Verisign Inc's 10-Q: revenue up 6.5% over twelve months

Verisign Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $1.73 billion, which rose 6.5% on the year before. That growth rate was down 0.4 percentage points on the rate a quarter earlier.

What stands out

Capital spending rose 37.1%, faster than operating cash flow’s 2.8%, so less of the cash generated was left over.

Growth and profit

The trailing gross margin was 88.6%. The trailing operating margin was 67.6%, up 0.0 percentage points from a year earlier. The trailing net margin was 49.1%. Net income over the twelve months was $849.8 million, which rose 4.8% on the year before.

Cash flow

Operating cash flow over the twelve months was $1.06 billion, up 2.8% on the year before. Capital spending was $38.1 million, or 2.2% of revenue. Free cash flow, operating cash flow less capital spending, was $1.02 billion, up 1.9% on the year before. Free cash flow was 59.1% of revenue (the free-cash-flow margin), down 2.7 percentage points from a year earlier. The average diluted share count fell 3.1% over the year.

In context

Today’s free-cash-flow margin of 59.1% is higher than 81% of the company’s own past quarterly readings, which have ranged from 0.1% to 64.5%. Today’s operating margin of 67.6% is higher than 89% of the company’s own past quarterly readings, which have ranged from 3.5% to 68.1%. Today’s twelve-month revenue growth rate of 6.5% is higher than 62% of the company’s own past quarterly readings, which have ranged from −5.5% to 64.1%.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 24.4%, and 5 percentage points higher would raise it by 31.9%. A free-cash-flow margin 1 percentage point lower would lower it by 1.6%.

What to watch

The next filing will show whether the recent slowdown in revenue growth continues or reverses. It will also reveal if the gap between capital spending and operating cash flow widens further. Finally, it will indicate if the free-cash-flow margin stabilizes after its recent decline.