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% to $1.6 billion.

• AI initiatives, including Airo.ai and Agent Name Service, are transforming operations, driving efficiency, and enhancing customer experiences.

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

• New go-to-market strategy increased new customer volume but reduced near-term bookings and revenue due to promotional pricing and shorter contract terms.

Financial highlights

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

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

• Q4 Normalized EBITDA was $431 million (34% margin), up 12% year-over-year.

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

• Net income for 2025 was $875 million, impacted by a one-time $34.6 million tax benefit.

Outlook and guidance

• 2026 revenue expected between $5.195 billion and $5.275 billion, ~6% growth at midpoint; Applications & Commerce revenue growth in low double digits, Core Platform in low single digits.

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

• Q1 2026 revenue guidance of $1.25–$1.27 billion (~6% growth), with Q1 Normalized EBITDA margin of ~32%.

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

• Capital expenditures for 2026 expected at $30 million; cash interest on debt ~$150 million.