Item 1. Financial Statements
ITEM 1. FINANCIAL STATEMENTS
VERISIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
(Unaudited)
June 30,
2025 December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents $ 314.3 $ 206.7
Marketable securities 279.5 393.2
Other current assets 88.5 63.9
Total current assets 682.3 663.8
Property and equipment, net 221.2 224.5
Goodwill 52.5 52.5
Deferred tax assets 272.2 281.3
Deposits to acquire intangible assets 145.0 145.0
Other long-term assets 34.6 39.4
Total long-term assets 725.5 742.7
Total assets $ 1,407.8 $ 1,406.5
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 225.3 $ 257.8
Deferred revenues 1,034.3 973.5
Current senior notes — 299.8
Total current liabilities 1,259.6 1,531.1
Long-term deferred revenues 345.4 330.7
Long-term senior notes 1,786.9 1,492.5
Long-term tax and other liabilities 9.7 10.1
Total long-term liabilities 2,142.0 1,833.3
Total liabilities 3,401.6 3,364.4
Commitments and contingencies
Stockholders’ deficit:
Preferred stock—par value $ .001 per share; Authorized shares: 5.0 ; Issued and outstanding shares: none
— —
Common stock and additional paid-in capital—par value $ .001 per share; Authorized shares: 1,000 ; Issued shares: 355.5 at June 30, 2025 and 355.2 at December 31, 2024; Outstanding shares: 93.6 at June 30, 2025 and 95.0 at December 31, 2024
10,203.0 10,645.3
Accumulated deficit ( 12,194.0 ) ( 12,600.7 )
Accumulated other comprehensive loss ( 2.8 ) ( 2.5 )
Total stockholders’ deficit ( 1,993.8 ) ( 1,957.9 )
Total liabilities and stockholders’ deficit $ 1,407.8 $ 1,406.5
See accompanying Notes to Condensed Consolidated Financial Statements.
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VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Revenues $ 409.9 $ 387.1 $ 812.2 $ 771.4
Costs and expenses:
Cost of revenues 49.1 47.1 98.5 96.2
Research and development 25.7 23.8 51.7 48.6
Selling, general and administrative 54.4 50.0 110.1 101.5
Total costs and expenses 129.2 120.9 260.3 246.3
Operating income 280.7 266.2 551.9 525.1
Interest expense ( 18.9 ) ( 18.8 ) ( 39.2 ) ( 37.6 )
Non-operating income, net 5.5 11.5 13.0 25.4
Income before income taxes 267.3 258.9 525.7 512.9
Income tax expense ( 59.9 ) ( 60.1 ) ( 119.0 ) ( 120.0 )
Net income 207.4 198.8 406.7 392.9
Other comprehensive loss — — ( 0.3 ) ( 0.2 )
Comprehensive income $ 207.4 $ 198.8 $ 406.4 $ 392.7
Earnings per share:
Basic $ 2.21 $ 2.01 $ 4.32 $ 3.93
Diluted $ 2.21 $ 2.01 $ 4.31 $ 3.93
Shares used to compute earnings per share
Basic 93.8 98.9 94.2 99.9
Diluted 94.0 99.0 94.4 99.9
See accompanying Notes to Condensed Consolidated Financial Statements.
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VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In millions)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Total stockholders’ deficit, beginning of period $ ( 1,977.0 ) $ ( 1,635.7 ) $ ( 1,957.9 ) $ ( 1,581.0 )
Common stock and additional paid-in capital
Beginning balance 10,427.2 11,559.4 10,645.3 11,808.0
Repurchase of common stock ( 166.8 ) ( 390.3 ) ( 408.5 ) ( 660.2 )
Common stock cash dividends ( 72.1 ) — ( 72.1 ) —
Stock-based compensation 16.2 14.6 33.9 29.9
Issuance of common stock under stock plans — — 7.9 8.3
Excise tax on repurchase of common stock ( 1.5 ) ( 3.8 ) ( 3.5 ) ( 6.1 )
Balance, end of period 10,203.0 11,179.9 10,203.0 11,179.9
Accumulated deficit
Beginning balance ( 12,401.4 ) ( 13,192.3 ) ( 12,600.7 ) ( 13,386.4 )
Net income 207.4 198.8 406.7 392.9
Balance, end of period ( 12,194.0 ) ( 12,993.5 ) ( 12,194.0 ) ( 12,993.5 )
Accumulated other comprehensive loss
Beginning balance ( 2.8 ) ( 2.8 ) ( 2.5 ) ( 2.6 )
Other comprehensive loss — — ( 0.3 ) ( 0.2 )
Balance, end of period ( 2.8 ) ( 2.8 ) ( 2.8 ) ( 2.8 )
Total stockholders’ deficit, end of period $ ( 1,993.8 ) $ ( 1,816.4 ) $ ( 1,993.8 ) $ ( 1,816.4 )
Cash dividends declared per common share $ 0.77 $ — $ 0.77 $ —
See accompanying Notes to Condensed Consolidated Financial Statements.
