GoDaddy (GDDY) Q1 2026 earnings summary

Executive summary

• Revenue grew 6–6.1% year-over-year to $1.27 billion for Q1 2026, with strong performance in both Applications & Commerce and Core Platform segments, and international revenue up 7%.

• Operating income rose 25.6–26% 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.

• 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.

• Focus remains on high-intent customers, optimizing product mix, and disciplined capital allocation to drive long-term shareholder value.

Financial highlights

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

• Normalized EBITDA: $413.5–$414 million, up 13%, with margin expanding to 32.6–33%.

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

• Bookings: $1.46 billion, up 3%; ARPU grew 9% to $246, with retention rates above 85%.

• Net income for Q1 was $214.6 million, with a net income margin of 16.9%.

Outlook and guidance

• Reaffirmed full-year 2026 revenue guidance of $5.195–$5.275 billion, representing 6% growth at midpoint.

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

• Applications & Commerce revenue expected to grow in low double digits; Core Platform in low single digits.

• Normalized EBITDA margin targeted at approximately 33% for Q2 and full year; free cash flow target for full year reaffirmed at ~$1.8 billion.

• Guidance emphasizes investment in AI-powered solutions and cloud infrastructure migration.