Cloudflare vs Verisign
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KIRAβs take AI analyst
I put Cloudflare and Verisign side by side, using each oneβs latest annual report. Here is what stands out:
- Cloudflare is the larger business, with $2.2B of revenue in fiscal 2025 against $1.7B for Verisign.
- Cloudflare grew revenue faster (29.9%, against 6.4%).
- Verisign kept more of each dollar of sales as operating profit (67.7% operating margin, against β9.6%).
- Verisign turned more of its sales into free cash flow (64.5% FCF margin, against 13.3%).
Who comes out ahead
Of the 8 measures where higher (or lower) is clearly better, how many each company leads.
Cloudflare
NET
2/8
Revenue growth5-year growth
Verisign
VRSN
6/8
Gross marginOperating marginNet marginFCF marginPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | NET FY25 | VRSN FY25 |
|---|---|---|
| Size | ||
| Market cap | $117.6B | $27.1B |
| Revenue | $2.2B | $1.7B |
| Free cash flow | $288M | $1.1B |
| Net income | β$102M | $826M |
| Growth | ||
| Revenue growth | 29.9% | 6.4% |
| 5-year growth | 38.1% | 5.5% |
| Share count change | 2.1% | β4.5% |
| Profitability | ||
| Gross margin | 74.5% | 88.2% |
| Operating margin | β9.6% | 67.7% |
| Net margin | β4.7% | 49.8% |
| FCF margin | 13.3% | 64.5% |
| Return on capital | β29.7% | β |
| Return on equity | β8.2% | β |
| Balance sheet | ||
| Net debt | β$836M | $1.2B |
| Net debt / EBITDA | β | 1.1x |
| Dividends and buybacks | $0.0M | $1.1B |
| Valuation & quality | ||
| P/E | β | 32.3x |
| Piotroski F-score | 3 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.