Analysis for VRSN
- 📈 Growth — 24/30
- 💰 Profitability — 20/20
- 🏦 Financial Health — 7/20
- 💵 Valuation — 14/20
- ⚠️ Risk — 6/10
Overall Score: 69/100
Summary:
📈 Growth & Financial Trajectory
Over the eight quarters, Verisign demonstrates steady topline growth: from Revenues 390.6M in 2024-Q3 to 434.6M in 2026-Q2, up about 11%. Net income shows resilience, climbing from 201.3M to 216.5M, with a mid-period dip in 2024-Q4 before resuming the uptrend. The pace is gradual, but the trend is clearly positive, supported by durable DNS/domain registry demand and stable pricing.
💰 Margins & Cash Flow
- Gross Margin runs near 88-90%, underpinning strong operating leverage.
- Operating Margin remains in the high-60s to low-70s, signaling efficient cost control.
- Operating cash flow is consistently positive across all quarters (roughly 202M–308M), while investing cash flow is usually negative and financing allocates variably, yielding positive net cash flow in several periods.
🛡️ Balance Sheet & Liquidity
Balance sheet shows negative equity and liabilities exceeding assets, with current assets often below current liabilities. Cash balance is meaningful and rising into 2026, providing liquidity headroom, but structural leverage remains a constraint.
⚠️ Key Drivers & Risks
- Drivers: Durable DNS/domain registry revenue; high gross margins and steady pricing power.
- Risks: Negative equity/current ratio pressure; valuation sensitivity to growth assumptions and macro shifts.