GoDaddy (GDDY) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded all 2025 financial targets, with total revenue of $5.0 billion, up 8% year-over-year, and strong growth in both Applications & Commerce and Core Platform segments.

• Normalized EBITDA margin expanded to 32% for 2025, with free cash flow up 19% year-over-year to $1.6 billion.

• Accelerated AI adoption, launching Airo.ai and Agent Name Service (ANS), transforming operations, customer experience, and driving efficiency and monetization.

• Evolved go-to-market strategy with streamlined domain purchase experience and promotional pricing, increasing new customer volume but reducing upfront bookings and near-term revenue.

• Maintained a durable and differentiated market position with over 20 million customers and global platform scale.

Financial highlights

• Full-year 2025 revenue reached $5.0 billion, up 8%; Q4 revenue was $1.3 billion, up 7% year-over-year.

• Applications & Commerce segment revenue up 14% to $1.9 billion; Core Platform revenue up 5% to $3.1 billion.

• Q4 normalized EBITDA grew 12% to $431 million, margin expanded to 34%.

• Free cash flow for 2025 was $1.6 billion, up 19% year-over-year; Q4 free cash flow was $370 million, up 8%.

• ARPU increased 10% to $242; retention rates above 85%.

Outlook and guidance

• 2026 revenue guidance: $5.195–$5.28 billion, ~6% growth at midpoint; Applications & Commerce expected to grow low double digits, Core Platform low single digits.

• Normalized EBITDA margin expected to exceed 33%; free cash flow projected at ~$1.8 billion.

• Q1 2026 revenue guidance: $1.25–$1.27 billion (~6% growth), with margin expansion of 150 basis points.

• Bookings growth to trail revenue in Q1 due to contract mix and .co registry expiration, but expected to reach parity by year-end.