VeriSign, Inc.

What they do

Verisign operates the authoritative directory for all .com, .net and .name domain names, for certain internationalized transliterations of .com and .net, and for all .cc domain names, and operates the technical or back-end systems for the .edu top-level domain. It also provides Root Zone Maintainer services and operates two of the thirteen global internet root servers. Its services let individuals and organizations establish online identities with secure, always-on access.

Revenue drivers

• .com and .net domain name registrations — Verisign's principal revenue source is registration and renewal fees on .com and .net domains; the domain name base was 179.1 million registrations as of June 30, 2026, and second quarter 2026 revenue was $434.6 million.
• Other gTLD and ccTLD registry services — Verisign also operates the authoritative directory for .name and for all .cc domain names, and operates technical or back-end systems for .edu.
• ./web top-level domain — The .web TLD has been delegated into the DNS root zone with Verisign as designated registry operator, and the company expects to offer .web domains through its registrar channel later in 2026.

Recent performance

Second quarter 2026 revenue was $434.6 million, up 6.0% from the same quarter of 2025, with operating income of $296.3 million. Net income was $217 million and diluted EPS was $2.38, versus $207 million and $2.21 a year earlier. The domain name base ended June 30, 2026 at 179.1 million .com and .net registrations, up 5.1% year over year and a net increase of 3.05 million from March 31, 2026. Verisign processed 12.7 million new registrations in the quarter versus 10.4 million a year earlier, and the final first quarter 2026 renewal rate was 76.3% versus 75.5%.

Strategy

Verisign's stated focus is operating its .com and .net registry and critical internet infrastructure with 100% availability, a record the company said reached 29 years. Management is expanding its registry portfolio: the .web TLD was delegated during the quarter and Verisign expects to begin offering .web domains through registrars later in 2026. Capital return remains central, with the Board approving an additional $884.2 million authorization in July 2026 for a total of $1.50 billion available under the repurchase program, plus a quarterly cash dividend of $0.81 per share payable August 27, 2026. The company also refinanced debt, issuing $550 million of 5.10% Senior Notes due 2031 and redeeming its $550 million 4.75% Senior Notes due 2027.

Risks

• Cybersecurity and DDoS attacks — As an operator of critical internet infrastructure, Verisign faces a high rate of cyber-attacks and attempted security breaches, including advanced persistent threats, zero-day exploits, ransomware and social engineering, and AI-based tools are making attacks more sophisticated and harder to defend.
• Domain registration demand — Registrations may be negatively affected by overall economic conditions, competition from ccTLDs and other gTLDs, alternative online presence services, and changing internet practices and preferences of consumers and businesses.
• Regulatory and ICANN agreements — Verisign operates under agreements with ICANN that govern its registry services and require it to publish zone files and domain name base data, and changes to those agreements or the regulatory environment could affect its business.
• Negative shareholder equity and leverage — As of June 30, 2026, Verisign had total assets of $1.80 billion, total liabilities of $4.06 billion and shareholder equity of negative $2.25 billion, reflecting sustained share repurchases and debt.

Outlook

Management raised its guidance for full-year 2026 following the second quarter results. The company said the continuing strength in new domain name registrations reflects growing reliance on its infrastructure in the digital economy. Verisign also highlighted that it returns more than 100% of free cash flow to investors through dividends and share repurchases on a consistent basis. The company expects to offer .web domains through its registrar channel later in 2026.