GoDaddy Inc.
For the period ended Sep 30, 2025. Filed Oct 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 31, 2025
GDDY$114.38-4.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001609711-25-000154
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-31.
0001609711-25-000209
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 119 previous paragraphs and 118 current paragraphs.
76 unchanged; 32 reworded; 8 added; 11 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Consolidated Third Quarter Financial Highlights
Current report
•Total revenue of $1,265.3 million, an increase of 10.3% on a reported and constant currency basis(1).
Current report
•International revenue of $422.5 million, an increase of 14.4% on a reported and constant currency basis(1).
Current report
•Total bookings of $1,354.5 million, an increase of 9.1%, or 9.0% on a constant currency basis(1).
Current report
•Operating income of $296.7 million, an increase of 16.9%.
Current report
•Net incomeof $210.5 million, an increase of 10.5%.
Current report
•Normalized EBITDA(2) of $408.6 million, an increase of 11.5%.
Current report
The $60.9 million, or 14.9%, increase in cost of revenue for the three months ended September 30, 2025 was driven by the increases in revenue described above as well as a combined $8.9 million increase related to the timing of certain costs associated with the sale of bundled products and a higher number of lower-margin aftermarket sales.
Removed paragraphs (11)
Previous report
Consolidated Second Quarter Financial Highlights
Previous report
•Total revenue of $1,217.6 million, an increase of 8.3%, or approximately 8.4% on a constant currency basis(1).
Previous report
•International revenue of $395.9 million, an increase of 10.9%, orapproximately 11.3% on a constant currency basis(1).
Previous report
•Total bookings of $1,345.3 million, an increase of 6.6%, or approximately 6.7% on a constant currency basis(1).
Previous report
•Operating income of $266.3 million, an increase of 27.9%.
Previous report
•Net income of $199.9 million, an increase of 36.6%(2).
Previous report
•Normalized EBITDA(3) of $381.7 million, an increase of 15.1%.
Previous report
(2)Net income for the three months ended June 30, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million.
Previous report
There was no material change in marketing expenses for the three months ended June 30, 2025.
Previous report
Tax Reform
Previous report
On July 4, 2025, H.R. 1 (One Big Beautiful Bill Act or the Act) was enacted in the U.S. The Act includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The tax effects of the change in the law are not included in our operating results for the period ended June 30, 2025, as the Act was enacted after the balance sheet date. We are currently assessing its impact on our consolidated financial statements.
Reworded paragraphs (32)
Previous wording
•Net cash provided by operating activities of $379.9 million, an increase of 28.9%.
Current wording
•Net cash provided by operating activities of $444.2 million, an increase of 25.1%.
Previous wording
(3)A reconciliation of Normalized EBITDA to net income, its most directly comparable GAAP financial measure, is set forth in "Reconciliation of NEBITDA" below.
Current wording
(2) A reconciliation of Normalized EBITDA to net income, its most directly comparable GAAP financial measure, is set forth in "Reconciliation of NEBITDA" below.
Previous wording
(1)The six months ended June 30, 2024 excludes $0.8 million of equity-based compensation expense associated with our restructuring activities, which is included within restructuring and other.
Current wording
(1)The nine months ended September 30, 2024 excludes $0.8 million of equity-based compensation expense associated with our restructuring activities, which is included within restructuring and other.
Previous wording
(2)In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, expenses incurred in relation to the refinancing of our long-term debt and incremental expenses associated with certain professional services.
Current wording
(2)In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, adjustments to the fair value of our equity investments, expenses incurred in relation to the refinancing of our long-term debt and incremental expenses associated with certain professional services.
Previous wording
Total revenue increased 8.3% and 8.0% for the three and six months ended, respectively, due to the increases in our A&C and Core revenues, as described below:
Current wording
Total revenue increased 10.3% and 8.8% for the three and nine months ended, respectively, due to the increases in our A&C and Core revenues, as described below:
Previous wording
A&C revenue grew $58.3 million, or 14.4%, for the three months ended June 30, 2025 and $121.6 million, or 15.4%, for the six months ended June 30, 2025 due to continued customer adoption of our subscription-based products.
Current wording
A&C revenue grew $57.9 million, or 13.7%, for the three months ended September 30, 2025 and $179.5 million, or 14.8%, for the nine months ended September 30, 2025 due to continued customer adoption of our subscription-based products.
Previous wording
Core revenue grew $34.8 million, or 4.8%, for the three months ended June 30, 2025 driven by $29.7 million growth in domain registration and add-on revenues and $7.3 million growth in aftermarket revenue.
