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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)

Rating:65Neutral
Price Target:
$298.00
▲(10.83%Upside)
Verisign's overall stock score reflects strong financial performance and positive earnings call sentiment, tempered by high leverage and mixed technical indicators. The company's ability to generate cash flow and maintain profitability is a key strength, despite valuation concerns and economic uncertainties.
Positive Factors
Domain Growth
.com domains grew 0.2% year-over-year, marking the first month of year-over-year growth tracked in at least 15 months.
Financial Performance
Verisign shares are up 37% as the story has become better understood by investors: pricing power is locked in over the next six-year contract and domain trends continue to improve.
Market Outlook
Raising estimates and multiples on continued improvements in domain trends and raising 2026E EV/EBITDA multiple.
Negative Factors
Domain Decline
.net domain names have declined month-over-month for six straight months.
Structural Concerns
The improvements and inflection to sequential .com domain growth shifts the balance in favor of cyclical, in the cyclical vs. structural debate on .com growth.

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

Verisign Business Overview & Revenue Model

Company DescriptionVeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. It enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which support global e-commerce. The company also back-end systems for .cc, .gov, .edu, and .name domain names, as well as operates distributed servers, networking, security, and data integrity services. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.
How the Company Makes MoneyVerisign generates revenue primarily through the registration of domain names, charging registrars annual fees for each registered domain name under the .com and .net TLDs. The company operates under agreements with the Internet Corporation for Assigned Names and Numbers (ICANN), which allows it to set prices within certain limits for these TLDs. Additionally, Verisign offers security services, including Distributed Denial of Service (DDoS) protection and managed DNS, although these services constitute a smaller portion of its revenue. The company's financial performance is closely tied to the growth in domain name registrations and renewals, which are influenced by overall internet expansion, digital transformation trends, and the global proliferation of online services.

Verisign Key Performance Indicators (KPIs)

Any
Any
Domain Name Registrations
Domain Name Registrations
Measures the total number of domain names registered, reflecting the company's market share in the domain registry industry and its ability to attract and retain customers.
Chart InsightsVerisign's domain name registrations have been declining since mid-2022, with a notable drop in 2024, driven by decreases in the US and China. Despite this, the company is optimistic about reversing the trend with new marketing strategies and improved registrar engagement, as evidenced by an uptick in new registrations in the last quarter of 2024. This strategic focus could stabilize the domain base, even as the company faces challenges in key markets like China, which now has a diminished impact on overall volumes.
Data provided by:Main Street Data

Verisign Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -6.21%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive momentum with strong financial performance, growth in domain registrations, and shareholder returns. The performance in the Asia-Pacific region was particularly strong, contributing to the overall positive results. However, some caution is noted due to increased operating expenses and ongoing economic and geopolitical uncertainties.
Q2-2025 Updates
Positive Updates
Domain Name Base Growth
The domain name base for .com and .net totaled 170.5 million, up 660,000 from last quarter, with new registrations reaching 10.4 million compared to 10.1 million last quarter and the same quarter a year ago. The renewal rate improved to 75.5% from 72.7% a year ago.
Financial Performance
Revenue for the quarter was $410 million, up 5.9% from the same quarter a year ago. Net income was $207 million, and diluted earnings per share increased to $2.21 from $2.01 a year ago. Free cash flow was $195 million, compared to $151 million in the year-ago quarter.
Shareholder Returns
Returned $235 million to stockholders, with $72 million through dividends and $163 million through share repurchases. The Board authorized an additional $913 million for share repurchases, totaling $1.5 billion available.
Strong Performance in Asia-Pacific
The Asia-Pacific region showed strong growth in new registrations and renewal rates, contributing significantly to the overall domain strength.
Negative Updates
Operating Expenses Increase
Operating expenses in Q2 2025 totaled $129 million, up from $121 million in the second quarter of last year.
Economic and Geopolitical Uncertainty
Despite positive trends, economic and geopolitical uncertainties remain, leading to a conservative outlook for future performance.
Company Guidance
In VeriSign's Second Quarter 2025 Earnings Call, the company provided updated guidance reflecting positive trends in their business model and domain name base. VeriSign's domain name base for .com and .net reached 170.5 million, an increase of 660,000 from the previous quarter, with new registrations totaling 10.4 million, up from 10.1 million in the last quarter. The renewal rate improved to 75.5% from 72.7% a year ago. The company expects the domain name base change to be between 1.2% and 2% for 2025, driven by registrar focus on customer acquisition and marketing programs, particularly in the Asia-Pacific region. Financially, VeriSign reported Q2 revenue of $410 million, a 5.9% increase year-over-year, with net income of $207 million and diluted EPS of $2.21. The company returned $235 million to stockholders, declared a cash dividend of $0.77 per share, and increased its share repurchase authorization to $1.5 billion. For full-year 2025, VeriSign projects revenue between $1.645 billion and $1.655 billion and operating income between $1.117 billion and $1.127 billion.

