GDDY

Technology

GoDaddy

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Market Data

Financials

XBRL · SEC EDGAR

2016–2025(10yr)

Revenue

Net Income

Free CF

Metric	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$1.8B	$2.2B	$2.7B	$3.0B	$3.3B	$3.8B	$4.1B	$4.3B	$4.6B	$5.0B	+8.3%
Gross Profit	$1.2B	$1.5B	$1.8B	$2.0B	$2.2B	$2.4B	$2.6B	$2.7B	$2.9B	$3.1B	+7.8%
Gross Margin	64.4%	65.3%	66.4%	65.6%	65.1%	64.0%	63.7%	63.0%	63.9%	63.6%	-0.3pp
Operating Income	$50.1M	$66.9M	$149.6M	$202.6M	$272.2M	$382.1M	$498.8M	$547.4M	$893.5M	$1.1B	+26.2%
Operating Margin	2.7%	3.0%	5.6%	6.8%	8.2%	10.0%	12.2%	12.9%	19.5%	22.8%	+3.2pp
Net Income	-$16.5M	$136.4M	$77.1M	$137.0M	-$495.1M	$242.3M	$352.2M	$1.4B	$936.9M	$875.0M	-6.6%
Net Margin	-0.9%	6.1%	2.9%	4.6%	-14.9%	6.4%	8.6%	32.3%	20.5%	17.7%	-2.8pp
Free Cash Flow	$325.0M	$392.4M	$472.1M	$635.8M	$698.1M	$778.2M	$920.0M	$1.0B	$1.3B	$1.6B	+24.9%
FCF Margin	17.6%	17.6%	17.7%	21.3%	21.0%	20.4%	22.5%	23.6%	27.6%	31.8%	+4.2pp
EPS (Diluted)	$-0.10	$0.81	$0.44	—	—	—	—	$9.08	$6.45	$6.22	-3.6%

Total Debt$3.8B

Cash & Equiv.$932.4M

Net Debt$2.8B

3 min read

1. THE BIG PICTURE

GoDaddy is attempting a high-stakes transition from a utility-like domain provider to an AI-driven ecosystem, using its massive 81-million-domain base as a captive audience for higher-margin commerce software. This shift is funded by a massive cash-generation engine that currently returns more capital to shareholders via buybacks than any of its direct technology peers.

2. WHERE THE RISKS HIT HARDEST

Personalized Guidance vs. AI Automation: GoDaddy’s "Personalized Guidance" model, which relies on 5,700 human Guides, is threatened by "AI Technology Risks" because GoDaddy is simultaneously trying to automate these interactions through "agentic tools" to protect operating margins (10-K Item 1, Risks).
Innovation vs. Indebtedness: The "Integrated Technology Platform" advantage is threatened by "Indebtedness" because $2.8 billion in net debt and restrictive covenants limit the capital available to outspend niche competitors in the rapidly evolving AI space (Risks, XBRL).
Inventory vs. Ecosystem Dependency: The "Global Brand Awareness" in domains is structurally vulnerable to "Dependency on Ecosystems" like ICANN, which controls the availability of the underlying domain inventory GoDaddy needs to feed its "Entrepreneur's Wheel" (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

While Core Platform revenue growth is sluggish at 3.3%, the Applications and Commerce (A&C) segment is growing nearly four times faster at 12.8% (8-K). This divergence reveals that GoDaddy is successfully upselling its existing domain customers into proprietary software and payment tools. Despite this shift toward higher-value services, GoDaddy trades at the lowest forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations in its peer group (6.9x), a significant discount to the 13.7x median (Peer Benchmarking). This suggests the market is fixated on the debt load rather than the 32.4% free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin, which leads the peer group. Short interest at 6.1% of the float indicates a notable contingent of investors remains skeptical of this transition (Supplemental Signals).

