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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

VeriSign, Inc.'s recent performance was negatively impacted by a decline in short interest, which dropped by 13.8% in January, indicating a decrease in bearish sentiment. However, the company's Q4 2025 earnings results showed steady revenue growth of 7.5% year-over-year, with robust cash generation supporting continued shareholder returns. Additionally, management hinted at likely dot-com price increases in late 2026, which could lead to rising Average Revenue Per User (ARPU).

1.c. Company Highlights

2. VeriSign's Q4 2025 Earnings: A Strong Performance

VeriSign reported a robust financial performance for the full year 2025, with revenues growing 6.4% year over year to $1,660,000,000, driven by the strength of new registrations. The company's operating income totaled $1,120,000,000, up 5.9% from the previous year, while EPS was $8.81, representing a 10.1% increase. For the fourth quarter, revenue was $425,000,000, up 7.5% from the same quarter a year ago. The actual EPS for the quarter came out at $2.23, slightly below estimates of $2.29.

Publication Date: Feb -16

📋 Highlights
  • Annual Revenue Growth:: Full-year 2025 revenue reached $1,660,000,000, a 6.4% increase compared to the prior year.
  • Shareholder Returns:: $1,100,000,000 was returned to shareholders through share repurchases and dividends in 2025.
  • Operating Income:: Operating income for 2025 totaled $1,120,000,000, reflecting a 5.9% year-over-year increase.
  • Fourth-Quarter Revenue:: Q4 2025 revenue rose to $425,000,000, marking a 7.5% growth compared to the same quarter in 2024.
  • New Domain Registrations:: 2025 saw 41,700,000 new domain name registrations, the highest level since 2021.

Domain Name Growth

VeriSign added 1,580,000 new registrations during the fourth quarter, driven by the strength of new registrations of 10,700,000. The company expects a domain name-based growth rate of between 1.5-3.5% for 2026. As Jim Bidzos noted, "We believe with confidence that a good portion of the internet use growth is due to AI." The growth in domain names is a key driver of VeriSign's revenue.

Valuation Metrics

VeriSign's valuation metrics indicate a stable position. The company's P/E Ratio is 21.18, and the P/S Ratio is 12.26. The EV/EBITDA ratio is 18.6, suggesting a reasonable valuation. Additionally, the Dividend Yield is 1.05%, and the Free Cash Flow Yield is 5.26%, indicating a decent return for investors. The Net Debt / EBITDA ratio is 1.27, suggesting a manageable debt position.

Guidance and Outlook

For 2026, VeriSign expects continued growth in domain names, with a growth rate between 1.5-3.5%. The company's guidance is based on the DMV base of the combination of .com and .net. VeriSign's renewal rates have improved, but the company expects a higher mix of first-time renewal rates in 2026, which may impact the overall renewal rate. Analysts estimate revenue growth at 4.8% for the next year, indicating a positive outlook.

Strategic Developments

VeriSign is studying ICANN's new round of new generic top-level domains, which may present opportunities for the company. The new round will open in April, and there may be auctions depending on contention. VeriSign is also focused on enhancing security and stability, with a focus on R&D and innovation. As Jim Bidzos noted, "We're constantly doing R&D, improving our infrastructure, and working to bring innovations and new technologies."

3. NewsRoom

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All You Need to Know About VeriSign (VRSN) Rating Upgrade to Buy

Mar -20

Source: zacks.com

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CIBC Bancorp USA Inc. Buys Shares of 95,314 VeriSign, Inc. $VRSN

Mar -19

Source: defenseworld.net

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Caerus Investment Advisors LLC Purchases Shares of 3,998 VeriSign, Inc. $VRSN

Mar -18

Source: defenseworld.net

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Achmea Investment Management B.V. Increases Stake in VeriSign, Inc. $VRSN

Mar -18

Source: defenseworld.net

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VeriSign, Inc. $VRSN Shares Sold by Banco Bilbao Vizcaya Argentaria S.A.

Mar -17

Source: defenseworld.net

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Victory Capital Management Inc. Reduces Holdings in VeriSign, Inc. $VRSN

Mar -10

Source: defenseworld.net

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CI Investments Inc. Has $174,000 Stock Position in VeriSign, Inc. $VRSN

Mar -09

Source: defenseworld.net

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3,288 Shares in VeriSign, Inc. $VRSN Acquired by 111 Capital

Mar -03

Source: defenseworld.net

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: 5.9

Quality: 8.1

Yield: 1.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

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Okta

A-Score: 4.9/10

Value: 1.9

Growth: 9.0

Quality: 7.1

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

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Euronet Worldwide

A-Score: 4.8/10

Value: 6.9

Growth: 7.4

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 7.3

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Nutanix

A-Score: 4.4/10

Value: 3.3

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

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Akamai

A-Score: 4.1/10

Value: 3.2

Growth: 5.6

Quality: 5.3

Yield: 0.0

Momentum: 4.5

Volatility: 6.0

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Samsara

A-Score: 3.6/10

Value: 2.0

Growth: 7.9

Quality: 5.6

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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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

240.78$

Current Price

240.78$

Potential

0.00%

Expected Cash-Flows