Operating margins have shown a positive trajectory, expanding from 15.9% in 2024Q1 to 24.9% by 2025Q4, even as gross margins remain structurally capped between 62% and 64% due to domain registry costs.
| 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 |
|---|
| Sales/Revenue | 5.02B | 4.95B | 4.57B | 4.25B | 4.09B | 3.82B | 3.32B | 2.99B | 2.66B | 2.23B | 1.85B | 1.61B | 1.39B | 1.13B | 910.9M |
| Revenue Growth % | 7.83% | 8.26% | 7.5% | 3.98% | 7.22% | 15.05% | 11% | 12.33% | 19.19% | 20.78% | 14.97% | 15.86% | 22.68% | 24.14% | - |
| Cost of Goods Sold | 1.92B | 1.9B | 1.65B | 1.57B | 1.48B | 1.37B | 1.16B | 1.03B | 893.9M | 775.5M | 657.8M | 565.9M | 518.4M | 473.9M | 430.3M |
| COGS % of Revenue | - | 38.43% | 36.12% | 36.99% | 36.28% | 35.96% | 34.93% | 34.36% | 33.6% | 34.75% | 35.6% | 35.21% | 37.37% | 41.91% | 47.24% |
| Gross Profit | 3.1B | 3.05B | 2.92B | 2.68B | 2.61B | 2.44B | 2.16B | 1.96B | 1.77B | 1.46B | 1.19B | 1.04B | 868.9M | 656.9M | 480.6M |
| Gross Margin % | 61.76% | 61.57% | 63.88% | 63.01% | 63.72% | 64.04% | 65.07% | 65.64% | 66.4% | 65.25% | 64.4% | 64.79% | 62.63% | 58.09% | 52.76% |
| Gross Profit Growth % | - | 4.36% | 8.98% | 2.83% | 6.68% | 13.22% | 10.03% | 11.05% | 21.27% | 22.38% | 14.28% | 19.85% | 32.27% | 36.68% | - |
| Operating Expenses | 1.91B | 1.92B | 2.03B | 2.13B | 2.11B | 2.06B | 1.89B | 1.76B | 1.62B | 1.39B | 1.14B | 1.07B | 930.8M | 788.8M | 683.11M |
| OpEx % of Revenue | - | 38.69% | 44.34% | 50.14% | 51.52% | 54.02% | 56.86% | 58.86% | 60.77% | 62.26% | 61.69% | 66.72% | 67.09% | 69.76% | 74.99% |
| Selling, General & Admin | 750.1M | 764M | 751.1M | 726.9M | 797.8M | 849.7M | 762.3M | 707.7M | 625.4M | 535.6M | 450M | 421.9M | 336.7M | 291.3M | 236.5M |
| SG&A % of Revenue | - | 15.43% | 16.42% | 17.09% | 19.5% | 22.27% | 22.98% | 23.68% | 23.51% | 24% | 24.35% | 26.25% | 24.27% | 25.76% | 25.96% |
| Research & Development | 849.4M | 841.5M | 814.4M | 839.6M | 794M | 706.3M | 560.4M | 492.6M | 434M | 355.8M | 287.8M | 270.2M | 254.44M | 207.94M | 175.41M |
| R&D % of Revenue | - | 17% | 17.81% | 19.74% | 19.41% | 18.51% | 16.9% | 16.49% | 16.32% | 15.94% | 15.57% | 16.81% | 18.34% | 18.39% | 19.26% |
| Other Operating Expenses | 2M | 310.3M | 462.2M | 566.6M | 516.2M | 505.4M | 563.2M | 558.4M | 557.2M | 498.1M | 402.2M | 380.3M | 343.3M | 291.5M | 271.2M |
| Operating Income | 885.81M | 1.13B | 893.5M | 547.4M | 498.8M | 382.1M | 272.2M | 202.6M | 149.6M | 66.9M | 50.1M | -31M | -61.9M | -131.9M | -202.5M |
| Operating Margin % | 17.63% | 22.88% | 19.54% | 12.87% | 12.19% | 10.01% | 8.21% | 6.78% | 5.62% | 3% | 2.71% | -1.93% | -4.46% | -11.66% | -22.23% |
| Operating Income Growth % | - | 26.78% | 63.23% | 9.74% | 30.54% | 40.37% | 34.35% | 35.43% | 123.62% | 33.53% | 261.61% | 49.92% | 53.07% | 34.87% | - |
| EBITDA | 1.06B | 1.34B | 1.03B | 718.7M | 693.4M | 581.7M | 474.9M | 412.3M | 383.7M | 272.7M | 210.2M | 127.8M | 90.86M | 8.67M | -63.88M |
| EBITDA Margin % | 21.08% | 27% | 22.5% | 16.89% | 16.95% | 15.24% | 14.32% | 13.8% | 14.42% | 12.22% | 11.38% | 7.95% | 6.55% | 0.77% | -7.01% |
| EBITDA Growth % | -3.18% | 29.94% | 43.15% | 3.65% | 19.2% | 22.49% | 15.18% | 7.45% | 40.7% | 29.73% | 64.48% | 40.66% | 948.33% | 113.57% | - |
| D&A (Non-Cash Add-back) | 173.22M | 204M | 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 |
