Executive Summary

Q2 2025 delivered solid top-line growth and stronger profitability: revenue $1.22B (+8% Y/Y), operating margin 21.9% (+340 bps Y/Y) and NEBITDA margin 31.3% (+180 bps Y/Y) .
GoDaddy raised FY 2025 free cash flow guidance to approximately $1.6B and lifted FY revenue guide to $4.89–$4.94B; Q3 revenue guided to $1.22–$1.24B and Q3 NEBITDA margin ~32% .
Wall Street consensus was modestly beaten: revenue $1.218B vs $1.207B estimate*, EPS $1.90 vs $1.34 estimate*; non-GAAP strength and favorable mix were key drivers (S&P Global) .
Management highlighted acceleration in AI initiatives (Ask Airo, Agentic AI), continued wins in pricing/bundling, and reaffirmed the “North Star” focus on maximizing free cash flow .
Stock reaction catalysts: raised FCF outlook, continued margin expansion, A&C momentum (+14% Y/Y), and Agentic AI narrative; note a ~50 bps headwind in Q4 from exiting .CO registry operations .

What Went Well and What Went Wrong

What Went Well

Strong A&C growth and margins: A&C revenue up 14% Y/Y to $463.9M; segment EBITDA margin 44.4% (+90 bps) .
Profitability expansion: operating income $266.3M (+28% Y/Y, 21.9% margin) and NEBITDA $381.7M (+15% Y/Y, 31.3% margin), supported by favorable product mix and disciplined execution .
Clear AI roadmap: CEO emphasized “transformative potential of agentic AI” and new “Ask Airo” conversational/agentic experience to complete multi-step tasks for customers .

What Went Wrong

Customer count declined modestly: total customers 20,409 (−2.2% Y/Y), reflecting ongoing strategic cohort focus and prior divestitures; ARPU increased to $230 (+9.5% Y/Y) .
Q3/Q4 domain registry transition: exit as .CO registry service provider to create ~50 bps bookings/revenue headwind concentrated in Q4 2025 .
Tax and comparability noise: prior-year periods had non-routine tax benefits impacting net income comparability (e.g., 2024 six-month tax benefit $267.4M; 2025 six-month uncertain tax position benefit $34.6M) .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Total Revenue ($USD Millions)	$1,192.6	$1,194.3	$1,217.6
Diluted EPS (GAAP)	$1.36	$1.51	$1.41
NEBITDA Margin (%)	32.3%	30.5%	31.3%
Operating Income Margin (%)	—	20.7%	21.9%
YoY Revenue ($USD Millions)	—	—	$1,124.5 (Q2 2024)

Segment revenue and margins:

Segment	Q4 2024	Q1 2025	Q2 2025
Applications & Commerce (A&C) Revenue ($MM)	$441.2	$446.4	$463.9
A&C Segment EBITDA Margin (%)	46.7%	44.1%	44.4%
Core Platform Revenue ($MM)	$751.4	$747.9	$753.7
Core Segment EBITDA Margin (%)	34.1%	31.5%	32.7%

KPIs and cash generation:

