GoDaddy (GDDY)
NYSE:GDDY
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GoDaddy
(NYSE:GDDY)
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Rating:66Neutral
Price Target:
$93.00
▲(13.79% Upside)
Action:ReiteratedDate:02/27/26
The score is supported by strong cash generation and improving profitability, reinforced by positive 2026 margin and free-cash-flow guidance, plus a relatively low P/E. These strengths are tempered by a clearly bearish technical setup (price below key moving averages with weak momentum) and the need to monitor balance-sheet stability given historical leverage volatility despite the latest improvement.
Positive Factors
Strong free cash flow generation
GoDaddy's FCF scaled materially to ~$1.6B in 2025 with FCF-to-net-income near 0.9–1.0. Durable, high absolute cash generation supports reinvestment, buybacks and debt reduction, giving management flexibility to fund growth initiatives and withstand cyclical pressure over the medium term.
Negative Factors
Historical balance-sheet volatility
Despite a sharp 2025 deleveraging step (debt down to $77M), GoDaddy's prior periods featured extreme leverage and thin/negative equity. That history raises execution risk: if cash generation weakens or buybacks continue, capital structure improvements may not prove durable without sustained FCF and conservative capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
GoDaddy's FCF scaled materially to ~$1.6B in 2025 with FCF-to-net-income near 0.9–1.0. Durable, high absolute cash generation supports reinvestment, buybacks and debt reduction, giving management flexibility to fund growth initiatives and withstand cyclical pressure over the medium term.
Read all positive factors
GoDaddy (GDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.90B
Dividend YieldN/A
Average Volume (3M)2.67M
Price to Earnings (P/E)19.2
Beta (1Y)0.79
Revenue Growth8.79%
EPS Growth-55.15%
CountryUS
Employees5,518
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.80
Shares Outstanding133,354,110
10 Day Avg. Volume2,337,446
30 Day Avg. Volume2,670,516
Financial Highlights & Ratios
PEG Ratio-4.24
Price to Book (P/B)78.11
Price to Sales (P/S)3.39
P/FCF Ratio10.66
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.74
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda10.52
Forecast
1Y Price Target
$119.62Price Target Upside46.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)6.98
Revenue Forecast (FY)$5.23B
GoDaddy Business Overview & Revenue Model
Company Description
GoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establis...
How the Company Makes Money
GoDaddy generates revenue primarily through its domain registration services, web hosting subscriptions, and additional products such as website builders and online marketing tools. The company's revenue model includes both one-time transaction fe...
GoDaddy Key Performance Indicators (KPIs)
Any
Customer Count
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Measures the total number of customers, providing insight into GoDaddy’s market reach and growth in user base.
Data provided by:
The Fly
The FlyGoDaddy Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presents a largely positive picture: healthy revenue and ARR growth, strong margin expansion, robust free cash flow generation, significant AI-driven operational progress, and strategic product initiatives (Airo.ai and ANS) with early validation. Near-term headwinds include promotional-induced term-mix shifts that reduced up-front bookings and near-term revenue, the expiration of the .CO registry contract and exclusion of some aftermarket revenue, some deceleration in bookings vs. revenue early in 2026, and early-stage monetization for Airo.ai. Management expects these headwinds to be temporary or manageable and provided guidance that assumes modest impacts while maintaining margin and free cash flow targets.Positive Updates
Revenue Growth and Strong Q4 Execution
Total revenue grew 7% year-over-year in Q4 to $1.3 billion, coming in at the high end of guidance. Full-year revenue was approximately $5.0 billion, up 8% year-over-year.
Negative Updates
Near-Term Booking and Revenue Headwind from .com Promotional Offer
A streamlined purchase experience and promotional 1-year .com pricing drove higher-than-expected demand and a shift toward shorter term (1-year) contracts, reducing up-front bookings and near-term revenue due to mix and discount allocation effects.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Strong Q4 Execution
Total revenue grew 7% year-over-year in Q4 to $1.3 billion, coming in at the high end of guidance. Full-year revenue was approximately $5.0 billion, up 8% year-over-year.
Read all positive updates
Company Guidance
GoDaddy guided full‑year 2026 revenue of $5.195–$5.275 billion (≈6% growth at the midpoint), with Applications & Commerce (A&C) revenue expected to grow in the low double‑digits and Core Platform in the low single‑digits; Q1 revenue is forecast at $1.25–$1.27 billion (~6% at the midpoint). Management said bookings growth will trail revenue by a few points in Q1 but should be roughly in parity with revenue for the full year, with total bookings dollars remaining ahead of revenues; the full‑year outlook reflects just over 200 basis points of cumulative headwind from the .CO registry expiration, aftermarket exclusions and the go‑to‑market evolution (~2/3 from .CO and aftermarket, ~1/3 from the GTM change). They expect normalized EBITDA margin to exceed their Investor Day target of ~33% (Q1 normalized EBITDA margin ~32%, roughly +150 bps year‑over‑year) while absorbing modestly higher AI costs, and project free cash flow of approximately $1.8 billion with normalized EBITDA‑to‑FCF conversion greater than 1:1, remaining on track to exceed their North Star CAGR of 20%.GoDaddy Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.95B | 4.57B | 4.25B | 4.09B | 3.82B |
| Gross Profit | 3.05B | 2.92B | 2.68B | 2.61B | 2.44B |
| EBITDA | 1.29B | 1.06B | 754.10M | 697.40M | 579.20M |
| Net Income | 875.00M | 936.90M | 1.37B | 352.20M | 242.30M |
Balance Sheet | |||||
| Total Assets | 8.03B | 8.24B | 7.56B | 6.97B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 1.09B | 498.80M | 774.00M | 1.26B |
| Total Debt | 3.86B | 3.89B | 3.94B | 3.98B | 4.06B |
| Total Liabilities | 7.82B | 7.54B | 7.50B | 7.30B | 7.33B |
| Stockholders Equity | 215.10M | 692.10M | 62.20M | -331.80M | 81.70M |
Cash Flow | |||||
| Free Cash Flow | 1.58B | 1.26B | 970.20M | 919.60M | 576.10M |
| Operating Cash Flow | 1.60B | 1.29B | 1.05B | 979.70M | 829.30M |
| Investing Cash Flow | -25.10M | 21.50M | -102.40M | -132.00M | -635.60M |
| Financing Cash Flow | -1.59B | -677.40M | -1.26B | -1.33B | 298.10M |
GoDaddy Technical Analysis
Negative
81.73
Price Trends
92.41
Negative
109.25
Negative
130.83
Negative
Market Momentum
-3.23
Negative
39.61
Neutral
27.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Negative. The current price of 81.73 is below the 20-day moving average (MA) of 85.92, below the 50-day MA of 92.41, and below the 200-day MA of 130.83, indicating a bearish trend. The MACD of -3.23 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 27.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDDY.
GoDaddy Risk Analysis
GoDaddy disclosed 60 risk factors in its most recent earnings report. GoDaddy reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GoDaddy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $16.57B | 20.43 | 20.29% | ― | 9.66% | 23.87% | |
66 Neutral | $22.75B | ― | -3.48% | ― | 23.24% | -8.83% | |
66 Neutral | $10.90B | 19.20 | 384.19% | ― | 8.79% | -55.15% | |
66 Neutral | $5.32B | 17.39 | 29.38% | ― | -1.15% | -2.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $4.93B | 113.95 | -21.76% | ― | 13.22% | 48.20% | |
60 Neutral | $5.30B | 14.67 | -35.62% | ― | -0.44% | 2.47% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.