Item 1. Financial Statements
ITEM 1. FINANCIAL STATEMENTS
VERISIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
(Unaudited)
June 30,
2026 December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents $ 840.9 $ 307.9
Marketable securities 193.2 272.6
Other current assets 88.2 72.0
Total current assets 1,122.3 652.5
Property and equipment, net 227.7 213.7
Goodwill 52.5 52.5
Deferred tax assets 223.0 233.2
Deposits to acquire intangible assets 145.2 145.2
Other long-term assets 32.1 28.8
Total long-term assets 680.5 673.4
Total assets $ 1,802.8 $ 1,325.9
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 265.0 $ 298.0
Deferred revenues 1,084.8 1,035.1
Current senior notes 549.3 —
Total current liabilities 1,899.1 1,333.1
Long-term deferred revenues 364.1 349.4
Long-term senior notes 1,785.1 1,788.2
Long-term tax and other liabilities 8.6 9.4
Total long-term liabilities 2,157.8 2,147.0
Total liabilities 4,056.9 3,480.1
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: 355.9 at June 30, 2026 and 355.6 at December 31, 2025; Outstanding shares: 90.4 at June 30, 2026 and 91.9 at December 31, 2025
9,092.7 9,623.5
Accumulated deficit ( 11,344.0 ) ( 11,775.0 )
Accumulated other comprehensive loss ( 2.8 ) ( 2.7 )
Total stockholders’ deficit ( 2,254.1 ) ( 2,154.2 )
Total liabilities and stockholders’ deficit $ 1,802.8 $ 1,325.9
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,
2026 2025 2026 2025
Revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2
Costs and expenses:
Cost of revenues 50.0 49.1 99.2 98.5
Research and development 27.5 25.7 55.0 51.7
Selling, general and administrative 60.8 54.4 119.4 110.1
Total costs and expenses 138.3 129.2 273.6 260.3
Operating income 296.3 280.7 589.9 551.9
Interest expense ( 19.2 ) ( 18.9 ) ( 38.1 ) ( 39.2 )
Non-operating income, net 4.5 5.5 9.2 13.0
Income before income taxes 281.6 267.3 561.0 525.7
Income tax expense ( 65.1 ) ( 59.9 ) ( 130.0 ) ( 119.0 )
Net income 216.5 207.4 431.0 406.7
Other comprehensive loss — — ( 0.1 ) ( 0.3 )
Comprehensive income $ 216.5 $ 207.4 $ 430.9 $ 406.4
Earnings per share:
Basic $ 2.38 $ 2.21 $ 4.73 $ 4.32
Diluted $ 2.38 $ 2.21 $ 4.71 $ 4.31
Shares used to compute earnings per share
Basic 90.8 93.8 91.2 94.2
Diluted 91.1 94.0 91.4 94.4
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,
2026 2025 2026 2025
Total stockholders’ deficit, beginning of period $ ( 2,213.4 ) $ ( 1,977.0 ) $ ( 2,154.2 ) $ ( 1,957.9 )
Common stock and additional paid-in capital
Beginning balance 9,349.9 10,427.2 9,623.5 10,645.3
Repurchase of common stock ( 201.4 ) ( 166.8 ) ( 426.8 ) ( 408.5 )
Common stock cash dividends ( 73.6 ) ( 72.1 ) ( 147.8 ) ( 72.1 )
Stock-based compensation 19.7 16.2 39.0 33.9
Issuance of common stock under stock plans — — 8.5 7.9
Excise tax on repurchase of common stock ( 1.9 ) ( 1.5 ) ( 3.7 ) ( 3.5 )
Balance, end of period 9,092.7 10,203.0 9,092.7 10,203.0
Accumulated deficit
Beginning balance ( 11,560.5 ) ( 12,401.4 ) ( 11,775.0 ) ( 12,600.7 )
Net income 216.5 207.4 431.0 406.7
Balance, end of period ( 11,344.0 ) ( 12,194.0 ) ( 11,344.0 ) ( 12,194.0 )
Accumulated other comprehensive loss
Beginning balance ( 2.8 ) ( 2.8 ) ( 2.7 ) ( 2.5 )
Other comprehensive loss — — ( 0.1 ) ( 0.3 )
Balance, end of period ( 2.8 ) ( 2.8 ) ( 2.8 ) ( 2.8 )
Total stockholders’ deficit, end of period $ ( 2,254.1 ) $ ( 1,993.8 ) $ ( 2,254.1 ) $ ( 1,993.8 )
Cash dividends declared per common share $ 0.81 $ 0.77 $ 1.62 $ 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,
2026 2025
Cash flows from operating activities:
Net income $ 431.0 $ 406.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment 13.0 17.2
Stock-based compensation expense 38.5 33.4
Other, net ( 1.7 ) ( 3.4 )
Changes in operating assets and liabilities:
Other assets ( 19.7 ) ( 19.9 )
Other liabilities ( 31.8 ) ( 24.8 )
Deferred revenues 64.5 75.5
Net deferred income taxes 10.2 9.1
Net cash provided by operating activities 504.0 493.8
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities 274.2 396.8
Purchases of marketable securities ( 192.2 ) ( 278.6 )
Purchases of property and equipment ( 26.0 ) ( 13.6 )
Net cash provided by investing activities 56.0 104.6
Cash flows from financing activities:
Proceeds from senior note issuance, net of issuance costs 546.4 493.3
Repurchases of common stock ( 426.8 ) ( 408.5 )
Payment of dividends ( 147.8 ) ( 72.1 )
Proceeds from employee stock purchase plan 8.5 7.9
Payment of excise tax on repurchase of common stock ( 7.9 ) ( 11.6 )
Repayment of borrowings — ( 500.0 )
Net cash used in financing activities ( 27.6 ) ( 491.0 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 0.6 0.1
Net increase in cash, cash equivalents, and restricted cash 533.0 107.5
Cash, cash equivalents, and restricted cash at beginning of period 309.5 212.1
Cash, cash equivalents, and restricted cash at end of period $ 842.5 $ 319.6
Supplemental cash flow disclosures:
Cash paid for interest $ 36.4 $ 42.3
Cash paid for income taxes, net of refunds received $ 125.5 $ 149.4
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, 2025 (the “2025 Form 10-K”) filed with the SEC on February 5, 2026.
