Item 1. Financial Statements
ITEM 1. FINANCIAL STATEMENTS
VERISIGN, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except par value)
(Unaudited)
September 30,
2026 December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents $ 206.8 $ 307.9
Marketable securities 269.3 272.6
Other current assets 97.4 72.0
Total current assets 573.5 652.5
Property and equipment, net 221.2 213.7
Goodwill 52.5 52.5
Intangible assets 171.4 —
Deferred tax assets 218.1 233.2
Deposits to acquire intangible assets — 145.2
Other long-term assets 43.4 28.8
Total long-term assets 706.6 673.4
Total assets $ 1,280.1 $ 1,325.9
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 286.8 $ 298.0
Deferred revenues 1,094.4 1,035.1
Total current liabilities 1,381.2 1,333.1
Long-term deferred revenues 368.9 349.4
Long-term senior notes 1,785.9 1,788.2
Other long-term liabilities 28.8 9.4
Total long-term liabilities 2,183.6 2,147.0
Total liabilities 3,564.8 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 September 30, 2026 and 355.6 at December 31, 2025; Outstanding shares: 89.8 at September 30, 2026 and 91.9 at December 31, 2025
8,849.6 9,623.5
Accumulated deficit ( 11,131.4 ) ( 11,775.0 )
Accumulated other comprehensive loss ( 2.9 ) ( 2.7 )
Total stockholders’ deficit ( 2,284.7 ) ( 2,154.2 )
Total liabilities and stockholders’ deficit $ 1,280.1 $ 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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Revenues $ 443.0 $ 419.1 $ 1,306.5 $ 1,231.3
Costs and expenses:
Cost of revenues 49.8 48.8 149.0 147.3
Research and development 26.5 25.4 81.5 77.1
Selling, general and administrative 70.2 60.6 189.6 170.7
Total costs and expenses 146.5 134.8 420.1 395.1
Operating income 296.5 284.3 886.4 836.2
Interest expense ( 21.2 ) ( 18.9 ) ( 59.3 ) ( 58.1 )
Non-operating income, net 4.3 6.3 13.5 19.3
Income before income taxes 279.6 271.7 840.6 797.4
Income tax expense ( 67.0 ) ( 58.9 ) ( 197.0 ) ( 177.9 )
Net income 212.6 212.8 643.6 619.5
Other comprehensive (loss) income ( 0.1 ) 0.1 ( 0.2 ) ( 0.2 )
Comprehensive income $ 212.5 $ 212.9 $ 643.4 $ 619.3
Earnings per share:
Basic $ 2.36 $ 2.28 $ 7.08 $ 6.60
Diluted $ 2.35 $ 2.27 $ 7.06 $ 6.58
Shares used to compute earnings per share
Basic 90.1 93.3 90.8 93.9
Diluted 90.4 93.6 91.1 94.1
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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Total stockholders’ deficit, beginning of period $ ( 2,254.1 ) $ ( 1,993.8 ) $ ( 2,154.2 ) $ ( 1,957.9 )
Common stock and additional paid-in capital
Beginning balance 9,092.7 10,203.0 9,623.5 10,645.3
Repurchase of common stock ( 193.2 ) ( 218.7 ) ( 620.0 ) ( 627.2 )
Common stock cash dividends ( 73.0 ) ( 72.0 ) ( 220.8 ) ( 144.1 )
Stock-based compensation 20.5 18.6 59.5 52.5
Issuance of common stock under stock plans 4.2 4.4 12.7 12.3
Excise tax on repurchase of common stock ( 1.6 ) ( 1.9 ) ( 5.3 ) ( 5.4 )
Balance, end of period 8,849.6 9,933.4 8,849.6 9,933.4
Accumulated deficit
Beginning balance ( 11,344.0 ) ( 12,194.0 ) ( 11,775.0 ) ( 12,600.7 )
Net income 212.6 212.8 643.6 619.5
Balance, end of period ( 11,131.4 ) ( 11,981.2 ) ( 11,131.4 ) ( 11,981.2 )
Accumulated other comprehensive loss
Beginning balance ( 2.8 ) ( 2.8 ) ( 2.7 ) ( 2.5 )
Other comprehensive (loss) income ( 0.1 ) 0.1 ( 0.2 ) ( 0.2 )
Balance, end of period ( 2.9 ) ( 2.7 ) ( 2.9 ) ( 2.7 )
Total stockholders’ deficit, end of period $ ( 2,284.7 ) $ ( 2,050.5 ) $ ( 2,284.7 ) $ ( 2,050.5 )
Cash dividends declared per common share $ 0.81 $ 0.77 $ 2.43 $ 1.54
See accompanying Notes to Condensed Consolidated Financial Statements.