Current wording
Core revenue grew $59.8 million, or 8.3%, for the three months ended September 30, 2025 driven by $30.1 million growth in aftermarket revenue and $29.9 million growth in domain registration and add-on revenues.
Previous wording
Core revenue grew $57.3 million, or 4.0%, for the six months ended June 30, 2025 driven by $53.7 million growth in domain registration and add-on revenues and $13.2 million growth in aftermarket revenue. This increase was partially offset by a shift in sales mix as well as a $5.6 million decrease in hosting revenues related to end of life migrations away from certain products and the disposition of certain hosting assets in 2024.
Current wording
Core revenue grew $117.1 million, or 5.4%, for the nine months ended September 30, 2025 driven by $83.5 million growth in domain registration and add-on revenues and $43.3 million growth in aftermarket revenue. This increase was offset by a shift in sales mix as well as a $9.6 million decrease in hosting revenues related to end of life migrations away from certain products and the disposition of certain hosting assets in 2024.
Previous wording
The $83.4 million, or 6.6%, increase in total bookings for the three months ended June 30, 2025 and the $187.8 million, or 7.3%, increase in total bookings for the six months ended June 30, 2025 were driven by strength in domains and aftermarket and continued customer adoption of our subscription-based A&C products. For the six months ended June 30, 2025, the increase was partially offset by a $10.6 million impact from changes in foreign currency exchange rates net of hedging gains from our cash flow hedging program.
Current wording
The $112.8 million, or 9.1%, increase in total bookings for the three months ended September 30, 2025 and the $300.5 million, or 7.9%, increase in total bookings for the nine months ended September 30, 2025 were driven by strength in domains and aftermarket and continued customer adoption of our subscription-based A&C products. For the nine months ended September 30, 2025, the increase was offset by a$9.4 million impact from changes in foreign currency exchange rates net of hedging gains from our cash flow hedging program.
Previous wording
Following a competitive rebid in the second quarter of 2025, we will no longer operate as the registry service provider for the .CO top-level domain. We anticipate that this transition will begin in the fourth quarter of 2025. We do not expect this transition to have a material impact to our financial results. We will continue to offer .CO to customers in our capacity as an accredited registrar.
Current wording
After October 3, 2025, following a competitive rebid in the second quarter of 2025, we will no longer operate as the registry service provider for the .CO top-level domain. We do not expect this transition to have a material impact to our financial results and will continue to offer .CO to customers in our capacity as an accredited registrar.
Previous wording
The $34.0 million, or 8.3%, increase in cost of revenue for the three months ended June 30, 2025 and the $60.0 million, or 7.3%, increase in cost of revenue for the six months ended June 30, 2025 were driven by the increases in revenue described above.
Current wording
The $120.9 million, or 9.8%, increase in cost of revenue for the nine months ended September 30, 2025 were driven by the increases in revenue described above.
Previous wording
The $8.4 million, or 4.1%, increase in technology and development expenses for the three months ended June 30, 2025 and the $10.8 million, or 2.6%, increase in technology and development expenses for the six months ended June 30, 2025, were attributable to a $6.8 million and $9.1 million increase, respectively, in personnel costs driven by higher average headcount associated with our continued investment in product development.
Current wording
The $16.2 million, or 2.6%, increase in technology and development expenses for the nine months ended September 30, 2025, was attributable to a $14.6 million increase in personnel costs associated with our continued investment in product development.
Previous wording
The $12.8 million, or 7.1%, increase in marketing and advertising expenses for the six months ended June 30, 2025 was attributable to an increase in discretionary advertising spend in support of our strategic initiatives, including broader awareness of our GoDaddy Airo experience.
Current wording
The $7.6 million, or 9.0%, increase in marketing and advertising expenses for the three months ended September 30, 2025 and the $20.4 million, or 7.7%, increase in marketing and advertising expenses for the nine months ended September 30, 2025, were attributable to an increase in discretionary advertising spend in support of our strategic initiatives, including broader awareness of our AI-powered solutions, including our GoDaddy Airo experience.
Previous wording
There was no material change in customer care expenses for the three and six months ended June 30, 2025.
Current wording
There was no material change in customer care expenses for the three and nine months ended September 30, 2025.
Previous wording
There was no material change in general and administrative expenses for the three and six months ended June 30, 2025.
Current wording
There was no material change in general and administrative expenses for the three and nine months ended September 30, 2025.
