VeriSign, Inc.
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ITEM 1. BUSINESS
Overview
We are a global provider of critical internet infrastructure and domain name registry services, enabling internet navigation for many of the world’s most recognized domain names. We help enable the security, stability, and resiliency of the Domain Name System (“DNS”) and the internet by providing Root Zone Maintainer services, operating two of the thirteen global internet root servers, and providing registration services and authoritative resolution for the .com and .net top-level domains (“TLDs”), which support the majority of global e-commerce.
We were incorporated in Delaware on April 12, 1995. Our principal executive offices are located at 12061 Bluemont Way, Reston, Virginia 20190. Our telephone number at that address is (703) 948-3200. Our common stock is traded on the Nasdaq Global Select Market under the ticker symbol VRSN. VERISIGN, the VERISIGN logo, and certain other product or service names are registered or unregistered trademarks in the U.S. and other countries. Other names used in this Form 10-K may be trademarks of their respective owners. Our primary website is https://www.verisign.com. The information available on, or accessible through, this website is not incorporated in this Form 10-K by reference.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are available, free of charge, on the Investor Relations section of our website as soon as is reasonably practicable after filing such reports with the Securities and Exchange Commission (the “SEC”). The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at https://www.sec.gov.
Pursuant to our agreements with the Internet Corporation for Assigned Names and Numbers (“ICANN”), we make available files containing all active domain names registered in the .com and .net registries. Further, we also make available a summary of the active zone count registered in the .com and .net registries and the number of .com and .net domain name registrations in the domain name base. The zone counts and information on how to obtain access to the zone files can be found at https://www.verisign.com/resources/zone-file/. The domain name base is the active zone plus the number of domain names that are registered but not configured for use in the respective top-level domain zone file plus the number of domain names that are in a client or server hold status. The domain name base may also reflect compensated or uncompensated judicial or administrative actions to keep in or remove from the active zone an immaterial number of domain names. These files and the related summary data are updated at least once per day. The update times may vary each day. The number of domain names provided in this Form 10-K are as of midnight of the date reported.
We announce material financial information to our investors using our investor relations website https://investor.verisign.com, SEC filings, investor events, news and earnings releases, public conference calls and webcasts. We use these channels as well as social media to communicate with our investors and the public about our company, our products and services, and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the social media channels and websites listed below. This list may be updated from time to time on our investor relations website.
https://verisign.com
https://blog.verisign.com
https://facebook.com/verisign
https://x.com/verisign
https://linkedin.com/company/verisign
https://youtube.com/user/verisign
https://dnib.com
https://x.com/dnibrief
The contents of these websites are not intended to be incorporated by reference into this Form 10-K or in any other report or document we file.
Services
We operate the authoritative directory, for all .com, .net, and .name domain names (generic top-level domains, “gTLDs”), as well as for certain transliterations of .com and .net in a number of different native languages and scripts (internationalized
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generic top-level domains, “IDN gTLDs”). We also operate the authoritative directory for all .cc domain names (country code top-level domain, or “ccTLD”) and operate the technical or back-end systems for the .edu top-level domain. As the registry or service provider for these top-level domains, our services allow individuals and organizations to establish their online identities, while providing the secure, always-on access they need to communicate and transact reliably with online audiences.
We operate the .com, .net, and .name gTLDs and the IDN gTLDs under registry agreements with ICANN and also, with respect to the .com gTLD, a Cooperative Agreement with the U.S. Department of Commerce (“DOC”). We operate the .cc ccTLD under an agreement with Cocos (Keeling) Islands. Under a separate agreement, we provide back-end services for the .edu top-level domain.
We also perform the Root Zone Maintainer function under an agreement with ICANN for the core of the internet’s DNS and operate two of the thirteen root zone servers that contain authoritative data for the top of the DNS hierarchy.
Our global constellation of DNS servers provides internet protocol (“IP”) address information in response to queries, enabling the use of browsers, email systems, and other systems on the internet. In addition, we own and maintain our shared registration system that allows registrars to enter new second-level domain names into Verisign-operated central directories and to submit modifications, transfers, re-registrations, and deletions for existing second-level domain names (“Shared Registration System”).
