Summary
GoDaddy reported third quarter revenue of $1,265.3 million, up 10.3% from the prior-year quarter. Operating income rose 16.9% to $296.7 million, and operating margin was 23.4%, up from 22.1%. Net income increased 10.5% to $210.5 million. Diluted EPS was $1.51, up from $1.32. Total bookings were $1,354.5 million, up 9.1%. The company said its AI vision and evolution expands capabilities and builds on its leadership in domains to power an open, trusted internet. GoDaddy evolved its Airo experience from a Generative AI platform to an Agentic AI platform, launching five new Airo agents to handle core customer needs. These agentic capabilities are now live at Airo.ai, the company's Airo platform extension for rapid testing, innovation and agent deployment. GoDaddy also launched its Agent Name Service, an identity protocol for AI agents built on DNS infrastructure and proposed as an open standard.
The company generated net cash provided by operating activities of $444.2 million, up 25.1%. Capital expenditures were $9.3 million, up 86.0%. Free cash flow was $440.5 million, up 21.5%. NEBITDA was $408.6 million, up 11.5%, with NEBITDA margin of 32.3%. Deferred revenue was $2,418.6 million, up 7.2% from the prior-year quarter. Remaining performance obligations were $3,363.5 million, up 7.2%. Annualized recurring revenue was $4,293.5 million, up 8.0%. Total customers at period end were 20,413, down from 20,725. Domains under management were 80,335 thousand at period end. The company said total bookings growth was driven by strength in domains and aftermarket and continued customer adoption of subscription-based products. For the nine months, bookings growth was offset by a $9.4 million impact from changes in foreign currency exchange rates net of hedging gains.
For the nine months ended September 30, 2025, revenue was $3,677.2 million, up 8.8%. Operating income was $810.3 million, up 27.0%. Operating margin was 22.0%, up from 18.9%. Net income was $629.9 million, down 14.7%. Diluted EPS was $4.44, down from $5.09. Net cash provided by operating activities was $1,228.8 million, up 29.7%. Capital expenditures were $17.0 million, up 39.3%. The net income decline for the nine-month period reflects a prior-year non-routine, non-cash benefit to income taxes related to the conversion of the Desert Newco, LLC subsidiary, partly offset by a one-time benefit for the recognition of an uncertain tax position in the current period.
GoDaddy raised its full-year 2025 revenue expectations to a range of $4.930 billion to $4.950 billion, representing 8% growth at the midpoint versus $4.573 billion for the full year ended December 31, 2024. For the full year, the company expects Applications and Commerce revenue growth in the mid-teens and Core Platform revenue growth in the mid single-digits. For the fourth quarter ending December 31, 2025, GoDaddy expects total revenue growth of 6% at the midpoint versus the same period in 2024. Fourth quarter Applications and Commerce revenue growth is expected in the low to mid-teens, and Core Platform growth is expected in the low single-digits. The fourth quarter NEBITDA margin is expected to be approximately 33%, and the full-year NEBITDA margin is expected to be approximately 32%. Full-year free cash flow is expected to be approximately $1.6 billion, versus $1.4 billion in 2024.
The fourth quarter guidance reflects headwinds from the exit of the .CO registry contract and the company's consistent approach of excluding high-value Aftermarket transactions from guidance. After October 3, 2025, following a competitive rebid in the second quarter of 2025, GoDaddy will no longer operate as the registry service provider for the .CO top-level domain. The company does not expect this transition to have a material impact on its financial results and will continue to offer .CO as an accredited registrar. Other risks include competition, the deployment of artificial intelligence, cybersecurity, regulatory developments, macroeconomic conditions, and interest rates. The company also faces risks from its rapidly evolving market, fluctuations in financial and operating results, interruptions in service or web hosting, dependence on payment card networks, cyberattacks, acquisitions or divestitures, ability to innovate and gain customer acceptance, and execution of share repurchases. GoDaddy plans to demonstrate the expanded capabilities and agentic AI features of its Airo experience at its Investor Dinner in Tempe, Arizona on December 2, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.27B | $1.22B | +3.9% | $1.15B | +10.3% |
| General & administrative | $91.3M | $96.9M | -5.8% | $94.8M | -3.7% |
| Total operating expenses | $968.6M | $951.3M | +1.8% | $893.8M | +8.4% |
| Operating income (loss) | $296.7M | $266.3M | +11.4% | $253.8M | +16.9% |
| Operating margin | 23.4% | 21.9% | +1.6 pp | 22.1% | +1.3 pp |
| Net income (loss) | $210.5M | $199.9M | +5.3% | $190.5M | +10.5% |
| Net margin | 16.6% | 16.4% | +0.2 pp | 16.6% | +0.0 pp |
| Diluted EPS | $1.51 | $1.41 | +$0.10 | — | — |
| Customers | 3 | 5 | -40.0% | 2 | +50.0% |
Risks
The filing materially expands AI risk, covering use, development, adoption, deployment and maintenance of AI, including GoDaddy Airo, Airo Plus Site Optimizer and Airo Site Designer. It cites evolving rules such as the E.U. AI Act and U.S. state laws, plus intellectual property, privacy, data leakage and reputational exposure.
The risk factor says competition is expected to intensify, with niche point solutions and broader providers, and competitors investing in AI. MD&A shows marketing and advertising expenses rose 9.0% in the quarter to support AI-powered solutions, indicating competitive spend pressure.
Growth depends on increasing sales to new and existing customers and on renewals. MD&A reports total customers at period end were 20,413 thousand compared with 20,725 thousand, and domains under management were 80,335 thousand compared with 81,658 thousand, while ARPU was $237 compared with $215.
The risk factor says an actual or perceived cybersecurity incident could impair business, with evolving AI-enabled attacks, insider threats, and third-party LLM and AI providers. It notes increased social engineering and sophisticated phishing campaigns.
A substantial portion of cloud infrastructure is provisioned through AWS, and the filing warns of service interruptions, capacity constraints, and termination rights. It also notes no redundancy for all systems and many critical applications reside in only one data center.
The risk factor highlights higher interest rates, inflation, recession, tariffs, trade disruptions, and geopolitical conflicts including Russia/Ukraine and the Middle East that could reduce customer spending or renewals. MD&A notes bookings growth was offset by a $9.4 million impact from foreign currency exchange rates net of hedging gains for the nine months.
International revenue represented approximately 32% of total revenue for 2024, and MD&A reports international revenue of $422.5 million, an increase of 14.4% on a reported and constant currency basis for the quarter. Risks include tariffs, regulatory compliance, currency, and geopolitical instability.
GoDaddy Payments faces money transmission, card network, fraud, chargeback, and risk management risks. MD&A notes recent launches of GoDaddy Capital and Same-Day Payouts, expanding commerce offerings.
Future performance depends on senior management and key employees, with intense competition for technical talent and H-1B visa limits. Equity award value tied to Class A stock price may affect retention.
The Credit Facility and Senior Notes impose operating and financial restrictions and require substantial cash flow for principal and interest. MD&A reports interest expense decreased 2.8% for the quarter to $38.3 million and $998.7 million available under the Revolver as of September 30, 2025.
Domain registration and maintenance are subject to varying registry and jurisdictional requirements, including E.U. NIS2 Directive verification procedures. Failure could lead to liability, regulatory action, and negative publicity.
A global minimum tax of 15% for companies with revenue above €750 million under OECD model rules and E.U. implementation could materially affect tax liability. Tax audits and changes in valuation of DTAs and DTLs could cause volatility.
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)
Summary, forecast, risks and KPIs are extracted from GoDaddy Inc.'s SEC filings for Q3 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.