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GoDaddy Q4 EPS rose 26.8% to $1.80, beating estimates as revenue grew 6.8% YoY.
GDDY saw ARPU climb 10% and ARR rise 7.3%, with margins expanding across segments.
GoDaddy guides for 6% 2026 revenue growth and targets about $1.8B in free cash flow.
GoDaddy (GDDY - Free Report) reported fourth-quarter 2025 earnings of $1.80 per share, which beat the Zacks Consensus Estimate by 13.92% and increased 26.8% on a year-over-year basis.
GDDY generated revenues of $1.27 billion, surpassing the Zacks Consensus Estimate by 0.40%. Revenues increased 6.8% year over year on a reported basis and 6.7% on a constant-currency (cc) basis. International revenues rose 10.3% year over year.
Total customers at the end of the fourth quarter were 20,422, down 0.4% year over year. Average revenues per user (ARPU) were $242, up 10% year over year. Total annualized recurring revenues (ARR) were $4.34 billion, up 7.3% year over year.
GDDY’s Q4 Top-Line in Detail
Applications and Commerce (A&C), comprising websites, productivity applications, and payments and commerce, generated $497.7 million (contributing 39.1% to total revenues), up 12.8% on a year-over-year basis.
The Core Platform, consisting of domains, aftermarket, hosting and security, increased 3.3% year over year to $776.2 million (contributing 60.9% to total revenues).
Total bookings of $1.3 billion increased 5% year over year on a reported and 4.5% on a cc basis.
GDDY’s Q4 Operating Results
In the fourth quarter of 2025, the normalized EBITDA margin expanded 160 basis points (bps) year over year to 33.8%.
A&C EBITDA margin expanded 40 bps, while the Core Platform EBITDA margin expanded 70 bps on a year-over-year basis.
Total cost and operating expenses as a percentage of revenues declined 340 bps year over year to 39.8%
The fourth-quarter 2025 operating margin expanded 350 bps year over year to 24.9%.
GoDaddy’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, cash and cash equivalents were $1.1 billion compared with $923.7 million as of Sept. 30. As of Dec. 31, 2025, GoDaddy had a total debt of $3.8 billion.
The free cash flow was $370.3 million in the fourth quarter compared with the $440.5 million in the previous quarter.
GoDaddy Offers Q1 & FY2026 Guidance
For the first quarter of 2026, GoDaddy expects A&C revenue growth and Core revenue growth in the low double-digit range. The company expects revenues of $1.250-$1.270 billion, indicating year-over-year growth of 6% at the midpoint. For the first quarter, GDDY anticipates a normalized EBITDA margin of 32%.
For 2026, GoDaddy expects total revenues of $5.195-$5.275 billion, indicating year-over-year growth of 6% at the midpoint. The normalized EBITDA margin is expected to be 33%.
For 2026, GoDaddy now anticipates a free cash flow of $1.8 billion.
Micron Technology shares have gained 348.4% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 20.4% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 112.1% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.
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GoDaddy Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
GoDaddy (GDDY - Free Report) reported fourth-quarter 2025 earnings of $1.80 per share, which beat the Zacks Consensus Estimate by 13.92% and increased 26.8% on a year-over-year basis.
GDDY generated revenues of $1.27 billion, surpassing the Zacks Consensus Estimate by 0.40%. Revenues increased 6.8% year over year on a reported basis and 6.7% on a constant-currency (cc) basis. International revenues rose 10.3% year over year.
Total customers at the end of the fourth quarter were 20,422, down 0.4% year over year. Average revenues per user (ARPU) were $242, up 10% year over year. Total annualized recurring revenues (ARR) were $4.34 billion, up 7.3% year over year.
GDDY’s Q4 Top-Line in Detail
Applications and Commerce (A&C), comprising websites, productivity applications, and payments and commerce, generated $497.7 million (contributing 39.1% to total revenues), up 12.8% on a year-over-year basis.
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 3.3% year over year to $776.2 million (contributing 60.9% to total revenues).
Total bookings of $1.3 billion increased 5% year over year on a reported and 4.5% on a cc basis.
GDDY’s Q4 Operating Results
In the fourth quarter of 2025, the normalized EBITDA margin expanded 160 basis points (bps) year over year to 33.8%.
A&C EBITDA margin expanded 40 bps, while the Core Platform EBITDA margin expanded 70 bps on a year-over-year basis.
Total cost and operating expenses as a percentage of revenues declined 340 bps year over year to 39.8%
The fourth-quarter 2025 operating margin expanded 350 bps year over year to 24.9%.
GoDaddy’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, cash and cash equivalents were $1.1 billion compared with $923.7 million as of Sept. 30. As of Dec. 31, 2025, GoDaddy had a total debt of $3.8 billion.
The free cash flow was $370.3 million in the fourth quarter compared with the $440.5 million in the previous quarter.
GoDaddy Offers Q1 & FY2026 Guidance
For the first quarter of 2026, GoDaddy expects A&C revenue growth and Core revenue growth in the low double-digit range. The company expects revenues of $1.250-$1.270 billion, indicating year-over-year growth of 6% at the midpoint. For the first quarter, GDDY anticipates a normalized EBITDA margin of 32%.
For 2026, GoDaddy expects total revenues of $5.195-$5.275 billion, indicating year-over-year growth of 6% at the midpoint. The normalized EBITDA margin is expected to be 33%.
For 2026, GoDaddy now anticipates a free cash flow of $1.8 billion.
Zacks Rank & Other Stocks to Consider
GDDY currently carries a Zacks Rank #2 (Buy).
Micron Technology (MU - Free Report) , MongoDB (MDB - Free Report) , and Credo Technology Group (CRDO - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Micron Technology shares have gained 348.4% in the past 12 months. This Zacks Rank #1 (Strong Buy) company is scheduled to release second-quarter 2026 results on March 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
MongoDB shares have returned 20.4% in the past 12 months. MDB is scheduled to release its fourth-quarter 2026 results on March 2. The company currently sports a Zacks Rank #1.
Credo Technology Group shares have gained 112.1% in the past 12 months. CRDO is set to report its third-quarter fiscal 2026 results on March 2. The company currently sports a Zacks Rank #1.