Domain names in the registries we operate can be registered for between one and 10 years. Unlike other gTLDs, the prices we charge for .com, .net and .name domain name registrations are subject to restrictions in our agreements with ICANN and our prices may be increased only according to those restrictions. Retail pricing for these domain name registrations is established by registrars. For .com domain name registrations, we pay ICANN on a quarterly basis $0.2575 for each annual domain name registration. For .name domain name registrations, we pay ICANN on a quarterly basis $0.25 for each annual domain name registration. For .net domain name registrations, we remit to ICANN a $0.75 fee per annual domain name registration that is collected from registrars.
Revenues for .cc domain names and our IDN gTLDs are based on prices that are not subject to the same pricing restrictions as those for the .com, .net and .name gTLDs. The fee for our performance of back-end services for the .edu top-level domain is based on the terms of our agreement.
Operations Infrastructure
Our main operations infrastructure consists of secure data centers in Dulles, Virginia; Ashburn, Virginia; and New Castle, Delaware; as well as more than 200 other points of presence around the world. Our domain name servers refer requestors to the associated authoritative name servers for second level domains in the registries we operate or support, thus enabling DNS resolution for .com and .net domain names and for domain names in the other registries that we operate, or for which we provide technical or back-end services. Our servers process hundreds of billions of transactions daily. Our operations infrastructure operates continuously, supporting the security, integrity and availability of our services, which are critical for our business and internet users. The performance and availability of our infrastructure are critical for our business. Key features of our operations infrastructure include:
•Distributed Servers: We operate a large number of high-speed servers globally to support localized transaction processing and performance demands. In conjunction with our proprietary software, processes and procedures, this purpose-built global constellation of servers offers rapid failover, global and local load balancing, and threshold monitoring on critical servers.
•Networking: We deploy and maintain a redundant and diverse global network, maintain high-speed, redundant connections to numerous internet service providers, and maintain hundreds of network interconnection relationships globally to ensure that our critical services are readily accessible to end users.
•Security and Availability: We incorporate architectural concepts such as protected domains, restricted nodes, and distributed access control in our system architecture. In addition, we employ firewalls and intrusion detection software, endpoint and network detection and response systems as well as proprietary security mechanisms at many points across our infrastructure. We perform continuous internal vulnerability testing and periodic controls, audits, and also contract with third-party security organizations to perform periodic penetration tests and security risk assessments on our systems. Software undergoes application security testing prior to deployment and our responsible disclosure program provides an opportunity for external security researchers to be compensated for submitting vulnerabilities to our Information Security team. We have engineered resiliency and diversity across our set of interconnected sites to reduce the risk of unknown vendor defects and zero-day security vulnerabilities. For our critical services, our change management and core rollout processes include testing and validation in multiple test environments, along with a careful phased rollout to the production environment.
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•Data Integrity: We use several proprietary systemic integrity checks and validations to ensure data correctness when updating and publishing the DNS records for the registries we operate. These steps include multiple stages of DNSSEC validation to ensure correctness, all of which exist to ensure that the zone can be validated cryptographically so that any changes would be rejected in the event of an error or corruption.
We continuously seek to enhance our infrastructure and capabilities to support both normal and peak system load plus attack volumes based on historical experience, as well as to address reported and projected internet attack trends.
Call Centers and Service Desk:
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
You should read the following discussion in conjunction with the 2025 Form 10-K and the interim unaudited Condensed Consolidated Financial Statements and related notes included in Part I, Item I of this Quarterly Report on Form 10-Q.
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are based on current expectations and assumptions and involve risks, uncertainties, and other important factors, including, among other things, statements regarding the Company’s quarterly dividend and our expectations about the sufficiency of our existing cash, cash equivalents and marketable securities, and funds generated from operations, together with our borrowing capacity under the unsecured revolving credit facility. In some cases, you can identify forward-looking statements by terms such as “assumes,” “could,” “estimates,” “forecasts,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “targets,” “will,” “would,” “seeks,” “expects,” “anticipates,” “intends,” “believes” and similar language intended to identify forward-looking statements. Our actual results may differ significantly from those projected in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the section titled “Risk Factors” in Part I, Item 1A of the 2025 Form 10-K. You should also carefully review the risks described in other documents we file from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q or Current Reports on Form 8-K that we file in 2026. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise, except as required by law.
For purposes of this Quarterly Report on Form 10-Q, the terms “Verisign,” “the Company,” “we,” “us,” and “our” refer to VeriSign, Inc. and its consolidated subsidiaries.
