Financial Analysis

Commitments and Contingencies The following table represents the minimum payments required by Verisign under certain purchase obligations, leases, and the interest payments and principal on the Senior Notes: Purchase Obligations Senior Notes Total (In millions) 2026 $ 42.2 $ 72.6 $ 114.8 2027 25.0 622.6 647.6 2028 14.0 46.5 60.5 2029 7.0 46.5 53.5 2030 5.4 46.5 51.9 Thereafter 0.3 1,299.6 1,299.9 Total $ 93.9 $ 2,134.3 $ 2,228.2 Verisign enters into certain purchase obligations with various vendors. The Companys significant purchase obligations include firm commitments with telecommunication carriers, other service providers and the fixed portion of registry fees related to the operation of certain top-level domains. Registry fees for top-level domains that we operate where the amounts are variable or passed-through to registrars have been excluded from the table above. The Company has an agreement with Internet Corporation for Assigned Names and Numbers (ICANN) to be the sole registry operator for domain names in the .com registry through November 30, 2030. For 2023 and 2024, the Company paid ICANN a fee of $0.25 for each annual term of a domain name registered or renewed. For 2025, these fees increased to $0.2575 for each annual term of a domain name registered or renewed. We also incur registry fees for certain other registries. The Company incurred total registry fees for .com and other registries of $47.8 million in 2025, $45.3 million in 2024, and $44.1 million in 2023. …

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Debt Senior Notes The following table summarizes information related to our senior notes: Issuance Date Maturity Date Interest Rate Principal As of December 31, 2025 2024 (in millions except interest rates) Senior notes due 2025 March 27, 2015 April 1, 2025 5.25 % $ $ 500.0 Senior notes due 2027 July 5, 2017 July 15, 2027 4.75 % 550.0 550.0 Senior notes due 2031 June 8, 2021 June 15, 2031 2.70 % 750.0 750.0 Senior notes due 2032 March 11, 2025 June 1, 2032 5.25 % 500.0 Less: unamortized issuance costs (11.8) (7.7) Total senior notes 1,788.2 1,792.3 Less: current portion of senior notes due 2025 (299.8) Total long-term senior notes $ 1,788.2 $ 1,492.5 On March 11, 2025, the Company issued $500.0 million of 5.25% senior unsecured notes due June 1, 2032 (2032 Notes). The 2032 Notes were issued at 99.581% of par value. Interest payments on the 2032 Notes commenced June 1, 2025 and are due semi-annually. The total discount and issuance costs of $6.7 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 7-year term of the notes. On March 31, 2025, the Company used the net proceeds from the 2032 Notes and cash on hand to fund the repayment of all of its $500.0 million aggregate principal amount of outstanding 5.25% senior unsecured notes (2025 Notes), prior to their maturity on April 1, 2025. The $750.0 million of 2.70% senior unsecured notes due June 15, 2031 were issued at 99.712% of par value. The $55 …

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The following table presents the Companys revenues disaggregated by geography, based on the billing addresses of our customers: Year Ended December 31, 2025 2024 2023 (In millions) U.S $ 1,093.1 $ 1,035.5 $ 994.7 EMEA 279.4 249.6 228.2 APAC 184.6 175.7 174.8 Other 99.5 96.6 95.4 Total revenues $ 1,656.6 $ 1,557.4 $ 1,493.1 …

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Employee Benefits and Stock-based Compensation 401(k) Plan The Company maintains a defined contribution 401(k) plan (the 401(k) Plan) for substantially all of its U.S. employees. Under the 401(k) Plan, eligible employees may contribute up to 50% of their pre-tax salary, subject to the Internal Revenue Service (IRS) annual contribution limits. The Company matches 50% of up to the first 8% of the employees annual salary contributed to the plan. The Company contributed $6.4 million in 2025, $6.0 million in 2024, and $5.8 million in 2023 under the 401(k) Plan. The Company can terminate matching contributions at its discretion at any time. Equity Incentive Plan The majority of Verisigns stock-based compensation relates to RSUs granted under the 2006 Equity Incentive Plan (the 2006 Plan). As of December 31, 2025, a total of 7.0 million shares of common stock remain reserved for issuance upon the vesting of RSUs and for the future grant of equity awards. The 2006 Plan authorizes the award of incentive stock options to employees and non-qualified stock options, restricted stock awards, RSUs, stock bonus awards, stock appreciation rights and performance shares to eligible employees, officers, directors, consultants, independent contractors and advisers. The 2006 Plan is administered by the Compensation Committee which may delegate to a committee of one or more members of the Board or Verisigns officers the ability to grant certain awards and take certain other actions with respect to …

