Executive Summary

Q3 2025 revenue was $1.27B (+10% YoY), normalized EBITDA $408.6M (32.3% margin), and free cash flow $440.5M; management raised FY revenue guidance to $4.93–$4.95B (~8% YoY) and guided Q4 NEBITDA margin to ~33% .
Street consensus: revenue $1.233B* and Primary EPS $1.465*; GoDaddy delivered a revenue beat (+$32M) and a substantial EPS beat (+$0.53 on normalized EPS basis). GAAP diluted EPS was $1.51 (vs. Street’s normalized EPS framework) .
Strength was broad-based: A&C revenue +13.7% YoY to $481.0M; Core Platform revenue +8.3% YoY to $784.3M, aided by a return of high-value aftermarket transactions and solid primary domain growth .
Catalysts: guidance raise, momentum in AI/agentic initiatives (Airo.ai, Agent Name Service), ARPU up 10% to $237 on high-intent customer attach, and ongoing buybacks (9.0M shares repurchased YTD for $1.4B) .

What Went Well and What Went Wrong

What Went Well

“We delivered ANC revenue growth of 14% and grew free cash flow 21% to an impressive $440 million” .
“Our $500+ customer cohort now represents ~10% of our base… boosting ARPU up 10% to $237” .
“We launched five new Airo agents… and GoDaddy’s Agent Name Service (ANS), an identity protocol for AI agents built on DNS infrastructure” .

What Went Wrong

Segment margin mixed: A&C EBITDA margin was 45.7%, down 30bps YoY (product mix and AI investment), partially offset by AI-driven efficiencies across the P&L .
Customers declined YoY (-1.5% to 20,413) though sequentially stabilized; retention at ~85% suggests cohort quality over quantity focus .
Management flagged Q4 headwinds from the exit of the .CO registry contract (~50bps to bookings and revenue) and exclusion of high-value aftermarket transactions from guidance .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$1,194.3	$1,217.6	$1,265.3
YoY Growth (%)	7.7%	8.3%	10.3%
Operating Income ($USD Millions)	$247.3	$266.3	$296.7
NEBITDA ($USD Millions)	$364.4	$381.7	$408.6
NEBITDA Margin (%)	30.5%	31.3%	32.3%
Net Income ($USD Millions)	$219.5	$199.9	$210.5
Diluted EPS ($USD, GAAP)	$1.51	$1.41	$1.51
Net Cash from Ops ($USD Millions)	$404.7	$379.9	$444.2
Free Cash Flow ($USD Millions)	$411.3	$391.5	$440.5

Segment Breakdown

Segment Metric	Q1 2025	Q2 2025	Q3 2025
A&C Revenue ($USD Millions)	$446.4	$463.9	$481.0
A&C Segment EBITDA ($USD Millions)	$196.9	$205.8	$219.9
A&C Segment EBITDA Margin (%)	44.1%	44.4%	45.7%
Core Platform Revenue ($USD Millions)	$747.9	$753.7	$784.3
Core Segment EBITDA ($USD Millions)	$235.3	$246.1	$258.5
Core Segment EBITDA Margin (%)	31.5%	32.7%	33.0%

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Total Bookings ($USD Millions)	$1,417.0	$1,345.3	$1,354.5
Total Customers (000s)	20,484	20,409	20,413
ARPU ($USD)	$225	$230	$237
ARR ($USD Millions)	$4,053.8	$4,181.0	$4,293.5
International Revenue ($USD Millions)	$388.8	$395.9	$422.5

Balance Sheet (Quarter-End)

