GoDaddy (GDDY) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 8% year-over-year to $1.2B, led by 14% growth in Applications & Commerce and 5% in Core Platform; international revenue rose 11%.

• Free cash flow increased 21% to $392M, normalized EBITDA grew 15% to $382M, and net income rose 37% to $199.9M, including a $34.6M one-time tax benefit.

• Raised full-year 2025 free cash flow guidance to ~$1.6B and revenue outlook to $4.89–$4.94B, reflecting continued business momentum.

• Strategic focus on high-intent, high-value customers and AI-driven product innovation, with Aero/Airo AI platform driving higher attach rates, ARPU, and retention.

• Achieved or surpassed all Q2 targets, with disciplined execution and ongoing investment in innovation and operational efficiency.

Financial highlights

• Applications & Commerce revenue grew 14% to $464M; Core Platform revenue up 5% to $754M; total bookings rose 7% to $1.3B.

• Normalized EBITDA margin expanded to 31.3%, up 180–200 bps year-over-year.

• Annual recurring revenue increased 9% to $4.2B; ARPU rose 10% to $230.

• Net income margin improved to 16.4% from 13% year-over-year; diluted EPS was $1.41, up from $1.01.

• Share repurchases year-to-date totaled ~$900M; fully diluted shares outstanding at 142M.

Outlook and guidance

• Full-year 2025 free cash flow guidance raised to ~$1.6B; revenue outlook increased to $4.89–$4.94B (7% growth at midpoint).

• Q3 2025 revenue expected at $1.22–$1.24B (7% growth); normalized EBITDA margin projected at ~32%.

• Applications & Commerce revenue projected to grow mid-teens; Core Platform in low single digits.

• 50 bps headwind to Q4 bookings/revenue from .CO registry transition, but no impact on long-term strategy.

• Reaffirmed 2026 targets: $4.5B+ cumulative free cash flow, 6–8% annual revenue growth, 33% EBITDA margin.