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Income Taxes Income before income taxes is categorized geographically as follows: Year Ended December 31, 2025 2024 2023 (In millions) United States $ 674.2 $ 655.4 $ 607.1 Foreign 394.3 366.5 369.4 Total income before income taxes $ 1,068.5 $ 1,021.9 $ 976.5 The provision for income taxes consisted of the following: Year Ended December 31, 2025 2024 2023 (In millions) Current expense: Federal $ 118.5 $ 147.9 $ 159.1 State 29.2 31.3 28.0 Foreign, including withholding tax 47.8 43.3 24.4 195.5 222.5 211.5 Deferred expense (benefit): Federal 24.0 (3.3) (25.6) State 3.3 (3.3) 11.2 Foreign 20.0 20.3 (38.2) 47.3 13.7 (52.6) Total income tax expense $ 242.8 $ 236.2 $ 158.9 The One Big Beautiful Bill Act (the Act), signed into law on July 4, 2025, restored the immediate deduction of research and development expenditures for U.S. federal income tax purposes. This change resulted in a decrease to the Companys current federal expense, and an increase to deferred federal expense in 2025. The increased foreign current expense in 2024 was primarily driven by the Organization for Economic Cooperation and Development (OECD) Pillar 2 minimum tax adopted by Switzerland, partially offset by related foreign tax credits in the U.S. The difference between income tax expense and effective tax rate and the amounts resulting from applying the federal statutory rate of 21% to Income before income taxes in 2025 is attributable to the following: Year Ended December 31, 2025 Balance Percent (Balance in …

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Adoption of New Accounting Standards The Company adopted Accounting Standards Update (ASU) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance has been applied prospectively. The adoption of ASU 2023-09 did not have a material impact on the Companys consolidated financial statements. Refer to Note 11, Income Taxes, for income tax disclosures. Recent Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires additional disclosure of certain costs and expenses within the notes to the financial statements. This guidance will be effective for our 2027 Form 10-K. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which clarifies and modernizes certain aspects of the accounting for and disclosure of internal-use software costs. The ASU does not change what types of costs are capi …

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Revenues The Company generates revenues in the U.S.; Europe, the Middle East and Africa (EMEA); Australia, China, Japan, Singapore, and other Asia Pacific countries (APAC); and certain other countries, including Canada and Latin American countries. The following table presents the Companys revenues disaggregated by geography, based on the billing addresses of our customers: Year Ended December 31, 2025 2024 2023 (In millions) U.S $ 1,093.1 $ 1,035.5 $ 994.7 EMEA 279.4 249.6 228.2 APAC 184.6 175.7 174.8 Other 99.5 96.6 95.4 Total revenues $ 1,656.6 $ 1,557.4 $ 1,493.1 Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Major Customers The Companys largest customer accounted for approximately 31% of revenues in 2025, and approximately 32% of revenues in 2024 and 2023. The Company does not believe that the loss of this customer would have a material adverse effect on the Companys business because, in that event, end-users of this customer would transfer to the Companys other existing customers. Deferred Revenues As payment for do …

