VRSN earnings analysis
What we found in VRSN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Verisign reported Q1 2026 revenue of $428.9 million (up 7% YoY) and GAAP diluted EPS of $2.34, modestly ahead of consensus. Operating income was $293.6 million (up 8% YoY) and the domain name base grew to 176.1 million registrations (up 3.7% YoY). Operating cash flow declined to $272.4 million and marketable securities fell to $79.7 million, while the company announced a .com wholesale fee increase to $10.97 effective November 1, 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth and beat
- Total revenues were $428.9 million for the three months ended March 31, 2026, an increase of 7% from $402.3 million in the same period in 2025.
- EPS ahead of expectations
- GAAP diluted EPS was $2.34 for Q1 2026 (actual), above consensus and up from prior-year Q1 EPS of $2.10.
- Operating income and margin expansion
- Operating income was $293.6 million (an 8% increase YoY) and operating income represented 68.5% of revenues (vs. 67.4% in the prior year).
- Domain base and new registrations
- The .com and .net domain name base totaled 176.1 million registrations as of March 31, 2026 (up 3.7% from 169.8 million on March 31, 2025) and new registrations were 11.5 million (vs. 10.1 million in Q1 2025).
- .com price increase announced
- Management announced an increase in the annual registry-level wholesale fee for .com from $10.26 to $10.97 effective November 1, 2026.
- Capital returns in quarter
- During Q1 2026 the company repurchased 0.9 million shares for $214.4 million and paid dividends of $74.2 million; $862.8 million remained available for future repurchases under the program.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating cash flow declined
- Net cash provided by operating activities decreased to $272.4 million in Q1 2026 from $291.3 million in Q1 2025 (a decline of $18.9 million).
- Marketable securities reduced sharply
- Marketable securities declined to $79.7 million as of March 31, 2026 from $272.6 million at December 31, 2025 (a decrease of $192.9 million), reducing near-term liquid investments.
- Total cash + marketable securities modestly down
- Cash and cash equivalents were $476.7 million and marketable securities $79.7 million (total $556.4 million) as of March 31, 2026 versus $580.5 million at December 31, 2025 (a $24.1 million decrease).
- Debt outstanding
- As of March 31, 2026, the company had $500.0 million of 2032 notes, $750.0 million of 2.70% notes due 2031, and $550.0 million of 4.75% notes due 2027 (totaling $1.8 billion in listed notes).
- No material risk-factor changes
- The filing states there have been no material changes to the Company's risk factors since the 2025 Form 10-K.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.34
- Gross margin
- 88.5%
- Operating margin
- 68.5%
- Segment
- U.S.: $283.4 million (up 7% vs $266.1 million)
- Segment
- EMEA: $73.5 million (up 10% vs $67.0 million)
- Segment
- APAC: $48.0 million (up 8% vs $44.4 million)
- Segment
- Other: $24.0 million (down 3% vs $24.8 million)
What they said about what is next.
No numeric forward revenue or EPS guidance provided in this 10-Q. Management stated it believes existing cash, cash equivalents and marketable securities together with operating cash flows and borrowing capacity are sufficient to meet requirements for the next 12 months; also announced .com wholesale fee increase to $10.97 effective November 1, 2026.
The filing reads better than the one before it.
What came before.
- 10-K · February 5, 2026
- Verisign presents a stable, high-margin domain registry business anchored by operation of the .com and .net gTLDs and two root servers, with revenue increasing to $1,656.0M (sum of 2025 quarters) and diluted EPS of…
- 10-Q · October 23, 2025
- Verisign reported quarter revenue of $419.1M (up 7% YoY) and diluted EPS of $2.27 (vs $2.07 a year ago), with operating income of $284.3M (up 6% YoY). Cash generation remains strong with net cash provided by operating…
- 10-Q · July 24, 2025
- Verisign reported Q2 revenue of $409.9M (up 6% YoY and up ~$7.9M vs prior quarter) and diluted EPS of $2.21 (vs $2.01 YoY), modestly beating consensus. Margins remained strong (gross ~88.0%, operating 68.5%), operating…
- 10-K · February 17, 2023
- Verisign presents a steady, infrastructure-heavy registry business: it is the exclusive registry for .com, .net and .name and operates two of the 13 root servers, with core agreements that require renewal in 2023–2024…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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