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.

• AI initiatives, including Airo.ai and Agent Name Service, are transforming operations, driving efficiency, higher-quality customer cohorts, and new monetization opportunities.

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

• Go-to-market evolution with a streamlined domain purchase experience increased new customer volume but reduced upfront bookings and near-term revenue due to promotional pricing and shorter contract terms.

• Focus remains on attracting high-intent customers, increasing attach rates, and expanding lifetime value.

Financial highlights

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

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

• Q4 Normalized EBITDA grew 12% to $431M, margin expanded to 34%; full-year Normalized EBITDA margin at 32%, up 150 bps.

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

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

Outlook and guidance

• 2026 revenue guidance: $5.195B–$5.28B (approx. 6% growth), with Applications & Commerce expected to grow low double digits and Core Platform low single digits.

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

• Q1 2026 revenue guidance of $1.25B–$1.27B (approx. 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.

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