GoDaddy Inc. 10-Q Summary: Q2 2026
Business Context and Reporting Period
This summary covers GoDaddy Inc.'s (GDDY) unaudited financial results for the quarterly period ended June 30, 2026. GoDaddy operates as a large accelerated filer, providing cloud-based solutions for entrepreneurs, including domain registration, website building, and commerce tools. The company reports through two segments: Applications and Commerce (A&C) and Core Platform.
Key Financial Metrics
| Metric | Q2 2026 | Q2 2025 | YTD 6 Months 2026 | YTD 6 Months 2025 |
|---|---|---|---|---|
| Total Revenue | $1,298.0M | $1,217.6M | $2,564.9M | $2,411.9M |
| Operating Income | $342.5M | $266.3M | $653.0M | $513.6M |
| Net Income | $240.1M | $199.9M | $454.7M | $419.4M |
| Diluted EPS | $1.83 | $1.41 | $3.43 | $2.92 |
| Normalized EBITDA | $434.1M | $381.7M | $847.6M | $746.1M |
| Cash from Operations (6mo) | $914.0M (vs. $784.6M prior year) | |||
| Cash & Equivalents (End of Period) | $1,155.5M | |||
| Total Debt (Principal) | $3,816.9M |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 6.6% year-over-year (YoY) in Q2, driven by an 11.0% increase in A&C revenue and a 3.9% increase in Core Platform revenue. On a constant currency basis, revenue grew 6.3%.
- Profitability Expansion: Operating income surged 28.6% YoY to $342.5M, primarily due to revenue growth and a significant reduction in depreciation and amortization expenses (down 56.5% YoY as certain intangible assets reached the end of their useful lives).
- Cost Management: Marketing and advertising expenses decreased 4.7% YoY, and General and Administrative expenses decreased 6.6% YoY. Technology and development expenses remained relatively flat.
- Share Repurchases: The company repurchased approximately 9.6 million shares for $833.6 million during the first six months of 2026. As of June 30, 2026, $1,331.6 million remained available under the current authorization.
- Customer Metrics: Total customers increased to 20.46 million, and Domains Under Management (DUM) rose to 81.99 million. Average Revenue Per User (ARPU) increased to $250.
Outlook, Risks, and Contingencies
- Legal Proceedings: GoDaddy is appealing a jury verdict from May 2026 regarding patent infringement claims by Express Mobile, Inc. The company estimates a reasonably possible loss exposure ranging from zero to $170.0 million, exclusive of interest. No liability has been accrued as the outcome is uncertain.
- AI and Technology Risks: Management highlights significant risks associated with the deployment of generative and agentic AI, including potential litigation, reputational harm, and regulatory scrutiny. The company is investing heavily in AI-driven solutions (e.g., Airo AI Builder) to maintain competitiveness.
- Regulatory Environment: The company faces evolving regulations regarding data privacy (GDPR, NIS2 Directive), content moderation (DSA), and domain name registration. There is also uncertainty regarding the timing of ICANN's 2026 New gTLD Round.
- Liquidity: GoDaddy maintains a strong liquidity position with $1.16 billion in cash and $998.0 million available under its revolving credit facility. Management believes cash flows are sufficient to meet needs for the next 12 months.
Investor Verification Checklist
- Patent Litigation Outcome: Monitor the appeal status of the Express Mobile, Inc. case and potential financial impact if the $170M exposure materializes.
- AI Adoption Rates: Verify the revenue contribution and customer adoption metrics of new AI-powered products (Airo) to ensure they offset development costs.
- Debt Covenants: Confirm continued compliance with leverage ratios and other covenants in the Credit Facility and Senior Notes agreements.
- ICANN 2026 Round: Track the progress of the new gTLD application round to assess potential impacts on domain registration growth.
- Share Repurchase Pace: Observe the execution of the remaining $1.33 billion repurchase authorization and its impact on diluted share count.