Want to see GDDY full AI Analyst Report?
Top Page
GoDaddy
(NYSE:GDDY)
Select Model
Select Model
Rating:67Neutral
Price Target:
$96.00
▼(-0.43% Downside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong cash flow generation and solid operating margins, reinforced by reaffirmed guidance, margin expansion, and robust FCF targets from the latest earnings call. The main offsets are balance-sheet fragility from a very thin equity cushion and elevated leverage metrics, plus mixed technicals and near-term execution risk signaled by softer bookings/Core Platform trends despite early AI traction. Valuation is a secondary support given the relatively low P/E.
Positive Factors
Strong free cash flow generation
TTM OCF ~$1.73B and FCF ~$1.70B with near 1:1 conversion to net income indicates durable cash generation from subscription revenues. This supports sustained reinvestment in product, debt servicing, and capital returns, increasing resilience across business cycles.
Negative Factors
Thin equity and leverage risk
An unusually small and unstable equity base (TTM equity ~$6.7M) makes reported leverage and returns volatile and leaves limited shock absorption. This constrains strategic flexibility, raises refinancing and covenant risk, and amplifies downside from earnings or valuation swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
TTM OCF ~$1.73B and FCF ~$1.70B with near 1:1 conversion to net income indicates durable cash generation from subscription revenues. This supports sustained reinvestment in product, debt servicing, and capital returns, increasing resilience across business cycles.
Read all positive factors
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 (GDDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.02B
Dividend YieldN/A
Average Volume (3M)2.15M
Price to Earnings (P/E)14.0
Beta (1Y)0.81
Revenue Growth7.50%
EPS Growth18.20%
CountryUS
Employees5,845
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)6.80
Shares Outstanding126,647,705
10 Day Avg. Volume1,430,564
30 Day Avg. Volume2,146,234
Financial Highlights & Ratios
PEG Ratio-4.47
Price to Book (P/B)79.66
Price to Sales (P/S)3.46
P/FCF Ratio10.88
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$105.92Price Target Upside9.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)7.36
Revenue Forecast (FY)$5.24B
GoDaddy Business Overview & Revenue Model
Company Description
GoDaddy Inc., founded in 2014 and based in Tempe, Arizona, operates internationally as a developer and provider of cloud-based technological solutions. The company serves a wide array of clients, including small businesses, individuals, organizati...
How the Company Makes Money
GoDaddy makes money primarily by selling subscription- and usage-based products that help customers create, maintain, and monetize their online presence. A core revenue stream is domain-related services: it earns fees from registering and renewing...
GoDaddy Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: revenue, ARR, EBITDA, free cash flow, ARPU, and margins all grew, share repurchases were substantial, and Airo showed rapid early traction (5x bookings run rate to $50M). However, management acknowledged transitional headwinds as Airo absorbs capabilities from legacy products (moderating A&C bookings), timing shifts that push some costs into H2, and ongoing execution risk around AI compute costs and domain market changes driven by LLMs. On balance the strong financial results and clear early momentum in Airo outweigh the transition-related headwinds, though the company must execute to realize the anticipated long-term upside.Positive Updates
Revenue Growth Above Guide Midpoint
Total revenue grew 7% year-over-year to $1.3 billion in Q2, coming in above the midpoint of guidance.
Negative Updates
A&C Bookings Moderation During Transition
Bookings from some traditional A&C products are moderating during the AI-led transition as capabilities (e.g., template-based website builders and certain Commerce SKUs) are being absorbed into Airo; company indicated this transition likely shaved roughly ~1 percentage point from total bookings this quarter and contributed to high-single-digit A&C bookings guidance for the rest of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth Above Guide Midpoint
Total revenue grew 7% year-over-year to $1.3 billion in Q2, coming in above the midpoint of guidance.
