VeriSign, Inc. stock research
FY2025 Q2
VeriSign (VRSN) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was slightly lower than the prior quarter but higher than the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue was slightly lower than the prior quarter but higher than the year-ago period.
- Gross margin improvement was supported by a combination of higher revenue and a slightly lower cost of revenue relative to the prior quarter. This relationship strengthened year over year as revenue growth outpaced the increase in cost of revenue.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was slightly lower, resulting in an improved gross margin. Versus the same quarter last year, all metrics were higher, with gross profit growing more than cost of revenue, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.0%
Gross profit
$360.8M
Revenue
$409.9M
Cost of revenue
$49.1M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $390.6M | $343.8M | $46.8M | 88.0% |
| Dec 31, 2024 | $395.4M | $347.0M | $48.4M | 87.8% |
| Mar 31, 2025 | $402.3M | $352.9M | $49.4M | 87.7% |
| Jun 30, 2025 | $409.9M | $360.8M | $49.1M | 88.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.3 pts
Year-over-year change
Jun 30, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improvement was supported by a combination of higher revenue and a slightly lower cost of revenue relative to the prior quarter. This relationship strengthened year over year as revenue growth outpaced the increase in cost of revenue.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was slightly lower, resulting in an improved gross margin. Versus the same quarter last year, all metrics were higher, with gross profit growing more than cost of revenue, leading to an improved gross margin.
Monitor the trajectory of cost of revenue, which decreased slightly this quarter but has increased on a year-over-year basis.