It has been about a month since the last earnings report for GoDaddy (GDDY Quick QuoteGDDY - Free Report) . Shares have added about 3.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is GoDaddy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

GoDaddy Q4 Earnings Beat Estimates, Revenues Increase Y/Y

GoDaddy 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, GoDaddy has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, GoDaddy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.