stockrowWhat it does
Verisign is a global provider of internet infrastructure and domain-name registry services. Founded in 1995 and headquartered in Reston, Virginia, it is led by Executive Chairman, President and Chief Executive Officer D. James Bidzos.
The company runs the authoritative directories for .com, .net and .name domain names, related internationalized versions of .com and .net, and .cc. It also provides the technical back-end for .edu. In plain terms, when an individual or organization registers one of these names through a registrar, Verisign maintains the central record that allows the name to work on the internet.
Its DNS infrastructure answers requests that connect browsers, email systems and other internet services to the right destination. Verisign also runs two of the thirteen global internet root servers and performs the Root Zone Maintainer function, which concerns the top of the DNS hierarchy. Registrars use its Shared Registration System to add, change, transfer, renew or delete names in the central registries.
The company operates secure data centers in Virginia and Delaware and more than 200 other points of presence globally. Its servers process hundreds of billions of transactions daily. It provides support to customers through phone, email, chat and web self-help systems.
How it makes money
Verisign earns most of its revenue from annual registrations and renewals of .com and .net domain names. Its direct customers are registrars, which pay Verisign a registry-level fee for each annual registration; registrants—the people and organizations using the names—contract with registrars or their resellers. Names can be registered for one to 10 years, so renewals as well as new registrations determine revenue.
The company also earns revenue from .name, .cc and internationalized generic top-level domains, plus back-end services for .edu, but these activities are not significant relative to consolidated revenue. Its registry operations and DNS-resolution services are delivered on a continuously operating infrastructure rather than as separately installed customer software.
Pricing for .com, .net and .name is restricted by agreements with ICANN. The .com agreement permits maximum-price increases of up to 7% over the prior year in each of the final four years of a six-year period beginning October 26, 2024. The .net agreement permits annual price increases of up to 10% through June 30, 2029. Retail prices are set by registrars, not Verisign. Prices for .cc and its internationalized generic top-level domains are not subject to the same restrictions.
Revenue was $1,656.6 million in 2025; revenue was $443 million for the quarter ended September 30, 2026.
The company increased the wholesale .com fee from $9.59 to $10.26 effective September 1, 2024, and the .net fee from $9.92 to $10.91 effective February 1, 2024. Management said on the call that the .com price increase is $0.71 and that registrars set the retail price.
Customers and how it sells
Verisign’s immediate customers are domain-name registrars and their reseller channels. Those companies connect individual and organizational registrants to Verisign’s central registries. Registrars submit registrations and later changes, transfers, renewals and deletions through the Shared Registration System. Verisign supports registrars and end users with domain-name discovery tools, marketing programs, account management and customer support.
The company attributes revenue geographically based on the country of domicile of its registrars. That location may differ from where the registrar operates or where the registrant is located; relocations, acquisitions and reseller affiliations can also affect regional revenue reporting.
In FY2025, U.S. revenue was $1.1 billion, representing 66.0% of revenue. EMEA revenue was $279.4 million, or 16.9%; Asia Pacific revenue was $184.6 million, or 11.1%; and other revenue was $99.5 million, or 6.01%. The company states that most of its 2025 revenue growth came from registrars based in the U.S. and EMEA. Management said on the call that the U.S. and EMEA were the regions with the strongest growth in the third quarter of 2026.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. | $1.1 billion | 66.0% | 5.56% |
| EMEA | $279.4 million | 16.9% | 11.9% |
| Asia Pacific | $184.6 million | 11.1% | 5.07% |
| Other | $99.5 million | 6.01% | 3.00% |
Suppliers and costs
Verisign’s operating model depends on network infrastructure, data centers, telecommunications, computer equipment, security systems, customer support and technical staff. Its main operations infrastructure includes data centers in Dulles and Ashburn, Virginia, and New Castle, Delaware, along with more than 200 other global points of presence. The company maintains redundant network connections and interconnection relationships with internet service providers.
ICANN is a contractual counterparty for the .com, .net and .name registry agreements and receives registration-related fees. For each annual .com registration, Verisign pays ICANN $0.2575 quarterly; the corresponding fees are $0.75 for .net and $0.25 for .name. It also operates .com under a Cooperative Agreement with the U.S. Department of Commerce.
Cost of revenue primarily comprises operations personnel compensation and benefits, depreciation, service-delivery costs, ICANN fees, customer support, facilities, equipment and telecommunications. Research and development is primarily personnel, consulting, facilities, equipment and support-service expense. Selling, general and administrative expense includes executive, legal, finance, IT, sales and marketing personnel, professional services and marketing programs. Verisign had 928 employees at December 31, 2025.
