VeriSign (VRSN) Q2 2025 earnings summary

Executive summary

• Achieved 28 years of uninterrupted 100% availability for .com and .net DNS, reinforcing infrastructure reliability and operational excellence.

• Domain name base for .com and .net reached 170.5 million at Q2 2025, a 0.1% decrease year-over-year but up 0.66–0.7 million sequentially; new registrations rose to 10.4 million, up 13.4% year-over-year.

• Renewal rate improved to 75.5% from 72.7% a year ago, reflecting stronger customer retention.

• Returned $1,026 million to shareholders over the past four quarters, including $953 million in share repurchases and $72 million in dividends.

• Continued investment in secure, stable internet infrastructure and services.

Financial highlights

• Q2 2025 revenue was $410 million, up 5.9% year-over-year; net income was $207 million; diluted EPS was $2.21, up from $2.01 a year ago.

• Operating income for Q2 2025 was $281 million, a 5.4% increase year-over-year.

• Free cash flow for Q2 2025 was $195 million, up from $151 million a year ago.

• Cash, cash equivalents, and marketable securities totaled $594 million at quarter end.

• Deferred revenues totaled $1.38 billion as of June 30, 2025, up $75 million from year-end 2024.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $1.645–$1.655 billion; operating income expected between $1.117–$1.127 billion.

• Domain name base growth forecast revised to 1.2%–2.0%.

• Capital expenditures projected at $25–$35 million; GAAP effective tax rate 21%–24%.

• Interest expense and non-operating income net expected to be $50–$60 million expense.

• Management expects existing cash, marketable securities, and operating cash flow to be sufficient for all needs for the next 12 months and beyond.