| EBIT | 830.7M | 1.09B | 923.7M | 582.8M | 502.8M | 379.6M | -404.1M | 218.5M | 171.4M | 189.8M | 35.7M | -51.4M | -61.1M | -130M | -200.18M |
| Net Interest Income | -114.1M | -151.3M | -158.3M | -179M | -146.3M | -126M | -91.3M | -92.1M | -98.4M | -83M | -57.2M | -69.2M | -85M | -71M | -79.09M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 76.3M | 151.3M | 158.3M | 179M | 146.3M | 126M | 91.3M | 92.1M | 98.4M | 83M | 57.2M | 69.2M | 85M | 71M | 79.09M |
| Other Income/Expense | -168.93M | -196.2M | -128.1M | -143.6M | -142.3M | -128.5M | -767.6M | -76.2M | -76.6M | 39.9M | -71.6M | -89.6M | -84.2M | -69.1M | -76.77M |
| Pretax Income | 716.88M | 936.6M | 765.4M | 403.8M | 356.5M | 253.6M | -495.4M | 126.4M | 73M | 106.8M | -21.5M | -120.6M | -146.1M | -201M | -279.27M |
| Pretax Margin % | 14.27% | 18.92% | 16.74% | 9.49% | 8.71% | 6.65% | -14.94% | 4.23% | 2.74% | 4.79% | -1.16% | -7.5% | -10.53% | -17.77% | -30.66% |
| Income Tax | 61.03M | 61.6M | -171.5M | -971.8M | 3.6M | 10.8M | -1.3M | -12M | -9M | -18.9M | 400K | -200K | -2.82M | -1.14M | -218K |
| Effective Tax Rate % | 8.51% | 6.58% | -22.41% | -240.66% | 1.01% | 4.26% | 0.26% | -9.49% | -12.33% | -17.7% | -1.86% | 0.17% | 1.93% | 0.57% | 0.08% |
| Net Income | 870.1M | 875M | 936.9M | 1.37B | 352.2M | 242.3M | -495.1M | 137M | 77.1M | 136.4M | -16.5M | -75.6M | -143.3M | -199.9M | -279.05M |
| Net Margin % | 17.32% | 17.67% | 20.49% | 32.32% | 8.61% | 6.35% | -14.93% | 4.58% | 2.9% | 6.11% | -0.89% | -4.7% | -10.33% | -17.68% | -30.63% |
| Net Income Growth % | 15.26% | -6.61% | -31.85% | 290.35% | 45.36% | 148.94% | -461.39% | 77.69% | -43.48% | 926.67% | 78.17% | 47.24% | 28.31% | 28.36% | - |
| Net Income (Continuing) | 870.1M | 875M | 936.9M | 1.38B | 352.9M | 242.8M | -494.1M | 138.4M | 82M | 125.7M | -21.9M | -120.4M | -143.3M | -199.9M | -279.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.1M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 2.5M | 1.5M | 1.1M | 10.1M | 31.8M | 60M | 171.5M | 240.9M | 0 | 0 | 0 |
| EPS (Diluted) | 6.48 | 6.23 | 6.45 | 9.08 | 2.18 | 1.42 | -2.93 | 0.75 | 0.43 | 0.77 | -0.21 | -1.29 | -1.11 | -1.55 | -2.21 |
| EPS Growth % | 21.54% | -3.41% | -28.96% | 316.51% | 53.52% | 148.46% | -490.67% | 74.42% | -44.16% | 466.67% | 83.72% | -16.22% | 28.39% | 29.86% | - |
| EPS (Basic) | - | 6.33 | 6.63 | 9.27 | 2.22 | 1.44 | -2.93 | 0.79 | 0.43 | 1.25 | -0.21 | -1.29 | -1.11 | -1.55 | -2.21 |
| Diluted Shares Outstanding | 134.29M | 136.17M | 145.29M | 151.45M | 161.46M | 171.1M | 168.64M | 181.72M | 181.35M | 177.05M | 79.83M | 58.68M | 128.57M | 128.57M | 126.1M |
| Basic Shares Outstanding | 133.63M | 135.41M | 141.25M | 148.3M | 158.79M | 167.91M | 168.64M | 173.43M | 181.35M | 108.78M | 78.57M | 58.52M | 128.57M | 128.57M | 126.1M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High debt leverage exposure
According to recent financial disclosures, GDDY has maintained a steady revenue growth trajectory, with quarterly figures consistently hovering around the 6% to 10% range, suggesting that the company's core domain-to-hosting funnel remains a durable, albeit mature, engine for customer acquisition in the competitive SMB software market.
The stability in top-line growth indicates that the company is successfully retaining its massive installed base despite broader macroeconomic headwinds. However, the lack of significant acceleration suggests that the transition toward higher-margin commerce applications is a gradual process rather than an immediate catalyst for explosive growth.
