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GoDaddy Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 30 July 2026: press release. Guidance figures: 2 new, 4 kept. The quarter’s numbers.

Key takeaways

  • Revenue rose 7% year-over-year: Total revenue was $1.3 billion, up 7% on a reported basis and 6% in constant currency. Six-month revenue was $2,564.9 million, up 6.3%. Source
  • Third quarter revenue range introduced: Third quarter total revenue is expected at $1.315 billion to $1.335 billion, about 5% growth at the midpoint versus the same period in 2025. Source
  • Applications and Commerce grew fastest: A&C revenue was $514.8 million. Segment EBITDA was $241.1 million at a 46.8% margin, up 250 basis points from 44.4%. Source
  • Airo bookings run rate reached $50M: Airo's annualized bookings run rate was $50 million, five times the $10 million shared one quarter earlier. Management said customer adoption continues to build. Source
  • NEBITDA margin widened to 33.4%: NEBITDA was $434.1 million, up 14%, at a 33.4% margin, up from 31.3% a year earlier. Six-month NEBITDA margin was 33.0%. Source
  • Third quarter faces toughest comparison: Management said the third quarter is its toughest comparison, given Aftermarket performance in the same period of the prior year. Source
  • Share buybacks reached $851.8 million: Through July 29, the company repurchased 9.8 million shares, a 7% gross reduction in fully diluted shares since the start of the year. Source

“Small businesses are engaging with technology in entirely new ways, and Airo's momentum reinforces that we are meeting them where they are going.”

GoDaddy CEO Aman Bhutani

Guidance

AreaPeriodFigureAgainst last quarter
Total revenue SourceThird quarter 2026 (quarter ending September 30, 2026)$1.315 billion to $1.335 billionNew
Total revenue SourceFull year 2026$5.215 billion to $5.255 billion
NEBITDA margin SourceThird quarter 2026approximately 33%New
NEBITDA margin SourceFull year 2026over 33%Kept
Free cash flow SourceFull year 2026approximately $1.8 billionKept
A&C revenue growth SourceThird quarter 2026 and full year 2026low double-digitsKept
Core revenue growth SourceThird quarter 2026 and full year 2026low single-digitsKept

What changed from last quarter

  • New guidance: Third quarter 2026 total revenue range was given for the first time in this release. Source
  • New guidance: Third quarter 2026 NEBITDA margin guidance of approximately 33% was given. Source
  • Guidance kept: The full-year NEBITDA margin target of over 33% was reaffirmed. Source
  • Guidance kept: The full-year free cash flow target of approximately $1.8 billion was reaffirmed. Source
  • New: GoDaddy launched a Developer Platform with new APIs for searching, purchasing, configuring and managing domains. Source
  • New: GoDaddy announced its intent to contribute Agent Name Service to the Linux Foundation. Source

Second quarter results

  • Revenue rose 7% year-over-year: Total revenue was $1.3 billion, up 7% on a reported basis and 6% in constant currency. Six-month revenue was $2,564.9 million, up 6.3%. Source
  • Operating income rose 29%: Operating income was $342.5 million, a 26% margin, against a 21.9% margin a year earlier. Six-month operating income rose 27.1% to $653.0 million. Source
  • Net income and diluted EPS rose: Net income was $240.1 million, an 18% margin. Diluted EPS was $1.83 against $1.41. Six-month net income rose 8.4% against a one-time tax benefit in the prior year. Source
  • Free cash flow and operating cash rose: Net cash from operating activities was $442.5 million, up 16%. Six-month free cash flow reached $917.1 million, up 14.2%. Source

Guidance and targets

  • Third quarter revenue range introduced: Third quarter total revenue is expected at $1.315 billion to $1.335 billion, about 5% growth at the midpoint versus the same period in 2025. Source
  • Full-year revenue range narrowed: The full-year range is now $5.215 billion to $5.255 billion, from $5.195 billion to $5.275 billion. The midpoint is about 6% growth over $4.951 billion in 2025. Source
  • Third quarter NEBITDA margin guided: NEBITDA margin is expected at approximately 33% in the third quarter, after second quarter guidance of approximately 33% and a reported 33.4%. Source
  • Margin and cash targets reaffirmed: The full-year NEBITDA margin target of over 33% and the free cash flow target of approximately $1.8 billion were reaffirmed, against $1.6 billion generated in 2025. Source
  • Category growth expectations held: A&C revenue is expected to grow in the low double-digits and Core in the low single-digits, for the third quarter and the full year. Source

“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.”

