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1. Company Snapshot

1.a. Company Description

VeriSign, 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.

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1.b. Last Insights on VRSN

Negative drivers behind VeriSign's recent 3-month performance include Berkshire Hathaway's sale of approximately one-third of its stake in the company, worth $1.23 billion, which may have sparked sentiment-driven selling. Additionally, the company's recent secondary offering of common stock by selling stockholders may have added to the negative sentiment.

1.c. Company Highlights

2. VeriSign's Earnings Shine with Domain Name Growth

VeriSign reported revenue of $419 million, a 7.3% year-over-year increase, driven by a growing domain name base for .com and .net, which reached 171.9 million, up 1.4% year-over-year. EPS also saw a significant boost, rising 9.7% year-over-year to $2.27, slightly below estimates of $2.29. The company's financial position remains stable, with $618 million in cash, cash equivalents, and marketable securities. The Board declared a cash dividend of $0.77 per share, payable on November 25, 2025, continuing the company's tradition of returning value to shareholders.

Publication Date: Oct -27

📋 Highlights
  • Domain Name Base Growth:: 171.9 million domain names, up 1.4% YoY, with 10.6 million new registrations.
  • Revenue and EPS Growth:: $419 million revenue (+7.3% YoY) and EPS up 9.7% YoY.
  • Shareholder Returns:: $287 million returned via dividends and share repurchases.
  • Projected Domain Growth:: 2025 growth of 2.2–2.5%, driven by U.S. and EMEA regions.
  • Financial Stability:: $618 million in cash, cash equivalents, and marketable securities.

Domain Name Base Trends

The improved domain name base trends are attributed to better programs, registrar engagement, and a cyclical shift from ARPU to customer acquisition, with the U.S. and EMEA regions showing the most strength. As noted by management, "better programs and registrar engagement" have driven this growth, indicating a successful strategy. The cost of these marketing programs is included in the updated guidance and is accretive, suggesting that the investments are yielding positive returns.

Impact of AI and Future Prospects

AI is having a positive impact on registrations and DNS resolution services, with 450 billion DNS transactions processed daily. VeriSign uses AI in domain name suggestion platforms and to provide efficiencies, positioning the company for continued success in a rapidly evolving digital landscape. The company believes demand for persistent, resolvable identities and endpoints will continue, underscoring the importance of domain names as digital trust anchors.

Valuation and Outlook

With a P/E Ratio of 28.42 and an EV/EBITDA of 21.57, the market appears to have priced in a significant level of growth. Analysts estimate next year's revenue growth at 3.4%, which may not be sufficient to justify current valuation multiples. However, the Dividend Yield of 0.62% and Free Cash Flow Yield of 4.36% provide some support for the stock. As the company continues to invest in its programs and explores new opportunities, such as the upcoming ICANN 2026 round of new gTLDs, investors will be watching to see if VeriSign can maintain its growth trajectory.

Operational Highlights

The SG&A line step-up is mainly due to incentive compensation and legal costs, which is a common theme in many companies' earnings reports. Marketing programs' costs are accounted for as a reduction in revenue, not in SG&A, which is an important distinction to make when analyzing the company's financials. The company's efforts to become the registry operator for .web are ongoing, with a final hearing scheduled for mid-November 2025.

3. NewsRoom

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VeriSign, Inc. $VRSN Stock Position Raised by Edgestream Partners L.P.

Dec -03

Source: defenseworld.net

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Head to Head Survey: Sabre (NASDAQ:SABR) and VeriSign (NASDAQ:VRSN)

Dec -02

Source: defenseworld.net

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Market Today: Tech Slide, Meta Win, AI Deals, WBD Bids

Nov -18

Source: gurufocus.com

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Why VeriSign Pulled Back in October

Nov -10

Source: fool.com

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3 Warren Buffett Stocks to Buy Hand Over Fist in November

Nov -07

Source: fool.com

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Why GoDaddy Could Outperform VeriSign Stock

Nov -05

Source: forbes.com

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VeriSign, Inc. (VRSN) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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VeriSign posts increase in quarterly revenue on robust demand for domain names

Oct -23

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Critical Internet Infrastructure and Domain Name Registry Services

Expected Growth: 4.0%

VeriSign's 4.0% growth in Critical Internet Infrastructure and Domain Name Registry Services is driven by increasing global internet adoption, rising e-commerce and online transactions, growing demand for online brand protection, and the company's strategic investments in infrastructure and security enhancements.

7. Detailed Products

Domain Name Registry Services

VeriSign provides domain name registry services, allowing individuals and organizations to register and manage their domain names.

SSL Certificates

VeriSign offers SSL certificates, which provide encryption and authentication for websites, ensuring secure online transactions.

Domain Name System (DNS) Services

VeriSign provides DNS services, enabling the routing of internet traffic to websites and online applications.

iDefense Intelligence

VeriSign's iDefense Intelligence provides threat intelligence and vulnerability management solutions, helping organizations stay ahead of cyber threats.

Managed DNS Services

VeriSign's managed DNS services provide a scalable and secure solution for managing DNS infrastructure, ensuring high availability and performance.

8. VeriSign, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

VeriSign, Inc. has a low threat of substitutes due to its dominant position in the domain name registration market and the high barriers to entry for new competitors.

Bargaining Power Of Customers

VeriSign, Inc. has a medium bargaining power of customers due to the presence of a large number of customers, but the high switching costs and the lack of alternative options for domain name registration.

Bargaining Power Of Suppliers

VeriSign, Inc. has a low bargaining power of suppliers due to its dominant position in the market and the lack of alternative suppliers for domain name registration services.

Threat Of New Entrants

VeriSign, Inc. has a low threat of new entrants due to the high barriers to entry, including the need for significant capital investment and the complexity of the domain name registration process.

Intensity Of Rivalry

VeriSign, Inc. has a medium intensity of rivalry due to the presence of a few large competitors in the market, but the high barriers to entry and the dominant position of VeriSign, Inc. reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 837.75%
Debt Cost 5.00%
Equity Weight -737.75%
Equity Cost 8.35%
WACC -19.66%
Leverage -113.55%

11. Quality Control: VeriSign, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
VeriSign

A-Score: 6.1/10

Value: 3.6

Growth: 6.0

Quality: 8.1

Yield: 1.0

Momentum: 9.0

Volatility: 9.0

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Euronet Worldwide

A-Score: 5.1/10

Value: 7.1

Growth: 7.4

Quality: 5.6

Yield: 0.0

Momentum: 3.5

Volatility: 7.0

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Nutanix

A-Score: 5.0/10

Value: 2.8

Growth: 8.3

Quality: 6.1

Yield: 0.0

Momentum: 7.5

Volatility: 5.3

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Okta

A-Score: 5.0/10

Value: 2.1

Growth: 9.1

Quality: 6.7

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

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Akamai

A-Score: 3.8/10

Value: 4.0

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.0

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Samsara

A-Score: 3.6/10

Value: 4.0

Growth: 7.9

Quality: 4.0

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

231.77$

Current Price

249.57$

Potential

-7.13%

Expected Cash-Flows