Summary
GoDaddy reported total revenue of $1,217.6 million for the second quarter of fiscal 2025, up 8.3% from the prior-year quarter. On a constant currency basis, revenue rose 8.4%. For the first half of fiscal 2025, revenue was $2,411.9 million, up 8.0% year over year. Total bookings reached $1,345.3 million, up 6.6%. Total customers at period end were 20,409, compared with 20,866 a year earlier. Domains under management were 80,413, compared with 82,056 a year earlier. The product mix keeps shifting toward higher-value subscription offerings, yet the customer base is not expanding.
Profitability improved sharply. Operating income was $266.3 million, up 27.9%. Operating margin was 21.9%, up 3.4 percentage points. Net income was $199.9 million, up 36.6%. Diluted earnings per share was $1.41, up 39.6%. Normalized EBITDA was $381.7 million, up 15.1%, with a 31.3% margin. Net cash provided by operating activities was $379.9 million, up 28.9%. Free cash flow was $391.5 million, up 21.1%. Capital expenditures were $4.1 million, up 46.4%. For the first half, operating income was $513.6 million, up 33.7%. Net income was $419.4 million, down 23.4%, largely because the prior-year period included a non-routine, non-cash benefit to income taxes of $267.4 million. Diluted earnings per share for the first half was $2.92, down 22.5%. Operating cash flow for the first half was $784.6 million, up 32.5%. Capital expenditures for the first half were $7.7 million, up 6.9%. Operating margin for the first half was 21.3%, up 4.1 percentage points. Deferred revenue was $2,399.7 million, up 7.6%. Remaining performance obligations were $3,337.5 million, up 7.8%.
Segment profitability held up. Applications and Commerce Segment EBITDA was $205.8 million, up 16.5%, with a 44.4% margin. Core Platform Segment EBITDA was $246.1 million, up 12.1%, with a 32.7% margin. Guidance points to continued growth. For the third quarter ending September 30, 2025, GoDaddy expects total revenue of $1.22 billion to $1.24 billion, representing year-over-year growth of 7% at the midpoint. For the full year ending December 31, 2025, the company raised its revenue outlook to $4.89 billion to $4.94 billion, representing year-over-year growth of 7% at the midpoint versus the $4.573 billion of revenue generated for the full year ended December 31, 2024. Within total revenue, third quarter and full year Applications and Commerce revenue growth is expected in the mid-teens, while Core Platform revenue growth is expected in the low single digits. For the third quarter, NEBITDA margin is expected to be approximately 32%. For the full year, NEBITDA margin expansion is expected to be approximately 100 basis points, with continued sequential expansion each quarter and an exit rate of 33% in 2025. The full year free cash flow target was raised to approximately $1.6 billion, versus the $1.4 billion of free cash flow generated in 2024.
Risks remain. The .CO top-level domain transition will begin in the fourth quarter of 2025. GoDaddy will no longer operate as the registry service provider for .CO, though it will continue to distribute the domain as an accredited registrar. Management anticipates an approximate 50 basis point headwind to bookings and revenue, primarily in the fourth quarter. The company does not expect this transition to affect its ability to execute strategic initiatives or deliver on financial commitments. A recent survey of U.S. small business owners found that 72% expect their own revenues to increase or stay stable, while 45% foresee the broader U.S. economy holding steady or improving. Tax reform adds another variable. H.R. 1 was enacted on July 4, 2025, after the balance sheet date, so its effects are not included in second quarter results. The company is still assessing the impact. Operating cash flow growth for the first half was driven by bookings growth and lower restructuring related payments. Investing activities decreased, and financing activities increased due to share repurchases.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.22B | $1.19B | +2.0% | $1.12B | +8.3% |
| General & administrative | $96.9M | $97.1M | -0.2% | $95.6M | +1.4% |
| Total operating expenses | $951.3M | $947.0M | +0.5% | $916.3M | +3.8% |
| Operating income (loss) | $266.3M | $247.3M | +7.7% | $208.2M | +27.9% |
| Operating margin | 21.9% | 20.7% | +1.2 pp | 18.5% | +3.4 pp |
| Net income (loss) | $199.9M | $219.5M | -8.9% | $146.3M | +36.6% |
| Net margin | 16.4% | 18.4% | -2.0 pp | 13.0% | +3.4 pp |
| Diluted EPS | $1.41 | — | — | — | — |
| Customers | 5 | 7 | -28.6% | 3 | +66.7% |
Risks
GoDaddy is increasingly using AI in products such as GoDaddy Airo and faces expanded risks from rapidly evolving AI laws, including the E.U. AI Act and laws adopted by Colorado and California, plus potential IP infringement, accuracy, bias, and reputational harm. The filing also states competitors continue to invest in AI, and failure to develop or maintain AI products could harm reputation.
