.com is growing again
- Verisign makes most of its money from fixed fees on new and renewed .com and .net domain names.
- The .com and .net domain base reached 176.1 million at March 31, 2026, up 3.7% from a year earlier.
- Revenue was $1,656.6 million in 2025, up 6% from 2024.
- A 7% .com wholesale price increase is set for November 1, 2026, moving the fee from $10.26 to $10.97.
- The main debate is whether the domain rebound lasts long enough to support a stock that is not obviously cheap.
The domain base is healing
Verisign had a rough demand patch in 2024, when the .com and .net domain base fell 2.1%. That pressure eased in 2025. The company ended 2025 with 173.5 million .com and .net registrations, up 2.6% from the prior year.
The first quarter of 2026 made the rebound look stronger. The domain base reached 176.1 million at March 31, 2026, up 3.7% from a year earlier and up 2.5 million from December 31, 2025. Verisign said the gain came from higher new registrations and better renewal rates.
The bull case is simple: more domains plus contracted price increases can drive steady, high-margin growth. Verisign also confirmed that the annual registry-level wholesale fee for .com will rise from $10.26 to $10.97 on November 1, 2026.
The bear case has not gone away. Social media pages, app stores, country-code domains, and new generic domains can reduce the need for a .com or .net address. The open question is whether long-term domain growth is closer to 2025's 2.6% pace, Q1 2026's 3.7% pace, or something lower after the recovery period fades.
A toll road for domain names
Verisign is the exclusive registry operator for .com and .net. A registry is the system of record that says which domain name points where. When a registrar sells or renews a .com or .net name, Verisign collects a registry fee from that registrar.
This is a recurring model because domains renew every year. The end customer may buy from GoDaddy or another registrar, but the registrar pays Verisign for the registry service behind the name.
The moat comes from control of .com, the most recognized domain ending on the internet. The .com registry agreement was renewed in 2024, and Verisign remains the sole registry operator for .com through November 30, 2030.
The model breaks if fewer people need stand-alone domain names, if registrars push prices too high and hurt demand, or if regulators change the rules around Verisign's contracts and pricing.
What Verisign actually runs
.com registry
.com is the core asset. Verisign earns a wholesale registry fee on each new and renewed .com domain handled through registrars.
.net registry
.net is smaller than .com, but it uses the same registry model. It adds recurring revenue tied to annual registrations and renewals.
Authoritative DNS resolution
Verisign runs the technical systems that help route .com and .net domain names to the right internet locations. This makes the service critical infrastructure.
Root Zone Maintainer services
Verisign serves as the Root Zone Maintainer for the internet's Domain Name System. This role supports the basic address book structure of the internet.
Internet root servers
The company operates two of the thirteen global internet root servers. This adds to its role as a trusted technical operator, though the core revenue engine remains .com and .net.
Other registry and technical services
Verisign also supports several other generic top-level domains and one country-code top-level domain. These are not significant compared with .com and .net.
One business, global registrar base
Verisign reports as one operating segment. The mix shown here uses 2025 revenue by registrar geography from the 2025 Form 10-K, with the U.S. making up the largest share.
What could break the story
Domain growth fades again
High impact · Medium oddsThe key metric is the .com and .net domain name base. It fell 2.1% in 2024, then grew 2.6% in 2025 and 3.7% year over year in Q1 2026. If growth slows back toward flat or negative, the company becomes more dependent on price increases.
Registrar behavior hurts demand
Medium impact · Medium oddsVerisign sells to registrars, not directly to most domain owners. If registrars raise retail prices too much, cut marketing, or stop focusing on customer acquisition, new registrations and renewals can weaken. Verisign has already called out registrar strategy as a demand factor.
China and APAC stay weak
Medium impact · Medium oddsChina has been a clear soft spot. In Q1 2025, Verisign said demand from China was lower and revenue from China fell 7% versus the prior period. Economic weakness or local rules that make domain registration harder could keep pressure on APAC demand.
Alternative online identities gain share
Medium impact · Medium oddsA business can use a social media page, marketplace store, app profile, country-code domain, or newer domain ending instead of a .com. The strong Q1 2026 data shows .com and .net still matter, but this long-term threat remains real.
Contract or pricing limits change
High impact · Low oddsVerisign's pricing power depends on its agreements with ICANN and related rules. The .com agreement runs through November 30, 2030, and the next 7% price increase is set for November 1, 2026. Any rule change that limits renewals or future increases would hit the core growth algorithm.
In one breath
How does Verisign make money?
Verisign earns registry fees when registrars create or renew .com and .net domain names. The end customer often pays a registrar, while the registrar pays Verisign for the registry service.
Why does .com matter so much to Verisign?
.com is the company's main asset because it is the most recognized domain ending online. Verisign is the sole registry operator for .com through November 30, 2030.
What changed in 2026?
Q1 2026 showed faster demand growth. The .com and .net domain base rose 3.7% year over year to 176.1 million, and Verisign confirmed a 7% .com wholesale price increase for November 1, 2026.
What is the biggest risk for VRSN stock?
The biggest business risk is that domain growth weakens again. The biggest stock risk is valuation, because a very predictable company can still be a poor investment if the price already assumes strong growth.