📊 GDDY Key Takeaways
Is GoDaddy Inc. (GDDY) a Good Investment?
GoDaddy demonstrates strong operational profitability with 24.5% operating margins and exceptional free cash flow generation of $467M (36.9% FCF margin), indicating a fundamentally sound business model. However, severe balance sheet deterioration—extreme leverage at 15.86x Debt/Equity, insufficient liquidity at 0.67x current ratio, and declining net income despite 8.3% revenue growth—presents material financial risk that neutralizes operational strengths.
GoDaddy shows strong underlying fundamentals, with solid 8.3% revenue growth, a 22.8% operating margin, and exceptionally high free cash flow generation at 31.8% of revenue. The business appears asset-light and highly cash generative, but the balance sheet remains a constraint due to low equity, weak liquidity ratios, and meaningful long-term debt.
Why Buy GoDaddy Inc. Stock? GDDY Key Strengths
- Exceptional free cash flow of $467M with 36.9% FCF margin and minimal capital intensity ($4.6M CapEx) demonstrates capital-efficient business model
- Strong operating margins at 24.5% with solid revenue growth of 8.3% YoY indicating pricing power and operational efficiency
- Substantial operating cash flow of $471.5M relative to net income provides high-quality earnings cushion
- Strong revenue growth combined with high operating and net margins
- Excellent cash generation with $1.58B of free cash flow and minimal capital expenditure needs
- High interest coverage indicates debt is currently manageable from operating earnings
GDDY Stock Risks: GoDaddy Inc. Investment Risks
- Extreme financial leverage with 15.86x Debt/Equity ratio and $3.8B long-term debt against $237.3M equity creates acute refinancing and solvency risk
- Inadequate liquidity with current ratio and quick ratio both at 0.67x (below 1.0 safety threshold) signals short-term financial stress
- Net income declining 6.6% YoY while revenue grows 8.3% indicates margin compression and operational headwinds masking by debt structure
- Very low current and quick ratios indicate limited short-term balance sheet flexibility
- High leverage and extremely small equity base make the capital structure more fragile
- EPS declined despite flat net income, which may indicate weaker per-share earnings quality
Key Metrics to Watch
- Debt-to-Equity ratio trend and debt reduction trajectory relative to FCF generation
- Current ratio and cash burn rate to assess liquidity runway and refinancing needs
- Operating margin stability and net income recovery relative to revenue growth
- Free cash flow margin and operating cash flow growth
- Debt levels, liquidity ratios, and stockholders equity trend
GoDaddy Inc. (GDDY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 36.9% 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 Profit Margin, ROE & Profitability Analysis
GDDY vs Technology Sector: How GoDaddy Inc. Compares
How GoDaddy Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GoDaddy Inc. Stock Overvalued? GDDY Valuation Analysis 2026
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.
GoDaddy Inc. Balance Sheet: GDDY Debt, Cash & Liquidity
GDDY Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
GDDY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.2B | $214.6M | $1.51 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GoDaddy Inc. Dividends, Buybacks & Capital Allocation
GDDY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for GoDaddy Inc. (CIK: 0001609711)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GDDY
What is the AI rating for GDDY?
GoDaddy Inc. (GDDY) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GDDY's key strengths?
Claude: Exceptional free cash flow of $467M with 36.9% FCF margin and minimal capital intensity ($4.6M CapEx) demonstrates capital-efficient business model. Strong operating margins at 24.5% with solid revenue growth of 8.3% YoY indicating pricing power and operational efficiency. ChatGPT: Strong revenue growth combined with high operating and net margins. Excellent cash generation with $1.58B of free cash flow and minimal capital expenditure needs.
What are the risks of investing in GDDY?
Claude: Extreme financial leverage with 15.86x Debt/Equity ratio and $3.8B long-term debt against $237.3M equity creates acute refinancing and solvency risk. Inadequate liquidity with current ratio and quick ratio both at 0.67x (below 1.0 safety threshold) signals short-term financial stress. ChatGPT: Very low current and quick ratios indicate limited short-term balance sheet flexibility. High leverage and extremely small equity base make the capital structure more fragile.
What is GDDY's revenue and growth?
GoDaddy Inc. reported revenue of $1.3B.
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 $1.60.
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 May 2026, GoDaddy Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GDDY stock overvalued or undervalued?
Valuation metrics for GDDY: ROE of 90.4% (sector avg: 22%), net margin of 16.9% (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 BUY 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 $471.5M, with capital expenditures of $4.6M. FCF margin is 36.9%.
How does GDDY compare to other Technology stocks?
Vs Technology sector averages: Net margin 16.9% (avg: 18%), ROE 90.4% (avg: 22%), current ratio 0.67 (avg: 2.5).
Is GoDaddy Inc. carrying too much debt?
GDDY has a debt-to-equity ratio of 15.86x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is GDDY's return on equity (ROE) so high?
GoDaddy Inc. has a return on equity of 90.4%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 16.9% net margin.