VeriSign Revenue Climbs 6.6% to $428.9M as Net Income Reaches $214.5M in Q1 2026

VeriSign Inc. (NASDAQ: VRSN), the internet infrastructure provider that operates the .com and .net domain registries, reported revenue of $428.9 million for the three months ended March 31, 2026, up 6.6% from $402.3 million in the same quarter of 2025. Net income climbed to $214.5 million, or $2.34 per diluted share, compared to $199.3 million, or $2.10 per diluted share, a year earlier. Read more earnings reports.

Operating income for the quarter reached $293.6 million, up from $271.2 million in the prior-year period. The company's operating margin expanded to 68.5% of revenue from 67.4% a year ago, as revenue growth outpaced the increase in operating expenses.

Total costs and expenses rose to $135.3 million from $131.1 million, driven primarily by higher compensation and benefits expenses, which climbed to $64.9 million from $62.1 million. Stock-based compensation expense increased to $19.1 million from $17.5 million, while equipment and software expenses rose to $13.8 million from $12.0 million.

Cost of revenues edged down to $49.2 million from $49.4 million, while research and development expenses increased to $27.5 million from $26.0 million. Selling, general and administrative expenses rose to $58.6 million from $55.7 million in the first quarter of 2025.

Cash Flow and Capital Allocation

VeriSign generated $272.4 million in cash from operating activities during the quarter, down from $291.3 million in the same period last year. The company used $291.1 million in financing activities, primarily for share repurchases of $225.4 million and dividend payments of $74.2 million.

The company paid its first quarterly cash dividend of $0.81 per share during the three months ended March 31, 2026. No dividend was paid in the comparable period of 2025.

Cash and cash equivalents stood at $476.7 million at March 31, 2026, up from $307.9 million at December 31, 2025. Marketable securities decreased to $79.7 million from $272.6 million over the same period, as the company liquidated investments to fund operations and capital returns.

Balance Sheet Position

Total assets declined to $1.30 billion at March 31, 2026, from $1.33 billion at year-end 2025. The company carried long-term senior notes of $1.79 billion at quarter-end, essentially unchanged from December 31, 2025.

VeriSign's stockholders' deficit widened to $2.21 billion from $2.15 billion as of December 31, 2025, driven by share repurchases and dividend payments that exceeded net income for the quarter. The accumulated deficit narrowed to $11.56 billion from $11.78 billion.

Deferred revenues, which represent payments received in advance for domain name registrations, totaled $1.43 billion at March 31, 2026, up from $1.38 billion at the end of 2025. Current deferred revenues stood at $1.07 billion, while long-term deferred revenues reached $358.2 million.

Outstanding shares declined to 91.1 million at March 31, 2026, from 91.9 million at December 31, 2025, reflecting the company's ongoing share repurchase program. The company paid an excise tax of $1.8 million on stock repurchases during the quarter.

Financial Summary