VRSN

VRSN

Verisign

Recurring SaaS

★ Quality 99/100
Overvalued

Price today

$292.08

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charlieapp.co

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A monopoly position

This company has a competitive advantage so strong that its rivals find it practically impossible to replicate.

What this business is made of

99qualityReturnsMoatBalance sheetPricing powerReinvestment

The business

Verisign holds the monopoly on the registry of every .com on the planet.

Verisign operates the exclusive registry for .com and .net domains under contract with ICANN. It charges a fixed fee for every domain registered or renewed: over 170 million .com domains paying every year. Revenue of $1.7B with 88% gross margin and $1.1B in free cash flow.

It holds the government contract to manage .com through 2031, with near-automatic renewal. No one else can sell .com. The cost of switching domains for a company is prohibitive, so renewals hover around 75% year after year. A toll booth, not a business.

Revenue history

$1.3B
2021
$1.4B
2022
$1.5B
2023
$1.6B
2024
$1.7B
2025
CAGR 5 años: +7%

From $1.3B to $1.7B in 4 years. The business grows steadily.

Where each $100 of sales goes

Revenue $1.7B · FY2025

Cost of sales$196M · 12%
Operations$339M · 21%
Taxes and other$295M · 18%
Net profit$826M · 50%

Of every $100 in sales, $50 goes to costs and operations; $50 is left as net profit (50% margin).

Catalysts and risks

Contract-permitted .com price increases: up to 7% annually in four of the six years of the cycle.

Aggressive buybacks: reduced shares from ~115M to ~95M in five years, with no net debt.

Renewal of the ICANN–Department of Commerce contract in 2031 reaffirms the monopoly.

⚠️

Stalled domain growth: the .com base barely moves, the engine is price alone.

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Regulatory risk: the U.S. government could cap future price increases at renewal.

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Total concentration: a single asset, a single contract. If it changes, everything changes.

Charlie's note

A toll booth with 88% margin and no debt. I like that. What I don't like is paying for growth that depends on raising prices on captive customers: sooner or later someone with power catches on.

Analysis · June 2026

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