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VERISIGN, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended September 30,
2026 2025
Cash flows from operating activities:
Net income $ 643.6 $ 619.5
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment 19.8 24.5
Stock-based compensation expense 58.8 51.8
Amortization of discount on investments in debt securities ( 5.3 ) ( 8.2 )
Other, net 10.2 2.4
Changes in operating assets and liabilities:
Other assets ( 40.4 ) ( 3.2 )
Other liabilities ( 8.5 ) 20.6
Deferred revenues 78.9 80.1
Net deferred income taxes 15.2 14.0
Net cash provided by operating activities 772.3 801.5
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities 354.7 412.5
Purchases of marketable securities ( 346.3 ) ( 393.6 )
Purchases of property and equipment ( 33.6 ) ( 18.3 )
Other investing activities ( 7.7 ) —
Net cash (used in) provided by investing activities ( 32.9 ) 0.6
Cash flows from financing activities:
Repurchases of common stock ( 620.0 ) ( 627.2 )
Repayment of borrowings ( 550.0 ) ( 500.0 )
Proceeds from senior note issuance, net of issuance costs 545.0 493.3
Payment of dividends ( 220.8 ) ( 144.1 )
Proceeds from employee stock purchase plan 12.7 12.3
Payment of excise tax on repurchase of common stock ( 7.9 ) ( 11.6 )
Net cash used in financing activities ( 841.0 ) ( 777.3 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 0.5 0.1
Net (decrease) increase in cash, cash equivalents, and restricted cash ( 101.1 ) 24.9
Cash, cash equivalents, and restricted cash at beginning of period 309.5 212.1
Cash, cash equivalents, and restricted cash at end of period $ 208.4 $ 237.0
Supplemental cash flow disclosures:
Cash paid for interest $ 49.9 $ 55.4
Cash paid for income taxes, net of refunds received $ 195.5 $ 169.3
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.
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:
September 30, December 31,
2026 2025
(In millions)
Cash $ 16.0 $ 18.5
Time deposits 2.1 1.9
Money market funds (Level 1) 131.3 243.3
Debt securities issued by the U.S. Treasury (Level 1) 328.3 318.4
Total $ 477.7 $ 582.1
Cash and cash equivalents $ 206.8 $ 307.9
Restricted cash (included in Other long-term assets) 1.6 1.6
Total Cash, cash equivalents, and restricted cash 208.4 309.5
Marketable securities 269.3 272.6
Total
$ 477.7 $ 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 September 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 September 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 senior notes is $ 1.67 billion and $ 1.75 billion as of September 30, 2026 and December 31, 2025, 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:
September 30, December 31,
2026 2025
(In millions)
Prepaid expenses $ 35.7 $ 28.1
Prepaid registry fees 28.9 26.6
Taxes receivable 22.0 7.2
Accounts receivable, net 9.6 7.7
Other 1.2 2.4
Total other current assets $ 97.4 $ 72.0
Property and Equipment, Net
Certain assets included in Property and equipment, net were classified as held for sale as of September 30, 2026 and December 31, 2025. These assets are not material and are not presented separately. During the nine months ended September 30, 2026, the Company recognized a loss of $ 7.5 million in Selling, general and administrative expenses to adjust the carrying value of these assets to their estimated fair value less costs to sell.
Intangible Assets
In July 2026, the . web generic top-level domain (“gTLD”) was delegated into the global Domain Name System (“DNS”) root zone, with Verisign as the designated registry operator. Upon entry into the Registry Agreement for the .web g TLD, the Company reclassified $ 145.2 million of Deposits to acquire intangible assets as of December 31, 2025 to Intangible assets as of September 30, 2026. The Company capitalized an additional aggregate amount of $ 26.2 million for certain other acquisition costs, which were individually not material. The intangible asset has an indefinite life and therefore is not subject to amortization but will be tested for impairment on an annual basis.
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Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consist of the following:
September 30, December 31,
2026 2025
(In millions)
Accounts payable and accrued expenses $ 13.9 $ 13.8
Customer deposits 82.7 92.6
Accrued employee compensation 62.3 77.2
Taxes payable 60.8 64.0
Interest payable 22.1 15.1
Customer incentives payable 19.2 13.2
Accrued registry fees 14.5 13.4
Current operating lease liabilities 5.9 5.8
Other accrued liabilities 5.4 2.9
Total accounts payable and accrued liabilities $ 286.8 $ 298.0
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 nine months ended September 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 July 20, 2026, the Company used the net proceeds from the 2026 Notes and cash on hand to redeem all of its $ 550.0 million aggregate principal amount of outstanding 4.75 % senior unsecured notes issued in 2017 (“2017 Notes”), prior to their scheduled maturity on July 15, 2027 .
