Verisign (VRSN) investor relations material

Executive summary

• Q3 revenue rose 5.7% YoY to $443.0M; operating income was $296.5M, net income $212.6M and diluted EPS $2.35.

• The .com/.net base reached 182.5M, up 6.1% YoY, on record Q3 registrations of 13.1M; 2026 domain-base growth guidance increased to 6.5%–7.0%.

• .web entered the DNS root zone, while launch preparations for .web and VeriSign Informed continued.

Financial highlights

• Q3 revenue was $443.0M versus $419.1M; operating income was $296.5M versus $284.3M, and net income was $212.6M versus $212.8M.

• Diluted EPS was $2.35 versus $2.27, including a $0.06 impact from a $7.5M pretax loss on assets held for sale.

• Q3 operating cash flow was $268.3M and free cash flow was $260.7M; comparable 2025 figures were $308M and $303M. Higher cash taxes and employee/vendor payments drove the decline.

• For the first nine months, revenue was $1,306.5M and net income was $643.6M; operating cash flow was $772.3M versus $801.5M.

• Cash and marketable securities totaled $476.1M at September 30, 2026.

Outlook and guidance

• FY 2026 revenue guidance increased to $1.755B–$1.760B from $1.745B–$1.755B; operating income guidance is $1.188B–$1.192B, including the Q3 $7.5M expense.

• FY 2026 domain-base growth guidance rose from 5.2%–6.0% to 6.5%–7.0%.

• FY 2026 net interest and non-operating expense guidance is $59M–$65M; capex guidance is $55M–$65M and the GAAP effective tax-rate range is 22%–25%.

• .web sunrise is planned for mid-December, limited registration for mid-January through potentially early April 2027, followed by general availability; pricing plans are being finalized.

• VeriSign Informed beta is opening; pricing structure is expected by year-end and production service is expected in H1 2027.