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Segment Information The Company has one reportable segment that includes all the operations of the business. The segments chief operating decision maker is the Executive Chairman, President, and Chief Executive Officer . The chief operating decision maker assesses performance and decides how to allocate resources based on revenues, operating income and net income as reported on the Consolidated Statement of Comprehensive Income. Revenues, operating income and net income are used to evaluate budget versus actual results and the overall return generated by the segment assets. The analysis of these financial results, among other metrics, is used to assess performance and drives employee incentive compensation, as well as executive compensation. The following table presents information about segment revenues, significant expenses and profits: Year Ended December 31, 2025 2024 2023 (In millions) Revenues $ 1,656.6 $ 1,557.4 $ 1,493.1 Costs and expenses: Compensation and benefits expenses 244.6 224.7 214.5 Stock-based compensation expenses 69.7 61.1 59.7 Equipment and software expenses 50.2 45.6 42.1 Registry fee expenses 47.8 45.3 44.1 Depreciation expenses 31.2 36.9 44.1 Other segment items 92.1 85.6 88.0 Total costs and expenses 535.6 499.2 492.5 Operating income 1,121.0 1,058.2 1,000.6 Interest expense (77.0) (75.3) (75.3) Non-operating income, net 24.5 39.0 51.2 Income tax expense (242.8) (236.2) (158.9) Net income $ 825.7 $ 785.7 $ 817.6 Other segment items that are a part of …

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Stockholders Deficit Treasury Stock Treasury stock is accounted for under the cost method. Treasury stock includes shares repurchased under stock repurchase programs and shares withheld in lieu of the tax withholding due upon vesting of RSUs. Effective July 24, 2025, the Companys Board of Directors authorized the repurchase of its common stock in the amount of approximately $913.1 million, in addition to the $586.9 million that remained available for repurchases under the share repurchase program, for a total authorization of up to $1.50 billion under the program. The program has no expiration date. Purchases made under the program could be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. As of December 31, 2025, there was approximately $1.08 billion remaining available for repurchases under the program. The summary of the Companys common stock repurchases are as follows: 2025 2024 2023 Shares Average Price Shares Average Price Shares Average Price (In millions, except average price amounts) Total repurchases under the repurchase plans 3.4 $ 252.42 6.6 $ 183.84 4.2 $ 210.28 Total repurchases for tax withholdings 0.1 $ 247.80 0.1 $ 188.23 0.1 $ 211.29 Total repurchases 3.5 $ 252.29 6.7 $ 183.90 4.3 $ 210.30 Total costs $ 881.6 $ 1,225.6 $ 901.4 Since inception, the Company has repurchased 263.7 million shares of its common stock for an aggregate cost of $15.76 billion, which is recorded as a r …

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Debt On June 26, 2026, the Company issued $550.0 million of 5.10% senior unsecured notes due July 15, 2031 (2026 Notes). The 2026 Notes were issued at 99.961% of par value. The Company will pay interest on the notes semi-annually on January 15 and July 15, commencing on January 15, 2027. The total discount and issuance costs of $5.0 million are presented on the balance sheet as a reduction of the debt obligation and are being amortized to Interest expense over the 5-year term of the notes. On June 18, 2026, the Company issued an irrevocable redemption notice on its $550.0 million aggregate principal amount of outstanding 4.75% senior unsecured notes issued in 2017 (2017 Notes) that were scheduled to mature on July 15, 2027. As such, current and long-term senior notes as of June 30, 2026 reflect the classification of $549.3 million of the Companys 2017 Notes, net of unamortized debt issuance costs, as current liabilities. On July 20, 2026, the Company used the net proceeds from the 2026 Notes and cash on hand to redeem all of its 2017 Notes. …

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The following table presents the Companys revenues disaggregated by geography, based on the billing addresses of the Companys customers: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions) U.S. $ 287.7 $ 270.5 $ 571.1 $ 536.6 EMEA 75.9 68.8 149.4 135.8 APAC 47.5 45.5 95.5 89.9 Other 23.5 25.1 47.5 49.9 Total revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2 …

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Stock-based Compensation Stock-based compensation is classified in the Condensed Consolidated Statements of Comprehensive Income in the same expense line items as cash compensation. The following table presents the classification of stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions) Cost of revenues $ 2.4 $ 2.2 $ 4.7 $ 4.3 Research and development 3.0 2.8 6.0 5.6 Selling, general and administrative 14.0 10.9 27.8 23.5 Stock-based compensation expense 19.4 15.9 38.5 33.4 Capitalization (included in Property and equipment, net) 0.3 0.3 0.5 0.5 Total stock-based compensation $ 19.7 $ 16.2 $ 39.0 $ 33.9 The following table presents the nature of the Companys total stock-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions) RSUs $ 13.4 $ 12.9 $ 26.8 $ 25.9 Performance-based RSUs 5.2 2.4 10.1 6.2 ESPP 1.1 0.9 2.1 1.8 Total stock-based compensation $ 19.7 $ 16.2 $ 39.0 $ 33.9 …

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Income Taxes The following table presents income tax expense and the effective tax rate: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (Dollars in millions) Income tax expense $ 65.1 $ 59.9 $ 130.0 $ 119.0 Effective tax rate 23 % 22 % 23 % 23 % The effective tax rate for each of the periods in the table above differed from the statutory federal rate of 21%, due to state income taxes and U.S. taxes on foreign earnings, net of foreign tax credits, partially offset by a lower foreign effective tax rate.

