GoDaddy 2025-26: A&C +14%, Airo Agentic OS, FCF $1.8B FY26

FY25 revenue $4.95B (+8%); op income $1.13B (+27%); NI $875M (-7% from FY24 elevated); EPS $6.23. FCF $1.58B (+25%). Q4 segment performance — Applications & Commerce (A&C): revenue +13% to $498M; segment EBITDA margin +40bp to 47%; ARR +12%. Core Platform: revenue +3% to $776M; segment EBITDA margin +70bp to 35%. Full year: revenue ~$5B (+8%); A&C revenue +14% to $1.9B; Core Platform revenue +5% to $3.1B; total bookings +7%; normalized EBITDA $1.6B (+14%, margin 32%); FCF $1.6B (+19%). AI journey progress: Airo agentic OS, AI adoption across functions, Agent Name Service. Updates on go-to-market: expanded for domains, upgraded Websites + Marketing with AI-powered website builder. Total debt $3.86B (-1%); buyback $1.60B FY25 (+137% from $677M FY24); dividend $0. FY26 guide: revenue $5.195B-$5.275B (~6% midpoint); A&C low double digits; Core Platform low single digits; normalized EBITDA margin exceeding ~33%; FCF ~$1.8B; Q1 revenue $1.25-$1.27B (~6% midpoint); Q1 normalized EBITDA margin ~32% (+150bp YoY).

Key takeaways

• Applications & Commerce (A&C) +14% FY revenue / +13% Q4 — fastest-growing segment driving thesis. Applications & Commerce — GoDaddy's higher-growth, higher-margin business covering Websites + Marketing + Commerce + Payments + Productivity tools — delivered FY25 revenue +14% to $1.9B and Q4 +13% to $498M with segment EBITDA margin +40bp to 47%. ARR +12%. The A&C segment is structurally important: (a) higher software-like margins than Core Platform domains/hosting, (b) deeper customer integration → multi-year retention, (c) AI integration optionality (Airo + AI website builder), (d) cross-sell from Core Platform domains base.

• Airo agentic OS + Agent Name Service — multi-year AI platform thesis. GoDaddy is investing meaningfully in AI: Airo is positioned as the "agentic OS" for entrepreneurs (autonomous agents performing tasks like website building, marketing, commerce setup, customer service); Agent Name Service is a domain-adjacent identity layer for AI agents. Combined with AI-powered Websites + Marketing builder + AI adoption across internal functions, this represents a multi-year AI platform thesis layered onto the existing customer base of millions of small businesses. Multi-year monetization runway.

• FCF $1.6B (+19% FY); FY26 guide $1.8B FCF — multi-year compounding cash flow engine. FCF grew to $1.58B FY25 (+25%) — strong cash generation. FY26 guide of ~$1.8B FCF implies ~+13% growth. Combined with normalized EBITDA $1.6B (+14% FY25, margin 32%) and FY26 EBITDA margin guide >33%, the multi-year operating leverage thesis is compounding. The FCF / EBITDA conversion of ~100% reflects capital-light SaaS / domain registration economics.

• $1.6B FY25 buyback (+137% YoY) — aggressive capital return at multi-year accelerated pace. GoDaddy repurchased $1.60B in FY25, +137% vs $677M FY24. Combined with $0 dividend, capital return is buyback-only. The $1.6B buyback against ~$11.4B market cap = ~14% of equity returned in one year. Multi-year buyback cadence has been aggressive ($1.27B FY23 + $677M FY24 + $1.60B FY25 = $3.55B over 3 years), retiring meaningful shares + driving EPS / share-count compounding.

• FY26 guide: revenue +6% midpoint; A&C low double digits; Core Platform low single digits — sustained mid-single-digit-plus growth. FY26 revenue guide $5.195-$5.275B (~+6% midpoint vs FY25 $4.95B). A&C low double-digit growth + Core Platform low single-digit growth = mix shift toward higher-margin A&C segment. EBITDA margin >33% (vs FY25 32%). FCF ~$1.8B. Q1 revenue +6% / EBITDA margin ~32% (+150bp YoY) — meaningful margin expansion in Q1 already.

