VALUATION HIGHLIGHTS

1. Domain Names constitute 100% of the Trefis price estimate for VeriSign's stock.

WHAT HAS CHANGED?

Latest Earnings: Q4 and Full Year Fiscal 2025

Verisign reported Q4 2025 revenue of $425 million, a 7.5% increase year-over-year, and full-year revenue of $1.66 billion, up 6.4% from 2024. Full-year GAAP EPS rose 10.1% to $8.81. Growth was fueled by a recovery in the domain name base, which ended the year at 173.5 million registrations (up 2.6%), and the continued impact of contractual price increases. The company also raised its quarterly dividend by 5.2% to $0.81 per share.

Note: Verisign's FY'25 ended on December 31, 2025.

Introduction of Quarterly Dividend Program

In a significant shift in capital allocation strategy, Verisign initiated a quarterly cash dividend in 2025, returning $215 million to shareholders alongside $859 million in share repurchases. This move signals management's confidence in the company's consistent free cash flow generation, which reached $1.07 billion for the full year. The transition to a dual-return model (dividends plus buybacks) reflects a maturing business profile aimed at attracting a broader base of value-oriented investors.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Verisign's value that present opportunities for upside or downside to the current Trefis price estimate:

Domain Name Services

• New Registration Velocity: Verisign processed 41.7 million new registrations in 2025, the highest volume since 2021. If this momentum continues into 2026, driven by digital entrepreneurship in emerging markets, there is significant upside to the current domain base growth guidance of 1.5% to 3.5%.


• Operating Expense Inflation: Q4 2025 operating expenses rose to $140 million due to higher SG&A and R&D costs. If headcount and infrastructure costs continue to outpace revenue growth, the company's industry-leading operating margins (currently ~67.5%) could face compression, posing a downside risk to EPS targets.

For additional details, select a division from the interactive Trefis split for Verisign at the top of the page.

BUSINESS SUMMARY

Verisign is a provider of internet infrastructure services, most notably serving as the exclusive registry operator for the .com and .net top-level domains. The company's critical role in global internet navigation allows it to generate high-margin, recurring revenue through a subscription-like model that is largely decoupled from broader macroeconomic volatility.

SOURCES OF VALUE

Verisign's valuation is anchored by its monopolistic control over the internet's most essential naming assets.

Registry Agreement Longevity

The company operates under long-term agreements with ICANN and the U.S. Department of Commerce. The .com registry agreement, renewed through November 2030, provides a predictable regulatory framework. This long-term visibility into pricing and operations creates a "utility-like" risk profile that is highly valued by institutional investors.

Unrivaled Infrastructure Reliability

Verisign has maintained 100% operational uptime for the .com and .net DNS for over 28 consecutive years. This flawless track record is a primary competitive advantage, as the switching costs and systemic risks of moving to a different registry provider are prohibitive for the global internet ecosystem.

KEY TRENDS

Predictable Pricing Power

Under its current agreement, Verisign has the right to increase .com wholesale prices by 7% in each of the final four years of a six-year cycle. With the next pricing window opening in April 2026, the market expects continued upward adjustments, providing a clear path to mid-single-digit revenue growth regardless of registration volume fluctuations.

Global Digital Expansion

Despite the maturity of the U.S. market, Verisign is seeing robust growth in EMEA and APAC regions. In 2025, EMEA revenue grew by 12%, highlighting the ongoing globalization of e-commerce and the continued preference for .com as the primary international business identifier over local country-code extensions.