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VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended June 30,
2025 2024
Cash flows from operating activities:
Net income $ 406.7 $ 392.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment 17.2 19.1
Stock-based compensation expense 33.4 29.4
Amortization of discount on investments in debt securities ( 4.8 ) ( 11.1 )
Other, net 1.4 1.6
Changes in operating assets and liabilities:
Other assets ( 19.9 ) ( 19.2 )
Other liabilities ( 24.8 ) ( 58.8 )
Deferred revenues 75.5 42.6
Net deferred income taxes 9.1 21.2
Net cash provided by operating activities 493.8 417.7
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities 396.8 727.6
Purchases of marketable securities ( 278.6 ) ( 468.1 )
Purchases of property and equipment ( 13.6 ) ( 13.0 )
Net cash provided by investing activities 104.6 246.5
Cash flows from financing activities:
Repayment of borrowings ( 500.0 ) —
Proceeds from senior note issuance, net of issuance costs 493.3 —
Repurchases of common stock ( 408.5 ) ( 660.2 )
Payment of dividends ( 72.1 ) —
Payment of excise tax on repurchase of common stock ( 11.6 ) —
Proceeds from employee stock purchase plan 7.9 8.3
Net cash used in financing activities ( 491.0 ) ( 651.9 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 0.1 ( 0.3 )
Net increase in cash, cash equivalents, and restricted cash 107.5 12.0
Cash, cash equivalents, and restricted cash at beginning of period 212.1 245.5
Cash, cash equivalents, and restricted cash at end of period $ 319.6 $ 257.5
Supplemental cash flow disclosures:
Cash paid for interest $ 42.3 $ 36.4
Cash paid for income taxes, net of refunds received $ 149.4 $ 138.6
See accompanying Notes to Condensed Consolidated Financial Statements.
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VERISIGN, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
Interim Financial Statements
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) filed with the SEC on February 13, 2025.
Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for our 2025 Form 10-K. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires additional disclosure of certain costs and expenses within the notes to the financial statements. This guidance will be effective for our 2027 Form 10-K. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
Note 2. Financial Instruments
Cash, Cash Equivalents, and Marketable Securities
The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:
June 30, December 31,
2025 2024
(In millions)
Cash $ 21.7 $ 21.7
Time deposits 1.8 1.8
Money market funds (Level 1) 296.1 188.6
Debt securities issued by the U.S. Treasury (Level 1) 279.5 393.2
Total $ 599.1 $ 605.3
Cash and cash equivalents $ 314.3 $ 206.7
Restricted cash (included in Other long-term assets) 5.3 5.4
Total Cash, cash equivalents, and restricted cash 319.6 212.1
Marketable securities 279.5 393.2
Total
$ 599.1 $ 605.3
The gross and net unrealized gains and losses included in the fair value of the debt securities were not significant for the periods presented. All of the debt securities held as of June 30, 2025 are scheduled to mature in less than one year.
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Fair Value Measurements
The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of the Company’s foreign currency forward contracts is based on foreign currency rates quoted by banks or foreign currency dealers and other public data sources. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy.
As of June 30, 2025, the Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable whose carrying values approximated their face values. The aggregate fair value of the Company’s senior notes is $ 1.73 billion and $ 1.69 billion as of June 30, 2025 and December 31, 2024, respectively. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.
Note 3. Selected Balance Sheet Items
Other Current Assets
Other current assets consist of the following:
June 30, December 31,
2025 2024
(In millions)
Prepaid expenses $ 31.5 $ 30.8
Prepaid registry fees 26.0 24.3
Taxes receivable 22.0 2.2
Accounts receivable, net 5.8 5.6
Other 3.2 1.0
Total other current assets $ 88.5 $ 63.9
The taxes receivable balance fluctuates from period to period due to the timing of estimated income tax payments in the Company’s major tax jurisdictions.
