Research · Sep 3, 2026
[GDDY] GoDaddy Thesis 2026: Airo Agentic Platform Transforms Small Business Commerce Offering
GoDaddy Inc. FY25 revenue $4.95B (+8%); op income $1.13B (+27%); NI $875M (-7% from FY24 elevated); EPS $6.23. FCF $1.58B (+25%, record). 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). Risks: SMB / consumer demand cycle, domain registrar competition (Namecheap, Squarespace, IONOS, Cloudflare), websites / commerce competition (Wix, Squarespace, Shopify, Adobe), AI competitive landscape, Microsoft 365 partnership dynamics, ICANN regulation.