Previous wording
Restructuring and other was $2.4 million for the six months ended June 30, 2025, which related to severance and employee benefits incurred pursuant to restructuring activities. Restructuring and other was $29.3 million for the six months ended June 30, 2024, which includes $17.5 million of costs incurred pursuant to restructuring activities and $6.0 million of expense related to the abandonment of certain operating leases.
Current wording
Restructuring and other was $7.9 million for the nine months ended September 30, 2025, which related to severance and employee benefits incurred pursuant to restructuring activities. Restructuring and other was $29.7 million for the nine months ended September 30, 2024, which includes $17.4 million of costs incurred pursuant to restructuring activities and $5.7 million of expense related to the abandonment of certain operating leases.
Previous wording
The $8.9 million, or 12.7%, decrease in depreciation and amortization expense for the six months ended June 30, 2025 was attributable to fully depreciated assets and accelerated depreciation related to office closures during the three months ended June 30, 2024.
Current wording
The $13.3 million, or 12.9%, decrease in depreciation and amortization expense for the nine months ended September 30, 2025 was attributable to fully depreciated assets and accelerated depreciation related to office closures in Q2 2024.
Previous wording
There was no material change in interest expense for the three and six months ended June 30, 2025.
Current wording
There was no material change in interest expense for the three and nine months ended September 30, 2025.
Previous wording
There was no material change in other income (expense), net for the three and six months ended June 30, 2025.
Current wording
There was no material change in other income (expense), net for the three and nine months ended September 30, 2025.
Previous wording
The $29.2 million, or 16.5%, increase in A&C Segment EBITDA for the three months ended June 30, 2025 was attributed to a $58.3 million increase in revenue as described above. This increase was partially offset by a $29.1 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue as well as higher operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to higher technology and development costs.
Current wording
The $25.3 million, or 13.0%, increase in A&C Segment EBITDA for the three months ended September 30, 2025 was attributed to a $57.9 million increase in revenue as described above. This increase was offset by a $32.6 million increase in other segment items driven by higher cost of revenue which was attributable to the increase in revenue as well as higher marketing costs (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense).
Previous wording
The $64.2 million, or 19.0%, increase in A&C Segment EBITDA for the six months ended June 30, 2025 was attributed to a $121.6 million increase in revenue as described above. This increase was partially offset by a $57.4 million increase in other segment items driven by higher cost of revenue attributable to an increase in revenue as well as operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to higher marketing costs and higher technology and development costs.
Current wording
The $89.5 million, or 16.8%, increase in A&C Segment EBITDA for the nine months ended September 30, 2025 was attributed to a $179.5 million increase revenue described above. This increase was offset by a $90.0 million increase in other segment items driven by higher cost of revenue attributable to an increase in revenue as well as operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to higher marketing costs and higher technology and development costs.
Previous wording
The $26.6 million, or 12.1%, increase in Core Segment EBITDA for the three months ended June 30, 2025 was attributed to a $34.8 million increase in revenue as described above. This increase was partially offset by a $8.2 million increase in other segment items driven by an increase in cost of revenue (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) partially offset by lower operating expenses.
Current wording
The $19.5 million, or 8.2%, increase in Core Segment EBITDA for the three months ended September 30, 2025 was attributed to a $59.8 million increase in revenue as described above. This increase was offset by a $40.3 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue.
Previous wording
The $45.2 million, or 10.4%, increase in Core Segment EBITDA for the six months ended June 30, 2025 was attributed to a $57.3 million increase in revenue as described above. This increase was partially offset by a $12.1 million increase in other segment items driven by an increase in cost of revenue and marketing costs (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) partially offset by lower care and technology and development costs.
Current wording
The $64.7 million, or 9.6%, increase in Core Segment EBITDA for the nine months ended September 30, 2025 was attributed to a $117.1 million increase in revenue as described above as well as lower operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to lower care and technology and development costs. This increase was offset by a $52.4 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue and higher marketing costs.
Previous wording
In general, we seek to deploy our capital by focusing on requirements for our operations, on growth investments and on stockholder returns. Our strategy is to deploy capital, whether debt, equity or internally generated cash, depending on the adequacy and availability of the source of capital and which source may be used most efficiently and at the lowest cost at such time. Therefore, while cash from operations is our primary source of operating liquidity and we believe our internally generated cash flows are sufficient to support our day-to-day operations, we may use a variety of capital sources to fund our needs for less predictable investment decisions such as strategic acquisitions and share repurchases.
