- Financial Performance: Full-year 2025 revenue grew 8% to $5B; normalized EBITDA expanded 14% to $1.6B with a 32% margin (up 150 bps), and free cash flow surged 19% to $1.6B.
- AI Strategic Focus: Airo evolved into an agentic OS for small businesses, with 70% of code now AI-driven, targeting agent-led automation across product development and software lifecycle.
- Revenue Segments: A&C bookings rose 14% to $1.9B in 2025, while Core Platform revenue grew 5% to $3.1B; Q4 revenue hit $1.3B (+7%) with international revenue up 10% to $420M.
- 2026 Guidance: Revenue projected between $5.195B–$5.275B (+~6% midpoint), EBITDA margin to exceed 33%, and free cash flow of ~$1.8B, maintaining >1:1 EBITDA-to-FCF conversion.
- Monetization & Customer Strategy: Agentic experiences (e.g., Airo.ai) aim for hybrid subscription-credit models; 1-year domain promo boosted attach rates, with active customer growth expected to turn positive in 2026.
Financial Highlights
The company's financial performance was characterized by strong revenue growth, margin expansion, and robust free cash flow generation. Normalized EBITDA grew 14% to $1.6 billion, with a margin of 32%, representing 150 basis points of expansion over the prior year. Free cash flow conversion remained healthy, with a normalized EBITDA to free cash flow conversion of greater than 1:1.
AI-Driven Growth Initiatives
GoDaddy is making significant investments in AI, with a focus on developing agentic capabilities at scale. The company's AI journey is centered around three components: evolving Airo into an agentic operating system for small businesses, driving efficiency through AI adoption, and powering AI agents on the Agentic Open Internet with Agent Name Service. As Aman Bhutani noted, "We're executing from a position of financial strength, expanding margins, and generating robust compounding free cash flow with a strong balance sheet that creates long-term value for shareholders."
Valuation and Outlook
With a P/E Ratio of 12.24 and an EV/EBITDA multiple of 7.7, GoDaddy's valuation appears reasonable relative to its earnings growth prospects. Analysts estimate revenue growth of 7.1% for the next year, which is slightly higher than the company's guidance of 6% revenue growth for 2026. The company's strong free cash flow yield of 14.38% and return on invested capital (ROIC) of 21.0% are also attractive. Overall, GoDaddy's strong financial performance, AI-driven growth initiatives, and reasonable valuation make it an attractive investment opportunity.