$VRSN · VERISIGN INC/CA
VeriSign filed its Q3 FY2026 10-Q, reporting revenue of $443M (+5.7% YoY) and net income of $212.6M (essentially flat vs. $212.8M a year ago). Operating margin dipped to 66.9% from 67.8% as SG&A rose to $70.2M. The .web gTLD was delegated in July 2026, with VeriSign capitalizing $171.4M in intangible assets. The company continued aggressive buybacks, repurchasing $620M of stock in the first nine months.
- Revenue of $443M (+5.7% YoY) driven by .com/.net domain registrations and price increases.
- Operating margin compressed to 66.9% from 67.8% a year ago on higher SG&A spending.
- Net income flat at $212.6M vs $212.8M in Q3 2025; diluted EPS rose to $2.35 from $2.27 on buybacks.
- The .web gTLD was delegated in July 2026; Verisign capitalized $171.4M in intangible assets for the registry.
- Cash and equivalents fell to $206.8M from $307.9M at year-end after $620M in stock repurchases YTD.
Extended-hours trading shows VRSN at $295.00, down 3.15% from the $304.59 regular close. The modest revenue growth and flat net income, combined with margin compression, appear to be weighing on sentiment despite the .web launch.
VeriSign's flat net income despite revenue growth signals margin pressure, while the .web gTLD launch is the biggest registry expansion in years and carries $171.4M in balance-sheet risk.
VeriSign's registry monopoly on .com/.net continues to deliver high-margin recurring revenue, but growth remains tied to domain registration volumes and ICANN-governed price increases. The .web launch represents the first material gTLD expansion in years.
The .web gTLD intangible asset ($171.4M) has an indefinite life and is subject to annual impairment testing — any adverse developments in the .web launch could trigger a write-down. SG&A jumped 15.8% YoY to $70.2M, including a $7.5M loss on assets held for sale.
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