Reclassifications
Certain reclassifications have been made to prior period amounts to conform to current period presentation. Such reclassifications have no effect on net income as previously reported.
Recent Accounting Pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 the Company’s 2027 Form 10-K. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which clarifies and modernizes certain aspects of the accounting for and disclosure of internal-use software costs. The ASU does not change what types of costs are capitalized or when internal-use software cost capitalization ceases. This guidance will be effective for the Company in 2028. The Company does not expect the adoption of this guidance to have a material impact on the Company’s 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,
2026 2025
(In millions)
Cash $ 16.2 $ 18.5
Time deposits 2.2 1.9
Money market funds (Level 1) 737.7 243.3
Debt securities issued by the U.S. Treasury (Level 1) 279.6 318.4
Total $ 1,035.7 $ 582.1
Cash and cash equivalents $ 840.9 $ 307.9
Restricted cash (included in Other long-term assets) 1.6 1.6
Total Cash, cash equivalents, and restricted cash 842.5 309.5
Marketable securities 193.2 272.6
Total
$ 1,035.7 $ 582.1
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, 2026 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 is classified as Level 1 in the fair value hierarchy.
As of June 30, 2026, 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 current and long-term senior notes is $ 2.28 billion and $ 1.75 billion as of June 30, 2026 and December 31, 2025, respectively. Refer to Note 4, “Debt,” for details regarding the senior notes issued in June 2026. 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,
2026 2025
(In millions)
Prepaid expenses $ 34.9 $ 28.1
Prepaid registry fees 28.3 26.6
Taxes receivable 14.7 7.2
Accounts receivable, net 9.5 7.7
Other 0.8 2.4
Total other current assets $ 88.2 $ 72.0
Property and Equipment, Net
Certain assets included in Property and equipment, net were classified as held for sale as of June 30, 2026 and December 31, 2025. These assets are not material.
Other Long-Term Assets
Other long-term assets consist of the following:
June 30, December 31,
2026 2025
(In millions)
Long-term prepaid expenses $ 9.8 $ 6.5
Operating lease right-of-use asset 9.7 9.8
Long-term prepaid registry fees 8.7 8.4
Restricted cash 1.6 1.6
Other 2.3 2.5
Total other long-term assets $ 32.1 $ 28.8
The prepaid registry fees in the tables above primarily 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,
2026 2025
(In millions)
Accounts payable and accrued expenses $ 13.1 $ 13.8
Customer deposits 78.6 92.6
Taxes payable 61.3 64.0
Accrued employee compensation 52.8 77.2
Customer incentives payable 19.4 13.2
Interest payable 15.4 15.1
Accrued registry fees 14.7 13.4
Current operating lease liabilities 5.9 5.8
Other accrued liabilities 3.8 2.9
Total accounts payable and accrued liabilities $ 265.0 $ 298.0
Customer deposits vary 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, 2025 was paid during the six months ended June 30, 2026.
Note 4. Debt
On June 26, 2026, the Company issued $ 550.0 million of 5.10 % senior unsecured notes due July 15, 2031 (“2026 Notes”). The 2026 Notes were issued at 99.961 % of par value. The Company will pay interest on the notes semi-annually on January 15 and July 15, commencing on January 15, 2027. The total discount and issuance costs of $ 5.0 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 5-year term of the notes.
On June 18, 2026, the Company issued an irrevocable redemption notice on its $ 550.0 million aggregate principal amount of outstanding 4.75 % senior unsecured notes issued in 2017 (“2017 Notes”) that were scheduled to mature on July 15, 2027. As such, current and long-term senior notes as of June 30, 2026 reflect the classification of $ 549.3 million of the Company’s 2017 Notes, net of unamortized debt issuance costs, as current liabilities. On July 20, 2026, the Company used the net proceeds from the 2026 Notes and cash on hand to redeem all of its 2017 Notes.
