GoDaddy (GDDY)·Q4 2025 Earnings Summary
GoDaddy Beats Revenue, Guides to $1.8B Free Cash Flow as AI Platform Hits 25 Agents
February 24, 2026 · by Fintool AI Agent
GoDaddy delivered a solid Q4 2025 with revenue of $1.274 billion beating consensus by 3.3%, while NEBITDA of $431 million topped estimates by 9.4%. The company raised its free cash flow outlook for FY2026 to approximately $1.8 billion and announced a strategic integration with Salesforce's MuleSoft for its AI-powered Agent Name Service. Shares rose 5.2% on the day before pulling back in after-hours trading.
Did GoDaddy Beat Earnings?
Yes — beats on both revenue and profitability metrics.
Values retrieved from S&P Global
GoDaddy has now delivered consistent beats across the past eight quarters. The revenue beat was driven by Applications & Commerce (A&C) revenue growing 13% year-over-year to $498 million, offsetting more modest 3% growth in the Core Platform segment.
Ask Fintool AI AgentWhat Changed From Last Quarter?
Several meaningful shifts from Q3 2025:
1. AI Strategy Accelerating
- Airo.ai platform now has 25 agents in production (up from limited availability in Q3)
- New MuleSoft Agent Fabric integration announced, bringing Agent Name Service to enterprise Salesforce workflows
2. Margin Expansion Continuing
- NEBITDA margin expanded to 33.8% (up 160 bps YoY from 32.3%)
- Operating margin hit 24.9% (up 350 bps YoY from 21.4%)
- Full year NEBITDA margin reached 32.0%, up 150 bps YoY
3. Customer Metrics Stabilizing
- Total customers at 20.4 million, down 0.4% YoY but up 9,000 sequentially — first sequential gain in recent quarters
- ARPU of $242 up 10% YoY as the company focuses on monetization over volume
4. Payments Scaling
- Gross Payments Volume (GPV) grew 31% YoY to $3.4 billion annually
- A&C segment EBITDA margin expanded to 47.1%, up 40 bps YoY
Segment Performance: Where Is Growth Coming From?
Applications & Commerce (39% of revenue) — The growth engine
Core Platform (61% of revenue) — Stable cash generator
The A&C segment continues to drive the growth narrative, fueled by payments adoption (GPV +31%) and the GoDaddy Airo AI-powered experience that helps small businesses get online faster. International revenue grew 10% YoY to $420 million, representing 33% of total revenue.
What Did Management Guide?
Q1 2026 Guidance:
- Revenue: $1.250B – $1.270B (midpoint +6% YoY)
- NEBITDA Margin: ~32%
Full Year 2026 Guidance:
- Revenue: $5.195B – $5.275B (midpoint $5.235B, +6% YoY)
- NEBITDA Margin: >33%
- Free Cash Flow: ~$1.8B (up from $1.6B in FY25, +12% YoY)
Street consensus pre-earnings. Values retrieved from S&P Global
The slight revenue guide below consensus was offset by the strong free cash flow outlook. Management's FY26 capex guidance of ~$30 million and cash taxes of ~$30 million support the robust FCF conversion.
Key Management Quotes
"GoDaddy demonstrated strong performance in 2025, and we are leveraging our domain leadership, global scale and strong fundamentals to lead in the next era of the agentic open internet." — Aman Bhutani, CEO
"Our strong 2025 financial results demonstrate the durability of our business model, enabling us to execute with discipline while advancing our AI capabilities." — Mark McCaffrey, CFO
Ask Fintool AI AgentCapital Allocation: Aggressive Buybacks Continue
GoDaddy returned significant capital to shareholders in 2025:
The company reduced share count by 4.6% year-over-year through buybacks. With $1.6B in expected FY26 free cash flow and $1.1B in cash, GoDaddy has substantial firepower for continued returns.
How Did the Stock React?
Intraday: +5.2% (closed at $92.36 vs prior close of $87.76)
After-hours: Stock pulled back to $84.86, down approximately 8% from the closing price.
The initial positive reaction reflected the revenue and NEBITDA beats plus the raised FCF guidance. The after-hours pullback may reflect concerns about:
- Q1 revenue guidance slightly below consensus
- FY26 revenue guide at low end of expectations
- Continued customer count pressure (down 0.4% YoY)
Context: GDDY has fallen approximately 52% from its 52-week high of $193.55, creating a more modest valuation backdrop heading into earnings. Current price of ~$92 implies a market cap of approximately $12.8 billion.
Full Year 2025 Performance Summary
Net income of $875 million was down 6.6% YoY, but this reflects a $267 million non-recurring tax benefit in 2024 from a subsidiary conversion. Excluding this, underlying profitability expanded materially.
Forward Catalysts to Watch
- AI Monetization — Airo.ai with 25 agents could drive A&C growth acceleration if adoption scales
- MuleSoft Integration Impact — Enterprise distribution through Salesforce ecosystem could expand TAM
- Payments Scaling — GPV growing 31% YoY; continued adoption drives higher-margin transaction revenue
- Buyback Continuation — Strong FCF supports sustained capital returns
- Customer Stabilization — Sequential customer growth (+9K) needs to continue to support long-term story
What's the Takeaway?
GoDaddy delivered a clean beat-and-guide quarter with revenue and NEBITDA exceeding expectations. The AI narrative is maturing with 25 agents now in production and enterprise integrations expanding. The modest revenue guide disappointed some investors (hence the after-hours pullback), but the raised FCF outlook to $1.8B signals management's confidence in margin expansion and cash generation.
Key metrics to monitor: A&C segment growth trajectory, customer count trends, and AI adoption metrics in coming quarters.
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