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-powered solutions, including Airo.ai and Agent Name Service, drove operational efficiency, higher-quality customer cohorts, and innovation.

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

• Go-to-market strategy evolved with streamlined domain purchase experience and promotional pricing, increasing new customer volume but shifting contract mix to shorter terms.

Financial highlights

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

• 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.

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

Outlook and guidance

• 2026 revenue expected at $5.195–$5.275 billion (+6% at midpoint), with Applications & Commerce growth in low double digits and 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: $1.25–$1.27 billion (+6%), with 32% EBITDA margin.

• 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.