VeriSign, Inc. (VRSN): Business Model Canvas [Dec-2025 Updated]

You're analyzing an asset that quietly underpins the entire commercial internet, and honestly, its business model is a masterclass in regulated monopoly. VeriSign, Inc. (VRSN) isn't chasing the next big app; they are the essential, non-negotiable utility operating the authoritative registry for over 171.9 million .com and .net domains, projecting revenues between $1.652 billion and $1.657 billion for Fiscal Year 2025. This isn't venture capital growth; it's a highly predictable, fixed-fee annuity, secured by long-term government and ICANN agreements, charging a wholesale fee of $10.26 per domain annually. I've mapped out the nine building blocks of this infrastructure play-from their exclusive Key Resources to their fixed Cost Structure-so you can see the exact blueprint behind this stable, high-margin cash machine below.

VeriSign, Inc. (VRSN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep the .com and .net engines running, which is really the heart of VeriSign, Inc.'s business. These aren't just vendor relationships; they are governmental and foundational agreements that dictate how the internet's address book operates.

ICANN (Internet Corporation for Assigned Names and Numbers) for .com and .net Registry Agreements

The relationship with ICANN is central, as they contract VeriSign, Inc. to operate the .com Top-Level Domain (TLD). You should note the recent renewal of the .com Registry Agreement (RA), which took effect on December 1, 2024, for a six-year term. This new agreement aligns with ICANN's Base Registry Agreement and includes new obligations for mitigating Domain Name System (DNS) abuse. The wholesale price for a .com domain is set to remain at $10.26 through 2025 and 2026. Also critical is the separate Binding Letter of Intent (LOI) for .net, which was amended on June 30, 2023, to apply to the .net TLD, with renewal discussions planned before December 31, 2025.

Here's a quick look at the key agreements and associated metrics:

Partner Entity	Agreement Type/Focus	Effective/Key Date	Associated Metric/Constraint
ICANN	.com Registry Agreement Renewal	Effective December 1, 2024	Six-year term; Fee increases tied to U.S. Consumer Price Index
ICANN	.net Letter of Intent (LOI) Amendment	June 30, 2023	LOI renewal discussions by December 31, 2025
US Dept. of Commerce/NTIA	Cooperative Agreement Renewal	November 30, 2024 (Automatic Renewal)	Wholesale price cap at approx. $10/domain/year; No price increase until September 1, 2026
Accredited Registrars	Channel Partner Network	Q3 2025	Serves approx. 3,000 ICANN-accredited registrars

US Department of Commerce/NTIA for the Cooperative Agreement Renewal

The Cooperative Agreement with the National Telecommunications and Information Administration (NTIA) is unique, providing important constraints on VeriSign, Inc.'s market practices. This agreement automatically renewed on November 30, 2024, keeping existing price constraints in place. The current terms explicitly cap wholesale .com prices at approximately $10 per domain per year and prevent any wholesale price increases until September 1, 2026. Furthermore, this agreement restricts VeriSign, Inc. from operating as a .com registrar, which is a restriction not standard for other registries. The NTIA continues to engage in oversight regarding pricing considerations.

Global network of accredited domain name registrars (channel partners)

VeriSign, Inc. operates as a wholesaler, relying on its massive network of registrars to sell domain names directly to end-users. The company manages relationships with approximately 3,000 ICANN-accredited registrars. This channel is vital for volume; for instance, in the second quarter of 2025, new domain name registrations reached 10.4 million. By the end of the third quarter of 2025, the total domain name base for .com and .net stood at 171.9 million registrations, representing a 1.4% increase from the end of Q3 2024. The renewal rate for Q2 2025 was reported at 75.5%. The company's Q3 2025 revenue was $419 million, showing the scale of transactions flowing through these partners.

Hardware and software providers for open authentication standards (OATH)

VeriSign, Inc. historically led the Initiative for Open Authentication (OATH), a vendor-neutral effort to promote open standards for strong authentication. This partnership ecosystem focuses on ensuring interoperability across different hardware and software solutions, leveraging existing protocols like LDAP and RADIUS. The core of this work underpins widely deployed methods such as the HMAC-based One-Time Password algorithm (HOTP, RFC 4226) and the Time-based One-Time Password algorithm (TOTP, RFC 6238). The mission remains to publish open, royalty-free specifications and provide guidance for large-scale deployments, which helps enterprises avoid vendor lock-in when securing identities across hybrid environments.