Business

GoDaddy Inc. is a leading provider of domain + hosting + commerce solutions for entrepreneurs + small businesses worldwide, with two reporting segments:

• Core Platform (~62% of revenue): Domain registration + DNS + hosting + email + SSL certificates + aftermarket secondary domain market + monetization. ~21M+ customers globally. Largest US ICANN-accredited registrar. FY revenue +5% to $3.1B; segment EBITDA margin 35%.
• Applications & Commerce / A&C (~38% of revenue, fastest growing): Websites + Marketing + Commerce + Payments + Productivity (Microsoft 365 partnership). Higher-margin software-like business. FY revenue +14% to $1.9B; segment EBITDA margin 47%; ARR +12%.
• AI Platform (Airo): Agentic OS for entrepreneurs — multi-year AI strategy. Agent Name Service for AI agents. AI website builder.

Strategic moves FY25:

• A&C revenue +14%; segment EBITDA margin 47%
• ARR +12% in A&C
• Core Platform revenue +5%; segment EBITDA margin 35%
• Total bookings +7%
• Normalized EBITDA +14% to $1.6B (margin 32%)
• FCF +19% to $1.58B (record)
• Airo agentic OS + Agent Name Service launched
• AI adoption across internal + customer-facing functions
• Upgraded Websites + Marketing with AI-powered website builder
• Expanded go-to-market for domains
• $1.60B buyback (+137% YoY)

FY25 financial performance

Note: FY23 NI $1.37B included a one-time tax valuation allowance reversal ($720M+ benefit). FY24-25 NI represents normalized run-rate. FCF + EBITDA are cleaner economic metrics.

The earnings progression: revenue grew steadily $4.09B → $4.95B (+21% over 3 years). Op margin expanded materially: 12.2% (FY22) → 22.9% (FY25, +1070bp expansion). FCF margin reached 31.9% FY25 (vs 22.5% FY22) — meaningful margin expansion + cash generation acceleration.

EPS GAAP $6.23 (-3% YoY but with FY23 benefit comp distortion). FCF $1.58B (+25% YoY) — record. Total debt $3.86B (-1%) — stable. Buyback $1.60B (+137%) — accelerating.

Capital allocation

• Capex: $-24M FY25 (-10% YoY) — capital-light business.
• Dividends: $0 (no dividend; capital return via buyback only).
• Buybacks: $-1.60B FY25 (+137% YoY).
• Total capital return FY25: ~$1.60B.
• Total debt: $3.86B (-1% YoY).
• FCF: $1.58B FY25 (+25% YoY, record).

FY26 outlook (per Q4 2025 call, 2026-02-24)

Management noted continued AI Airo + Agent Name Service progress + AI website builder adoption + multi-year operating leverage thesis.

Key risks

SMB / consumer demand cycle. GoDaddy's customer base is small businesses + entrepreneurs + creators. Multi-year SMB demand cycle dynamics + macro environment matter.

Domain registration competitive landscape. Network Solutions (Web.com), Namecheap, Squarespace, Wix, IONOS, Cloudflare, GoDaddy itself competing across multiple segments.

Websites / marketing competitive landscape. Wix, Squarespace, Shopify, Adobe, Salesforce + emerging AI website builders compete.

ICANN regulation + domain pricing. Multi-decade ICANN regulatory environment + new gTLD dynamics + ROI .com pricing changes.

AI competitive landscape (Airo). Microsoft 365 + Google Workspace + emerging AI startups compete in agentic OS for SMB.

Microsoft 365 partnership dynamics. GoDaddy's productivity offering relies on Microsoft 365 partnership. Multi-year partnership terms matter.

Pricing / discount dynamics. Multi-year pricing environment + new customer acquisition incentives.

Customer churn / retention. SMB customer base churn rates affected by macro + competitive dynamics.

International / FX. Multi-region operations expose GoDaddy to FX volatility.

Cybersecurity + DNS. As DNS provider + registrar, cybersecurity / DDoS / domain hijacking risks.

Regulatory landscape. Domain regulation + privacy (GDPR, CCPA, state laws) + AI governance.

M&A integration. Multi-year M&A pipeline carries integration risk.

Macro / SMB lifecycle. SMB formation rates + closures correlate with macro cycle.

Tax law changes. Multi-jurisdictional tax dynamics.

Capital allocation discipline. $1.6B buyback at multi-year accelerated pace requires multi-year discipline at different valuations.

