GoDaddy demonstrates robust cash conversion efficiency, with an OCF/NI ratio frequently exceeding 1.8x, allowing for significant liquidity despite minimal capital reinvestment requirements.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 1.67B | 1.6B | 1.29B | 1.05B | 979.7M | 829.3M | 764.6M | 723.4M | 559.8M | 475.6M | 386.5M | 259.4M | 180.57M | 153.31M | 106.11M |
| Operating CF Margin % | - | 32.3% | 28.16% | 24.63% | 23.95% | 21.73% | 23.05% | 24.21% | 21.04% | 21.31% | 20.92% | 16.14% | 13.02% | 13.56% | 11.65% |
| Operating CF Growth % | 79.27% | 24.21% | 22.92% | 6.93% | 18.14% | 8.46% | 5.7% | 29.22% | 17.7% | 23.05% | 49% | 43.66% | 17.78% | 44.48% | - |
| Net Income | 870.1M | 875M | 936.9M | 1.38B | 352.9M | 242.8M | -494.1M | 138.4M | 82M | 139.8M | -21.9M | -120.4M | -143.31M | -199.88M | -279.05M |
| Depreciation & Amortization | 110M | 116.6M | 135.3M | 171.3M | 194.6M | 199.6M | 202.7M | 209.7M | 234.1M | 205.8M | 160.1M | 158.8M | 152.76M | 140.57M | 138.62M |
| Stock-Based Compensation | 312.7M | 317.8M | 299.9M | 296.3M | 264.4M | 207.9M | 191.5M | 147M | 125.5M | 76.4M | 56.8M | 40.4M | 30.18M | 16.45M | 11.68M |
| Deferred Taxes | 199.6M | 157.4M | -177.8M | -993.2M | -18.4M | -16.1M | 674.7M | -8.7M | -41.1M | -157.7M | 8.7M | -3.1M | -6.82M | 0 | -597K |
| Other Non-Cash Items | 95.8M | 29.6M | 32.2M | 67.1M | 104.8M | 52.1M | 61.7M | 47.5M | 14.8M | -12.6M | 20.5M | 33.4M | 10.33M | 9.18M | 7.7M |
| Working Capital Changes | 78M | 103M | 61.2M | 130.5M | 81.4M | 143M | 128.1M | 189.5M | 144.5M | 223.9M | 162.3M | 150.3M | 137.42M | 187M | 227.76M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.2M | 1.76M | -2.39M | 478K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -27.4M | -43.56M | 21.4M | -30.84M |
| Change in Payables | 31.7M | -14.5M | -65.5M | 28.3M | 35.1M | 34.2M | -20.5M | 13.6M | -3.4M | -8.4M | 19.6M | 13.5M | 8.54M | 1.93M | 2.4M |
| Cash from Investing | -26.1M | -25.1M | 21.5M | -102.4M | -132M | -635.6M | -482.3M | -135.3M | -254.8M | -1.57B | -183.4M | -145.9M | -107.32M | -208.47M | -59.37M |
| Capital Expenditures | -24.9M | -23.9M | -26.6M | -42M | -59.7M | -253.2M | -81.5M | -92.3M | -97M | -135.2M | -62.8M | -79.3M | -67.9M | -52.09M | -44.23M |
| CapEx % of Revenue | 0.5% | 0.48% | 0.58% | 0.99% | 1.46% | 6.64% | 2.46% | 3.09% | 3.65% | 6.06% | 3.4% | 4.93% | 4.89% | 4.61% | 4.86% |
| Acquisitions | 0 | 0 | 0 | 0 | -72.5M | -367.7M | -424.7M | -40.3M | -151.5M | -1.43B | -118.5M | -66.2M | -40.74M | -156.76M | -17.68M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.2M | -1.2M | 48.1M | -19.9M | 200K | 227.4M | 15.2M | 1.5M | -19.9M | 390M | -7.2M | 1.1M | 1.13M | 400K | 61K |
| Cash from Financing | -1.1B | -1.59B | -677.4M | -1.26B | -1.33B | 298.1M | -581.7M | -456.9M | 47M | 1.11B | 15.1M | 94.4M | -29.71M | 91.12M | -35.09M |
| Debt Issued (Net) | -12.3M | -24.6M | -22.3M | -26.4M | -64.6M | 767.6M | 717.6M | -25M | -31.7M | 1.34B | -26.1M | -386M | 331.2M | 92.2M | -7.5M |
| Equity Issued (Net) | -829.6M | -1.57B | -637.8M | -1.22B | -1.24B | -452.6M | -541.7M | -458.6M | 0 | -275M | 60M | 481.6M | 2.35M | 0 | -18.39M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -18.8M | -800K | -348.96M | 0 | 0 |
| Share Repurchases | -1.11B | -1.6B | -676.5M | -1.27B | -1.29B | -526M | -541.7M | -458.6M | 21.9K | -285M | -18.8M | -800K | -1.8M | -356K | -18.39M |
| Other Financing | -258.2M | 8.9M | -17.3M | -14.7M | -17.5M | -16.9M | -757.6M | 26.7M | 78.7M | 41.3M | 0 | -400K | -14.3M | -1.1M | -9.2M |
| Net Change in Cash | 542.3M | -8.1M | 630.2M | -315.2M | -481.7M | 490.5M | -297.6M | 130.4M | 349.7M | 16.6M | 218.1M | 209M | 43.54M | 35.97M | 11.66M |
| Free Cash Flow | 1.64B | 1.58B | 1.26B | 970.2M | 919.6M | 576.1M | 683.1M | 631.1M | 462.8M | 340.4M | 323.7M | 180.1M | 112.67M | 101.22M | 61.88M |
