VeriSign — software card

VRSN

GrowthRevenue $1.7B TTM4-quarter TTM

Close · Oct 26, 2026308.72P/E 33.2 · EV $29.2B

EV / revenue16.9×EV / gross profit 19.0×

Rule of 4066growth +6% + FCF +59%

+15% above 5y medianEV / revenue vs. its own five years

Board median EV / revenue12.0×five-year median 11.8× · +1%

Median Rule of 405320 of 24 above the line

Median revenue growth18%a year ago 15% · accelerating

Median SBC / revenue11%FCF margin 30% → 16% ex-SBC

Lights on0 of 3prices Oct 26, 2026 · TTM through Sep 30, 2026

Against the line

growth + FCF margin, in points

line 40score 66

growth 6 ptFCF margin 59 pt

Growth +6% plus FCF margin +59% is 66 points, 26 above the line at 40.

Where it has traded

quarter-end EV / revenue · 20 quarters · Dec 31, 2021 → Sep 30, 2026

Five-year median 14.7×, middle half 13.9–16.2×, range 12.2–21.7×. Now 16.9×: +15% above its own median, higher than 85% of those quarters.Each quarter at its own close, shares and balance sheet · the band is the 25th–75th percentile

What the cash flow really is

TTM through Sep 30, 2026 · $B

No waterfall: the cash-flow window or the SBC line is unusable this run.

Against its scale group

VRSN (blue) vs. the other Growth companies on the board (3), grey

Revenue growth+6% vs. +23%

Gross margin89% vs. 74%

FCF margin+59% vs. +24%

SBC / revenue— vs. 19%

Rule of 4066 vs. 47

EV / revenue16.9× vs. 23.1×

Group averages are the plain mean of the other companies in the same scale group with a usable window.

Quarter by quarter

8 quarters · Dec 31, 2024 → Sep 30, 2026 · a gap is a dropped quarter

Revenue, $B0.44

Growth YoY, quarter+6%

FCF margin, quarter+59%

SBC / revenue, quarter5%

Lights

on / off, no score

Dilutionoff

Off. SBC — of revenue (light above 20%); shares −3.4% in a year (light above +5%).

Decelerationoff

Off. Growth +6% vs. +5% a year earlier (light when more than 10 points lower).

Cash burnoff

Off. Trailing FCF is $1.0B.

The numbers

colour = threshold

Revenue growth · a year ago: +6% · +5%
Gross margin · operating margin: 89% · +68%
FCF margin: +59%
Rule of 40: 66
SBC / revenue: —
FCF ex-SBC: —
Shares YoY · buybacks TTM: −3.4% · $874.4M
EV / revenue · EV / GP · EV / FCF: 16.9× · 19.0× · 29×
P/E: 33.2
Net cash · share of EV: -$1.3B · −4%
Revenue TTM · market cap: $1.7B · $27.9B

Thresholds: growth ≥25% · FCF margin ≥25% · Rule of 40 ≥40 · SBC ≤8% · shares ≤0% are green. Full method → · How to value a software company →

Data quality this run

4-quarter TTM

Stock-based compensation unusable (2025-12-31: stock-based compensation not positive); SBC figures omitted.Prices Oct 26, 2026 · financials TTM through Sep 30, 2026.