VeriSign (VRSN) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached $419 million, up 7.3% year-over-year, with net income of $213 million and diluted EPS of $2.27, reflecting strong financial performance and growth in the domain name base to 171.9 million.

• 10.6 million new .com and .net registrations were processed in Q3 2025, a 14.3% increase year-over-year, with net additions of 1.45 million names.

• Domain name base growth was strongest in the U.S. and EMEA, with all regions showing year-over-year increases.

• Strategic focus on secure, reliable internet infrastructure and value creation for users and shareholders continued, supported by the Protect, Grow, and Manage framework.

• AI adoption and improved marketing programs are driving demand and operational efficiency.

Financial highlights

• Q3 2025 revenue was $419 million, up 7.3% year-over-year, with operating income of $284 million and net income of $213 million.

• Diluted EPS was $2.27, up from $2.07 in Q3 2024; operating cash flow was $308 million and free cash flow was $303 million.

• Gross margin for Q3 2025 was 88.4%, with operating margin at 67.9% and net margin at 50.8%.

• $287 million returned to shareholders in Q3 through $72 million in dividends and $215 million in share repurchases.

• Cash, cash equivalents, and marketable securities totaled $618 million at quarter end.

Outlook and guidance

• Full-year 2025 revenue guidance is $1.652–$1.657 billion; operating income expected at $1.119–$1.124 billion.

• Domain name base growth for 2025 expected between 2.2% and 2.5%.

• Interest expense and non-operating income net expected between $50–$60 million; capital expenditures between $25–$35 million; GAAP effective tax rate expected between 21% and 24%.

• Management expects to continue quarterly cash dividends, subject to market conditions and board approval.

• Existing liquidity and cash flow are expected to be sufficient for capital needs and shareholder returns.