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GoDaddy Q3 Earnings Beat Estimates, Revenues Increase Y/Y

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Key Takeaways

  • GoDaddy's Q3 EPS rose 14.4% year over year to $1.51, topping consensus estimates.
  • Revenues grew 8% to $1.27B, driven by 13.7% growth in Applications and Commerce.
  • GoDaddy raised 2025 revenue guidance to $4.93-$4.95B and expects $1.6B free cash flow.

GoDaddy (GDDY - Free Report) reported third-quarter 2025 earnings of $1.51 per share, which beat the Zacks Consensus Estimate by 0.67% and increased 14.4% on a year-over-year basis.

GDDY generated revenues of $1.27 billion, surpassing the Zacks Consensus Estimate by 2.79%. Revenues increased 8% year over year, both on a reported and on a constant-currency (cc) basis. International revenues increased 11% year over year.

Total customers at the end of the third quarter were 20,413, down 1.5% year over year. Average revenues per user (ARPU) were $237, up 10.2% year over year. Total annualized recurring revenues (ARR) were $4.29 billion, up 8% year over year.

GDDY’s Q3 Top-Line in Detail

Applications and Commerce (A&C), comprising websites, productivity applications, and payments and commerce, generated $481 million (contributing 38% to total revenues), up 13.7% on a year-over-year basis.
 

GoDaddy Inc. Price, Consensus and EPS Surprise

GoDaddy Inc. Price, Consensus and EPS Surprise

GoDaddy Inc. price-consensus-eps-surprise-chart | GoDaddy Inc. Quote

 

The Core Platform, consisting of domains, aftermarket, hosting and security, increased 8.3% year over year to $784.3 million (contributing 62% to total revenues).

Total bookings of $1.35 billion increased 9.1% year over year on a reported and 9% on a cc basis.

GDDY’s Q3 Operating Results

In the third quarter of 2025, the normalized EBITDA margin expanded 40 basis points (bps) year over year to 32.3%. 

A&C EBITDA margin contracted 30 bps while the Core Platform EBITDA margin was flat on a year-over-year basis.

Total cost and operating expenses as a percentage of revenues declined 280 bps year over year to 39.5%.

The third-quarter 2025 operating margin expanded 130 bps year over year to 23.4%.

GoDaddy’s Balance Sheet & Cash Flow

As of Sept. 30, 2025, cash and cash equivalents were $923.7 million compared with $1.1 billion as of June 30. As of Sept. 30, 2025, GoDaddy had a total debt of $3.78 billion. 

The free cash flow was $440.5 million in the third quarter compared with the previous quarter’s $391.5 million.

GoDaddy Offers Q4 & Raises 2025 Revenue Guidance

For the fourth quarter of 2025, GoDaddy expects A&C revenue growth in the low to mid-teens and Core revenue growth in the low single digits. The company expects revenues of $1.255-$1.275 billion, indicating year-over-year growth of 6% at the mid-point. For the fourth quarter, GDDY anticipates a normalized EBITDA margin of roughly 33%.

For 2025, GoDaddy raised its guidance and now expects total revenues of $4.93-$4.95 billion, indicating year-over-year growth of 8% at the mid-point. The normalized EBITDA margin is expected to be 32%.

For 2025, GoDaddy now anticipates a free cash flow of $1.6 billion.

Zacks Rank & Stocks to Consider

GDDY currently carries a Zacks Rank #3 (Hold).

Fair Isaac (FICO - Free Report) , Cirrus Logic (CRUS - Free Report) , and CoreWeave (CRWV - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.

Fair Isaac shares have dropped 20.3% year to date. This Zacks Rank #1 ((Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cirrus Logic shares have returned 33.1% year to date. CRUS is scheduled to release second-quarter fiscal 2026 results on Nov. 4. Cirrus Logic has a Zacks Rank #2 (Buy).  
 
CoreWeave shares have surged 227.7% since its initial public offering. CRWV is set to report its third-quarter 2025 results on Nov. 10. CoreWeave currently has a Zacks Rank #2. 

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