Cash and Equivalents: $923.7M; Total Debt: $3.84B; Net Debt: $2.91B .
Shares repurchased YTD: 9.0M for $1.4B (through Oct 28) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Billions)	FY 2025	$4.89–$4.94B	$4.93–$4.95B	Raised
NEBITDA Margin (%)	FY 2025	~+100bps YoY expansion; exit 2025 at 33%	~32%	Clarified/maintained margin framework
Total Revenue ($USD Billions)	Q4 2025	N/A	$1.255–$1.275B	New
NEBITDA Margin (%)	Q4 2025	Exit 2025 at 33%	~33%	Maintained
Free Cash Flow ($USD Billions)	FY 2025	~$1.6B	~$1.6B	Maintained
A&C Revenue Growth	FY 2025	Mid-teens	Mid-teens	Maintained
Core Revenue Growth	FY 2025	Low single-digits	Mid single-digits	Raised
Bookings/Revenue Headwind	Q4 2025	~50bps from .CO registry exit	Reiterated	Reiterated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
AI/technology initiatives	Airo enhancements; broad AI feature rollout; NEBITDA margin expansion roadmap	Launch of Airo.ai (agentic AI), five new agents; Agent Name Service (ANS) for agent identity; 45%+ AI-generated code; 90% for new apps	Accelerating
Product performance (domains/aftermarket)	Primary +7% (Q1), Core +5% (Q2); steady aftermarket	Core +8% with 28% aftermarket growth and return of high-value transactions	Improving
Regional trends	International +10–11% in Q1/Q2	International +14% YoY	Strengthening
R&D/engineering efficiency	Margin expansion target; AI feature velocity	Smaller teams, rapid releases; cycle-time reduction focus via agents	Strengthening
Macro/SMB sentiment	SMBs pragmatic optimism; survey support	Customers optimistic; engagement/attach rising; renewals better with high-intent focus	Stable-positive
Commerce & WordPress	Managed WordPress AI upgrades rolling out	Strong uptake; agentic interface for WordPress coming; awards for SMB WordPress	Improving
Regulatory/legal	No material new items	No material new items	Neutral

Management Commentary

“We delivered ANC revenue growth of 14% and grew free cash flow 21% to an impressive $440 million… We are raising our full year revenue guide to 8% at the midpoint” .
“Our $500+ customer cohort now represents approximately 10% of our base… near-perfect retention, boosting our ARPU up 10% to $237” .
“We launched five new Airo agents… and ANS, an identity protocol for AI agents built on DNS infrastructure and proposed as an open standard” .
“In the new products, 90% of the code ultimately is being written by AI… smaller teams are able to release much faster” .
“We saw a return to high-value transactions this quarter [in aftermarket]… very strong at the higher-end level” .

Q&A Highlights

Agentic AI rollout and monetization: Aero.ai is built on GoDaddy’s platform; AiroPlus will be the monetization vehicle with paywalls and rapid agent iteration cycles .
Cohort dynamics: High-intent customers attaching to a second product at much higher rates; near-perfect retention; ARPU up 10% to $237 .
Aftermarket: Return of high-value transactions drove Core strength; lumpy nature acknowledged; lower price tiers also healthy .
ANS rationale: DNS-based identity and PKI-backed verification for agents; discovery and trust across domains; supports MCP/A2A protocols .
AI costs/margins: Close monitoring of token/model costs; internal-hosted models and model selection to balance experience and cost; Q4 NEBITDA ~33% .

Estimates Context

Metric	Consensus (Q3 2025)	Actual (Q3 2025)
Primary EPS Consensus Mean ($)	1.4645*	1.9926*
Revenue Consensus Mean ($USD)	1,233,033,870*	1,265,300,000*
EBITDA Consensus Mean ($USD)	394,422,230*	330,600,000*
Primary EPS – # of Estimates	12*	—
Revenue – # of Estimates	15*	—

Notes: Values retrieved from S&P Global. Company-reported GAAP diluted EPS was $1.51 . Company-reported normalized EBITDA (NEBITDA) was $408.6M .

Key Takeaways for Investors

Revenue and normalized EPS beat Street; NEBITDA margin expanded to 32.3% and Q4 margin guided to ~33%—supports near-term multiple resilience and potential estimate revisions upward on EPS/FCF* .
Strength across domains and aftermarket, plus A&C attach, lifted Core growth to 8% and A&C to 13.7%—trend suggests durable double-digit ARPU expansion and continued cohort quality .
Guidance raise to $4.93–$4.95B and FY FCF ~$1.6B, coupled with buybacks ($1.4B YTD), is constructive for per-share value accretion .
Near-term watch: Q4 .CO registry exit headwind (~50bps) and exclusion of high-value aftermarket transactions in guidance; monitor agentic AI monetization ramp (AiroPlus paywalls) .
Medium-term thesis: Agentic AI (Airo.ai) and ANS can deepen product attach and ecosystem value; internal AI efficiency should fund innovation while sustaining margin targets .
KPI momentum (ARPU +10%, ARR +8%, international +14%) indicates expanding monetization per customer and global reach .
Focus for updates: aftermarket mix/margin implications, cohort retention levels, AI cost discipline vs. gross margin, and trajectory of Core segment growth .

Citations: All company results, guidance, KPIs, and quotes are from Q3 2025 8-K/press release and earnings call . Q2/Q1 prior-period comps from 8-Ks . Estimates marked with asterisks are from S&P Global via GetEstimates (Values retrieved from S&P Global).

GoDaddy Inc. (GDDY)·Q3 2025 Earnings Summary