KPI	Q4 2024	Q1 2025	Q2 2025
Total Bookings ($MM)	$1,222.5	$1,417.0	$1,345.3
ARR ($MM)	$4,042.6	$4,053.8	$4,181.0
ARPU ($)	$220	$225	$230
Total Customers (000s)	20,511	20,484	20,409
International Revenue ($MM)	$380.4	$388.8	$395.9
Free Cash Flow ($MM)	$342.0	$411.3	$391.5
Net Cash from Ops ($MM)	$340.5	$404.7	$379.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($B)	Q3 2025	—	$1.22–$1.24	New
Total Revenue ($B)	FY 2025	$4.86–$4.94	$4.89–$4.94	Raised (low end)
NEBITDA Margin (%)	Q3 2025	—	~32	New
NEBITDA Margin Expansion (bps)	FY 2025	~100	~100 (exit ~33%)	Maintained
Free Cash Flow ($B)	FY 2025	≥$1.5	~$1.6	Raised
Capex ($MM)	FY 2025	~$30	—	—
.CO Registry Transition	Q4 2025	—	~50 bps headwind to bookings & revenue	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
AI/technology initiatives (Airo, Agentic AI)	Airo becoming largest funnel for Websites + Marketing; early monetization via Airo Plus; Agentic AI planned for 2025	“Ask Airo” conversational agent testing; Agentic AI to complete multi-step tasks for customers	Accelerating
Pricing & bundling	Delivered ahead of expectations; 2025 focus on presence and hosting cohorts ; Q1: ahead of plan	“On track” across A&C and Core; contributing to 2025 growth	Sustained positive
Macro/tariffs	Tariffs not material; resilient services-heavy customer base	Pragmatic optimism among SMBs; 72% expect own revenues stable/↑ (July survey)	Resilient
A&C growth & mix	A&C revenue +16–17% Y/Y; segment margins expanded	A&C +14% Y/Y; 44.4% segment EBITDA margin	Strong
Customer cohorts/ARPU	ARPU up +8%; average order size +16%; retention 85%+; anticipated return to customer growth in 2025	ARPU $230 (+9.5% Y/Y); customers down 2.2% Y/Y as cohort strategy continues	Quality over quantity
Share repurchases/capital allocation	New $3B authorization through 2027; disciplined returns-based framework	YTD repurchases $906M; avg price $174.42	Ongoing

Management Commentary

CEO: “GoDaddy delivered another strong quarter… energized by the transformative potential of agentic AI” .
CFO: “Our second quarter results highlight the durability of our model… focused on maximizing free cash flow” .
Prepared remarks: “Ask Airo… an agent that can intelligently complete complex, multi-step tasks for our customers” .
Outlook emphasis: sequential NEBITDA margin expansion through 2025; exiting the year at ~33% .

Q&A Highlights

Themes centered on Agentic AI rollout (Ask Airo), pricing & bundling contributions to growth, margin cadence, and the raised FCF guidance; management framed AI as both a customer differentiator and internal efficiency driver .
Discussion of segment trends: A&C growth durability and Core low-single-digit trajectory in 2025 .
Clarification of .CO transition impact: ~50 bps bookings/revenue headwind primarily in Q4; no change to strategic initiatives or financial commitments .

Estimates Context

Metric	Consensus*	Actual*	Outcome
Revenue ($USD)	$1,207,204,240	$1,217,600,000	Beat (by ~$10.4M)
Primary EPS ($)	$1.3376	$1.9014	Beat (by ~$0.56)

Values retrieved from S&P Global.
Note: GAAP diluted EPS per 8-K was $1.41 .

Key Takeaways for Investors

Revenue and margins track above plan; A&C strength and mix continue to underpin profitability and cash generation .
Raised FY FCF to ~$1.6B and lifted FY revenue range; sequential margin expansion through year-end signals operating leverage persistence .
Agentic AI (“Ask Airo”) is a medium-term differentiator likely to enhance attach, conversion and retention across the platform .
Cohort strategy is working (ARPU ↑, retention solid), even as customer count dips; expect continued focus on high-intent segments .
Near-term modeling: include Q3 revenue $1.22–$1.24B and NEBITDA margin ~32%; incorporate Q4 ~50 bps bookings/revenue headwind from .CO registry change .
Trading implication: Raised FCF outlook and AI momentum are positive catalysts; watch for execution on Agentic AI features and sustained A&C growth to support multiple expansion .
Risk checks: aftermarket transaction variability and FX can swing near-term revenue; note prior-year tax benefits affecting net income comparability .

Appendices and Additional Sources

Q2 2025 8-K earnings press release (full financials, guidance) .
Q1 2025 8-K and call (trend context) –.
Q4 2024 8-K and call (trend context) – –.
Prepared remarks (Q2 2025) .
Press release portal for Q2 artifacts .
SMB sentiment press release (May 2025) .
Entri partnership press release (June 2025) .

Non-GAAP notes: NEBITDA, NEBITDA margin, free cash flow, net debt definitions and reconciliations are provided in the 8-K; comparisons herein reflect those disclosures .

GoDaddy Inc. (GDDY)·Q2 2025 Earnings Summary