VRSN · VeriSign, Inc.

Summary

VeriSign delivered solid top- and bottom-line growth in Q1 FY2026, with revenue, gross profit, operating income, and net income all increasing year-over-year — reflecting continued operational discipline and pricing power within its core registry business.

Key takeaways

• Revenue was $428.9M, up 6.6% from $402.3M in Q1 FY2025, driven by the company’s established domain name base and contractual pricing mechanisms.
• Gross profit was $379.7M, up 7.6% year-over-year, supporting a gross margin of 88.5% — consistent with the structural efficiency of registry operations.
• Operating income was $293.6M, up 8.3% from $271.2M last year, reflecting disciplined cost management amid higher compensation and benefits expenses.
• Net income was $214.5M, up 7.6% year-over-year, while free cash flow totaled $265.2M after $7.2M in capital expenditures.
• Net cash provided by operating activities was $272.4M, down modestly from $291.3M in Q1 FY2025, primarily due to timing of customer payments and higher tax outflows.
• As of March 31, 2026, VeriSign held no outstanding borrowings and maintained $200.0 million in unused borrowing capacity under its credit facility maturing in 2028.