Overview
We are a global provider of critical internet infrastructure and domain name registry services, enabling internet navigation for many of the world’s most recognized domain names. We help enable the security, stability, and resiliency of the Domain Name System (“DNS”) and the internet by providing Root Zone Maintainer Services, operating two of the thirteen global internet root servers, and providing registration services and authoritative resolution for the .com and .net generic top-level domains (“gTLDs”), which support the majority of global e-commerce.
As of June 30, 2026, we had 179.1 million .com and .net registrations in the domain name base. The number of domain names registered is largely driven by continued growth in online advertising, e-commerce, and the number of internet users, which is partially driven by greater availability of internet access, as well as marketing activities carried out by us and our registrars. The number of domain name registrations under our management may be negatively impacted by certain factors, including overall economic conditions, competition from country code top-level domains (“ccTLDs”), other gTLDs, services that offer alternatives for an online presence, and ongoing changes in the internet practices and behaviors of consumers and businesses. Factors such as the evolving practices and preferences of internet users, and how they navigate the internet, as well as the motivation of domain name registrants and how they will manage their investment in domain names, can negatively impact our business and the demand for new domain name registrations and renewals.
Business Highlights and Trends
•We recorded revenues of $434.6 million and $863.5 million during the three and six months ended June 30, 2026, which represents an increase of 6% compared to the same periods in 2025.
•We recorded operating income of $296.3 million and $589.9 million during the three and six months ended June 30, 2026, which represents an increase of 6% and 7%, respectively, compared to the same periods in 2025.
•As of June 30, 2026, we had 179.1 million .com and .net registrations in the domain name base, which represents a 5.1% increase from June 30, 2025, and a net increase of 3.0 million domain name registrations from March 31, 2026.
•During the three months ended June 30, 2026, we processed 12.7 million new domain name registrations for .com and .net compared to 10.4 million for the same period in 2025.
•The final .com and .net renewal rate for the first quarter of 2026 was 76.3% compared to 75.5% for the first quarter of 2025. Renewal rates are not fully measurable until 45 days after the end of the quarter.
•We generated cash flows from operating activities of $504.0 million during the six months ended June 30, 2026, compared to $493.8 million for the same period in 2025.
•During the three months ended June 30, 2026, we repurchased 0.7 million shares of common stock for an aggregate cost of $196.8 million. As of June 30, 2026, there was $666.0 million remaining for future share repurchases under
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the share repurchase program. Effective July 23, 2026, the Board of Directors authorized the repurchase of 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.
•On June 26, 2026, we issued the 2026 Notes. On July 20, 2026, we used the net proceeds from the 2026 Notes and cash on hand to redeem all of our 2017 Notes.
•On July 20, 2026, the Board of Directors declared a cash dividend of $0.81 per share of the Company’s outstanding common stock to stockholders of record as of the close of business on August 19, 2026, payable on August 27, 2026.
•On July 22, 2026, we announced that the .web TLD has been delegated into the global DNS root zone, with Verisign as the designated registry operator.
Pursuant to our agreements with ICANN, we make available files containing all active domain names registered in the .com and .net registries. Further, we also make available a summary of the active zone count registered in the .com and .net registries and the number of .com and .net domain name registrations in the domain name base. The zone counts and information on how to obtain access to the zone files can be found at https://www.verisign.com/resources/zone-file. The domain name base is the active zone plus the number of domain names that are registered but not configured for use in the respective top-level domain zone file plus the number of domain names that are in a client or server hold status. The domain name base may also reflect compensated or uncompensated judicial or administrative actions to add or remove from the active zone an immaterial number of domain names. These files and the related summary data are updated daily. The update times may vary each day. The number of domain names provided in this Form 10-Q is as of midnight of the date reported.