- Revenue$1.7B
- Cost of revenue−$196.3M
- Research and development−$103.6M
- Selling, general and administrative−$235.7M
- Operating income$1.1B
Competitive position
Verisign competes with other generic and country-code domain-name registries for registrations by businesses and individuals. Named registry competitors include CentralNic, China Internet Network Information Center (CNNIC), DENIC eG, GoDaddy, Google, Identity Digital, Nominet, Public Interest Registry (PIR), Radix and .xyz. The company states that restrictions on its .com, .net and .name pricing, bundling, marketing, distribution, new services and use of registrars do not apply to many country-code and other generic registries, which can create a competitive disadvantage.
Demand for domain names can also be affected when users establish an online identity through Facebook, Instagram or TikTok, conduct commerce through Amazon, Etsy or Taobao, or use web and mobile applications that provide other ways to locate content. The company also identifies alternative namespaces, AI and other technologies as sources of competitive pressure.
Our reading: Verisign’s rights to operate .com and .net are an important moat source because the registry agreements make it the operator of two established namespaces, although those rights have renewal and termination conditions. [item1, item7]
Our reading: Its distributed DNS and registry infrastructure is a meaningful operating moat source because it combines global points of presence, redundancy, proprietary systems and continuously delivered resolution services. [item1]
Our reading: The moat from pricing is limited because .com, .net and .name price increases, marketing and distribution are contractually constrained while other registries can have more flexibility. [item1]
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| CentralNic | generic and country-code domain registries | High |
| China Internet Network Information Center (CNNIC) | generic and country-code domain registries | High |
| DENIC eG | generic and country-code domain registries | High |
| GoDaddy | generic and country-code domain registries | High |
| generic and country-code domain registries | High | |
| Identity Digital | generic and country-code domain registries | High |
| Nominet | generic and country-code domain registries | High |
| Public Interest Registry (PIR) | generic and country-code domain registries | High |
Growth opportunities
The company identifies growth in online advertising, e-commerce and internet users as drivers of domain-name registrations. New registrations, renewal rates, permitted price increases and registrar marketing activity are the principal direct drivers of revenue. At December 31, 2025, its .com and .net domain-name base was 173.5 million registrations, up 2.6% from December 31, 2024; it processed 41.7 million new .com and .net registrations during 2025.
Management said on the call that the combined .com and .net domain-name base was 183,000,000 names at the end of the third quarter of 2026. It grew by 3,400,000 names from the prior quarter, and the company processed 13,100,000 new registrations in that quarter. Management cited business formation, its marketing programs and an AI tailwind as drivers of new registrations, while stating that AI can make it easier to find a domain name, develop a website and maintain one.
The company is preparing .web for launch and says the registry agreement provides marketing, registrar-engagement and premium-name pricing flexibility not available for .com and .net. Management said on the call that it had opened the beta phase of VeriSign Informed, a certificate-status service, and expects service availability in the first half of 2027. The company expects full-year 2026 revenue of between $1.755 billion and $1.760 billion and operating income of between $1.188 billion and $1.192 billion.
- $1.3BFY2021
- $1.4BFY2022
- $1.5BFY2023
- $1.6BFY2024
- $1.7BFY2025
- $1.8BFY2026 guidance
Structural risks
- Cyberattacks, exploitation of vulnerabilities and DDoS attacks against systems and services can increase costs, create potential liability and harm the business and reputation.
- The company’s rights to operate .com and .net are governed by agreements with ICANN, and its .com operations are also subject to the Cooperative Agreement with the U.S. Department of Commerce. Loss or modification of those rights could result in lost revenue.
- Demand can be affected by economic conditions, competition from other country-code and generic top-level domains, social-media and e-commerce alternatives, web and mobile applications, changes in internet behavior, and increases in domain-name prices.
- The .com Registry Agreement, Cooperative Agreement and pricing provisions have been challenged and can face publicity campaigns, government scrutiny, media interest, legal challenges or ICANN accountability challenges.
- ICANN policy changes, country-level regulation, cybersecurity and privacy rules, and international licensing requirements can affect operations and compliance costs. The company states that costs could become significant if it begins receiving personal registrant information in .com and .net.
- Third-party and company use of AI tools and services can create cybersecurity, operational, intellectual-property and regulatory risks.
Bottom line
Our reading
Our reading: Verisign is an infrastructure operator whose revenue is principally tied to recurring .com and .net registrations and renewals sold through registrars. [item1, item7]
Our reading: Its contractual registry rights and globally distributed resolution infrastructure underpin the business, while contractual pricing limits and alternative ways to establish an online presence constrain it. [item1]
Our reading: Recent domain-base growth, .web preparation and the VeriSign Informed beta add operating developments beyond the established registry base, but their future contribution depends on execution, demand and the stated regulatory and technology risks. [call_qa, item1a]