Second Quarter 2026
Filed Jul 30, 2026GoDaddy Reports Second Quarter 2026 Financial Results
Second-quarter revenue, bookings, operating income, net income, NEBITDA and free cash flow all increased year-over-year, with operating income margin expanding to 26.4%. A&C outgrew Core, while the full-year revenue range was narrowed and the company reaffirmed its full-year NEBITDA margin and free-cash-flow targets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $1,298.0 million | – | 6.6% |
| Total revenue, six months ended June 30GAAP | $2,564.9 million | – | 6.3% |
| International revenueGAAP | $427.1 million | – | 7.9% |
| International revenue, six months ended June 30GAAP | $843.0 million | – | 7.4% |
| Operating incomeGAAP | $342.5 million | – | 28.6% |
| Operating income, six months ended June 30GAAP | $653.0 million | – | 27.1% |
| Operating income marginGAAP | 26.4% | – | 450bps |
| Operating income margin, six months ended June 30GAAP | 25.5% | – | 420bps |
| Net incomeGAAP | $240.1 million | – | 20.1% |
| Net income, six months ended June 30GAAP | $454.7 million | – | 8.4% |
| Net income marginGAAP | 18.5% | – | NM |
| Net income margin, six months ended June 30GAAP | 17.7% | – | NM |
| Net cash provided by operating activitiesGAAP | $442.5 million | – | 16.5% |
| Net cash provided by operating activities, six months ended June 30GAAP | $914.0 million | – | 16.5% |
| NEBITDAnon-GAAP | $434.1 million | – | 13.7% |
| NEBITDA, six months ended June 30non-GAAP | $847.6 million | – | 13.6% |
| NEBITDA marginnon-GAAP | 33.4% | – | 210bps |
| NEBITDA margin, six months ended June 30non-GAAP | 33.0% | – | 210bps |
| Free cash flownon-GAAP | $443.5 million | – | 13.3% |
| Free cash flow, six months ended June 30non-GAAP | $917.1 million | – | 14.2% |
| Total bookingsother | $1,422.1 million | – | 5.7% |
| Total bookings, six months ended June 30other | $2,877.4 million | – | 4.2% |
| Average revenue per user (ARPU)other | $250 | – | 8.7% |
| Annualized recurring revenueother | $4,421.4 million | – | 5.7% |
| Total customersother | 20.5 million | up 22 thousand during the quarter | – |
| Airo annualized bookings run rateother | $50 million | five times | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Applications and Commerce (A&C)A&C revenue growth was reported at 11.0% year-over-year. Airo continued to gain traction, reaching an annualized bookings run rate of $50 million. | $514.8 million | – | 11.0% |
| Core Platform (Core)Core revenue growth was reported at 3.9% year-over-year. The company expects Core revenue growth in the low single-digits for the third quarter and full year. | $783.2 million | – | 3.9% |
Third quarter ending September 30, 2026 and full year ending December 31, 2026 outlook
- RevenueThird quarter: $1.315 billion to $1.335 billion; full year: $5.215 billion to $5.255 billion
- NoteThird quarter total revenue growth of 5% at the midpoint versus the same period in 2025.
- NoteFull-year total revenue growth of 6% at the midpoint versus the $4.951 billion of revenue generated for the full year ended December 31, 2025.
- NoteThird quarter and full-year A&C revenue growth in the low double-digits.
- NoteThird quarter and full-year Core revenue growth in the low single-digits.
- NoteThird-quarter NEBITDA margin of approximately 33%.
- NoteFull-year NEBITDA margin target of over 33%.
- NoteFull-year free cash flow target of approximately $1.8 billion, versus the $1.6 billion of free cash flow generated in 2025.
Capital returns
- Year to date through July 29, 2026, GoDaddy repurchased 9.8 million shares of its common stock for an aggregate purchase price of $851.8 million.
- The repurchases resulted in a 7% gross reduction in fully diluted shares outstanding since the beginning of the year.
What drove it
- Total revenue increased 6.6% year-over-year, while total bookings increased 5.7%.
- A&C revenue increased 11.0% year-over-year, compared with 3.9% growth in Core revenue.
- ARPU was $250, up 8.7% year-over-year, and annualized recurring revenue was $4,421.4 million, up 5.7%.
- Airo reached an annualized bookings run rate of $50 million, five times the $10 million shared one quarter ago.