Read all positive updates
Company Guidance
GoDaddy narrowed full‑year 2026 revenue guidance to $5.215B–$5.255B (≈6% growth at the midpoint) and set Q3 revenue guidance at $1.315B–$1.335B (≈5% growth at the midpoint), noting the full‑year outlook absorbs just over 200 bps of impact from the .CO registry expiration and excludes high‑value aftermarket transactions; management expects Applications & Commerce growth in the low double digits and Core Platform growth in the low single digits for both Q3 and the year, and—absent FX—bookings and revenue growth at or above parity for the remainder of the year. They are targeting a normalized EBITDA margin of ~33% in Q3 and reaffirm a full‑year margin target of over 33%, with Q2 as a reference point of normalized EBITDA $434M (33.4%) and free cash flow of $443M; full‑year free cash flow is reaffirmed at approximately $1.8B with normalized EBITDA conversion greater than 1:1. Balance sheet and capital‑allocation metrics backing the guidance include trailing‑12‑month FCF of $1.73B, cash $1.2B and total liquidity $2.2B, net debt $2.7B (net leverage 1.4x), and continued buybacks (YTD repurchases ~$852M / ~10M shares, reducing fully diluted shares outstanding ~7% to ~127M).GoDaddy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
28
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.10B | 4.95B | 4.57B | 4.25B | 4.09B | 3.82B |
| Gross Profit | 3.26B | 3.15B | 2.92B | 2.68B | 2.61B | 2.44B |
| EBITDA | 1.40B | 1.29B | 1.06B | 754.10M | 697.40M | 579.20M |
| Net Income | 910.30M | 875.00M | 936.90M | 1.37B | 352.20M | 242.30M |
Balance Sheet | ||||||
| Total Assets | 8.00B | 8.03B | 8.24B | 7.56B | 6.97B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.16B | 1.08B | 1.09B | 498.80M | 774.00M | 1.26B |
| Total Debt | 3.84B | 3.86B | 3.89B | 3.94B | 3.98B | 4.06B |
| Total Liabilities | 7.99B | 7.82B | 7.54B | 7.50B | 7.30B | 7.33B |
| Stockholders Equity | 6.70M | 215.10M | 692.10M | 62.20M | -331.80M | 81.70M |
Cash Flow | ||||||
| Free Cash Flow | 1.70B | 1.58B | 1.26B | 970.20M | 919.60M | 576.10M |
| Operating Cash Flow | 1.73B | 1.60B | 1.29B | 1.05B | 979.70M | 829.30M |
| Investing Cash Flow | -24.80M | -25.10M | 21.50M | -102.40M | -132.00M | -635.60M |
| Financing Cash Flow | -1.63B | -1.59B | -677.40M | -1.26B | -1.33B | 298.10M |
GoDaddy Technical Analysis
Positive
96.41
Price Trends
87.62
Positive
86.61
Positive
98.63
Negative
Market Momentum
1.39
Negative
53.53
Neutral
80.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Positive. The current price of 96.41 is above the 20-day moving average (MA) of 93.20, above the 50-day MA of 87.62, and below the 200-day MA of 98.63, indicating a neutral trend. The MACD of 1.39 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 80.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDDY.
GoDaddy Risk Analysis
GoDaddy disclosed 49 risk factors in its most recent earnings report. GoDaddy reported the most risks in the "Finance & Corporate" 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $22.83B | 31.75 | 19.86% | ― | 9.41% | 10.59% | |
71 Outperform | $29.69B | -382.50 | -3.71% | ― | 24.61% | -91.58% | |
67 Neutral | $12.02B | 13.96 | 660.95% | ― | 7.50% | 18.20% | |
65 Neutral | $7.49B | 18.91 | -23.53% | ― | -0.05% | 9.77% | |
63 Neutral | $6.54B | 18.86 | 28.22% | ― | 7.46% | 27.03% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $3.10B | -20.94 | 28.08% | ― | 14.18% | -218.58% |
* Technology Sector Average
GDDY
GoDaddy
94.91
-49.16
-34.12%
FFIV
F5, Inc.
403.20
86.94
27.49%
WEX
WEX
191.78
19.10
11.06%
WIX
Wix
74.13
-54.64
-42.43%
ZS
Zscaler
183.60
-93.43
-33.73%
DBX
Dropbox
34.42
6.52
23.37%
GoDaddy Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GoDaddy Upsizes Revolving Credit Facility, Extends Maturity
Positive
Aug 4, 2026
On July 31, 2026, GoDaddy’s borrowing subsidiaries entered into a Thirteenth Amendment to their Second Amended and Restated Credit Agreement, upsizing and refinancing the prior $1,000 million revolving credit facility with a new $1,200 milli...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
GoDaddy Shareholders Approve Expanded Equity Incentive Plan
Positive
Jun 5, 2026
At its annual meeting of stockholders held on June 3, 2026, GoDaddy shareholders approved an amended and restated 2024 Omnibus Incentive Plan, increasing the pool of Class A common shares available for equity awards by 3,116,000, potentially enhan...
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.