Note 5. Stockholders’ Deficit
A summary of the Company’s common stock repurchases is as follows:
Three Months Ended June 30, 2026 Six Months Ended June 30, 2026
Shares Total Costs Average Price Shares Total Costs Average Price
(In millions, except average price amounts)
Total repurchases under the repurchase plans 0.7 $ 196.8 $ 275.00 1.6 $ 411.2 $ 252.51
Total repurchases for tax withholdings — 4.6 $ 303.80 0.1 15.6 $ 246.03
Total repurchases 0.7 $ 201.4 $ 275.59 1.7 $ 426.8 $ 252.27
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As of June 30, 2026, there was $ 666.0 million remaining available for repurchases under the Company’s share repurchase 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. Effective July 23, 2026, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of $ 884.2 million, in addition to the $ 615.8 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.
Since inception, the Company has repurchased 265.4 million shares of its common stock for an aggregate cost of $ 16.19 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.
A summary of the Company’s dividend activities is as follows:
Record Date
Payment Date
Dividend Per Share
Total
(In millions, except per share amounts)
February 19, 2026 February 27, 2026 $ 0.81 $ 74.2
May 19, 2026 May 27, 2026 0.81 73.6
$ 1.62 $ 147.8
The dividends were accounted for as a reduction of Additional paid-in capital. On July 20, 2026, the Company’s Board of Directors declared a cash dividend of $ 0.81 per share of the Company’s outstanding common stock to stockholders of record as of the close of business on August 19, 2026, payable on August 27, 2026. 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,
2026 2025 2026 2025
(In millions)
Weighted-average shares of common stock outstanding 90.8 93.8 91.2 94.2
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP 0.3 0.2 0.2 0.2
Shares used to compute diluted earnings per share 91.1 94.0 91.4 94.4
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 Statements of Comprehensive Income.
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The following table presents information about segment revenues, significant expenses and profits:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
Revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2
Costs and expenses:
Compensation and benefits expenses 65.2 61.1 130.1 123.2
Stock-based compensation expenses 19.4 15.9 38.5 33.4
Equipment and software expenses 14.3 12.5 28.1 24.5
Registry fee expenses 11.8 11.8 23.4 23.4
Depreciation expenses 6.6 8.3 13.0 17.2
Other segment items 21.0 19.6 40.5 38.6
Total costs and expenses 138.3 129.2 273.6 260.3
Operating income 296.3 280.7 589.9 551.9
Interest expense ( 19.2 ) ( 18.9 ) ( 38.1 ) ( 39.2 )
Non-operating income, net 4.5 5.5 9.2 13.0
Income tax expense ( 65.1 ) ( 59.9 ) ( 130.0 ) ( 119.0 )
Net income $ 216.5 $ 207.4 $ 431.0 $ 406.7
Other segment items that are a part of the Company’s segment net income include professional services expenses, telecommunication expenses, legal expenses, occupancy expenses, and other miscellaneous expenses.
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 the Company’s customers:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
U.S. $ 287.7 $ 270.5 $ 571.1 $ 536.6
EMEA 75.9 68.8 149.4 135.8
APAC
47.5 45.5 95.5 89.9
Other 23.5 25.1 47.5 49.9
Total revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2
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, 2026 was primarily driven by amounts billed in the six months ended June 30, 2026 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 $ 679.4 million of revenues recognized that were included in the deferred revenues balance at December 31, 2025. The balance of deferred revenues as of June 30, 2026 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,
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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,
2026 2025 2026 2025
(In millions)
Cost of revenues $ 2.4 $ 2.2 $ 4.7 $ 4.3
Research and development 3.0 2.8 6.0 5.6
Selling, general and administrative 14.0 10.9 27.8 23.5
Stock-based compensation expense 19.4 15.9 38.5 33.4
Capitalization (included in Property and equipment, net) 0.3 0.3 0.5 0.5
Total stock-based compensation $ 19.7 $ 16.2 $ 39.0 $ 33.9
The following table presents the nature of the Company’s total stock-based compensation:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
(In millions)
RSUs $ 13.4 $ 12.9 $ 26.8 $ 25.9
Performance-based RSUs 5.2 2.4 10.1 6.2
ESPP 1.1 0.9 2.1 1.8
Total stock-based compensation $ 19.7 $ 16.2 $ 39.0 $ 33.9
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 $ 5.0 million and $ 10.2 million during the three and six months ended June 30, 2026, respectively, compared to $ 6.0 million and $ 13.9 million during the same periods in 2025. The decrease in interest income during the three and six months ended June 30, 2026 primarily reflects the lower amounts invested in debt securities in the current period and 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,
2026 2025 2026 2025
(Dollars in millions)
Income tax expense $ 65.1 $ 59.9 $ 130.0 $ 119.0
Effective tax rate 23 % 22 % 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.
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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.