Other Long-term Assets
Other long-term assets consist of the following:
June 30, December 31,
2025 2024
(In millions)
Long-term prepaid expenses $ 10.0 $ 13.5
Long-term prepaid registry fees 8.4 8.2
Operating lease right-of-use asset 8.0 9.3
Restricted cash 5.3 5.4
Other 2.9 3.0
Total other long-term assets $ 34.6 $ 39.4
The prepaid registry fees in the tables above relate to the fees the Company pays to ICANN for each annual term of . com domain name registrations and renewals which are deferred and amortized over the domain name registration term.
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Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consist of the following:
June 30, December 31,
2025 2024
(In millions)
Accounts payable and accrued expenses $ 8.1 $ 10.6
Customer deposits 76.1 64.6
Accrued employee compensation 51.0 66.9
Taxes payable 42.4 65.8
Interest payable 15.1 19.5
Accrued registry fees 13.9 12.6
Customer incentives payable 11.4 8.9
Current operating lease liabilities 4.7 5.2
Other accrued liabilities 2.6 3.7
Total accounts payable and accrued liabilities $ 225.3 $ 257.8
Customer deposits varies from period to period due to the timing of payments from certain large customers. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2024 was paid during the six months ended June 30, 2025. Taxes payable reflects amounts accrued for the income tax provision and payments made during the period. This balance fluctuates from period to period due to the timing of income tax payments in the Company’s major tax jurisdictions. Interest payable varies at each period-end based on the payment due dates for each senior note issuance.
Note 4. Debt
On March 11, 2025, the Company issued $ 500.0 million of 5.25 % senior unsecured notes due June 1, 2032 (“2032 Notes”). The 2032 Notes were issued at 99.581 % of par value. The Company will pay interest on the notes semi-annually on June 1 and December 1, commencing on June 1, 2025. The total discount and issuance costs of $ 6.7 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 7-year term of the notes.
On March 31, 2025, the Company used the net proceeds from the 2032 Notes and cash on hand to fund the repayment of all of its $ 500.0 million aggregate principal amount of outstanding 5.25 % senior unsecured notes (“2025 Notes”), prior to their maturity on April 1, 2025.
Note 5. Stockholders’ Deficit
Effective July 25, 2024, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $ 1.11 billion, in addition to the $ 388.0 million that remained available for repurchases under the prior share repurchase authorization, for a total repurchase authorization of up to $ 1.50 billion under the program. The program has no expiration date. Purchases made under the program can be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. As of June 30, 2025 there was $ 630.1 million remaining available for repurchases under the program. Effective July 24, 2025, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $ 913.1 million, in addition to the $ 586.9 million that remained available for repurchases under the prior share repurchase authorization, for a total repurchase authorization of up to $ 1.50 billion under the program.
A summary of the Company’s common stock share repurchases is as follows:
Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Shares Total Costs Average Price Shares Total Costs Average Price
(In millions, except average price amounts)
Total repurchases under the repurchase plans 0.6 $ 162.6 $ 264.71 1.6 $ 392.6 $ 240.46
Total repurchases for tax withholdings — 4.2 $ 280.71 0.1 15.9 $ 240.77
Total repurchases 0.6 $ 166.8 $ 265.09 1.7 $ 408.5 $ 240.47
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Since inception, the Company has repurchased 261.9 million shares of its common stock for an aggregate cost of $ 15.29 billion, which is recorded as a reduction of Additional paid-in capital. The share repurchase and authorization amounts disclosed within this Form 10-Q exclude the excise tax on share repurchases.
On April 23, 2025, the Company’s Board of Directors declared a cash dividend of $ 0.77 per share of the Company’s outstanding common stock, totaling $ 72.1 million, which was paid on May 28, 2025. The dividend was accounted for as a reduction of Additional paid-in capital. On July 22, 2025, the Company’s Board of Directors declared a cash dividend of $ 0.77 per share of the Company’s outstanding common stock to stockholders of record as of the close of business on August 19, 2025, payable on August 27, 2025. The Company intends to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by the Company’s Board of Directors.
Note 6. Calculation of Earnings per Share
The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(In millions)
Weighted-average shares of common stock outstanding 93.8 98.9 94.2 99.9
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP 0.2 0.1 0.2 —
Shares used to compute diluted earnings per share 94.0 99.0 94.4 99.9
The calculation of diluted weighted average shares outstanding excludes performance-based RSUs granted by the Company for which the relevant performance criteria have not been achieved and any awards that are antidilutive. The number of potential shares excluded from the calculation was not significant in any period presented.
Note 7. Segment Information
The Company has one reportable segment that includes all the operations of the business. The chief operating decision maker assesses performance and decides how to allocate resources based on revenues, operating income and net income as reported on the Consolidated Statement of Comprehensive Income.