Current wording
In general, we seek to deploy our capital by focusing on requirements for our operations, growth investments and stockholder returns. Our strategy is to deploy capital, whether debt, equity or internally generated cash, depending on the adequacy and availability of the source of capital and which source may be used most efficiently and at the lowest cost at such time. Therefore, while cash from operations is our primary source of operating liquidity and we believe our internally generated cash flows are sufficient to support our day-to-day operations, we may use a variety of capital sources to fund our needs for less predictable investment decisions such as strategic acquisitions and share repurchases.
Previous wording
Net cash provided by operating activities increased $192.6 million from $592.0 million during the six months ended June 30, 2024 to $784.6 million during the six months ended June 30, 2025, driven by the growth in total bookings. Bookings growth was due to strong adoption across our A&C product suite, as well as continued strength in domains and aftermarket performance. The increase was also driven by lower restructuring related payments.
Current wording
Net cash provided by operating activities increased $281.6 million driven by the growth in total bookings. The increase was also driven by lower restructuring related payments.
Previous wording
Our investing activities generally consist of strategic acquisitions, dispositions and purchases of property and equipment to support the overall growth of our business. We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures, strategic acquisitions or other growth opportunities we decide to pursue.
Current wording
Our investing activities generally consist of strategic investments, dispositions and purchases of property and equipment to support the overall growth of our business. We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures, strategic acquisitions or other growth opportunities we decide to pursue.
Previous wording
Net cash provided by investing activities decreased $50.9 million from $40.9 million net cash provided during the six months ended June 30, 2024 to $10.0 million netcash used during the six months ended June 30, 2025, due to maturities of short-term investments totaling$40.0 million as well as proceeds from dispositions of certain assets and liabilities of our hosting business in the six months ended June 30, 2024.
Current wording
Net cash provided by investing activities decreased $55.1 million due to maturities of short-term investments totaling $40.0 million as well as proceeds from dispositions of certain assets and liabilities of our hosting business in the nine months ended September 30, 2024.
Previous wording
Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, ESPPs proceeds and share repurchases.
Current wording
Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, employee stock purchase plan proceeds and share repurchases.
Previous wording
Net cash used in financing activities increased $135.5 million from $646.2 million during the six months ended June 30, 2024 to $781.7 million during the six months ended June 30, 2025, primarily due to a $143.3 million increase in share repurchases.
Current wording
Net cash used in financing activities increased $703.5 million driven by a $714.9 million increase in share repurchases.
Previous wording
Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of June 30, 2025, we were in compliance with all such covenants and had $994.7 million available for borrowing under the Revolver.
Current wording
Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions. As of September 30, 2025, we were in compliance with all such covenants and had $998.7 million available for borrowing under the Revolver.
Previous wording
As discussed in Note 4 to our financial statements, the board previously authorized the repurchase of up to $4,000 million of our Class A common stock. During the three months ended March 31, 2025, we executed two ASRs totaling $767.4 million in upfront payments, fully utilizing the amount remaining under this board authorization. These ASRs were fully settled in April 2025 with the delivery of approximately 4.4 million shares at a weighted average price of $176.02 per share. Upon completion of the ASRs, no amount was remaining for repurchases under this board authorization.
Current wording
As discussed in Note 4 to our financial statements, the board previously authorized the repurchase of up to $4,000.0 million of our Class A common stock. During the three months ended March 31, 2025, we executed two ASRs totaling $767.4 million in upfront payments, fully utilizing the amount remaining under this board authorization. These ASRs were fully settled in April 2025 with the delivery of approximately 4.4 million shares at a weighted average price of $176.02 per share. Upon completion of the ASRs, no amount was remaining for repurchases under this board authorization.
Previous wording
Following the execution of the share repurchase authorization described above, in April 2025, the board approved the repurchase of up to an additional $3,000 million of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. During the six months ended June 30, 2025, we repurchased a total of approximately 0.2 million shares of our Class A common stock in the open market for an aggregate purchase price of $27.0 million. As of June 30, 2025, we had $2,973.0 million of remaining authorization available for repurchases.
Current wording
In April 2025, the board approved the repurchase of up to an additional $3,000.0 million of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. Under this repurchase plan, we repurchased a total of approximately 4.2 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $625.3 million during the nine months ended September 30, 2025.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
There was no material change in technology and development expenses for the three months ended September 30, 2025.
Current report — wording carried from elsewhere
In aggregate, during the nine months ended September 30, 2025, we repurchased a total of approximately 8.6 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $1,392.6 million.