| FCF Margin % | 32.67% | 31.82% | 27.58% | 22.81% | 22.48% | 15.1% | 20.6% | 21.12% | 17.4% | 15.25% | 17.52% | 11.21% | 8.12% | 8.95% | 6.79% |
| FCF Growth % | 19.86% | 24.93% | 29.98% | 5.5% | 59.63% | -15.66% | 8.24% | 36.37% | 35.96% | 5.16% | 79.73% | 59.85% | 11.3% | 63.58% | - |
| FCF per Share | 12.22 | 11.57 | 8.68 | 6.41 | 5.70 | 3.37 | 4.05 | 3.47 | 2.55 | 1.92 | 4.05 | 3.07 | 0.88 | 0.79 | 0.49 |
| FCF Conversion (FCF/Net Income) | 1.89x | 1.83x | 1.37x | 0.76x | 2.78x | 3.42x | -1.54x | 5.28x | 7.26x | 3.49x | -23.42x | -3.43x | -1.26x | -0.77x | -0.38x |
| Interest Paid | 106.6M | 139.5M | 150.2M | 169.8M | 127.3M | 104.2M | 80.5M | 80.3M | 84.1M | 88.3M | 46.5M | 59.1M | 75.4M | 61.8M | 71.19M |
| Taxes Paid | 14.1M | 16.5M | 19.1M | 10.6M | 11.2M | 19.1M | 16.2M | 6.1M | 22.8M | 16.6M | 4M | 2.3M | 2.3M | 2.5M | 63K |
High debt leverage exposure
As reported in recent quarterly filings, GDDY consistently generates operating cash flow significantly exceeding net income, with the OCF/NI ratio frequently surpassing 1.8x, which suggests that the company's reported GAAP earnings are heavily influenced by non-cash charges and the timing of deferred revenue recognition.
The persistent gap between net income and operating cash flow indicates that the company's underlying cash-generative power is stronger than headline profitability metrics suggest. Investors should monitor this divergence, as it implies that the business model effectively monetizes upfront subscription payments before they are recognized as GAAP revenue.
Based on the provided financial data, free cash flow margins have remained consistently robust, oscillating between 26% and 37% over the last ten quarters, which highlights the company's ability to convert its subscription-based revenue streams into significant liquidity despite the competitive pressures of the SMB software market.
The stability of these margins suggests that the company has successfully managed its cost structure while scaling its integrated application suite. This trajectory appears to support the company's ability to fund ongoing operations and capital returns without relying on external financing.
According to the latest cash flow statements, GDDY maintains an exceptionally low capital intensity, with CapEx as a percentage of revenue consistently remaining below 1.5%, which indicates that the company's infrastructure requirements are largely optimized and do not necessitate heavy, recurring reinvestment to maintain its core platform.
This low capital intensity is a critical driver of the company's strong free cash flow profile, allowing for significant discretionary cash usage. It appears that the company has moved past the heavy investment phase for its core infrastructure, shifting focus toward software-driven growth.
As evidenced by the quarterly cash flow data, the company has prioritized aggressive share repurchases, with buybacks totaling over $700 million in specific quarters, a strategy that appears to be the primary use of excess cash rather than organic reinvestment or significant debt reduction.
While this capital allocation strategy may signal management's confidence in the company's valuation, it warrants caution given the company's existing debt profile. Investors should monitor whether this focus on buybacks limits the company's flexibility to pursue strategic acquisitions or navigate potential industry-wide downturns.
Quick answers to the most common questions about buying GDDY stock.
GoDaddy Inc. (GDDY) generated $1.60B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GoDaddy Inc. (GDDY) generated $1.58B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
GoDaddy Inc. (GDDY) spent $23.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, GoDaddy Inc. (GDDY) spent $1.60B on share repurchases. This shows the company's commitment to returning capital to its equity investors.