VeriSign, Inc. Q4 FY2025 earnings call

• 2025 was a solid year with revenue growing 6.4% y/y and EPS up 10.1%. Returned $1,100,000,000 to shareholders through share repurchases and dividends. - Positive domain name trends in 2025 with sustained strength in new registrations, renewal rates, and growth across US, EMEA, and APAC regions. - John Callis discussed 2025 financial results including revenue, operating income, EPS, and free cash flow, and provided 2026 guidance on revenue, operating income, interest expense, capital expenditures, and effective tax rate. - Jim Bidzos mentioned ongoing evaluation of new services aligned with core mission, leveraging DNS and security technology.

For the year ended 12/31/2025, VeriSign generated revenues of $1,660,000,000, up 6.4% year over year. Operating income totaled $1,120,000,000 in 2025, up 5.9% from the previous year. For the quarter ended December 31, 2025, revenue was $425,000,000, up 7.5% from the same quarter a year ago. The domain name base grew by 4,500,000 names or 2.6% during 2025, ending with 173,500,000 names. Net registrations added during the fourth quarter were 1,580,000 names, with new registrations of 10,700,000, up from 9,500,000 in Q4 2024, and a preliminary Q4 renewal rate of 75%.

• 2026 revenue expected to be between $1,715,000,000 and $1,735,000,000. - Operating income expected between $1,160,000,000 and $1,180,000,000. - Interest expense and non-operating income net expected to be between $57,000,000 and $67,000,000. - Capital expenditures expected between $55,000,000 and $65,000,000. - GAAP effective tax rate expected to be between 22-25%.

Q: Rob Oliver asked about AI's impact on VeriSign's business, marketing programs, and new services.

A: Jim Bidzos said AI is a contributor to domain resurgence, marketing programs were adjusted to meet evolving registrar needs, and new services are in evaluation aligned with core mission.

Q: James Michael asked about 2026 domain guidance assumptions, ICANN auction.

A: Jim Bidzos said guidance reflects trend-wise observation, studying ICANN's new GTLD round.

Q: Alexey Gagalev asked about guidance granularity, price increases.

A: Jim Bidzos said they don't guide pricing specifically, first price increase opportunity in October 2026 with announcement in April.