Verisign falls 4% as revenue misses estimates in second quarter

Published 24/07/2025, 21:16
 Verisign falls 4% as revenue misses estimates in second quarter

RESTON, Va. - Verisign, Inc. (NASDAQ:VRSN) reported second quarter earnings that slightly beat analyst expectations on the bottom line but missed revenue estimates, sending shares down 4% following the announcement.

The internet infrastructure and domain registry services provider posted adjusted earnings per share of $2.21 for the second quarter, edging past the analyst consensus of $2.20. Revenue came in at $410 million, slightly below the analyst estimate of $410.97 million, though it represented a 5.9% increase from the same quarter last year.

The company’s stock declined 4% in the wake of the results, as investors reacted to the revenue miss despite the earnings beat.

"Last week we marked 28 years of 100% availability of the .com and .net domain name resolution system, an unparalleled record of reliability. We delivered steady financial performance for the quarter, including a newly initiated quarterly dividend, diversifying our return of capital to shareholders," said Jim Bidzos, Executive Chairman, President and Chief Executive Officer.

Verisign ended the quarter with 170.5 million .com and .net domain name registrations, representing a 0.1% decrease from the same period last year. The company processed 10.4 million new domain registrations during the quarter, up from 9.2 million in the second quarter of 2024.

The company’s board approved a cash dividend of $0.77 per share, payable on August 27, 2025, to stockholders of record as of August 19, 2025. Additionally, the board authorized an additional $913 million for share repurchases, bringing the total available under the company’s share repurchase program to $1.5 billion.

Operating income for the quarter was $281 million, compared to $266 million in the same quarter of 2024. Cash flow from operations increased to $202 million from $160 million in the year-ago period.

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