VeriSign, Inc. (VRSN) - Canvas Business Model: Key Activities

You're looking at the core engine of VeriSign, Inc. (VRSN), the activities that keep the foundational layer of the internet running. These aren't just services; they are non-negotiable operational mandates.

Operating the authoritative registry for 171.9 million .com and .net domains is the primary activity. This is where the sheer scale of the business is most apparent. As of the close of the third quarter of 2025, the combined base for these two crucial top-level domains (TLDs) stood at exactly 171.9 million registrations. Honestly, that number is the bedrock of their revenue model.

Here's a quick look at how that massive base breaks down based on the latest available data from Q3 2025:

Domain TLD	Registrations (End of Q3 2025)	QoQ Increase (Registrations)	YoY Increase (Percentage)
.com	159.4 million	Not specified for Q3	Implied in combined YoY
.net	12.5 million	Not specified for Q3	Implied in combined YoY
.com and .net Combined	171.9 million	1.4 million	1.4%

The demand side of this activity is also key. New registrations for .com and .net domains totaled 10.6 million by the end of Q3 2025, showing a robust appetite for these core internet addresses.

Maintaining 100% availability and resiliency of the DNS infrastructure is a performance metric that borders on a religious commitment for VeriSign, Inc. They have maintained an unparalleled record of reliability, marking 28 years of 100% availability for the .com and .net domain name resolution system as of July 2025. That's not a guess; that's a historical fact they lean on heavily.

The scope of their infrastructure role extends beyond just the TLDs they manage. VeriSign, Inc. is responsible for providing root zone maintainer services and operating two of the 13 global root servers. This is critical, low-latency work that underpins the entire Domain Name System (DNS). The Root Zone Maintainer Service Agreement (RZMA) with ICANN was renewed on October 20, 2024, with the current term running through October 20, 2032.

To drive the top line from the registry business, VeriSign, Inc. focuses on managing registrar engagement and targeted marketing programs. This is about making it easier and more profitable for their registrar partners to sell domains. The company's updated guidance for 2025 reflects confidence in these efforts, projecting the change in the domain name base to be between positive 1.2% and positive 2% for the full year.

Key operational metrics tied to this activity include:

• Q2 2025 Revenue: $410 million.
• Q3 2025 Revenue: $419.1 million.
• Q2 2025 Renewal Rate expectation: 75.5%.
• New .com and .net registrations in Q2 2025: 10.4 million.
• New .com and .net registrations in Q3 2025: 10.6 million.

Finally, there is the constant, non-discretionary activity of continuous investment in security and DDoS protection. They invest in Research and Development (R&D) to adapt to evolving internet protocols and to defend against increasingly sophisticated cyberthreats. A concrete offering here is the Verisign DNS Firewall, a cloud-based service built upon their global recursive DNS platform, offering malware protection and customizable filtering at the DNS level.

VeriSign, Inc. (VRSN) - Canvas Business Model: Key Resources

You're looking at the bedrock assets that keep VeriSign, Inc. running as the critical internet infrastructure provider it is. These aren't just nice-to-haves; they are the non-negotiable components that lock in their market position, so let's break down the hard numbers and exclusive rights that define their Key Resources as of late 2025.

Exclusive, Long-Term Contracts for .com and .net TLDs with ICANN and the US DoC

The core of VeriSign, Inc.'s value rests on its exclusive agreements to operate the .com and .net top-level domains (TLDs). These aren't short-term deals; they represent decades of operational history and regulatory alignment. The .com Registry Agreement, which VeriSign, Inc. operates under a Cooperative Agreement with the U.S. Department of Commerce (DoC), was recently extended. This six-year extension runs until November 30, 2030,. The .net Registry Agreement, renewed in mid-2023, has a term running until July 1, 2029.

These contracts come with specific, powerful pricing mechanisms. For the .com TLD, the wholesale price remains at $10.26 for 2025 and 2026,. VeriSign, Inc. is only permitted to implement price increases of up to 7% in the final four years of the term, meaning the next potential hike won't be until September 2026,. The .net agreement is even more flexible, allowing for a 10% annual price increase. Still, these agreements also impose obligations, such as requiring VeriSign, Inc. to act on reports of DNS abuse for the first time, in line with other gTLD registries.

