GoDaddy's Q3 Revenue Jumps 10% to $1.26B, Net Income Up 10.5%

TL;DR

**GoDaddy's Q3 is solid with revenue and net income up, but the massive share buybacks are masking a nine-month net income dip, so watch those tax lines closely.**

AI Summary

GoDaddy Inc. reported a robust financial performance for the three months ended September 30, 2025, with total revenue increasing to $1,265.3 million from $1,147.6 million in the prior year, marking a 10.2% growth. Net income also saw a healthy rise, reaching $210.5 million compared to $190.5 million in the same period of 2024, an increase of 10.5%. The Applications and Commerce segment was a significant driver, growing to $481.0 million from $423.1 million, while the Core Platform segment also expanded to $784.3 million from $724.5 million. For the nine months ended September 30, 2025, total revenue reached $3,677.2 million, up from $3,380.6 million in 2024. However, net income for the nine-month period decreased to $629.9 million from $738.3 million in the prior year, primarily due to a significant benefit for income taxes in 2024 ($199.2 million) compared to a provision in 2025 ($96.2 million). The company aggressively repurchased Class A common stock, totaling $1,383.0 million for the nine months ended September 30, 2025, significantly higher than the $668.1 million in the same period of 2024, reducing outstanding shares from 141,208 thousand at December 31, 2024, to 135,477 thousand at September 30, 2025. Cash and cash equivalents decreased to $923.7 million from $1,089.0 million at December 31, 2024, largely due to these share repurchases.

Why It Matters

GoDaddy's strong revenue growth, particularly in its Applications and Commerce segment, signals continued demand for its small business solutions, including its new AI-powered GoDaddy Airo. This performance, coupled with aggressive share repurchases totaling $1.38 billion, demonstrates management's confidence and commitment to returning value to shareholders, which could boost investor sentiment. However, the decline in nine-month net income due to tax provisions warrants closer scrutiny, as it impacts overall profitability metrics. In a competitive landscape with players like Wix and Squarespace, GoDaddy's ability to innovate with AI and maintain customer retention is crucial for long-term market share and investor confidence.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant decrease in cash and cash equivalents from $1,089.0 million to $923.7 million, largely driven by $1,383.0 million in share repurchases. While share repurchases can be beneficial, this aggressive use of cash, combined with a substantial accumulated deficit of $(2,823.9) million, indicates a potential strain on liquidity if not managed carefully, especially given the competitive market.

Analyst Insight

Investors should hold GoDaddy stock, recognizing the strong Q3 revenue and net income growth, but monitor the company's cash flow and debt levels closely in future filings. The aggressive share repurchase program, while reducing outstanding shares, has significantly impacted cash reserves, so evaluate if this strategy is sustainable and if it truly enhances long-term shareholder value given the accumulated deficit.

Financial Highlights

debt To Equity

41.04

revenue

$1,265.3M

operating Margin

23.45%

total Assets

$7,984.7M

total Debt

$3,784.4M

net Income

$210.5M

eps

$1.51

gross Margin

63.07%

cash Position

$923.7M

revenue Growth

+10.2%

Revenue Breakdown

Key Numbers

• $1.26B — Total Revenue (Increased 10.2% from $1.147.6 billion in Q3 2024 to $1,265.3 million in Q3 2025.)
• $210.5M — Net Income (Q3) (Increased 10.5% from $190.5 million in Q3 2024 to $210.5 million in Q3 2025.)
• $629.9M — Net Income (YTD) (Decreased from $738.3 million in YTD 2024 to $629.9 million in YTD 2025, primarily due to tax provisions.)
• $1.51 — Diluted EPS (Q3) (Increased from $1.32 in Q3 2024 to $1.51 in Q3 2025.)
• $1.38B — Share Repurchases (Total repurchases for the nine months ended September 30, 2025, significantly higher than $668.1 million in 2024.)
• 135,477 — Outstanding Shares (in thousands) (Decreased from 141,208 thousand at December 31, 2024, due to repurchases.)
• $923.7M — Cash and Cash Equivalents (Decreased from $1,089.0 million at December 31, 2024, largely due to share repurchases.)
• $2,823.9M — Accumulated Deficit (Increased from $(2,052.3) million at December 31, 2024, indicating continued losses.)
• 10.2% — Revenue Growth (Q3) (Year-over-year growth in total revenue for the three months ended September 30, 2025.)
• 10.5% — Net Income Growth (Q3) (Year-over-year growth in net income for the three months ended September 30, 2025.)

