902.60M	853.80M	831.10M	807.15M	730.18M
Investing Cash Flow	144.40M	286.30M	-97.40M	355.70M	-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 Price: 247.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHKP	76 Outperform	$20.98B	25.03	30.30%	―	6.27%	7.14%
FTNT	76 Outperform	$64.96B	33.79	165.17%	―	14.46%	48.06%
ZS	71 Outperform	$49.13B	―	-2.70%	―	23.31%	31.04%
VRSN	65 Neutral	$23.53B	29.91	―	0.62%	5.47%	-0.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GDDY	55 Neutral	$18.32B	23.60	288.03%	―	8.09%	-54.94%
SAIL	53 Neutral	$12.25B	―	―	―	25.99%	-25.47%

Verisign Corporate Events

Verisign Reports Strong Q3 2025 Financial Results

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.

Verisign Enters Stock Sale Agreement with Berkshire Hathaway

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

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

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

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.

Verisign Expands Share Repurchase Program by $913.1 Million

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.