Here's a quick look at the contract status and pricing flexibility:

• .com Contract Term End: November 30, 2030.
• .net Contract Term End: July 1, 2029.
• .com Wholesale Price in 2025: $10.26,.
• Maximum .com Annual Price Increase: 7%, starting in late 2026.
• Maximum .net Annual Price Increase: 10%.
• VeriSign, Inc. also provides back-end services for other TLDs, like .edu.

Proprietary, Highly Secure Global DNS Infrastructure (ATLAS)

The ATLAS platform is the proprietary engine that underpins VeriSign, Inc.'s ability to execute its registry functions reliably. It's designed for speed, security, and massive scale, which is defintely necessary when you are the steward of the internet's naming system. This infrastructure supports the Root Zone Maintainer services and the authoritative resolution for .com and .net.

The sheer volume of traffic handled by this system is staggering. VeriSign, Inc.'s servers process hundreds of billions of transactions daily. Specifically, the ATLAS system processes as many as 18 billion DNS queries a day, with capacity to handle many times that amount without performance degradation. This global footprint is physically distributed across key locations.

The physical and logical components of this resource include:

Infrastructure Component	Metric/Location	Data Point
Core Data Centers	Confirmed Locations	Dulles, Virginia; Ashburn, Virginia; New Castle, Delaware
Global Reach	Points of Presence (PoPs)	More than 200 other PoPs globally
DNS Query Processing	Daily Volume (ATLAS)	As many as 18 billion queries per day
Transaction Volume	Daily Server Processing	Hundreds of billions of transactions daily

This infrastructure is VeriSign, Inc.'s moat; it's not just about running the registry, but about the proven, secure, and scalable way they do it.

Substantial Deferred Revenues of $1.38 Billion as of Q3 2025

Deferred revenues are a fantastic indicator of future, locked-in revenue visibility, representing payments received for services not yet rendered. As of the end of the third quarter of 2025, VeriSign, Inc. reported deferred revenues totaling $1.38 billion,,,. This figure was up $80 million from the end of fiscal year 2024.

This balance sheet item directly reflects the long-term nature of domain registrations, where customers often pay upfront for multi-year renewals. For context on the operational strength driving this, the .com and .net domain name base reached 171.9 million registrations at the end of Q3 2025, a 1.4 percent year-over-year increase,.

Financial Capital with $618 Million in Cash and Marketable Securities (Q3 2025)

A strong balance sheet provides the flexibility to invest in the ATLAS infrastructure, pursue strategic opportunities, and return capital to shareholders. At the close of Q3 2025, VeriSign, Inc. maintained a solid liquidity position, holding $618 million in cash, cash equivalents, and marketable securities,,,. This represented an increase of $18 million since the end of 2024,.

This capital base supports ongoing shareholder returns. In Q3 2025 alone, the company returned value through:

• Share Repurchases: $215 million for 0.8 million shares,,.
• Declared Dividend: $0.77 per share, payable in November 2025,,.
• Operating Cash Flow: Strong at $308 million for the quarter,,.
• Remaining Share Repurchase Authorization: $1.33 billion with no expiration date,.

Finance: draft 13-week cash view by Friday.

VeriSign, Inc. (VRSN) - Canvas Business Model: Value Propositions

Unparalleled security and stability for critical internet infrastructure is the core promise VeriSign, Inc. delivers. This is evidenced by the sheer scale and operational history of the infrastructure they manage. VeriSign, Inc. operates a globally distributed registry operation, made up of hundreds of technical sites spread across $\mathbf{60+}$ nations on six continents. This architecture processes an average of more than $\mathbf{450}$ billion DNS transactions each day.

You rely on this infrastructure for the fundamental ability to connect online. The company's commitment to research and development of this critical internet infrastructure helps it keep pace with the world's increasing reliance on web-based applications and internet-connected devices.

Guaranteed 100% resolution availability for .com and .net for 28 years is a historical metric that underpins this value proposition. VeriSign, Inc. invests continuously to build and innovate this infrastructure, which is the most technically sophisticated of its kind, and has delivered $\mathbf{100}$ percent Domain Name System (DNS) availability for .com for more than $\mathbf{28}$ years without interruption.

