GoDaddy (GDDY) Q1 2026 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $1.27–$1.3 billion for Q1 2026, with strong performance in Applications & Commerce and Core Platform segments.

• Operating income rose 25.6% to $310.5 million, with a margin of 24.5%; net income was $214.6 million, down 2.2% due to a prior-year tax benefit.

• Normalized EBITDA margin expanded over 200 basis points to 33%, with NEBITDA up 13% to $413.5–$414 million.

• Free cash flow increased 15% to $474 million, with trailing 12-month free cash flow at $1.68 billion.

• AI-native products, especially Airo AI Builder, saw rapid adoption, reaching a $10 million+ annualized bookings run rate within weeks of beta launch.

Financial highlights

• Total revenue: $1.27–$1.3 billion, up 6% year-over-year; international revenue grew 7% to $416 million.

• Applications & Commerce revenue up 12% to $498–$500 million; Core Platform revenue up 3% to $769 million.

• Normalized EBITDA: $413.5–$414 million, margin expanded to 33%.

• Free cash flow: $474 million for the quarter, $1.68 billion trailing 12 months.

• ARPU grew 9% to $246, with retention rates above 85%.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $5.195–$5.275 billion, representing 6% growth at midpoint.

• Q2 2026 revenue expected at $1.285–$1.305 billion, 6% growth at midpoint.

• Applications & Commerce revenue projected for low double-digit growth; Core Platform for low single-digit growth.

• Normalized EBITDA margin targeted at approximately 33% for Q2 and full year.

• Free cash flow target for full year reaffirmed at ~$1.8 billion.