Key Players & Entities

• GoDaddy Inc. (company) — registrant
• GoDaddy Airo (company) — AI-powered experience
• New York Stock Exchange (regulator) — exchange where Class A Common Stock is registered
• Delaware (regulator) — state of incorporation
• SEC (regulator) — Securities and Exchange Commission
• $1,265.3 million (dollar_amount) — total revenue for Q3 2025
• $210.5 million (dollar_amount) — net income for Q3 2025
• $1,383.0 million (dollar_amount) — Class A common stock repurchases for nine months ended Sept 30, 2025
• $923.7 million (dollar_amount) — cash and cash equivalents at Sept 30, 2025
• $2,823.9 million (dollar_amount) — accumulated deficit at Sept 30, 2025

FAQ

Risk Factors

• Intensifying Competition [high — market]: The market for domain registration, website building, and hosting services is highly competitive. Increased competition from established players and new entrants could lead to pricing pressures and reduced market share, impacting revenue growth and profitability.
• Dependence on Technology Infrastructure [high — operational]: GoDaddy relies heavily on its technology infrastructure to deliver its services. Any disruptions, security breaches, or failures in this infrastructure could lead to service outages, loss of customer trust, and significant financial and reputational damage.
• Data Privacy and Security Regulations [medium — regulatory]: Increasingly stringent data privacy regulations (e.g., GDPR, CCPA) require significant compliance efforts. Failure to comply could result in substantial fines and legal penalties, impacting financial performance and operational flexibility.
• Interest Rate Fluctuations [medium — financial]: GoDaddy has a significant amount of long-term debt. Rising interest rates could increase the cost of servicing this debt, negatively impacting net income and cash flow available for other strategic initiatives like share repurchases.
• Intellectual Property and Domain Disputes [low — legal]: The company is involved in various legal proceedings related to intellectual property, domain name disputes, and other matters. Adverse outcomes in these cases could result in significant financial liabilities or operational restrictions.
• Effectiveness of AI Initiatives [medium — operational]: The success of GoDaddy Airo and other AI-powered initiatives is crucial for future growth. If these technologies do not gain traction with customers or if competitors develop superior AI solutions, it could hinder the company's competitive positioning.

Industry Context

GoDaddy operates in the highly competitive digital presence and small business solutions market. Key trends include the increasing adoption of AI for business growth, the ongoing demand for domain names and website hosting, and the shift towards integrated e-commerce platforms. Competition is fierce from both large technology providers and specialized niche players.

Regulatory Implications

GoDaddy faces regulatory scrutiny related to data privacy and security, particularly with the increasing volume of customer data handled. Compliance with evolving regulations like GDPR and CCPA is critical to avoid significant fines and reputational damage. Changes in tax laws or accounting standards could also impact financial reporting and profitability.

What Investors Should Do

1. Monitor the impact of aggressive share repurchases on GoDaddy's financial flexibility and future growth investments.
2. Analyze the growth drivers within the Applications and Commerce segment, particularly GoDaddy Airo.
3. Evaluate the trend in net income for the nine-month period, considering the impact of tax provisions.
4. Assess the company's ability to manage its debt obligations in a potentially rising interest rate environment.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported total revenue of $1,265.3 million, up 10.2% year-over-year, and net income of $210.5 million.
• 2025-09-30: End of Nine Months 2025 — Total revenue reached $3,677.2 million, but net income decreased to $629.9 million due to tax provisions compared to a benefit in 2024.
• 2025-09-30: Share Repurchases (YTD) — Aggressively repurchased $1,383.0 million of Class A common stock, reducing outstanding shares.
• 2024-12-31: End of Fiscal Year 2024 — Reported total assets of $8,235.4 million and cash and cash equivalents of $1,089.0 million.
• 2024-09-30: End of Q3 2024 — Reported total revenue of $1,147.6 million and net income of $190.5 million.