The scale of the managed domain base as of the end of the third quarter of 2025 demonstrates the trust placed in this stability:

Metric	Amount (End of Q3 2025)
Total .com and .net Domain Base	171.9 million names
.com Domain Base	159.4 million registrations
.net Domain Base	12.5 million registrations
New .com and .net Registrations (Q3 2025)	10.6 million
Preliminary Renewal Rate (.com and .net)	75.3%

This operational performance is supported by robust financial results, showing the business is healthy enough to sustain this level of investment. For the third quarter of 2025, VeriSign, Inc. reported revenue of $\mathbf{\$419}$ million and an operating income of $\mathbf{\$284}$ million, resulting in a net income of $\mathbf{\$213}$ million and diluted earnings per share of $\mathbf{\$2.27}$.

Exclusive, non-replicable registry operator for the world's most recognized TLDs is a structural advantage. VeriSign, Inc. operates the authoritative registry for the .com and .net top-level domains, which support the majority of global e-commerce. Furthermore, VeriSign, Inc. helps enable the internet by providing root zone maintainer services, operating $\mathbf{two}$ of the $\mathbf{13}$ global internet root servers.

The company manages these critical relationships through its extensive network:

• Manages relationships with approximately 3,000 ICANN-accredited registrars.
• Operates the registry for .com, .net, .name, and .cc domain names.
• The infrastructure is powered by purpose-built technology invented by VeriSign, Inc. technologists.

Enabling global e-commerce and internet navigation with defintely high reliability is the direct outcome of the above points. The .com domain is widely regarded as the standard for TLDs, and its registrations are processed via registrars accredited by ICANN. The continuous operation and investment ensure that billions of internet users maintain round-the-clock access to .com domain names and all the resources and services they support.

VeriSign, Inc. (VRSN) - Canvas Business Model: Customer Relationships

You're managing the core infrastructure of the internet, so your customer relationships are necessarily stratified. You deal with a massive, automated base of end-users indirectly, while maintaining very high-touch, contractual relationships with the channel partners and regulators who sit between you and the public.

Automated, transactional service for domain registration and renewal processing

The vast majority of VeriSign, Inc. (VRSN)'s customer interaction is purely transactional and automated. This is the high-volume, low-touch engine of the business. You are processing billions of requests daily to keep the internet running smoothly for the end-user.

The sheer scale of this automated service is best seen in the transaction volume. VeriSign, Inc. (VRSN) processes an average of more than 450 billion DNS transactions each day. This infrastructure supports more than half of the world's DNS hosts relying on the .com and .net infrastructure. The core relationship here is one of reliability and speed, not personal service.

Renewal processing is a critical, automated touchpoint that directly impacts revenue. For the core .com and .net TLDs, the renewal rate in the third quarter of 2025 reached 75.3%, a notable increase from 72.2% a year prior. This suggests the automated systems are effectively retaining customers. The total domain name base across all TLDs managed by VeriSign, Inc. (VRSN) stood at 378.5 million at the end of Q3 2025.

Dedicated account management and support for key registrar partners

While the end-user experience is automated, the relationship with the channel-the registrars-is anything but. VeriSign, Inc. (VRSN) manages relationships with approximately 3,000 ICANN-accredited registrars. These partners are the direct customers for your registry services, and the relationship is tiered based on volume and strategic importance.

For top-volume partners, the relationship shifts to dedicated account management and priority support. This is where the high-touch element comes in, ensuring the key players who drive millions of daily registry transactions have tailored solutions. Here's a quick look at the scale of the core TLDs these partners manage:

Metric	Value (End of Q3 2025)	Year-over-Year Change
Total .com and .net Registrations	171.9 million	Growth reported
New .com and .net Registrations (Q3 2025)	10.6 million	Implied growth driver
Wholesale .com Price (2025/2026)	$10.26	Contractually set

What this estimate hides is the complexity of managing pricing tiers and service level agreements (SLAs) that accompany dedicated support. If onboarding a new registrar takes longer than expected, churn risk rises defintely.

Contractual and regulatory relationship with governing bodies (ICANN, DoC)

This is the foundational relationship that underpins the entire business model. VeriSign, Inc. (VRSN)'s authority to operate the .com registry stems directly from its agreements with ICANN (Internet Corporation for Assigned Names and Numbers).

The company recently secured a six-year contract extension with ICANN to operate the .com TLD. This agreement dictates key operational and financial terms. For instance, the wholesale price for .com domains is set to remain at $10.26 in 2025 and 2026. However, the contract allows for price increases of up to 7% annually in the last four years of the renewal term, potentially pushing the wholesale price to $13.42 by the term's conclusion.

