VeriSign, Inc. stock research
FY2025 Q4
VeriSign (VRSN) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Gross margin improved slightly versus both periods, reflecting a higher proportion of revenue flowing through to gross profit.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained relatively stable. Gross margin improved slightly versus both periods, reflecting a higher proportion of revenue flowing through to gross profit.
- The strongest observable margin driver is the increase in gross profit outpacing the increase in cost of revenue, leading to a higher gross margin. This is evident in both sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, gross margin was slightly higher, driven by a larger increase in gross profit relative to cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with gross profit growing more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
88.5%
Gross profit
$376.3M
Revenue
$425.3M
Cost of revenue
$49.0M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $425.3M | $376.3M | $49.0M | 88.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.1 pts
Year-over-year change
Dec 31, 2024
+0.7 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 gross profit outpacing the increase in cost of revenue, leading to a higher gross margin. This is evident in both sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, gross margin was slightly higher, driven by a larger increase in gross profit relative to cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with gross profit growing more than cost of revenue.
Monitor the trend in cost of revenue, as it has remained nearly flat while revenue has grown, and any future increase could pressure gross margin.