GoDaddy CFO Mark McCaffrey

Segments and regions

  • Applications and Commerce grew fastest: A&C revenue was $514.8 million. Segment EBITDA was $241.1 million at a 46.8% margin, up 250 basis points from 44.4%. Source
  • Core Platform grew 4%: Core revenue was $783.2 million. Core segment EBITDA was $261.9 million at a 33.4% margin, up 70 basis points from 32.7%. Source
  • International revenue rose 7.9%: International revenue was $427.1 million, up 7.9% reported and 7.1% in constant currency. Source

Products and customers

  • Airo bookings run rate reached $50M: Airo's annualized bookings run rate was $50 million, five times the $10 million shared one quarter earlier. Management said customer adoption continues to build. Source
  • Developer platform opens domains to APIs: The new APIs let developers and AI systems search, purchase, configure and manage domains inside the tools where they work. Source
  • Customer count and ARPU rose: Total customers reached 20.5 million, with 22 thousand added in the quarter. Average revenue per user rose 8.7% to $250. Source

“Our disciplined operating model gives us the capacity to invest in the future and create durable value for customers and shareholders.”

GoDaddy CEO Aman Bhutani

Costs and margins

  • NEBITDA margin widened to 33.4%: NEBITDA was $434.1 million, up 14%, at a 33.4% margin, up from 31.3% a year earlier. Six-month NEBITDA margin was 33.0%. Source
  • Cost of revenue rose, marketing fell: Cost of revenue was $469.8 million against $442.3 million. Marketing and advertising fell to $89.0 million from $93.4 million. Source
  • General and administrative costs fell: General and administrative was $90.5 million against $96.9 million. Depreciation and amortization was $13.3 million against $30.6 million. Source
  • Equity-based compensation declined: Equity-based compensation was $70.2 million in the quarter, against $81.0 million a year earlier. Source
  • Tax provision rose to $76.9 million: Provision for income taxes was $76.9 million against $39.2 million. The prior-year six months included a one-time $34.6 million tax benefit. Source

Demand and bookings

  • Third quarter faces toughest comparison: Management said the third quarter is its toughest comparison, given Aftermarket performance in the same period of the prior year. Source
  • Bookings and revenue differ in timing: The company typically collects payment at contract inception and recognizes revenue ratably, so bookings and revenue can differ in timing. Source
  • Current deferred revenue increased: Current deferred revenue was $2,527.9 million at June 30, against $2,384.2 million at December 31, 2025. Non-current deferred revenue was $983.0 million. Source

Capital and shareholder returns

  • Share buybacks reached $851.8 million: Through July 29, the company repurchased 9.8 million shares, a 7% gross reduction in fully diluted shares since the start of the year. Source
  • Net debt at June 30: Cash and equivalents were $1.2 billion and total debt was $3.8 billion, leaving net debt of $2.7 billion, up from $2.6 billion at March 31. Source
  • Six-month cash repurchases of $824.4M: Six-month repurchases of Class A common stock used $824.4 million of cash, against $792.5 million a year earlier. Source
  • Class A shares outstanding declined: Class A shares outstanding were 126,834 thousand at June 30, against 138,863 thousand a year earlier. Source

Strategy and investment

  • AI transformation centered on Airo: The company is advancing a company-wide AI transformation with Airo at the center, creating an agentic operating system for customers. Source
  • Agentic Resource Discovery with partners: GoDaddy co-develops Agentic Resource Discovery, or ARD, with ten named companies, including Cisco, Google, Microsoft and Snowflake. Source
  • Agent Name Service identity layer: GoDaddy announced its intent to contribute Agent Name Service to the Linux Foundation, extending its work on the identity layer of the agentic web. Source

Coming up, as management said on 30 July 2026

  • Investor Night on December 1: An in-person event at the Tempe headquarters where leaders will discuss strategy, the AI-first transformation, refreshed select financial targets and product demonstrations. Source

Figures management reported

FigureReported
Annualized recurring revenue (ARR) Source$4,421.4 million, up 5.7%
Total customers Source20.5 million
Average revenue per user (ARPU) Source$250, up 8.7%
Total bookings Source$1,422.1 million, up 5.7%

Risks management discussed

  • Demand: Management flagged the third quarter as its toughest comparison, given Aftermarket performance in the same period of the prior year. Source

Earlier plans management reported on

  • Not stated: The company reaffirmed its full-year NEBITDA margin target of over 33%. Source
  • Not stated: The company reaffirmed its full-year free cash flow target of approximately $1.8 billion. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.