Glossary

Applications and Commerce (A&C)

A GoDaddy business segment that includes products and services related to applications, e-commerce solutions, and payment processing. (A key revenue driver, showing strong growth in the current period.)

Core Platform

A GoDaddy business segment encompassing its foundational offerings such as domain name registration, website hosting, and security services. (Represents the largest portion of GoDaddy's revenue and demonstrates steady growth.)

Accumulated Deficit

The cumulative net losses of a company since its inception, offset by any retained earnings. A negative number indicates the company has incurred more losses than profits over time. (The increase in accumulated deficit to $(2,823.9) million highlights the impact of significant share repurchases and potentially other factors on retained earnings.)

Deferred Revenue

Revenue that has been received by a company but not yet earned. It is recognized as services are provided or products are delivered over time. (A significant liability for GoDaddy ($2,418.6M current, $944.9M non-current), indicating future revenue streams from services paid in advance.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair market value of its identifiable net assets. (A substantial asset on GoDaddy's balance sheet ($3,631.5M), indicating past acquisitions and potential for future impairment if acquired businesses underperform.)

Share Repurchases

The act of a company buying back its own shares from the open market, which reduces the number of outstanding shares. (GoDaddy significantly increased share repurchases in the nine months ended September 30, 2025 ($1,383.0M), impacting cash position and outstanding share count.)

Year-Over-Year Comparison

Compared to the prior year, GoDaddy has demonstrated robust revenue growth, with total revenue up 10.2% in Q3 2025 to $1,265.3 million. Net income for the quarter also saw a healthy increase of 10.5%. However, year-to-date net income has decreased due to a significant shift in income tax treatment from a benefit in 2024 to a provision in 2025. The company has also dramatically increased its share repurchase activity, leading to a reduction in outstanding shares but also a decrease in cash and cash equivalents from $1,089.0 million to $923.7 million.

Key Financial Figures

• $0.001 — which registered Class A Common Stock, $0.001 par value per share GDDY New York Stock

Filing Documents

• gddy-20250930.htm (10-Q) — 1932KB
• gddy10qexhibit311-20250930.htm (EX-31.1) — 8KB
• gddy10qexhibit312-20250930.htm (EX-31.2) — 8KB
• gddy10qexhibit321-20250930.htm (EX-32.1) — 8KB
• 0001609711-25-000209.txt ( ) — 8938KB
• gddy-20250930.xsd (EX-101.SCH) — 51KB
• gddy-20250930_cal.xml (EX-101.CAL) — 80KB
• gddy-20250930_def.xml (EX-101.DEF) — 262KB
• gddy-20250930_lab.xml (EX-101.LAB) — 644KB
• gddy-20250930_pre.xml (EX-101.PRE) — 482KB
• gddy-20250930_htm.xml (XML) — 1440KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Consolidated Balance Sheets 1 Consolidated Statements of Operations 2 Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Stockholders' Equity (Deficit) 4 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 37 Item 1A

Risk Factors

Risk Factors 37 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 69 Item 3 Defaults Upon Senior Securities 69 Item 4 Mine Safety Disclosures 70 Item 5 Other Information 70 Item 6 Exhibits 70