Results of Operations
The following table presents information regarding our results of operations as a percentage of revenues:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| Revenues | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||
| Cost of revenues | 11.5 | 12.0 | 11.5 | 12.1 | ||||||||||||||||||
| Research and development | 6.3 | 6.3 | 6.4 | 6.4 | ||||||||||||||||||
| Selling, general and administrative | 14.0 | 13.2 | 13.8 | 13.6 | ||||||||||||||||||
| Total costs and expenses | 31.8 | 31.5 | 31.7 | 32.1 | ||||||||||||||||||
| Operating income | 68.2 | 68.5 | 68.3 | 67.9 | ||||||||||||||||||
| Interest expense | (4.4) | (4.6) | (4.4) | (4.8) | ||||||||||||||||||
| Non-operating income, net | 1.0 | 1.3 | 1.1 | 1.6 | ||||||||||||||||||
| Income before income taxes | 64.8 | 65.2 | 65.0 | 64.7 | ||||||||||||||||||
| Income tax expense | (15.0) | (14.6) | (15.1) | (14.6) | ||||||||||||||||||
| Net income | 49.8 | % | 50.6 | % | 49.9 | % | 50.1 | % | ||||||||||||||
Revenues
Our revenues are primarily derived from registrations for domain names in the .com and .net domain name registries. We also derive revenues from operating domain name registries and technical systems for several other gTLDs and one ccTLD, all of which are not significant in relation to our consolidated revenues. For domain names registered in the .com and .net registries, we receive a fee from registrars per annual registration that is determined pursuant to our agreements with ICANN. Individual customers, called registrants, contract directly with registrars or their resellers, and the registrars, who are our direct customers, in turn register the domain names with Verisign. Changes in revenues are driven largely by changes in the number of new domain name registrations and the renewal rate for existing registrations as well as the impact of new and prior price increases, to the extent permitted by ICANN and the Department of Commerce. New registrations and the renewal rate for existing registrations are impacted by continued growth in online advertising, e-commerce, and the number of internet users, as well as marketing activities carried out by us and our registrars. We also offer promotional incentive-based discount programs to registrars based upon market conditions and the business environment in which the registrars operate.
In November 2024, we renewed the .com Registry Agreement with ICANN, pursuant to which we will remain the sole registry operator for the .com registry through November 30, 2030. Under the .com Registry Agreement, we are permitted to increase the price of a .com domain name registration by up to 7% in each of the final four years of each six-year period. The current such six-year period began on October 26, 2024. We increased the annual registry-level wholesale fee for each new and
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renewal .com domain name registration from $9.59 to $10.26 effective September 1, 2024. On April 23, 2026, we announced that we will increase the annual registry-level wholesale fee for each new and renewal .com domain name registration from $10.26 to $10.97 effective November 1, 2026. Under the .net Registry Agreement, we are permitted to increase the price of .net domain name registrations by up to 10% each year during the term of our agreement with ICANN, through June 30, 2029. We increased the annual registry-level wholesale fee for each new and renewal .net domain name registration from $9.92 to $10.91 effective February 1, 2024. All fees paid to us for .com and .net registrations are in U.S. dollars.
A comparison of revenues is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | 2026 | % Change | 2025 | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Revenues | $ | 434.6 | 6% | $ | 409.9 | $ | 863.5 | 6% | $ | 812.2 | |||||||||||||||||||||||||
The following table compares the .com and .net domain name registrations in the domain name base:
| June 30, 2026 | % Change | June 30, 2025 | |||||||||||||
.com and .net domain name registrations in the domain name base | 179.1 million | 5% | 170.5 million | ||||||||||||
Revenues increased during the three and six months ended June 30, 2026, as compared to the same periods last year, primarily due to an increase in the domain name base as of June 30, 2026 compared to June 30, 2025 and the .com price increases.
Demand for .com and .net domain names has been primarily driven by continued internet growth and marketing activities carried out by us and our registrars. However, the demand for .com and .net domain names may be limited by competitive pressure from other TLDs and alternatives for an online presence. Additionally, changes in internet practices, consumer behavior, and global economic conditions, as well as the motivation of existing domain name registrants managing their investment in domain names, such as for resale at increased prices or for revenue generation through website advertising, may impact demand for .com and .net domain names. Our domain name base increased during the three and six months ended June 30, 2026 compared to June 30, 2025, as the positive domain name base trends that began in 2025 continued into 2026 with higher new registrations and renewal rates. Growth in the domain name base has been positively impacted by continued registrar focus on customer acquisition and engagement with our marketing programs, as well as the evolution of AI tools used in content and website creation.