Note 5. Stockholders’ Deficit
A summary of the Company’s common stock repurchases is as follows:
Three Months Ended September 30, 2026 Nine Months Ended September 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 $ 189.1 $ 282.34 2.3 $ 600.3 $ 261.21
Total repurchases for tax withholdings — 4.1 $ 293.13 0.1 19.7 $ 254.60
Total repurchases 0.7 $ 193.2 $ 282.56 2.4 $ 620.0 $ 260.99
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. 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 September 30, 2026, there was $ 1.36 billion remaining available for repurchases under the Company’s share repurchase program.
Since inception, the Company has repurchased 266.1 million shares of its common stock for an aggregate cost of $ 16.38 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.
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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
August 19, 2026 August 27, 2026 0.81 73.0
$ 2.43 $ 220.8
The dividends were accounted for as a reduction of Additional paid-in capital. On October 19, 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 November 17, 2026, payable on November 24, 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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(In millions)
Weighted-average shares of common stock outstanding 90.1 93.3 90.8 93.9
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP 0.3 0.3 0.3 0.2
Shares used to compute diluted earnings per share 90.4 93.6 91.1 94.1
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.
The following table presents information about segment revenues, significant expenses and profits:
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(In millions)
Revenues $ 443.0 $ 419.1 $ 1,306.5 $ 1,231.3
Costs and expenses:
Compensation and benefits expenses 61.6 60.7 191.7 183.9
Stock-based compensation expenses 20.3 18.4 58.8 51.8
Equipment and software expenses 14.7 12.5 42.8 37.0
Registry fee expenses 12.2 12.1 35.6 35.4
Depreciation expenses 6.8 7.3 19.8 24.5
Other segment items 30.9 23.8 71.4 62.5
Total costs and expenses 146.5 134.8 420.1 395.1
Operating income 296.5 284.3 886.4 836.2
Interest expense ( 21.2 ) ( 18.9 ) ( 59.3 ) ( 58.1 )
Non-operating income, net 4.3 6.3 13.5 19.3
Income tax expense ( 67.0 ) ( 58.9 ) ( 197.0 ) ( 177.9 )
Net income $ 212.6 $ 212.8 $ 643.6 $ 619.5
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Other segment items that are a part of the Company’s segment net income include professional services expenses, telecommunication expenses, legal expenses, occupancy expenses, losses related to assets held for sale, marketing 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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(In millions)
U.S. $ 295.1 $ 275.9 $ 866.2 $ 812.5
EMEA 78.0 71.2 227.4 207.0
APAC
46.8 47.0 142.3 136.9
Other 23.1 25.0 70.6 74.9
Total revenues $ 443.0 $ 419.1 $ 1,306.5 $ 1,231.3
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 nine months ended September 30, 2026 was primarily driven by amounts billed in the nine months ended September 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 $ 884.1 million of revenues recognized that were included in the deferred revenues balance at December 31, 2025. The balance of deferred revenues as of September 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, 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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(In millions)
Cost of revenues $ 2.2 $ 2.2 $ 6.9 $ 6.5
Research and development 2.9 2.9 8.9 8.5
Selling, general and administrative 15.2 13.3 43.0 36.8
Stock-based compensation expense 20.3 18.4 58.8 51.8
Capitalization (included in Property and equipment, net) 0.2 0.2 0.7 0.7
Total stock-based compensation $ 20.5 $ 18.6 $ 59.5 $ 52.5
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The following table presents the nature of the Company’s total stock-based compensation:
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(In millions)
RSUs $ 14.6 $ 14.3 $ 41.4 $ 40.2
Performance-based RSUs 4.8 3.3 14.9 9.5
ESPP 1.1 1.0 3.2 2.8
Total stock-based compensation $ 20.5 $ 18.6 $ 59.5 $ 52.5
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 $ 5.4 million and $ 15.6 million during the three and nine months ended September 30, 2026, respectively, compared to $ 6.7 million and $ 20.6 million during the same periods in 2025. The decrease in interest income during the three and nine months ended September 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 September 30, Nine Months Ended September 30,
2026 2025 2026 2025
(Dollars in millions)
Income tax expense $ 67.0 $ 58.9 $ 197.0 $ 177.9
Effective tax rate 24 % 22 % 23 % 22 %
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.
Note 12. Contingencies
On September 4, 2026, an individual named Jeff Kessler filed a putative class action complaint against Verisign and ICANN in the U.S. District Court for the Central District of California. The complaint asserts claims under federal and California antitrust and unfair competition laws relating to the . com Registry Agreement and . com domain name pricing, and seeks both injunctive relief and damages. Verisign intends to vigorously defend this matter. Based on the information currently available, the Company is unable to reasonably estimate a range of possible losses, if any, that may result from this proceeding.
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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.