The relationship also involves significant compliance obligations. The new .COM Registry Agreement incorporates requirements for DNS Abuse mitigation-covering malware, botnets, phishing, and spam-and mandates providing registration data over the Registration Data Access Protocol (RDAP), replacing the older WHOIS protocol. Furthermore, the Root Zone Maintainer Service Agreement (RZMA) with ICANN, which covers publishing the root zone file, was renewed in October 2024 and runs until October 20, 2032.

Historically, the relationship with the Department of Commerce (DoC) was central via the Cooperative Agreement, but post-2016 IANA Transition, the DoC released VeriSign, Inc. (VRSN) from root zone operation responsibilities, leaving the primary contractual focus on the .com registry function with ICANN.

High-volume, low-touch interaction with the channel

This point summarizes the bulk of the daily operational interactions. While key partners get dedicated managers, the vast majority of the 3,000 registrars interact primarily through automated APIs and established protocols. The focus is on seamless, high-throughput processing rather than consultative sales.

The low-touch nature is necessary given the volume. You need systems that just work, day in and day out, across six continents where VeriSign, Inc. (VRSN) operates its globally distributed registry. The key metrics here reflect the efficiency of this automated channel interaction:

• Total domain name registrations at end of Q1 2025: 368.4 million.
• .com domain registrations alone at end of Q2 2025: 157.9 million.
• Q2 2025 new domain registrations surged to 10.4 million.
• Q2 2025 renewal rate was 75.5%.

The company also invests in complementary services and tools to help registrars find and register more domain names their customers value, which is a form of low-touch enablement.

VeriSign, Inc. (VRSN) - Canvas Business Model: Channels

You're looking at how VeriSign, Inc. (VRSN) gets its core product-the registry services for .com and .net-out to the world. Honestly, it's a very focused approach, relying almost entirely on a specific set of partners.

Accredited Domain Name Registrars (primary and sole distribution channel)

The accredited domain name registrars are the gatekeepers; they are the only way for the public to buy a .com or .net domain name. VeriSign, Inc. doesn't sell directly to end-users for these TLDs (Top-Level Domains). This channel strategy means VeriSign, Inc.'s success is tied directly to the sales and marketing efforts of these partners. For instance, looking at the June 2025 data, the top registrar, GoDaddy.com, processed 654,523 new registrations, while Namecheap Inc. followed with 439,342 new registrations that month. This shows the concentration of distribution power.

The overall health of this channel is reflected in the total domain name base managed by VeriSign, Inc. As of the end of the third quarter of 2025, the total domain name base for .com and .net stood at 171.9 million registrations. The company expects the full-year 2025 domain name base change to be between positive 1.2% and positive 2%.

Here's a snapshot of the scale within the primary channel as of mid-2025:

Metric	Value (June 2025)	Value (Q3 2025 End)
Total .com and .net Domain Base	N/A	171.9 million registrations
New .com Registrations (Monthly) - Top Registrar	654,523 (GoDaddy.com)	N/A
Total .com Domains Under Management - Top Registrar	52,796,957 (GoDaddy)	N/A
Q2 2025 Renewal Rate	75.5%	N/A
Q3 2025 Net Domain Increase	N/A	1.45 million

The revenue generated through this channel supports the overall financial picture. VeriSign, Inc.'s revenue for the twelve months ending September 30, 2025, was $1.627B. For the third quarter of 2025 specifically, revenue hit $419 million.

Direct Registry Access Protocol (EPP) for registrar system integration

System integration with the registrars happens via the Extensible Provisioning Protocol (EPP). This is the standard protocol for provisioning domain names between the registry and the registrar applications. VeriSign, Inc. implements the entire EPP standard and provides tools to help partners connect efficiently.

• VeriSign, Inc. offers EPP Software Development Kits (SDKs) in Java and C++.
• The protocol uses XML features that allow for extensions, which VeriSign, Inc. documents in the Internet Assigned Numbers Authority's (IANA) EPP Extension Registry.
• The company also supports the Registration Data Access Protocol (RDAP) for lookups, with specific Bootstrap Service URLs for .com (https://rdap.verisign.com/com/v1/) and .net (https://rdap.verisign.com/net/v1/).

This technical layer is crucial; common protocol interfaces reduce registrar implementation costs, helping them bring new services to market faster for multiple TLDs.

Corporate website for security services and investor relations

While the primary channel is the registrars, the corporate website serves distinct functions for stakeholders and for contextualizing the security aspect of their business.