Geographic revenues
We generate 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 a comparison of our geographic revenues:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | 2026 | % Change | 2025 | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| U.S. | $ | 287.7 | 6% | $ | 270.5 | $ | 571.1 | 6% | $ | 536.6 | |||||||||||||||||||||||||
| EMEA | 75.9 | 10% | 68.8 | 149.4 | 10% | 135.8 | |||||||||||||||||||||||||||||
APAC | 47.5 | 4% | 45.5 | 95.5 | 6% | 89.9 | |||||||||||||||||||||||||||||
| Other | 23.5 | (6)% | 25.1 | 47.5 | (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 our registrars are located; however, this may differ from the regions where the registrars operate or where registrants are located. Revenue growth for each region may be impacted by registrars reincorporating, relocating, or from acquisitions or changes in affiliations of resellers. Revenue growth for each region may also be impacted by registrars domiciled in one region, registering domain names in another region. Our revenue growth was generated from registrars based in the U.S., EMEA and APAC during the three and six months ended June 30, 2026, compared to the same periods in 2025.
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Cost of revenues
Cost of revenues consists primarily of salaries and employee benefits expenses for our personnel who manage the operational systems, depreciation expenses, operational costs associated with the delivery of our services, fees paid to ICANN, customer support and training, costs of facilities and computer equipment used in these activities, telecommunications expense and allocations of indirect costs such as corporate overhead.
A comparison of cost of revenues is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | 2026 | % Change | 2025 | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Cost of revenues | $ | 50.0 | 2% | $ | 49.1 | $ | 99.2 | 1% | $ | 98.5 | |||||||||||||||||||||||||
Cost of revenues increased slightly during the three months ended June 30, 2026, compared to the same period last year, due to a combination of individually insignificant factors.
Cost of revenues increased slightly during the six months ended June 30, 2026, compared to the same period last year, due to a combination of individually insignificant factors, partially offset by a decrease in depreciation expenses. Although purchases of property and equipment increased in the six months ended 2026, depreciation expenses decreased by $3.6 million due to a decrease in capital expenditures in recent prior periods.
Research and development
Research and development expenses consist primarily of costs related to research and development personnel, including salaries and other personnel-related expenses, consulting fees, facilities costs, computer and communications equipment, support services used in our service and technology development, and allocations of indirect costs such as corporate overhead.
A comparison of research and development expenses is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | 2026 | % Change | 2025 | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Research and development | $ | 27.5 | 7% | $ | 25.7 | $ | 55.0 | 6% | $ | 51.7 | |||||||||||||||||||||||||
Research and development expenses increased during the three and six months ended June 30, 2026, compared to the same periods last year, due to a combination of individually insignificant factors.
Selling, general and administrative
Selling, general and administrative expenses consist primarily of salaries and other personnel-related expenses for our executive, administrative, legal, finance, information technology, human resources, sales, and marketing personnel, travel and related expenses, trade shows, costs of computer and communications equipment and support services, consulting and professional service fees, costs of marketing programs, costs of facilities, management information systems, support services, and certain tax and license fees, offset by allocations of indirect costs such as facilities and shared services expenses to other cost types.
A comparison of selling, general and administrative expenses is presented below:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
| 2026 | % Change | 2025 | 2026 | % Change | 2025 | ||||||||||||||||||||||||||||||
| (Dollars in millions) | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative | $ | 60.8 | 12% | $ | 54.4 | $ | 119.4 | 8% | $ | 110.1 | |||||||||||||||||||||||||
Selling, general and administrative expenses increased during the three months ended June 30, 2026, compared to the same period last year, primarily due to an increase in stock-based compensation expenses and a combination of several other individually insignificant factors. Stock-based compensation expense increased by $3.1 million primarily due to an increase in the total projected achievement levels on certain performance-based RSU grants.
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Selling, general and administrative expenses increased during the six months ended June 30, 2026, compared to the same period last year, primarily due to increases in stock-based compensation expenses, compensation and benefit expenses, and equipment and software expenses, partially offset by an increase in overhead expenses allocated to other cost types. Stock-based compensation expense increased by $4.3 million primarily due to an increase in the total projected achievement levels on certain performance-based RSU grants. Compensation and benefits expenses increased by $3.6 million, primarily due to higher expenses for certain employee health-insurance related benefits and annual salary increases. Equipment and software expenses increased by $3.6 million primarily due to increases in expenses related to network security and other software services. Overhead expenses allocated to other cost types increased by $3.2 million due to an increase in total allocable expenses.
