Item 1. FINANCIAL STATEMENTS

VERISIGN, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except par value)

(Unaudited)

			March 31, 2025						December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents			$	575.4					$	206.7
Marketable securities			73.1						393.2
Other current assets			65.6						63.9
Total current assets			714.1						663.8
Property and equipment, net			221.5						224.5
Goodwill			52.5						52.5
Deferred tax assets			277.2						281.3
Deposits to acquire intangible assets			145.0						145.0
Other long-term assets			37.4						39.4
Total long-term assets			733.6						742.7
Total assets			$	1,447.7					$	1,406.5
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued liabilities			$	266.9					$	257.8
Deferred revenues			1,019.7						973.5
Current senior notes			—						299.8
Total current liabilities			1,286.6						1,531.1
Long-term deferred revenues			341.7						330.7
Long-term senior notes			1,786.3						1,492.5
Long-term tax and other liabilities			10.1						10.1
Total long-term liabilities			2,138.1						1,833.3
Total liabilities			3,424.7						3,364.4
Commitments and contingencies
Stockholders’ deficit:
Preferred stock—par value $.001 per share; Authorized shares: 5.0; Issued and outstanding shares: none			—						—
Common stock and additional paid-in capital—par value $.001 per share; Authorized shares: 1,000; Issued shares: 355.4 at March 31, 2025 and 355.2 at December 31, 2024; Outstanding shares: 94.1 at March 31, 2025 and 95.0 at December 31, 2024			10,427.2						10,645.3
Accumulated deficit			(12,401.4)						(12,600.7)
Accumulated other comprehensive loss			(2.8)						(2.5)
Total stockholders’ deficit			(1,977.0)						(1,957.9)
Total liabilities and stockholders’ deficit			$	1,447.7					$	1,406.5

See accompanying Notes to Condensed Consolidated Financial Statements.

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions, except per share data)

(Unaudited)

			Three Months Ended March 31,
			2025						2024
Revenues			$	402.3					$	384.3
Costs and expenses:
Cost of revenues			49.4						49.1
Research and development			26.0						24.8
Selling, general and administrative			55.7						51.5
Total costs and expenses			131.1						125.4
Operating income			271.2						258.9
Interest expense			(20.3)						(18.8)
Non-operating income, net			7.5						13.9
Income before income taxes			258.4						254.0
Income tax expense			(59.1)						(59.9)
Net income			199.3						194.1
Other comprehensive loss			(0.3)						(0.2)
Comprehensive income			$	199.0					$	193.9
Earnings per share:
Basic			$	2.11					$	1.93
Diluted			$	2.10					$	1.92
Shares used to compute earnings per share
Basic			94.6						100.8
Diluted			94.8						100.9

See accompanying Notes to Condensed Consolidated Financial Statements.

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In millions)

(Unaudited)

			Three Months Ended March 31,
			2025						2024
Total stockholders’ deficit, beginning of period			$	(1,957.9)					$	(1,581.0)
Common stock and additional paid-in capital
Beginning balance			10,645.3						11,808.0
Repurchase of common stock			(241.7)						(269.9)
Stock-based compensation			17.7						15.3
Issuance of common stock under stock plans			7.9						8.3
Excise tax on repurchase of common stock			(2.0)						(2.3)
Balance, end of period			10,427.2						11,559.4
Accumulated deficit
Beginning balance			(12,600.7)						(13,386.4)
Net income			199.3						194.1
Balance, end of period			(12,401.4)						(13,192.3)
Accumulated other comprehensive loss
Beginning balance			(2.5)						(2.6)
Other comprehensive loss			(0.3)						(0.2)
Balance, end of period			(2.8)						(2.8)
Total stockholders’ deficit, end of period			$	(1,977.0)					$	(1,635.7)

See accompanying Notes to Condensed Consolidated Financial Statements.

VERISIGN, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

			Three Months Ended March 31,
			2025						2024
Cash flows from operating activities:
Net income			$	199.3					$	194.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment			8.9						9.8
Stock-based compensation expense			17.5						15.1
Amortization of discount on investments in debt securities			(3.6)						(7.0)
Other, net			1.1						1.0
Changes in operating assets and liabilities:
Other assets			0.2						(4.1)
Other liabilities			6.6						(8.0)
Deferred revenues			57.2						38.6
Net deferred income taxes			4.1						17.8
Net cash provided by operating activities			291.3						257.3
Cash flows from investing activities:
Proceeds from maturities and sales of marketable securities			358.6						658.0
Purchases of marketable securities			(35.2)						(157.8)
Purchases of property and equipment			(5.8)						(3.8)
Net cash provided by investing activities			317.6						496.4
Cash flows from financing activities:
Repayment of borrowings			(500.0)						—
Proceeds from senior note issuance, net of issuance costs			493.9						—
Repurchases of common stock			(241.7)						(269.9)
Proceeds from employee stock purchase plan			7.9						8.3
Net cash used in financing activities			(239.9)						(261.6)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(0.3)						(0.4)
Net increase in cash, cash equivalents, and restricted cash			368.7						491.7
Cash, cash equivalents, and restricted cash at beginning of period			212.1						245.5
Cash, cash equivalents, and restricted cash at end of period			$	580.8					$	737.2
Supplemental cash flow disclosures:
Cash paid for interest			$	26.2					$	13.1
Cash paid for income taxes, net of refunds received			$	20.0					$	16.1

See accompanying Notes to Condensed Consolidated Financial Statements.