For investors, the corporate website is the source for official disclosures. For example, the site provides access to Investor Relations reports and publications. The company confirmed a quarterly cash dividend of $0.77 per share, payable on November 25, 2025, following a Board approval on October 21, 2025. Furthermore, the company repurchased 0.8 million shares for $215 million during the third quarter of 2025.

The security aspect is inherent to their role as a critical internet infrastructure provider. The company's operational focus includes managing root servers and performing Root Zone Maintainer functions. The full-year 2025 revenue guidance is set between $1.645 billion and $1.655 billion.

The website structure supports these audiences:

• Investor Relations reports and publications are available.
• The company provides support resources, including the Verisign Customer Center.
• The site hosts news, including news releases and blog content.

VeriSign, Inc. (VRSN) - Canvas Business Model: Customer Segments

You're looking at the core groups VeriSign, Inc. serves to maintain its position as a critical internet infrastructure provider. Honestly, the customer base is neatly divided between the direct service buyers and the ultimate end-users whose activity underpins the entire revenue model.

Global Domain Name Registrars (direct customers who pay the wholesale fee)

These are the essential channel partners, the companies like GoDaddy or Squarespace that you interact with to get a domain name. VeriSign, Inc. operates as a wholesaler to this segment, charging a fixed fee for the registration and maintenance of the authoritative records for the .com and .net Top-Level Domains (TLDs).

The wholesale price for a .com domain name registration was fixed at $10.26 for 2025 and 2026, following the last contractually allowed price increase in September 2024. These registrars are responsible for the registration and renewal of the 171.9 million combined .com and .net domains as of the end of the third quarter of 2025. The financial performance tied to this segment was evident in the Q3 2025 results, where VeriSign, Inc. reported revenue of $419 million.

Here's a quick look at the scale of the service provided to this customer group:

Metric	Value (as of Q3 2025)
Total .com and .net Registrations	171.9 million
Wholesale .com Price (2025/2026)	$10.26 per year
New .com and .net Registrations Processed (Q3 2025)	10.6 million
Q3 2025 Revenue	$419 million

Businesses and individuals worldwide who own .com and .net domains

This is the massive, end-user base that drives the demand for the wholesale service. While VeriSign, Inc. doesn't bill them directly, their continued registration and renewal activity is the lifeblood of the business. The stability of this segment is what makes the asset class attractive to investors.

As of September 30, 2025, the total number of domain name registrations across all TLDs was 378.5 million. The core focus, the .com and .net TLDs, accounted for 171.9 million of that total. To be fair, the .com base alone stood at 159.4 million registrations, while .net held 12.5 million.

The commitment of these end-users is measured by renewal rates. The final .com and .net renewal rate for the second quarter of 2025 was 75.5 percent. This segment is global, with positive growth trends seen across all regions, particularly in the U.S. and EMEA during Q3 2025.

• .com Domain Base (Q3 2025): 159.4 million registrations.
• .net Domain Base (Q3 2025): 12.5 million registrations.
• Total Domain Name Registrations (All TLDs, Q3 2025): 378.5 million.
• Year-over-year growth in total registrations (Q3 2025): 4.5 percent.

Governments and educational institutions using .gov and .edu TLDs

VeriSign, Inc. manages the technical infrastructure for various TLDs, including those serving specific institutional sectors. While the search results did not isolate the exact number of .gov or .edu domains, they do provide context on the broader category of Country-Code TLDs (ccTLDs), which often includes these government and educational domains.

As of the end of the third quarter of 2025, total country-code TLD (ccTLD) domain name registrations reached 144.8 million. This segment, along with the core .com/.net, contributes to the overall stability that VeriSign, Inc. provides to the global Domain Name System (DNS), processing over 400 billion transactions daily. The company's focus on security and stability is a key value proposition for these high-trust entities.

Institutional investors seeking stable, high-margin infrastructure assets

This customer segment views VeriSign, Inc. not as a technology company, but as a provider of a near-monopolistic, essential utility with predictable, contractually-backed pricing power. The high profitability validates this view.

The gross margin for VeriSign, Inc. was reported at 87.97% as of early 2025. Financially, for the third quarter of 2025, the company posted an operating income of $284 million on revenue of $419 million, resulting in a net income of $213 million. The full-year 2025 revenue expectation was set between $1.652 billion to $1.657 billion. Furthermore, the commitment to shareholders, a key attraction for this segment, is shown by Berkshire Hathaway owning a 14% stake in the company as of a recent filing. The company also declared a cash dividend of $0.77 per share for the third quarter of 2025.