Signatures

Signatures 71 i Table of Contents NOTE ABOUT FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this Quarterly Report), including the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors," contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended, involving substantial risks and uncertainties. The words "believe," "may," "will," "potentially," "plan," "could," "should," "predict," "ongoing," "estimate," "continue," "anticipate," "intend," "project," "expect," "seek," or the negative of these words, or terms or similar expressions conveying uncertainty of future events or outcomes, or that concern our expectations, strategy, plans or intentions, are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or expected. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed under the heading "Risk Factors" in Part II, Item 1A, and in our publicly available filings and press releases. These statements include, among other things, those regarding: our ability to continue to increase sales to new and existing customers; our ability to develop new solutions and bring them to market in a timely manner; our ability to timely and effectively scale and adapt our existing solutions; our ability to deploy new and evolving technologies, such as artificial intelligence, generative artificial intelligence, agentic artificial intelligence, machine learning, and similar tools (collectively, AI) in our offerings; our dependence on establishing and maintaining a strong brand; the occurrence of service interruptions and security or priv

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GoDaddy Inc. Consolidated Balance Sheets (In millions, except shares in thousands and per share amounts) September 30, December 31, 2025 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 923.7 $ 1,089.0 Accounts and other receivables 108.8 91.1 Registry deposits 39.7 34.5 Prepaid domain name registry fees 520.6 492.0 Prepaid expenses and other current assets 139.7 245.2 Total current assets 1,732.5 1,951.8 Property and equipment, net 146.6 156.4 Operating lease assets 44.2 49.4 Prepaid domain name registry fees, net of current portion 240.3 224.8 Goodwill 3,631.5 3,518.9 Intangible assets, net 1,003.7 1,055.8 Deferred tax assets 1,092.0 1,181.5 Other assets 93.9 96.8 Total assets $ 7,984.7 $ 8,235.4 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 73.5 $ 81.6 Accrued expenses and other current liabilities 535.7 378.6 Deferred revenue 2,418.6 2,222.3 Long-term debt, current portion 15.5 15.9 Total current liabilities 3,043.3 2,698.4 Deferred revenue, net of current portion 944.9 883.2 Long-term debt, net of current portion 3,768.9 3,779.1 Operating lease liabilities, net of current portion 65.2 76.7 Other long-term liabilities 57.8 85.7 Deferred tax liabilities 12.8 20.2 Commitments and contingencies Stockholders' equity: Preferred stock, $ 0.001 par value - 50,000 shares authorized; none issued and outstanding — — Class A common stock, $ 0.001 par value - 1,000,000 shares authorized; 135,477 and 141,208 issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 0.1 0.1 Additional paid-in capital 2,880.3 2,611.8 Accumulated deficit ( 2,823.9 ) ( 2,052.3 ) Accumulated other comprehensive income 35.3 132.5 Total stockholders' equity 91.8 692.1 Total liabilities and stockholders' equity $ 7,984.7 $ 8,235.4 See accompanying notes to consolidated financial statements. 1 Table of Contents GoDaddy Inc. Consolid

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) (In millions, except shares in thousands and per share amounts) Note 1 Organization and Background 7 Note 2 Summary of Significant Accounting Policies 8 Note 3 Goodwill and Intangible Assets 10 Note 4 Stockholders' Equity 12 Note 5 Prepaid Expenses and Other Current Assets 12 Note 6 Equity-Based Compensation Plans 12 Note 7 Deferred Revenue 13 Note 8 Accrued Expenses and Other Current Liabilities 14 Note 9 Long-Term Debt 14 Note 10 Derivatives and Hedging 15 Note 11 Leases 18 Note 12 Commitments and Contingencies 18 Note 13 Restructuring and Other Charges 19 Note 14 Income Taxes 19 Note 15 Income Per Share 20 Note 16 Segment Information 20 Note 17 Accumulated Other Comprehensive Income (Loss) 22 1. Organization and Background Organization GoDaddy was incorporated as a Delaware corporation on May 28, 2014. GoDaddy helps millions of entrepreneurs globally start, grow and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services and accept payments. GoDaddy Airo , the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. Basis of Presentation Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated. Our interim financial statements are unaudited and, in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for interim periods are not necessarily indicative of the results to be expected for any subsequent per

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