Bottom line

GoDaddy FY25 is the multi-segment compounding + AI platform inflection + capital return acceleration year: revenue $4.95B (+8%); op income $1.13B (+27%); NI $875M (-7%); EPS $6.23; FCF $1.58B (+25%, record). Q4 A&C revenue +13% to $498M; segment EBITDA margin +40bp to 47%; ARR +12%. Q4 Core Platform revenue +3% to $776M; segment EBITDA margin +70bp to 35%. FY normalized EBITDA $1.6B (+14%, margin 32%); FCF $1.6B (+19%). AI journey: Airo agentic OS + Agent Name Service + AI website builder. Total debt $3.86B (-1%); buyback $1.60B (+137% YoY); $0 dividend.

FY26 guide: revenue $5.195-$5.275B (+6% midpoint); A&C low double digits; Core Platform low single digits; normalized EBITDA margin >33%; FCF ~$1.8B; Q1 revenue +6%; Q1 EBITDA margin ~32% (+150bp YoY).

The risks are real — SMB / consumer demand cycle, domain registration competitive landscape (Network Solutions, Namecheap, Squarespace, Wix, IONOS, Cloudflare), websites / marketing competitive landscape (Wix, Squarespace, Shopify, Adobe, Salesforce), ICANN regulation + domain pricing, AI competitive landscape, Microsoft 365 partnership dynamics, pricing / discount dynamics, customer churn / retention, international / FX, cybersecurity + DNS, regulatory landscape, M&A integration, macro / SMB lifecycle, tax law changes, capital allocation discipline.

But the structural thesis (leading provider of domain + hosting + commerce solutions for entrepreneurs + ~21M+ customers globally + largest US ICANN-accredited registrar + Applications & Commerce A&C +14% FY (segment EBITDA margin 47%) + ARR +12% + Airo agentic OS + Agent Name Service + AI website builder + Microsoft 365 partnership + FY revenue $4.95B (+8%) + FCF $1.58B (+25% record) + buyback $1.60B (+137% YoY) + multi-year capital return acceleration + FY26 EBITDA margin >33% + FCF ~$1.8B) is intact and FY25 confirms.

Quality SMB-focused domain + hosting + commerce + AI compounder mid-cycle, with A&C high-margin growth + Core Platform stable cash flow + AI Airo platform optionality + multi-year operating leverage + capital return acceleration. The FY25 +8% revenue + 22.9% op margin + +25% FCF + A&C +14% + ARR +12% + Airo agentic OS + Agent Name Service + Microsoft 365 partnership + FY26 +6% revenue + EBITDA margin >33% + FCF $1.8B + buyback acceleration creates one of the cleaner SMB platform compounding setups for investors seeking exposure to entrepreneur economy + AI productivity + domain + hosting moat + capital return discipline. The conservative FY26 framework + A&C continued growth + AI platform progression + multi-year capital return + operating leverage provides multiple paths to outperformance over a multi-year horizon. SMB cycle + competitive landscape + AI competition + Microsoft partnership + ICANN regulation remain ongoing risks, but the multi-segment diversification + A&C high-margin growth + AI platform + capital return support continued compounding through cycles.

Citations

• GoDaddy Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
• GDDY Q4 2025 earnings call, 2026-02-24 — Applications & Commerce segment Q4 revenue +13% to $498M; segment EBITDA margin +40bp to 47%; ARR +12%. Core Platform segment Q4 revenue +3% to $776M; segment EBITDA margin +70bp to 35%. FY: revenue ~$5B (+8%); A&C revenue +14% to $1.9B; Core Platform +5% to $3.1B; total bookings +7%; normalized EBITDA $1.6B (+14%) margin 32%; FCF $1.6B (+19%). Mission to empower entrepreneurs; 7% bookings growth + 32% normalized EBITDA margin FY25. AI journey: Airo agentic OS, AI adoption across functions, Agent Name Service. Go-to-market: expanded for domains, upgraded Websites + Marketing with AI-powered website builder. FY26 revenue $5.195-$5.275B (~6% midpoint); A&C low double digits; Core Platform low single digits; normalized EBITDA margin >33%; FCF ~$1.8B. Q1 revenue $1.25-$1.27B (~6% midpoint); Q1 normalized EBITDA margin ~32% (+150bp YoY).
• GDDY Q3 / Q2 / Q1 2025 earnings calls — supporting A&C trajectory + AI progression.
• Internal financial_statements view (consolidated annual + cash flow + capital structure).