The filing states growth rates have slowed or declined in recent periods due to larger scale, divestitures, migrations, and product end-of-life, and MD&A reports total customers at period end of 20,409 thousand compared with 20,866 thousand and domains under management of 80,413 thousand compared with 82,056 thousand. If GoDaddy cannot increase sales to new and existing customers, business and operating results would be harmed.
The market is highly competitive and expected to intensify, with competitors including domain registrars, web-hosting, e-commerce, payments, cloud, and AI providers, some with greater resources or low/no-cost offerings. Increased competition could result in lower sales, price reductions, reduced margins, loss of market share, and increased marketing expenses.
A substantial portion of GoDaddy's cloud infrastructure is provisioned through AWS, and AWS may terminate the agreement for cause upon notice and in some cases suspend immediately. Any disruption or interference with AWS could interrupt platform availability, harm reputation, and adversely affect results.
GoDaddy has experienced and may continue to experience an increase in social engineering attacks and sophisticated phishing campaigns, and threat actors are leveraging AI. An actual or perceived incident could disrupt services, expose data, trigger litigation or investigations, and insurance has significant deductibles.
GoDaddy Payments is subject to money transmission, consumer protection, anti-money laundering, sanctions, and card network rules, and risk management may not detect fraud or illegitimate transactions. As larger sellers use GoDaddy Payments, exposure to material losses from a single seller or small number of sellers will increase.
GoDaddy has changed and expects to continue changing its pricing model or price points, and competitors have used discounts and bundling. If changes are unsuccessful or competitors' strategies are more successful, GoDaddy may lose customers or bookings and be required to reduce prices.
International revenue represented approximately 32% of total revenue for the year ended December 31, 2024, and GoDaddy faces risks from tariffs, trade disputes, geopolitical conflicts including Russia/Ukraine and the Middle East, foreign currency, labor laws, and regulatory requirements in markets such as Colombia, India, Romania, Bulgaria, and Serbia.
Future performance depends on senior management and key employees, and competition for technical and engineering talent is intense in U.S. tech hubs. U.S. immigration laws, including H-1B visa limits, may restrict recruiting, and a decline in GoDaddy's stock price could impair retention because equity awards are a key compensation component.
GoDaddy has incurred indebtedness including its Credit Facility and Senior Notes, and the agreements impose significant operating and financial restrictions, including a leverage ratio covenant under the Credit Facility. The level of debt could divert cash flow from operations and limit flexibility.
General macroeconomic and geopolitical conditions, including higher interest rates, inflation, recession, tariffs, trade disruptions, and geopolitical conflicts, could reduce customer spending or renewals. The filing notes announced or expected U.S. tariffs and uncertainty in tariff policy.
GoDaddy is subject to income taxes in the U.S. and various foreign jurisdictions, and the OECD global minimum tax of 15% for companies with revenue above €750 million could materially affect tax liability. The One Big Beautiful Bill Act was enacted on July 4, 2025, after the balance sheet date, and GoDaddy is assessing its impact.
SaaS KPIs
All quarters →Total bookings
Domains under management
Free cash flow
Average revenue per user (ARPU)
Total customers at period end
NEBITDA margin
Annualized Recurring Revenue (ARR)
Normalized EBITDA (NEBITDA)
Segment EBITDA - A&C
Segment EBITDA - Core
Segment EBITDA margin - A&C
Segment EBITDA margin - Core
Summary, forecast, risks and KPIs are extracted from GoDaddy Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.