Interest expense
Interest expense decreased slightly during the six months ended June 30, 2026, compared to the same period last year, primarily due to the period of overlap in 2025 between the issuance of $500.0 million of 5.25% senior unsecured notes issued in 2025 (“2025 Notes”) and repayment of $500.0 million of outstanding 5.25% senior unsecured notes issued in 2015 (“2015 Notes”).
Non-operating income, net
Non-operating income decreased during the three and six months ended June 30, 2026, compared to the same periods last year, primarily due to a decrease in interest income as a result of lower amounts invested in debt securities in the current period and a decrease in interest rates on the Company’s investments in debt securities.
Income tax expense
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.
Liquidity and Capital Resources
The following table presents our principal sources of liquidity:
| June 30, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| (In millions) | |||||||||||
| Cash and cash equivalents | $ | 840.9 | $ | 307.9 | |||||||
| Marketable securities | 193.2 | 272.6 | |||||||||
| Total | $ | 1,034.1 | $ | 580.5 | |||||||
The marketable securities primarily consist of debt securities issued by the U.S. Treasury meeting the criteria of our investment policy, which is focused on the preservation of our capital through investment in investment grade securities. The cash equivalents consist of amounts invested in money market funds, time deposits and U.S. Treasury bills purchased with original maturities of three months or less. As of June 30, 2026, all of our debt securities have contractual maturities of less than one year. Our cash and cash equivalents are readily accessible. For additional information on our investment portfolio, see Note 2, “Financial Instruments,” of our Notes to Condensed Consolidated Financial Statements in Part I, Item I of this Quarterly Report on Form 10-Q.
During the three months ended June 30, 2026, we repurchased 0.7 million shares of common stock for an aggregate cost of $196.8 million. As of June 30, 2026, there was $666.0 million remaining available for future share repurchases under the Company’s share repurchase program. Effective July 23, 2026, the Board of Directors authorized the repurchase of 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.
In the six months ended June 30, 2026, we paid dividends of $147.8 million. On July 20, 2026, the Board of Directors declared a cash dividend of $0.81 per share of the Company’s outstanding common stock to stockholders of record as of the
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close of business on August 19, 2026, payable on August 27, 2026. We intend to continue to pay a cash dividend on a quarterly basis, subject to market conditions and approval by the Board of Directors.
On June 26, 2026, we issued $550.0 million of the 2026 Notes. As of June 30, 2026, we also had $550.0 million principal amount outstanding of the 2017 Notes, $750.0 million aggregate principal amount of outstanding 2.70% senior unsecured notes issued in 2021, and $500.0 million principal amount outstanding of the 2025 Notes. On July 20, 2026, we used the net proceeds from the 2026 Notes and cash on hand to redeem all of our $550.0 million aggregate principal amount outstanding of the 2017 Notes. As of June 30, 2026, we had no outstanding borrowings and $200.0 million in borrowing capacity under our credit facility, which matures in 2028.
We believe existing cash, cash equivalents and marketable securities, and funds generated from operations, together with our ability to arrange for additional financing should be sufficient to meet our working capital, capital expenditure requirements, fund our quarterly dividend, and to service our debt for the next 12 months and beyond. We regularly assess our cash management approach and activities in view of our current and potential future needs. Our cash requirements have not changed materially since the 2025 Form 10-K.
In summary, our cash flows for the six months ended June 30, 2026 and 2025 were as follows:
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In millions) | |||||||||||
| Net cash provided by operating activities | $ | 504.0 | $ | 493.8 | |||||||
| Net cash provided by investing activities | 56.0 | 104.6 | |||||||||
| Net cash used in financing activities | (27.6) | (491.0) | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0.6 | 0.1 | |||||||||
| Net increase in cash, cash equivalents, and restricted cash | $ | 533.0 | $ | 107.5 | |||||||
Cash flows from operating activities
Our largest source of operating cash flows is cash collections from our customers. Our primary uses of cash from operating activities are for personnel-related expenditures and other general operating expenses, as well as payments related to taxes, interest and facilities.
