VRSNVerisign
Is the business good?
A genuinely good business: 8 of 9 health tests passed, earnings fully cash-backed (1.2×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VRSN?
Verisign keeps 68% of every revenue dollar as operating profit, against 5.8% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.23×
Cash conversion · 1.17× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.1%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 6.3%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 65% |
| FY2021 | 65% |
| FY2022 | 66% |
| FY2023 | 67% |
| FY2024 | 68% |
| FY2025 | 68% |
Details›
- Gross margin12 months to Q2 2026
- 88%
- Operating margin12 months to Q2 2026
- 68%
- Free cash flow margin
- 62%
- R&D as % of revenue
- 6.3%
- Revenue, trailing twelve months
- $1.71B
- Free cash flow, trailing twelve months
- $1.07B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
The closest names by size in the same industry