Verisign Financial Statement Overview

Summary
Verisign exhibits robust profitability with high margins and strong cash flow generation, but the balance sheet is highly leveraged with negative equity, which poses financial risks. Strong cash flow supports operations and debt obligations despite these risks.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.56B1.49B1.42B1.33B1.27B
Gross Profit1.37B1.30B1.22B1.14B1.08B
EBITDA1.13B1.10B1.00B913.41M886.74M
Net Income785.70M817.60M673.80M784.80M814.89M
Balance Sheet
Total Assets1.41B1.75B1.73B1.98B1.77B
Cash, Cash Equivalents and Short-Term Investments599.90M926.40M980.40M1.21B1.17B
Total Debt1.80B1.80B1.79B1.79B1.79B
Total Liabilities3.36B3.33B3.30B3.24B3.16B
Stockholders Equity-1.09B-1.58B-1.56B-1.26B-1.39B
Cash Flow
Free Cash Flow874.50M808.00M803.70M754.12M686.79M
Operating Cash Flow902.60M853.80M831.10M807.15M730.18M
Investing Cash Flow286.30M-97.40M355.70M-269.25M-72.26M
Financing Cash Flow-1.22B-889.80M-1.04B-719.13M-764.88M

Verisign Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price268.87
Price Trends
50DMA
282.05
Negative
100DMA
269.26
Negative
200DMA
235.88
Positive
Market Momentum
MACD
-0.63
Positive
RSI
39.22
Neutral
STOCH
9.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSN, the sentiment is Neutral. The current price of 268.87 is below the 20-day moving average (MA) of 285.11, below the 50-day MA of 282.05, and above the 200-day MA of 235.88, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 39.22 is Neutral, neither overbought nor oversold. The STOCH value of 9.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$18.64B29.3828.80%1.70%3.23%7.79%
76
Outperform
$23.66B24.3330.30%6.27%7.14%
73
Outperform
$11.62B26.339.82%3.51%-27.28%
72
Outperform
$45.16B-2.68%25.46%49.20%
69
Neutral
¥230.15B14.837.55%2.61%9.28%5.74%
67
Neutral
$21.85B1,777.39-10.35%39.45%-982.51%
65
Neutral
$25.92B33.12-72.04%0.29%4.59%0.26%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VRSN
Verisign
268.87
81.01
43.12%
AKAM
Akamai
76.31
-19.13
-20.04%
CHKP
Check Point
186.20
4.38
2.41%
GEN
Gen Digital
29.49
4.70
18.96%
CYBR
CyberArk Software
411.47
156.37
61.30%
ZS
Zscaler
285.56
111.12
63.70%

Verisign Corporate Events

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.

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.

Executive/Board ChangesShareholder Meetings
Verisign Stockholders Approve Key Amendments at Annual Meeting
Neutral
May 22, 2025

At the annual meeting on May 22, 2025, Verisign stockholders approved an amendment to the company’s Restated Certificate of Incorporation, limiting the liability of certain officers under Delaware law. Additionally, stockholders elected directors, approved executive compensation, ratified KPMG LLP as the independent auditor, and voted against a proposal for stockholder action by written consent.

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: Jul 30, 2025