Net cash provided by operating activities increased during the six months ended June 30, 2026, compared to the same period last year, primarily due to decreases in cash paid for income taxes and cash paid for interest and an increase in cash received from customers, partially offset by an increase in cash paid to employees and vendors. Cash paid for income taxes decreased primarily due to the final installment payment for the transition tax on accumulated foreign earnings resulting from the 2017 Tax Cuts and Jobs Act in 2025. Cash paid for interest decreased primarily as a result of the final payment of interest on our 2015 Notes in 2025. Cash received from customers increased primarily due to the .com price increases and higher .com domain name registrations and renewals. Cash paid to employees and vendors increased primarily due to an increase in operating expenses and the timing of payments.
Cash flows from investing activities
The changes in cash flows from investing activities primarily relate to purchases, maturities and sales of marketable securities, and purchases of property and equipment.
Net cash provided by investing activities decreased during the six months ended June 30, 2026, compared to the same period last year, primarily due to a decrease in proceeds from maturities and sales of marketable securities, net of purchases of marketable securities, and an increase in purchases of property and equipment.
Cash flows from financing activities
The changes in cash flows from financing activities primarily relate to proceeds from and repayment of borrowings, share repurchases, dividend payments, payment of excise tax on share repurchases, and proceeds from our employee stock purchase plan.
Net cash used in financing activities decreased during the six months ended June 30, 2026, compared to the same period last year, primarily due to the proceeds from the issuance of our 2026 Notes, the net impact of the redemption of our 2015 Notes and the issuance of our 2025 Notes in 2025, and a decrease in the payment of excise tax on share repurchases, partially offset by increases in dividend payments to stockholders and increases in share repurchases.
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-07-28 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×4 | $281.20 | -$927,964 |
| 2026-07-28 | CALYS JOHN | EVP, Chief Financial Officer | Sell | -500 | $281.56 | -$140,778 |
| 2026-07-21 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×7 | $270.44 | -$892,466 |
| 2026-07-20 | Indelicarto Thomas C | EVP, Gen Counsel & Secretary | Sell | -500 | $280.00 | -$140,000 |
| 2026-07-14 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×4 | $267.84 | -$883,875 |
| 2026-07-08 | Indelicarto Thomas C | EVP, Gen Counsel & Secretary | Sell | -250 | $269.23 | -$67,308 |
| 2026-07-07 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×5 | $266.09 | -$878,105 |
| 2026-07-01 | Indelicarto Thomas C | EVP, Gen Counsel & Secretary | Sell | -250 | $255.83 | -$63,958 |
| 2026-06-30 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×4 | $250.94 | -$828,110 |
| 2026-06-23 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×4 | $248.53 | -$820,141 |
| 2026-06-16 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×3 | $274.22 | -$904,926 |
| 2026-06-09 | Indelicarto Thomas C | EVP, Gen Counsel & Secretary | Sell | -500 | $283.54 | -$141,770 |
| 2026-06-09 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×6 | $284.29 | -$938,169 |
| 2026-06-02 | BIDZOS D JAMES | Exec. Chairman, Pres, & CEO | Sell | -3,300 ×7 | $297.47 | -$981,646 |
| 2026-06-02 | Indelicarto Thomas C | EVP, Gen Counsel & Secretary | Sell | -500 | $293.45 | -$146,725 |
| 2026-05-27 | Armstrong Courtney D | Director | Buy | +2 | $309.01 | $714 |
| 2026-05-27 | Armstrong Courtney D indirect | Director | Buy | +14 | $305.28 | $4,215 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-10-22 10-Q expected by 2026-11-07 (in 84 days)
- ~2027-02-04 10-K expected by 2027-02-18 (in 189 days)
- ~2027-04-22 10-Q expected by 2027-05-08 (in 266 days)
- ~2027-07-22 10-Q expected by 2027-08-07 (in 357 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-23 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-07-23 10-Q Quarterly Report
- 2026-06-26 8-K Other Events; Financial Statements and Exhibits
- 2026-06-26 8-K Material Agreement Entered; Financial Statements and Exhibits
- 2026-06-23 424B2 Prospectus Supplement
- 2026-05-21 8-K Officer/Director Change; Shareholder Vote Results; Financial Statements and Exhibits
- 2026-04-23 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-23 10-Q Quarterly Report
- 2026-04-10 DEF 14A Proxy Statement
- 2026-02-05 10-K Annual Report
- 2026-02-05 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-25 8-K Officer/Director Change
- 2025-10-23 10-Q Quarterly Report
- 2025-10-23 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-08 8-K Officer/Director Change