VeriSign, Inc. stock research
FY2025 Q3
VeriSign (VRSN) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was slightly lower than the prior quarter but higher than a year ago. Gross margin improved modestly from both comparison periods, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was slightly lower than the prior quarter but higher than a year ago. Gross margin improved modestly from both comparison periods, reflecting a favorable relationship between revenue growth and cost control.
- The strongest observable margin driver is the increase in revenue outpacing the change in cost of revenue, leading to a higher gross profit and an improved gross margin.
- Compared to the immediately preceding quarter, gross margin was higher, supported by a larger revenue base and a slightly lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, as revenue growth exceeded the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.4%
Gross profit
$370.3M
Revenue
$419.1M
Cost of revenue
$48.8M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $419.1M | $370.3M | $48.8M | 88.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.3 pts
Year-over-year change
Sep 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in revenue outpacing the change in cost of revenue, leading to a higher gross profit and an improved gross margin.
Compared to the immediately preceding quarter, gross margin was higher, supported by a larger revenue base and a slightly lower cost of revenue. Versus the same quarter one year earlier, gross margin also improved, as revenue growth exceeded the increase in cost of revenue.
Monitor the trend in cost of revenue, as it increased year-over-year and could pressure gross margin if revenue growth slows.