VERISIGN, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

Interim Financial Statements

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by VeriSign, Inc. (“Verisign” or the “Company”) in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, do not include all information and notes normally provided in audited financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of, nor comparable to, the results of operations for any other interim period or for a full fiscal year. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes contained in Verisign’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) filed with the SEC on February 13, 2025.

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued 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 will be effective for our 2025 Form 10-K. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

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.

Note 2. Financial Instruments

Cash, Cash Equivalents, and Marketable Securities

The following table summarizes the Company’s cash, cash equivalents, and marketable securities and the fair value categorization of the financial instruments measured at fair value on a recurring basis:

			March 31,						December 31,
			2025						2024
			(In millions)
Cash			$	21.8					$	21.7
Time deposits			2.0						1.8
Money market funds (Level 1)			147.2						188.6
Debt securities issued by the U.S. Treasury (Level 1)			482.9						393.2
Total			$	653.9					$	605.3
Cash and cash equivalents			$	575.4					$	206.7
Restricted cash (included in Other long-term assets)			5.4						5.4
Total Cash, cash equivalents, and restricted cash			580.8						212.1
Marketable securities			73.1						393.2
Total			$	653.9					$	605.3

The gross and net unrealized gains and losses included in the fair value of the debt securities were not significant for the periods presented. All of the debt securities held as of March 31, 2025 are scheduled to mature in less than one year.

Fair Value Measurements

The fair value of the Company’s investments in money market funds approximates their face value. Such instruments are included in Cash and cash equivalents. The fair value of the debt securities consisting of U.S. Treasury bills is based on their quoted market prices. Debt securities purchased with original maturities in excess of three months are included in Marketable securities. The fair value of the Company’s foreign currency forward contracts is based on foreign currency rates quoted by banks or foreign currency dealers and other public data sources. The fair value of all of these financial instruments are classified as Level 1 in the fair value hierarchy.

As of March 31, 2025, the Company’s other financial instruments include cash, accounts receivable, restricted cash, and accounts payable whose carrying values approximated their face values. The aggregate fair value of the Company’s senior notes is $1.71 billion and $1.69 billion as of March 31, 2025 and December 31, 2024, respectively. The fair values of these debt instruments are based on available market information from public data sources and are classified as Level 2.

Note 3. Selected Balance Sheet Items

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:

			March 31,						December 31,
			2025						2024
			(In millions)
Accounts payable and accrued expenses			$	9.6					$	10.6
Taxes payable			101.8						65.8
Customer deposits			71.5						64.6
Accrued employee compensation			40.3						66.9
Accrued registry fees			14.2						12.6
Interest payable			12.9						19.5
Customer incentives payable			8.7						8.9
Current operating lease liabilities			5.4						5.2
Other accrued liabilities			2.5						3.7
Total accounts payable and accrued liabilities			$	266.9					$	257.8

Taxes payable reflects amounts accrued for the income tax provision and payments made during the period. This balance fluctuates from period to period due to the timing of income tax payments in the Company’s major tax jurisdictions. Customer deposits varies from period to period due to the timing of payments from certain large customers. Accrued employee compensation primarily consists of liabilities for employee leave, salaries, payroll taxes, employee contributions to the employee stock purchase plan, and incentive compensation. Accrued employee incentive compensation as of December 31, 2024 was paid during the three months ended March 31, 2025. Interest payable varies at each period-end based on the payment due dates for each senior note issuance. Interest payable as of March 31, 2025 reflects the early payment of accrued interest on the Company’s $500.0 million of 5.25% senior unsecured notes (“2025 Notes”) in March 2025, prior to their maturity on April 1, 2025.

Note 4. Debt

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. The Company will pay interest on the notes semi-annually on June 1 and December 1, commencing on June 1, 2025. 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 2025 Notes.

Note 5. Stockholders’ Deficit

Effective July 25, 2024, the Company’s Board of Directors authorized the repurchase of its common stock in the amount of approximately $1.11 billion, in addition to the $388.0 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 March 31, 2025 there was approximately $792.7 million remaining available for repurchases under the program.

