📊 GDDY Key Takeaways
Is GDDY a Good Investment? Thesis Analysis
GoDaddy demonstrates solid operational profitability with strong margins (22.8% operating, 17.5% net) and exceptional free cash flow generation (31.8% FCF margin), supported by consistent revenue growth of 8.3% YoY. However, the company faces significant balance sheet concerns with extreme leverage (17.5x debt-to-equity ratio), dangerously low liquidity (0.61x current ratio), and disproportionate debt burden ($3.8B) relative to equity ($215.1M), which constrains financial flexibility despite adequate interest coverage.
Why Buy GDDY? Key Strengths
- Strong operating profitability with 22.8% operating margin and robust 17.7% net margin
- Exceptional free cash flow generation of $1.6B (31.8% FCF margin) provides financial cushion
- Healthy revenue growth of 8.3% YoY demonstrates market demand and business resilience
- Solid interest coverage ratio of 27.3x indicates ability to service debt obligations
GDDY Investment Risks to Consider
- Extreme financial leverage (17.5x debt-to-equity) creates substantial refinancing and solvency risk
- Critical liquidity position with 0.61x current ratio leaves minimal buffer for operational disruptions
- Stockholders' equity of only $215.1M is dangerously low relative to $3.8B debt, indicating financial fragility
- Diluted EPS declined 3.6% YoY despite flat net income, signaling share dilution pressure
- Abnormally high ROE (406.8%) is a distress signal caused by depleted equity base, not superior operations
Key Metrics to Watch
- Debt-to-equity ratio trajectory and refinancing activities
- Free cash flow sustainability and allocation to debt reduction
- Current ratio improvement and working capital management
- Revenue growth acceleration and margin expansion
- Operating cash flow consistency and capital expenditure requirements
GDDY Financial Metrics
💡 AI Analyst Insight
The 31.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
GDDY Profitability Ratios
GDDY vs Technology Sector
How GoDaddy Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GDDY Overvalued or Undervalued?
Based on fundamental analysis, GoDaddy Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GDDY Balance Sheet & Liquidity
GDDY 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: GoDaddy Inc.'s revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.08 reflects profitable operations.
GDDY Growth Metrics (YoY)
GDDY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.1B | $146.3M | $1.32 |
| Q2 2025 | $1.1B | $146.3M | $1.01 |
| Q1 2025 | $1.1B | N/A | N/A |
| Q3 2024 | $1.1B | $130.7M | N/A |
| Q2 2024 | $1.0B | $82.9M | N/A |
| Q1 2024 | $1.0B | $47.3M | N/A |
| Q3 2023 | $1.0B | $99.8M | N/A |
| Q2 2023 | $1.0B | $82.9M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GDDY Capital Allocation
GDDY SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for GoDaddy Inc. (CIK: 0001609711)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 11, 2026 | 4 | xslF345X05/wk-form4_1773274113.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772755765.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772755754.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772755741.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772755729.xml | View → |
❓ Frequently Asked Questions about GDDY
What is the AI rating for GDDY?
GoDaddy Inc. (GDDY) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GDDY's key strengths?
Claude: Strong operating profitability with 22.8% operating margin and robust 17.7% net margin. Exceptional free cash flow generation of $1.6B (31.8% FCF margin) provides financial cushion.
What are the risks of investing in GDDY?
Claude: Extreme financial leverage (17.5x debt-to-equity) creates substantial refinancing and solvency risk. Critical liquidity position with 0.61x current ratio leaves minimal buffer for operational disruptions.
What is GDDY's revenue and growth?
GoDaddy Inc. reported revenue of $5.0B.
Does GDDY pay dividends?
GoDaddy Inc. does not currently pay dividends.
Where can I find GDDY SEC filings?
Official SEC filings for GoDaddy Inc. (CIK: 0001609711) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GDDY's EPS?
GoDaddy Inc. has a diluted EPS of $6.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GDDY a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, GoDaddy Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GDDY stock overvalued or undervalued?
Valuation metrics for GDDY: ROE of 406.8% (sector avg: 22%), net margin of 17.7% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy GDDY stock in 2026?
Our dual AI analysis gives GoDaddy Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GDDY's free cash flow?
GoDaddy Inc.'s operating cash flow is $1.6B, with capital expenditures of $23.9M. FCF margin is 31.8%.
How does GDDY compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.7% (avg: 18%), ROE 406.8% (avg: 22%), current ratio 0.61 (avg: 2.5).