Verisign

Verisign’s balance sheet is strong. As of Dec 2024 it had zero outstanding debt (it used cash and short-term borrowings to retire its 2025 notes) and $600–650M in cash during 2025). It maintains a $200M credit facility as backup. Operating cash flow is large ($902M in 2024)) and free cash flow is equally robust ($195M in Q2 2025).

Debt issuance in early 2025 ($500M due 2032) was done only to extend duration, not to lever up; the company paid off the $500M 2025 maturity simultaneously). Key liquidity ratios are high (quick ratio ~0.5, but this understates its flexibility given minimal capex). We see almost no bankruptcy risk even in downturns.

Financial strength earns a high rating of 90/100.