The summary of the Company’s common stock share repurchases are as follows. Amounts may not add up due to rounding:

			Three Months Ended March 31, 2025
			Shares						Total Costs						Average Price
			(In millions, except average price amounts)
Total repurchases under the repurchase plans			1.0						$	229.9					$	225.83
Total repurchases for tax withholdings			0.1						11.7						$	229.19
Total repurchases			1.1						$	241.7					$	225.99

Since inception, the Company has repurchased 261.3 million shares of its common stock for an aggregate cost of $15.12 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.

On April 23, 2025, the Company’s Board of Directors declared a cash dividend of $0.77 per share of the Company’s outstanding common stock to stockholders of record as of the close of business on May 19, 2025, payable on May 28, 2025. The Company intends to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by the Company’s Board of Directors.

Note 6. Calculation of Earnings per Share

The following table presents the computation of weighted-average shares used in the calculation of basic and diluted earnings per share:

			Three Months Ended March 31,
			2025						2024
			(In millions)
Weighted-average shares of common stock outstanding			94.6						100.8
Weighted-average potential shares of common stock outstanding:
Unvested RSUs and ESPP			0.2						0.1
Shares used to compute diluted earnings per share			94.8						100.9

The calculation of diluted weighted average shares outstanding excludes performance-based RSUs granted by the Company for which the relevant performance criteria have not been achieved and any awards that are antidilutive. The number of potential shares excluded from the calculation was not significant in any period presented.

Note 7. 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 Statement of Comprehensive Income.

The following table presents information about segment revenues, significant expenses and profits:

			Three Months Ended March 31,
			2025						2024
			(In millions)
Revenues			$	402.3					$	384.3
Costs and expenses:
Compensation and benefits expenses			62.1						58.8
Stock-based compensation expenses			17.5						15.1
Equipment and software expenses			12.0						10.9
Registry fee expenses			11.6						11.6
Depreciation expenses			8.9						9.8
Other segment items			19.0						19.2
Total costs and expenses			131.1						125.4
Operating Income			271.2						258.9
Interest expense			(20.3)						(18.8)
Non-operating income, net			7.5						13.9
Income tax expense			(59.1)						(59.9)
Net income			$	199.3					$	194.1

Other segment items that are a part of our segment net income include professional services expenses, telecommunication expenses, legal expenses, occupancy expenses, marketing expenses, and travel expenses.

Note 8. 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 Company’s revenues disaggregated by geography, based on the billing addresses of our customers:

			Three Months Ended March 31,
			2025						2024
			(In millions)
U.S.			$	266.1					$	255.3
EMEA			67.0						60.3
APAC			44.4						44.9
Other			24.8						23.8
Total revenues			$	402.3					$	384.3

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 Company’s performance, the Company records these amounts as deferred revenues. The increase in the deferred revenues balance for the three months ended March 31, 2025 was primarily driven by amounts billed in the three months ended March 31, 2025 for domain name registrations and renewals to be recognized as revenues in future periods, offset by refunds for domain name renewals deleted during the 45-day grace period, and $358.3 million of revenues recognized that were included in the deferred revenues balance at December 31, 2024. The balance of deferred revenues as of March 31, 2025 represents the Company’s aggregate remaining performance obligations. Amounts included in current deferred revenues are all expected to be recognized in revenues within 12 months, except for a portion of deferred revenues that relates to domain name renewals that are deleted in the 45-day grace

period following the transaction. The long-term deferred revenues amounts will be recognized in revenues over several years, and in some cases, up to ten years.

Note 9. 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 March 31,
2025						2024
			(In millions)
Cost of revenues			$	2.1					$	2.0
Research and development			2.8						2.6
Selling, general and administrative			12.6						10.5
Stock-based compensation expense			17.5						15.1
Capitalization (included in Property and equipment, net)			0.2						0.2
Total stock-based compensation			$	17.7					$	15.3

The following table presents the nature of the Company’s total stock-based compensation:

			Three Months Ended March 31,
			2025						2024
			(In millions)
RSUs			$	13.0					$	12.1
Performance-based RSUs			3.8						2.1
ESPP			0.9						1.1
Total stock-based compensation			$	17.7					$	15.3

Note 10. Non-operating Income, Net

Non-operating income, net, primarily consists of interest income from the Company’s surplus cash balances and marketable securities. Interest income was $7.9 million and $12.0 million during the three months ended March 31, 2025 and 2024, respectively. The decrease in interest income during the three months ended March 31, 2025 primarily reflects the lower amounts invested in debt securities in the current period and slightly lower interest rates on the Company’s investments in debt securities compared to the prior period.

Note 11. Income Taxes

The following table presents Income tax expense and the effective tax rate:

			Three Months Ended March 31,
			2025						2024
			(Dollars in millions)
Income tax expense			$	59.1					$	59.9
Effective tax rate			23		%				24		%

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.