The financial health supporting this segment includes:

• Q3 2025 Diluted Earnings Per Share (EPS): $2.27.
• Cash flow from operations (Q3 2025): $308 million.
• Cash, cash equivalents and marketable securities (End of Q3 2025): $618 million.

Finance: draft 13-week cash view by Friday.

VeriSign, Inc. (VRSN) - Canvas Business Model: Cost Structure

You're looking at the core expenditures that keep the global DNS running smoothly for VeriSign, Inc. (VRSN). The structure here is heavily weighted toward maintaining a massive, always-on global infrastructure.

The nature of operating and securing the global DNS infrastructure means a substantial portion of costs are predominantly fixed, regardless of minor fluctuations in domain registrations. These are the costs of keeping the lights on and the network resilient against threats.

For the third quarter of 2025, the reported operating expense totaled $135 million. This figure was higher than the prior quarter's $129 million and the third quarter of 2024's $121 million. This increase was explicitly attributed to higher incentive compensation and legal costs.

Here's a breakdown of the costs reported for Q3 2025, showing where that expense base sits:

Cost Category (Q3 2025)	Amount (Millions USD)
Cost of Revenues	$48.8
Research and Development	$25.4
Selling, General and Administrative	$60.6
Total Costs and Expenses (Reported Sum)	$134.8

The company's overall financial guidance for the full fiscal year 2025 reflects this cost base, with operating income guidance set between $1.119 billion and $1.124 billion.

Capital investment required to run this infrastructure is relatively low compared to the operating burn. VeriSign, Inc. reaffirmed its forecast for capital expenditures for the full fiscal year 2025 to fall between $25 million and $35 million.

The cost structure includes specific, non-negotiable commitments related to regulatory and compliance overhead. These are significant legal and regulatory compliance costs that are essential for maintaining the .com and .net registries.

Key fixed or contractual cost elements include:

• Annual payments to ICANN through 2025 to support DNS security and stability, set at $4.0 million annually.
• The need to invest in new technologies to mitigate DDoS attacks, which drives up operational expenses.
• The cost of operating two of the 13 global internet root servers, a core fixed responsibility.

For context on the scale, Q3 2025 revenue was $419 million, and the company reported an operating income of $284 million for that same quarter.

VeriSign, Inc. (VRSN) - Canvas Business Model: Revenue Streams

You're looking at the core of VeriSign, Inc.'s (VRSN) financial engine, which is overwhelmingly concentrated in domain name services. Honestly, it's a high-margin business built on essential internet infrastructure.

The primary revenue driver comes from domain name registration and renewal fees for .com and .net TLDs (Top-Level Domains). This is where the bulk of the money comes from, as these are the most critical domains on the internet.

For the fiscal year 2025, VeriSign, Inc. has provided updated guidance. The company now expects full-year revenue to fall between $1.652 billion and $1.657 billion. This reflects solid performance, with Q3 2025 revenue hitting $419 million, a 7.3% increase year-over-year.

The pricing for the flagship .com domain is clearly defined by contract. You should note that the wholesale price for a .com domain per year remained at $10.26 throughout 2025, as confirmed by the ICANN contract extension terms for that year.

To give you a sense of the volume supporting these figures, look at the domain base metrics from the mid-to-late 2025 reporting periods:

Metric	Date/Period	Value
Total .com and .net Domain Registrations	End of Q2 2025	170.5 million
New .com and .net Registrations	Q1 2025	10.1 million
New .com and .net Registrations	Q2 2025	10.4 million
New .com and .net Registrations	Q3 2025	10.6 million
Domain Renewal Rate	Q2 2025	75.5%
Domain Renewal Rate	Q3 2025	75.3%

The revenue generated from these core domains has been substantial; for context, the Domain Names (.com and .net) segment revenue reached $1.6 billion in FY 2024.

Beyond the core .com and .net, VeriSign, Inc. also generates fees from operating other TLDs. This includes registry services for domains such as:

• .name
• .cc
• .tv
• .jobs
• .edu
• .gov

While these other TLDs contribute to the overall revenue stream, the financial reports emphasize the dominance of the .com and .net services in the overall revenue picture.