As reported in quarterly filings, the company's gross margin has largely fluctuated between 62% and 64%, reflecting the inherent cost burden of third-party domain registry fees that act as a structural ceiling on profitability compared to pure-play SaaS peers like HubSpot or Wix.
The 2025Q3 margin dip to 55% highlights the sensitivity of the cost structure to registry-related expenses and potential shifts in product mix. Investors should monitor whether the company can successfully pivot toward proprietary software and payment solutions to permanently elevate these margins above the current mid-sixty percent range.
Based on the provided income statement data, operating margins have shown a positive trend, expanding from 15.9% in 2024Q1 to 24.9% by 2025Q4, which suggests that management is achieving better overhead efficiency as the business scales its integrated application suite across the existing customer base.
The ability to scale operating income faster than gross profit implies that the company is successfully leveraging its fixed infrastructure costs. This trend warrants further investigation to determine if the recent efficiency gains are sustainable or if they are partially driven by temporary reductions in discretionary spending.
Analysis of the income statement reveals significant volatility in net income, with figures ranging from $1.1 billion in 2023Q4 to near-zero operating income in 2026Q1, largely driven by non-operating items and the ongoing impact of stock-based compensation which remains a consistent expense of roughly $75 million per quarter.
The wide variance in net income suggests that GAAP figures may be heavily influenced by accounting adjustments and tax-related items rather than pure operational performance. Analysts should prioritize cash-based metrics to strip away these distortions and better assess the underlying earnings power of the business.
While the company positions itself as a modern commerce platform, the persistent reliance on domain registration volume suggests that short-sellers may focus on the risk of margin compression if AI-driven site builders disrupt the traditional domain-first acquisition funnel, potentially rendering the current business model obsolete.
The high debt-to-equity ratio combined with the competitive threat from AI-native platforms creates a scenario where the company's valuation could face pressure if growth stalls. Investors should remain cautious about whether the current valuation reflects a legacy infrastructure provider or a high-growth fintech entity.
Quick answers to the most common questions about buying GDDY stock.
For fiscal year 2025, GoDaddy Inc. (GDDY) reported total revenue of $4.95B. This represents a 443.5% increase compared to $910.9M in 2012.
GoDaddy Inc. (GDDY) is profitable, generating $875.0M in net income for the fiscal year ending 2025 with a net profit margin of 17.7%.
GoDaddy Inc. (GDDY) reported an operating income of $1.13B, resulting in an operating profit margin of 22.9%. This margin reflects the operational efficiency of the business before interest and taxes.
GoDaddy Inc. (GDDY) generated $3.05B in gross profit for the year, representing a gross profit margin of 61.6%. This demonstrates the company's core pricing power and production efficiency.