Verisign Inc (NASDAQ:VRSN) Reports Mixed Q3 2025 Results with Revenue and EPS Slightly Below Estimates

Verisign Inc (NASDAQ:VRSN) reported financial results for the third quarter of 2025, delivering earnings that came in slightly below analyst expectations while demonstrating continued growth in its core domain name business. The market's initial reaction in after-hours trading showed modest upward movement.

Earnings and Revenue Performance

The company's financial results presented a mixed picture relative to Wall Street forecasts. While the top-line revenue showed healthy year-over-year growth, it did not meet the precise consensus estimate.

• Q3 2025 Revenue: $419 million, a 7.3% increase from the $390.6 million reported in Q3 2024.
• Analyst Revenue Estimate: $425.2 million.
• Q3 2025 EPS (Diluted): $2.27, up from $2.07 in the prior year quarter.
• Analyst EPS Estimate: $2.29.

The slight miss on both revenue and earnings per share was notable, though the company's fundamental growth trajectory remained intact. The market's minor positive reaction following the announcement suggests investors may be focusing on the underlying business strength rather than the narrow earnings miss.

Operational and Business Highlights

Beyond the earnings figures, the press release highlighted several key indicators of Verisign's operational health and strategic execution. The company's core domain name registry business continued to expand, and it maintained its commitment to returning capital to shareholders.

• Domain Name Base: Ended the quarter with 171.9 million .com and .net domain name registrations, a net increase of 1.45 million during the quarter and a 1.4% increase year-over-year.
• New Registrations: Processed 10.6 million new domain name registrations for .com and .net, up from 9.3 million in the same quarter last year.
• Renewal Rate: The final renewal rate for the second quarter of 2025 was 75.5%, an improvement from 72.7% for the same quarter in 2024.
• Capital Return: Repurchased 0.8 million shares of common stock for $215 million during the quarter. The Board also approved a quarterly cash dividend of $0.77 per share, payable in November 2025.

Financial Position and Cash Flow

Verisign reinforced its strong financial position, demonstrating robust cash generation. The company ended the quarter with $618 million in cash, cash equivalents, and marketable securities. A significant highlight was the performance in cash flow from operations, which was $308 million for the third quarter, compared to $253 million for the same period in 2024. Deferred revenues also grew to $1.38 billion, indicating future revenue visibility.

Looking Ahead

The earnings release did not provide a formal financial outlook for the coming quarter or full year. This absence of forward guidance is a standard practice for the company and is not being interpreted as a particular positive or negative signal. Investors will now look to see if the company's growth momentum can meet or exceed the existing analyst estimates for the fourth quarter and full-year 2025.

For a more detailed breakdown of Verisign's earnings history and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell any security.