The following table presents information about segment revenues, significant expenses and profits:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(In millions)
Revenues $ 409.9 $ 387.1 $ 812.2 $ 771.4
Costs and expenses:
Compensation and benefits expenses 61.1 55.0 123.2 113.8
Stock-based compensation expenses 15.9 14.3 33.4 29.4
Equipment and software expenses 12.5 11.1 24.5 22.0
Registry fee expenses 11.8 11.0 23.4 22.5
Depreciation expenses 8.3 9.3 17.2 19.1
Other segment items 19.6 20.2 38.6 39.5
Total costs and expenses 129.2 120.9 260.3 246.3
Operating Income 280.7 266.2 551.9 525.1
Interest expense ( 18.9 ) ( 18.8 ) ( 39.2 ) ( 37.6 )
Non-operating income, net 5.5 11.5 13.0 25.4
Income tax expense ( 59.9 ) ( 60.1 ) ( 119.0 ) ( 120.0 )
Net income $ 207.4 $ 198.8 $ 406.7 $ 392.9
Other segment items that are a part of our segment net income include professional services expenses, telecommunication expenses, legal expenses, occupancy expenses, marketing expenses, and travel expenses.
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Note 8. Revenues
The Company generates revenues in the U.S.; Europe, the Middle East and Africa (“EMEA”); Australia, China, Japan, Singapore, and other Asia Pacific countries (“APAC”); and certain other countries, including Canada and Latin American countries.
The following table presents the Company’s revenues disaggregated by geography, based on the billing addresses of our customers:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(In millions)
U.S. $ 270.5 $ 257.7 $ 536.6 $ 513.0
EMEA 68.8 61.6 135.8 121.9
APAC
45.5 43.8 89.9 88.7
Other 25.1 24.0 49.9 47.8
Total revenues $ 409.9 $ 387.1 $ 812.2 $ 771.4
Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region.
Deferred Revenues
As payment for domain name registrations and renewals are due in advance of the Company’s performance, the Company records these amounts as deferred revenues. The increase in the deferred revenues balance for the six months ended June 30, 2025 was primarily driven by amounts billed in the six months ended June 30, 2025 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $ 634.2 million of revenues recognized that were included in the deferred revenues balance at December 31, 2024. The balance of deferred revenues as of June 30, 2025 represents the Company’s aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years, and in some cases, up to ten years.
Note 9. Stock-based Compensation
Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(In millions)
Cost of revenues $ 2.2 $ 2.0 $ 4.3 $ 4.0
Research and development 2.8 2.8 5.6 5.4
Selling, general and administrative 10.9 9.5 23.5 20.0
Stock-based compensation expense 15.9 14.3 33.4 29.4
Capitalization (included in Property and equipment, net) 0.3 0.3 0.5 0.5
Total stock-based compensation $ 16.2 $ 14.6 $ 33.9 $ 29.9
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The following table presents the nature of the Company’s total stock-based compensation:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(In millions)
RSUs $ 12.9 $ 11.9 $ 25.9 $ 24.0
Performance-based RSUs 2.4 1.6 6.2 3.7
ESPP 0.9 1.1 1.8 2.2
Total stock-based compensation $ 16.2 $ 14.6 $ 33.9 $ 29.9
Note 10. Non-operating Income, Net
Non-operating income, net, primarily consists of interest income from the Company’s surplus cash balances and marketable securities. Interest income was $ 6.0 million and $ 13.9 million during the three and six months ended June 30, 2025, respectively, compared to $ 9.7 million and $ 21.7 million during the same periods in 2024. The decrease in interest income during the three and six months ended June 30, 2025 primarily reflects the lower amounts invested in debt securities in the current period and slightly lower interest rates on the Company’s investments in debt securities compared to the prior period.
Note 11. Income Taxes
The following table presents income tax expense and the effective tax rate:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(Dollars in millions)
Income tax expense $ 59.9 $ 60.1 $ 119.0 $ 120.0
Effective tax rate 22 % 23 % 23 % 23 %
The effective tax rate for each of the periods in the table above differed from the statutory federal rate of 21 %, due to state income taxes and U.S. taxes on foreign earnings, net of foreign tax credits, partially offset by a lower foreign effective tax rate.
House Resolution 1, commonly referred to as the One Big Beautiful Bill Act, was enacted into law on July 4, 2025. The Company is currently evaluating the impact that the tax regulations included in the Act will have on its financial statements.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.