4. IS IT WORTH IT AT THIS PRICE?

At 6.9x forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in roughly 0.5% long-term growth (CAPM analysis). This is an exceptionally low bar for a company that just delivered 8.3% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth and is targeting 6% growth for the full year 2026 (8-K, Peer Benchmarking). The valuation is attractively valued because the 50% discount to the peer median is not supported by GoDaddy's fundamentals; GoDaddy ranks 1st in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin and 1st in buyback yield at 11.7%. While the $2.8 billion net debt is a valid concern, the projected $1.8 billion in 2026 free cash flow provides a clear path to service these obligations while continuing to aggressively shrink the share count (8-K).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the A&C segment growth falls into the single digits, signaling that the AI-powered "Airo" platform is failing to gain traction with the core domain-buying audience.
Constructive if net debt falls toward 1.5x annual free cash flow, which would likely trigger a valuation re-rating as the financial risk profile stabilizes.
Cautious if the buyback yield drops significantly, as these repurchases are currently the primary mechanism for returning GoDaddy's outsized cash flow to investors.

6. BOTTOM LINE

Structural Advantage: A massive, low-churn captive audience of 81 million domains that serves as a high-margin funnel for integrated commerce and AI tools. Bottom Line: GoDaddy is a cash-flow powerhouse priced for a stagnation that its current segment growth and aggressive buybacks do not support.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Sales Growth: GoDaddy’s business and operating results depend on increasing sales to new and existing customers; failure to do so, or a reduction in subscription renewals, would harm growth prospects and operating margins.
Product Innovation: The market is characterized by constant change and AI-driven innovation; if GoDaddy’s new products or enhancements fail to achieve customer acceptance, GoDaddy faces acute negative impacts on operating results due to high upfront development and marketing costs.
AI Technology Risks: The development and deployment of AI, including agentic AI, present risks of increased costs, litigation, reputational harm, and liability, particularly regarding intellectual property infringement, data privacy, and factual inaccuracies.
Competition: GoDaddy faces intense competition from niche point-solution providers and broader platforms; failure to maintain a competitive position or market share could result in lower sales, price reductions, and reduced margins.
Indebtedness: GoDaddy’s level of indebtedness, including its Credit Facility and Senior Notes, could divert cash flow from operations, limit the ability to raise additional capital, and restrict GoDaddy’s ability to react to economic changes.

2. Company-Specific Risks

Customer Care Dependency: Approximately 9% of total bookings in 2025 were generated by GoDaddy Guides; failure to maintain high-quality customer care or disruptions in service from third-party providers could harm the brand and reduce subscription renewal rates.
Infrastructure Reliance: GoDaddy relies heavily on Amazon Web Services (AWS) for its integrated platform; any disruption, interference, or termination of the AWS relationship would adversely affect business operations and financial condition.
Marketing Spend: GoDaddy incurred $375.1 million in marketing and advertising expenses in 2025; if these customer acquisition costs increase without a commensurate rise in sales, financial performance will be adversely affected.
International Exposure: International revenue accounted for approximately 33% of total revenue in 2025; this presence subjects GoDaddy to risks including foreign currency fluctuations, geopolitical instability, and complex international regulatory compliance.

3. Regulatory/Legal Risks

FTC Settlement: GoDaddy is subject to a May 2025 FTC settlement order requiring compliance with specific security practices for at least 20 years; failure to comply could lead to investigations, litigation, or reputational harm.
Domain Name Regulation: GoDaddy’s registrar and registry businesses are subject to ICANN policies and international laws like the E.U.’s NIS2 Directive; changes in these regulations or a failure to comply could result in significant expenses, regulatory action, or loss of accreditation.
Payments Regulation: GoDaddy Payments is subject to various laws governing money transmission, anti-money laundering, and payment card network rules; violations could result in civil or criminal penalties or the loss of the ability to process payments.
Content Moderation: Laws such as the E.U.’s Digital Services Act and the U.S. "Take It Down Act" impose mandatory takedown procedures and reporting obligations; non-compliance could result in fines or enforcement measures.

4. Financial Impact Map

Sales Growth Risk → Total Revenue → Inability to attract new customers or reduction in renewals directly reduces top-line growth. Product Innovation Risk → Operating Results → Upfront technology, development, and marketing expenses are incurred regardless of whether new products achieve meaningful customer acceptance. Indebtedness Risk → Cash Flow from Operations → Substantial portion of cash flow must be dedicated to principal and interest payments, reducing funds available for capital expenditures. Marketing Spend Risk → Marketing and Advertising Expenses → Costs increased from $352.9 million in 2023 to $375.1 million in 2025; failure to generate sales from this spend directly impacts profitability. International Risk → Revenue → International markets represent 33% of total revenue; geopolitical changes or regulatory shifts in these regions could impair this revenue stream.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—