Summary

  • Before investment gains, ICANN Operations reported $18.370 million more revenue and support than expenses; the New gTLD Program segment reported $35.994 million more expenses than revenue and support.
  • Investment gains lifted consolidated net assets by $18.066 million. That result does not erase the segment gap, establish a budget overrun, or amount to an opinion on internal controls.

ICANN published its fiscal-year 2026 audited statements on 14 October. Its announcement put cash and investments—Funds Under Management—at about $542 million, up $7 million over the year. The audited schedules show why that combined figure needs a segment view: the continuing operations and the New gTLD Program did not have the same result. ICANN’s announcement

The report treats ICANN Operations and the New gTLD Program as separate ICANN segments. PTI appears as an affiliate, with intercompany amounts removed in consolidation. In the segment table, ICANN Operations recorded $171.332 million of revenue and support against $152.962 million of expenses. The difference before investment gains was positive $18.370 million. The New gTLD segment recorded $3.115 million against $39.109 million, a calculated difference of negative $35.994 million. These are reporting segments, not separate legal entities. FY26 audited statements, segment schedule

Investment gains were allocated $26.011 million to Operations and $9.679 million to the New gTLD segment. Adding those gains produces reported changes in net assets of positive $44.381 million for Operations and negative $26.315 million for New gTLD. Together they reconcile to the consolidated increase of $18.066 million. The arithmetic explains how ICANN could report higher net assets while its New gTLD segment remained negative; it does not show that the program is insolvent or that fees were meant to cover each cost in the same year.

The comparative schedule shows that the New gTLD segment’s pre-investment difference widened from negative $28.842 million in FY25 to negative $35.994 million in FY26. ICANN Operations moved the other way, from positive $8.879 million to positive $18.370 million. The FY26 note says New gTLD expenses included costs attributed to the 2012 round, the Grant Program and the 2026 round. It records $27.228 million for the 2026 round while saying application intake was still open on 30 June; the application window closed on 12 August, after the fiscal year ended. The report therefore captures development spending before the window’s eventual close, not the full later revenue picture. Audited statements, expense note and FY25 comparison

One detail in that note needs clarification. Its three listed expense amounts—$6.978 million for the 2012 round, $4.941 million for the Grant Program and $27.228 million for the 2026 round—sum to $39.147 million, $38,000 more than the segment’s stated $39.109 million in expenses. The report does not explain whether the listed amounts overlap or how the difference should be reconciled. The gap is about 0.1% of segment expense; it is a small disclosure question, not evidence that the audited statements are misstated.

The auditor’s report also has a defined boundary. Baker Tilly US, LLP says the consolidated statements fairly present ICANN’s financial position and changes in net assets and cash flows, in all material respects, under US GAAP. It describes reasonable assurance as high but not absolute. The auditors say they considered internal control to design their procedures, not to express an opinion on its effectiveness; no such opinion is given. Independent auditor’s report

The practical reading is neither “ICANN made $18 million from operations” nor “the New gTLD program lost $36 million in cash.” The first collapses segments; the second turns an accounting difference before investment gains into a cash-loss claim. The audited table supports a narrower conclusion: FY26 Operations was positive before its allocated investment gain, the New gTLD segment was negative before its allocation, and the consolidated total combines both.

Sources