GoDaddy Inc. 2025 Annual Report (10-K) Summary
Business Context and Reporting Period
This filing is the Annual Report on Form 10-K for GoDaddy Inc. for the fiscal year ended December 31, 2025. GoDaddy operates as a global leader in digital infrastructure and online business solutions, serving approximately 20.4 million customers. The company manages its business through two primary segments: Applications and Commerce (A&C), which includes website building, e-commerce, and productivity tools, and Core Platform (Core), which encompasses domain registrations, hosting, and security. A key strategic focus in 2025 was the expansion of AI-powered solutions, specifically the "Airo" platform and the launch of the Agent Name Service (ANS) to support the "agentic open internet."
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $4,951.1 million | $4,573.2 million | +8.3% |
| Operating Income | $1,127.3 million | $893.5 million | +26.2% |
| Net Income | $875.0 million | $936.9 million | -6.6% |
| Normalized EBITDA | $1,585.9 million | $1,395.9 million | +13.6% |
| Operating Cash Flow | $1,599.4 million | $1,287.7 million | +24.2% |
| Total Bookings | $5,400.0 million | $5,038.8 million | +7.2% |
| Domains Under Management | 80.8 million | 81.0 million | -0.3% |
| Customer Retention Rate | ~85% | ~84% | +100 bps |
Liquidity and Debt: As of December 31, 2025, the company held $1,080.9 million in cash and cash equivalents. Total long-term debt was approximately $3.77 billion (net of current portion), consisting of term loans and senior notes. The company had $998.6 million available under its revolving credit facility.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue grew 8.3% year-over-year. The A&C segment grew 14.3% to $1.89 billion, driven by adoption of subscription products. The Core segment grew 4.9% to $3.06 billion, with growth in domain registrations and aftermarket sales partially offset by a decline in hosting revenues due to end-of-life migrations.
- Profitability: Operating income increased significantly by 26.2% to $1.13 billion, reflecting improved margins and cost optimization initiatives. However, Net Income decreased 6.6% to $875.0 million. This decline was primarily due to the absence of a one-time non-cash tax benefit of $267.4 million recorded in 2024 related to the "DNC Restructure" (conversion of a subsidiary to a disregarded entity).
- Segment Performance: A&C Segment EBITDA margin expanded to 45.4% (from 44.7%), while Core Segment EBITDA margin improved to 33.0% (from 31.9%).
- Share Repurchases: The company repurchased approximately 5.9 million shares for an aggregate of $834.8 million in 2025. In April 2025, the Board authorized an additional $3.0 billion repurchase program through 2027.
Guidance, Outlook, and Risks
Outlook and Strategy: Management continues to prioritize cost optimization, pricing and bundling strategies, and the integration of AI (Airo) to enhance customer experiences and operational efficiency. The company is migrating infrastructure to the public cloud to reduce costs and improve scalability. International revenue represented approximately 33% of total revenue in 2025.
Key Risks and Contingencies:
- Legal Proceedings: In November 2025, a jury returned a verdict finding GoDaddy infringed two patents owned by Express Mobile, Inc., awarding $170.0 million in damages. GoDaddy has filed post-trial motions and intends to appeal. The company estimates a reasonably possible loss exposure ranging from zero to $170.0 million but has not accrued a liability as the outcome is uncertain.
- Regulatory Environment: The company faces evolving regulations regarding AI, data privacy (GDPR, CCPA), and domain name registration (ICANN). A settlement with the FTC regarding security practices and advertising requires compliance for at least 20 years.
- Competition: Intense competition exists in website building, e-commerce, and domain registration from both traditional providers and new AI-driven platforms.
- Cybersecurity: As a provider of critical internet infrastructure, the company faces ongoing risks of cyberattacks, data breaches, and service interruptions.
Investor Verification Checklist
- Patent Litigation Status: Monitor the outcome of the Express Mobile patent infringement case and any potential appeals or settlements, as the $170 million verdict could materially impact future earnings.
- AI Monetization: Verify the adoption rates and revenue contribution of the new "Airo" AI platform and Agent Name Service (ANS) to ensure they drive the projected growth in the A&C segment.
- Hosting Migration Impact: Assess the long-term impact of the decline in hosting revenues due to end-of-life migrations and the success of the transition to cloud-based infrastructure.
- Debt Covenants: Review compliance with financial covenants in the Credit Facility, particularly the leverage ratio, given the company's significant debt load.
- Tax Rate Volatility: Analyze future effective tax rates, noting the significant one-time benefits in 2024 and the return to a standard provision in 2025.