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Revenues The Company generates revenues in the U.S.; Europe, the Middle East and Africa (EMEA); Australia, China, Japan, Singapore, and other Asia Pacific countries (APAC); and certain other countries, including Canada and Latin American countries. The following table presents the Companys revenues disaggregated by geography, based on the billing addresses of the Companys customers: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions) U.S. $ 287.7 $ 270.5 $ 571.1 $ 536.6 EMEA 75.9 68.8 149.4 135.8 APAC 47.5 45.5 95.5 89.9 Other 23.5 25.1 47.5 49.9 Total revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2 Revenues in the table above are attributed to the country of domicile and the respective regions in which registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenues for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenues for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Deferred Revenues As payment for domain name registrations and renewals are due in advance of the Companys performance, the Company records these amounts as deferred revenues. The increase in the deferred revenues balance for the six months ended June 30, 2026 was primarily driven by amounts billed in the six months ended June 30, 2026 for domain name …

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Segment Information The Company has one reportable segment that includes all the operations of the business. The chief operating decision maker assesses performance and decides how to allocate resources based on revenues, operating income and net income as reported on the Consolidated Statements of Comprehensive Income. The following table presents information about segment revenues, significant expenses and profits: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In millions) Revenues $ 434.6 $ 409.9 $ 863.5 $ 812.2 Costs and expenses: Compensation and benefits expenses 65.2 61.1 130.1 123.2 Stock-based compensation expenses 19.4 15.9 38.5 33.4 Equipment and software expenses 14.3 12.5 28.1 24.5 Registry fee expenses 11.8 11.8 23.4 23.4 Depreciation expenses 6.6 8.3 13.0 17.2 Other segment items 21.0 19.6 40.5 38.6 Total costs and expenses 138.3 129.2 273.6 260.3 Operating income 296.3 280.7 589.9 551.9 Interest expense (19.2) (18.9) (38.1) (39.2) Non-operating income, net 4.5 5.5 9.2 13.0 Income tax expense (65.1) (59.9) (130.0) (119.0) Net income $ 216.5 $ 207.4 $ 431.0 $ 406.7 Other segment items that are a part of the Companys segment net income include professional services expenses, telecommunication expenses, legal expenses, occupancy expenses, and other miscellaneous expenses. …

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Stockholders Deficit A summary of the Companys common stock repurchases is as follows: Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Shares Total Costs Average Price Shares Total Costs Average Price (In millions, except average price amounts) Total repurchases under the repurchase plans 0.7 $ 196.8 $ 275.00 1.6 $ 411.2 $ 252.51 Total repurchases for tax withholdings 4.6 $ 303.80 0.1 15.6 $ 246.03 Total repurchases 0.7 $ 201.4 $ 275.59 1.7 $ 426.8 $ 252.27 As of June 30, 2026, there was $666.0 million remaining available for repurchases under the Companys share repurchase program. The program has no expiration date. Purchases made under the program can be effected through open market transactions, block purchases, accelerated share repurchase agreements or other negotiated transactions. Effective July 23, 2026, the Companys Board of Directors authorized the repurchase of its common stock in the amount of $884.2 million, in addition to the $615.8 million that remained available for repurchases under the prior share repurchase authorization, for a total repurchase authorization of up to $1.50 billion under the program. Since inception, the Company has repurchased 265.4 million shares of its common stock for an aggregate cost of $16.19 billion, which is recorded as a reduction of Additional paid-in capital. The share repurchase and authorization amounts disclosed within this Form 10-Q exclude the excise tax on share repurchases. A summary of the Companys dividen …

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