- The company launched the GoDaddy Developer Platform and announced its intent to contribute Agent Name Service to the Linux Foundation and co-develop Agentic Resource Discovery.
Concerns
- Third-quarter guidance represents GoDaddy's toughest comparison against strong Aftermarket performance during the same period in the prior year.
- Core Platform revenue growth was 3.9% year-over-year, below the 11.0% growth reported for A&C.
- Total customers were up 22 thousand during the quarter and 35 thousand since December 31, 2025.
- Net income for the six months ended June 30, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million.
What to watch
- Third-quarter revenue delivery against the range of $1.315 billion to $1.335 billion.
- A&C revenue growth in the low double-digits and Core revenue growth in the low single-digits.
- Third-quarter NEBITDA margin of approximately 33% and the full-year target of over 33%.
- Progress toward the full-year free cash flow target of approximately $1.8 billion.
- Airo customer adoption and engagement following its $50 million annualized bookings run rate.
- Investor Night on December 1, 2026, when leaders are expected to refresh select financial targets.
Balance sheet and cash flow
- As of June 30, 2026, total cash and cash equivalents were $1.2 billion.
- As of June 30, 2026, total debt was $3.8 billion.
- As of June 30, 2026, net debt was $2.7 billion.
- Net cash provided by operating activities was $442.5 million, up 16.5% year-over-year.
- Free cash flow was $443.5 million, up 13.3% year-over-year.
Analysis
GoDaddy reported second-quarter total revenue of $1,298.0 million, up 6.6% year-over-year, alongside total bookings of $1,422.1 million, up 5.7%. A&C was the principal growth contributor, with revenue of $514.8 million and 11.0% growth, while Core generated $783.2 million and grew 3.9%. International revenue increased 7.9% to $427.1 million. ARPU rose 8.7% to $250, and annualized recurring revenue increased 5.7% to $4,421.4 million.
Profitability expanded materially. GAAP operating income increased 28.6% to $342.5 million, and operating income margin rose 450bps to 26.4%. GAAP net income increased 20.1% to $240.1 million, with net income margin of 18.5%. NEBITDA increased 13.7% to $434.1 million and the NEBITDA margin rose 210bps to 33.4%, demonstrating margin expansion alongside revenue growth.
Cash generation remained strong. Net cash provided by operating activities increased 16.5% to $442.5 million, while free cash flow increased 13.3% to $443.5 million. Year to date through July 29, 2026, the company repurchased 9.8 million shares for $851.8 million, resulting in a 7% gross reduction in fully diluted shares outstanding since the beginning of the year. At June 30, total cash and cash equivalents were $1.2 billion, total debt was $3.8 billion and net debt was $2.7 billion.
The company highlighted AI-related product and ecosystem activity, including Airo's $50 million annualized bookings run rate, the GoDaddy Developer Platform, Agent Name Service and Agentic Resource Discovery. Total customers were 20.5 million, up 22 thousand during the quarter and 35 thousand since December 31, 2025. The customer metric and slower Core growth are important counterpoints to A&C's stronger revenue growth.
For the third quarter, GoDaddy expects revenue of $1.315 billion to $1.335 billion and approximately 33% NEBITDA margin. Management cited a tough comparison against strong Aftermarket performance in the prior-year period. For the full year, the company narrowed revenue guidance to $5.215 billion to $5.255 billion, reaffirmed a NEBITDA margin target of over 33% and reaffirmed a free cash flow target of approximately $1.8 billion.
Management, verbatim
GoDaddy is advancing a company-wide AI transformation with Airo at the center, creating an agentic operating system that helps our customers accomplish more.
Aman Bhutani, GoDaddy CEO
We delivered solid revenue growth, expanded profitability and strong free cash flow, while maintaining our disciplined, returns-based approach to capital allocation through substantial share buybacks.
Mark McCaffrey, GoDaddy CFO
Not in the filing
stated, not guessed- GAAP diluted EPS
- Non-GAAP diluted EPS
- Gross profit and gross margin
- Operating expenses
- Tax rate
- Quarterly dividend information
- Prior-quarter financial metrics for revenue, segments, profitability, bookings, ARPU, annualized recurring revenue, operating cash flow and free cash flow
- Prior guidance, which was not provided
- Reconciliations of NEBITDA and free cash flow to GAAP measures in the supplied filing text
- Segment EBITDA driver disclosures beyond the reported financial results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.