GoDaddy Inc. reported fourth‑quarter and full‑year 2025 results that surpassed earnings expectations while delivering revenue in line with analysts. Net revenue for the quarter was $1.27 billion, a 6.8% year‑over‑year increase from $1.19 billion in Q4 2024. The company’s earnings per share rose to $1.80, beating the consensus estimate of $1.58 by $0.22, or 13.9%. Full‑year revenue was approximately $5.0 billion, up about 8% from $4.6 billion in 2024.
Margin expansion continued, with the normalized EBITDA margin reaching 33.8% in Q4 2025, up from 32%–34% for the full year. The improvement was driven by higher mix in the Applications & Commerce (A&C) segment, which grew 12.8% in the quarter, slightly slower than the 13.7% growth in the prior period, and by a 5.0% rise in bookings, down from 9.1% in Q3 2025. The company attributed the margin lift to operational efficiencies and AI‑driven productivity gains.
Management highlighted the company’s “agentic AI” strategy, noting that the A&C segment’s growth is supported by new AI‑powered tools that enhance customer acquisition and retention. CEO Aman Bhutani said the firm is “leveraging our domain leadership, global scale and strong fundamentals to lead in the next era of the agentic open internet.” CFO Mark McCaffrey emphasized that the 2025 results “demonstrate the durability of our business model, enabling us to execute with discipline while advancing our AI capabilities.”
Looking ahead, GoDaddy guided Q1 2026 revenue to $1.25 billion–$1.27 billion, a 6% year‑over‑year increase at the midpoint, but below the $1.28 billion consensus estimate. Full‑year 2026 revenue guidance was set at $5.195 billion–$5.275 billion, again below the $5.285 billion analyst expectation, and the company targeted approximately $1.8 billion in free cash flow for FY 2026.
The guidance signals a cautious outlook amid slowing bookings growth and competitive pressure from AI‑enabled website builders. Investors noted that while the EPS beat reflects strong cost control and pricing power, the below‑expected revenue guidance and decelerating growth metrics suggest management’s concern about near‑term demand dynamics. The company’s focus on AI initiatives and operational efficiencies remains a key tailwind, but the market reaction underscores the importance of maintaining growth momentum in a rapidly evolving digital‑services landscape.
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