GoDaddy (GDDY) investor relations material

Executive summary

• Achieved Q2 2026 revenue of $1.3 billion, up 7% year-over-year, with strong growth in Applications & Commerce (+11%) and Core Platform (+4%) segments.

• Operating income rose 29% to $342.5 million, with net income up 20% to $240.1 million and margins improving.

• Accelerated AI transformation with Airo, now unified as a single agentic operating system, driving rapid customer adoption and a 5x increase in annualized bookings run rate to $50 million.

• Strategic integration of standalone products into Airo, enhancing attach rates, customer lifetime value, and retention above 85%.

• Continued focus on profitable growth, disciplined investment in AI and marketing, and high-intent customer acquisition.

Financial highlights

• Normalized EBITDA (NEBITDA) margin expanded to 33.4%, up from 31.3% year-over-year; NEBITDA reached $434.1 million, up 14%.

• Free cash flow was $443 million, up 13% year-over-year, with trailing 12-month free cash flow at $1.73 billion.

• International revenue grew 8% to $427 million; ARR reached $4.4 billion; ARPU increased 9% to $250.

• Bookings reached $1.4 billion, up 6% year-over-year.

• Net income per diluted share was $1.83, up from $1.41 year-over-year.

Outlook and guidance

• Q3 2026 revenue expected between $1.315 billion and $1.335 billion, 5% growth at midpoint.

• Full-year 2026 revenue guidance narrowed to $5.215–$5.255 billion, up 6% at midpoint.

• Anticipates low double-digit growth in Applications & Commerce and low single-digit growth in Core Platform for Q3 and full year.

• Reaffirms NEBITDA margin target above 33% and free cash flow target of ~$1.8 billion for 2026.

• Management expects continued growth in subscription-based products and international markets.