GoDaddy Inc. (GDDY)

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AI: Undervalued

Price checkThe shares look undervalued if current cash generation proves broadly durable.

At the $94.89 premarket quote, 126.8 million June shares imply about $12.0 billion of market value. Management's about $1.8 billion 2026 free cash flow target means cash left after operations and capital spending under its definition; the price is roughly 6.7 times that cash, or a 15% cash yield. The supplied 2025 figures give $1.58 billion, or 7.6 times. Even subtracting annualized first-half stock compensation makes the target multiple about 8.0 times. This discount supports Undervalued, but only if cash holds and buybacks do not raise debt.

Big pictureRevenue grows steadily, while profit and cash have improved much faster.

Revenue advanced every year from $3.32 billion in 2020 to $4.95 billion in 2025, while operating cash more than doubled from $765 million to $1.60 billion. The second quarter of 2026 extended that pattern: revenue rose 6.6%, operating income 28.6%, and operating cash 16.5%. Annual recurring revenue—subscription sales expected to repeat over a year—reached $4.42 billion. Durability is not immunity: customers were nearly flat and sales per customer rose 8.7%, so pricing and added products drive growth. Small-business belt-tightening or weaker domain resales can still slow bookings.

Business strengthRecurring sales and widening profits outweigh a leveraged but manageable balance sheet.

June cash was $1.16 billion against $3.77 billion of debt, leaving $2.62 billion of net debt, about 1.5 times the 2026 cash target. At 2025 year-end, scheduled principal payments were $25 million in 2026, $625 million in 2027 and $2.21 billion in 2029. Buybacks totaled $2.43 billion in 2025 and first-half 2026 versus $463 million of stock compensation. Shares fell from 141.2 million at 2024 year-end to 126.8 million, so repurchases overcame dilution, but they leave less cash for debt reduction before larger maturities.

What could change the storyAiro could deepen customer spending, while weak adoption would expose the low-growth core.

The strongest bull evidence is Applications and Commerce revenue growth of 11% in the second quarter, alongside Airo reaching a $50 million annualized bookings pace—five times the prior quarter. The bear evidence is 4% Core Platform growth, nearly flat customer numbers, and intensifying competition from automated website tools. My inference is that 6.7 times targeted cash prices in a material decline or prolonged stagnation. Annual cash staying above roughly $1.7 billion with stable debt would reinforce undervaluation; a drop below $1.4 billion would materially weaken it.

$94.89 price considered

AI: News

Second-quarter selloffSolid profit growth could not offset cautious sales guidance, prompting a sharp valuation reset.

On July 30, GoDaddy reported $1.298 billion of revenue, up 6.6%, and $1.83 of diluted earnings per share—profit divided across potentially issued shares—above the $1.69 analyst estimate. It narrowed 2026 revenue guidance to $5.215–$5.255 billion and maintained free cash flow near $1.8 billion. Shares closed 16.7% lower on July 31 at $82.74. Reporting attributed the reaction to guidance that merely matched expectations after a 21.5% monthly rally, although one-day timing cannot establish every cause.

Airo adoption acceleratesAiro's rapid early growth supports higher customer spending, but the dollar base remains small.

On July 30, management said Airo's annualized bookings pace reached $50 million, five times the $10 million reported one quarter earlier. That followed the May 11 launch of Airo for WordPress, which embeds automated site creation and editing into the widely used WordPress system. This could lift hosting, commerce and marketing sales per customer, addressing nearly flat customer counts. However, $50 million is only about 1% of expected 2026 revenue, and no reliable standalone stock reaction to the product launch was identified.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013
Revenue	$4.95B	$4.57B	$4.25B	$4.09B	$3.82B	$3.32B	$2.99B	$2.66B	$2.23B	$1.85B	—	—	—
Operating expenses	—	—	—	—	—	—	—	—	$2.17B	$1.80B	$1.64B	$1.45B	$1.26B
Operating income	$1.13B	$893.5M	$547.4M	$498.8M	$382.1M	$272.2M	$202.6M	$149.6M	$66.9M	$50.1M	−$31.0M	−$61.9M	−$131.9M
EBITDAderived	$1.24B	$1.03B	$718.7M	$693.4M	$581.7M	$474.9M	$412.3M	$383.7M	$272.7M	$210.2M	$127.8M	$90.9M	$8.7M
Net income	$875.0M	$936.9M	$1.37B	$352.2M	$242.3M	−$495.1M	$137.0M	$77.1M	$136.4M	−$16.5M	−$75.6M	−$143.3M	−$199.9M
Basic EPSper diluted share	$6.34	$6.63	$9.27	—	—	—	—	—	—	-$0.21	-$0.81	-$1.11	-$1.58
Diluted EPSper diluted share	$6.22	$6.45	$9.08	—	—	—	—	—	—	-$0.21	-$0.81	-$1.11	-$1.58

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)120$61.50M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 8, 2026Form 4	McCaffrey MarkChief Financial Officer	SellClass A Common Stock	3.5K	$82.92	$290.2K	105.7K
Jun 2, 2026Form 4	Sine Jared F.Chief Strategy & Legal Officer	SellClass A Common Stock	1.2K	$89.86	$106.8K	76.6K
Jun 2, 2026Form 4	Palitwanon PhontipChief Accounting Officer	SellClass A Common Stock	542	$89.86	$48.7K	20.0K
Jun 2, 2026Form 4	McCaffrey MarkChief Financial Officer	SellClass A Common Stock	4.0K	$89.86	$355.7K	109.2K
Jun 2, 2026Form 4	Bhutani Amanpal SinghChief Executive Officer	SellClass A Common Stock	8.4K	$89.86	$752.4K	521.7K

Review ownership filings at SEC.gov ↗

GoDaddy Inc. (GDDY)

Financial charts

Financial statements

Insider buys & sells