GoDaddy Inc. (GDDY) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: GoDaddy Inc.

Updated on October 31, 2026 · accounts published on October 29, 2026

A highly profitable cash generator with record margins and a heavy debt load

GoDaddy trades at a P/E of 16.0 over the last 12 months, 49 % below its sector median of 31.5, while earning a 22 % return on invested capital.

• Is GoDaddy expensive or cheap? GoDaddy's P/E of 16.0 over the last 12 months is 49 % below the 31.5 median of its sector.
• How is the business doing? Operating margin reached 26 % over the last 12 months, against a 2014-2025 average of 8 %, while revenue grew 8 %.
• How strong is the balance sheet? Net debt was $21.24 per share in fiscal 2025, equal to 18 % of the current price and 2.2× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $2.09 for the quarter reported on February 23, 2027, in line with the last quarter's $2.08.
• Is GoDaddy growing with real cash or by diluting shareholders? Free cash flow was 32 % of revenue in fiscal 2025, while stock-based pay took just 6 % of revenue.

Is GoDaddy expensive or cheap?

Over the last 12 months GoDaddy trades at a P/E of 16.0, half the 31.5 median of 317 sector peers. Its EV/EBITDA of 12.1× is also about half its own five-year average of 24.2×. The free cash flow yield of 11 % is well above the 6 % earnings yield, so cash generation runs ahead of reported profit. The market has cooled on the stock. It is down 7 % over the last 12 months and sits 13 % below its 52-week high of $135.18, though well above the $74.99 low. At these multiples the market is pricing in little growth.

How is the business doing?

Revenue rose 8 % over the last 12 months, but EPS fell 4 %, so growth has not yet reached earnings per share. GoDaddy stands out on profitability. Its operating margin of 26 % over the last 12 months is more than three times the 8 % average for fiscal 2014-2025, and the 23 % in fiscal 2025 was already the best of those 12 years. ROIC of 22 % over the last 12 months is 14.1 points above the 8 % median across 458 sector companies. The track record is short, though: ROIC topped 10 % in only 4 of the last 10 fiscal years, with a low of 1.7 % in 2017.

How strong is the balance sheet?

Debt is the weak spot. In fiscal 2025 GoDaddy carried $29.06 of debt per share against $7.83 of cash, which leaves net debt of $21.24, equal to 18 % of the current price. Net debt stood at 2.2× EBITDA in fiscal 2025, above the 1.5× usually tolerated for software companies. Over the last 12 months the current ratio of 0.61 shows short-term liabilities exceeding short-term assets, and the Altman Z-score of 1.7 sits in the distress zone. A Piotroski score of 5 out of 9 is middling. High free cash flow helps carry the debt but leaves less room for error if growth slows.

What to expect from the next earnings?

GoDaddy beat EPS estimates in 6 of the last 8 quarters. On October 29, 2026 it reported EPS of $2.08 against $1.90 expected, a 9.5 % beat. For the next report, due February 23, 2027, analysts expect $2.09. Across 12 analysts, the 2026 EPS consensus held at $7.40 over the last 30 days, and revenue estimates barely moved, so the latest beat has not triggered upgrades. Of 38 analysts covering the company, 21 rate it a buy, 14 a hold and 2 a sell. The bar for the next quarter sits close to the last result.

Is GoDaddy growing with real cash or by diluting shareholders?

In technology, generic ratios miss the essentials: growth, pricing power and dilution, because much of the pay in the sector comes in shares. GoDaddy's free cash flow equalled 32 % of revenue in fiscal 2025, well above the 20 % healthy mark. Stock-based compensation was 6 % of revenue, below the 10 % threshold. A Rule of 40 score of 43 in fiscal 2025 clears the 40-point elite line. The gaps are growth and gross margin. Revenue per share grew 12 % a year over fiscal 2022-2025, short of the 15 % healthy pace. The 64 % gross margin in fiscal 2025 sits just under the 70 % software benchmark.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.