What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-25 compared with 2025-02-20 · 105 added, 122 removed, 270 unchanged (46% of the section changed)

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(Throughout the tables and this discussion and analysis, dollars are in millions, excluding average revenue per user (ARPU), and shares are in thousands.)

We serve a large market of entrepreneurs, through the development and delivery of easy-to-use products in a one stop shop solution alongside personalized guidance.

We serve a large market of entrepreneurs, through the development and delivery of easy-to-use products in a one-stop shop solution backed by trusted proactive, informed and personalized guidance.

We serve small businesses, individuals, organizations, developers, designers and domain investors.

We manage and report our business in the following two segments:

• Applications and Commerce (A&C) , which primarily consists of sales of products containing proprietary software, notably our website building products, as well as our proprietary commerce solutions and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of our proprietary software products.

• Applications and Commerce (A&C) , which primarily consists of sales of products containing our proprietary software, notably our website building products, and our proprietary commerce solutions, as well as third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of our proprietary software products.

• Core Platform (Core) , which primarily consists of sales of domain registrations and renewals, aftermarket domain sales, domain protection, website hosting products and website security products when not included in bundled offerings of our proprietary software products as well as sales of products not containing a software component.

We have developed a stable and durable business model driven by strong brand recognition, seamless technology, scale of our business and customer care.

We generate bookings and revenue, which help us measure the success of our efforts, from the sales of our product subscriptions.

In addition, we monitor total bookings as we believe it is an indicator of the expected growth in our revenue and is a supplemental measure of the operating performance of our business.

Total bookings and revenue derived from both of our product categories have increased in each of the last three years, with many of our non-domains products growing faster in recent periods.

The primary factors driving growth in our business are pricing and bundling, seamless technology experience, commerce, cost optimization and retention of high intent customers.

We generate bookings and revenue, which help us measure the success of our efforts, from the sales of our products.

We monitor total bookings as we believe it is an indicator of the expected growth in our revenue and is a supplemental measure of the operating performance of our business.

Total bookings and revenue derived from both of our product segments have increased in each of the last three years, with many of our non-domains products growing faster in recent periods.

The primary factors driving growth in our business are our seamless technology experience, cost optimization and retention of high intent customers, pricing and bundling, and commerce.

Our key priorities, developments and highlights in these areas include:

Seamless Technology and Airo .

We continue to expand our AI-powered experiences, including Airo, and incorporate AI innovations into our products, services and throughout our operations to make use of efficiencies and increase productivity.

Our seamless experience initiative is focused on delivering improved customer conversion, product engagement and renewal through enhancements to all parts of the customer journey, from initial onboarding through to the purchase path.

In tandem, we also continue to expand our AI-powered experiences, including Airo, and incorporate generative and agentic AI innovations into our products and services and throughout our operations to make use of efficiencies and increase productivity.

We remain focused on expanding our solutions and operations to stay up to date with these developments in order to maintain and grow our business.

Cost Optimization and Profitability .

During the year ended December 31, 2024, the Company engaged in cost optimization initiatives, including reductions in headcount, decreases in rent and utilities expenses, and reductions in costs associated with data center and systems infrastructure as we continue to migrate to a cloud-based infrastructure.

During the year ended December 31, 2025, we engaged in cost optimization initiatives, including decreases in rent and utilities expenses, and reductions in costs associated with data center and systems infrastructure as we continue to migrate to a cloud-based infrastructure.

These cost optimization initiatives have resulted in increased NEBITDA margins.

Pricing and Bundling .

During the year ended December 31, 2024, pricing and bundling initiatives resulted in an increase in bookings and continued strong growth in A&C revenue.

Our pricing and bundling initiative is focused on giving customers greater value and choice through tailored bundles that simplify their decision making and deepen engagement across our platform.

During the year ended December 31, 2025, this initiative continued to deliver results across both segments of our business.

We aim to continue to experiment and utilize various pricing strategies and price points for our solutions.

In addition, as we continue to incorporate AI innovations into our solutions, monetization trends could be affected.

We continue to grow our commerce offerings with tailored OmniCommerce solutions, including point-of-sale systems and SaaS plans with premium features and discounted transaction fees to merchants.

We also continue to enhance our offerings with new AI-powered features that simplify operations for our customers.

We continue to grow our commerce offerings with tailored OmniCommerce solutions, POS systems, financial tools such as GoDaddy Capital and Instant Payouts and SaaS plans with premium features and discounted transaction fees to merchants.

We also continue to enhance our offerings with new agentic AI-powered features that simplify operations for our customers.

Our commerce platform works in tandem with our web building capabilities, allowing our customers to set up their online store with a full integrated cart experience, including inventory and order management.

Customer Composition.

Strong customer retention continues to drive our business.

Our marketing efforts set out to educate current and potential customers about the depth and breadth of our offerings.

We aim to attract high-intent customers that attach more at the outset of our relationship and over time.

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We have focused our efforts here because we know through our long history and vast amount of data that customers with a greater number of products with us retain at higher rates and produce higher lifetime value.

For the year ended December 31, 2024, our customer retention rate was approximately 84%, a slight reduction from the approximate 85% in each of the four years prior, due to divestitures, migrations and the end of life of certain products as part of our efforts to streamline brands outside the GoDaddy platform.

For the year ended December 31, 2024, customer retention for customers within the GoDaddy platform, which represents the vast majority of our customers, was approximately 87%.

In each of the five years ended December 31, 2025, our customer retention rate was approximately 85%, with the exception of the year ended December 31, 2024 when the retention rate was approximately 84% due to divestitures, migrations and end of life of certain products as part of our efforts to streamline brands outside of the GoDaddy platform.

In addition, the retention rate for our customers who had been with us for over three years as of December 31, 2025 was approximately 90%.

Greater than 89% of our total revenue was generated by customers who were also customers in the prior year.

We believe the breadth and depth of our solutions, the intelligent and proactive AI-powered experiences and the high quality and responsiveness of our customer care team builds strong relationships with our customers and are key to our high level of customer retention.

Greater than 89% of our total revenue for the year ended December 31, 2025 was generated by customers who were also customers in the prior year.

In each of the five years ended December 31, 2025, greater than 85% of our total revenue was generated by customers who were also customers in the prior year.

To track our growth and the stability of our customer base, we monitor, among other things, revenue and retention rates generated by our annual customer cohorts over time, as well as corresponding marketing and advertising spend.

We define an annual customer cohort to include each customer who first became a customer during a calendar year.

For example, in 2017, we acquired approximately 5.0 million gross customers, who we collectively refer to as our 2017 cohort, and we invested $253.2 million in marketing and advertising expenses.

By the end of 2025, the 2017 cohort had generated an aggregate of approximately $3.0 billion of total bookings.

We expect this cohort to continue to generate bookings and ultimately revenue in the future.

For the seven years ended December 31, 2025, the average annual revenue retention rate of the 2017 cohort was more than 91%, which is calculated by averaging the ratio of the cohort's annual revenue for each of the seven years to its annual revenue for each respective preceding year.

We selected the 2017 cohort as an example for this analysis, as we believe it illustrates the long-term value of our customers.

We believe we are able to build strong relationships with our customers through the breadth and depth of our solutions, the intelligent and proactive AI-powered experiences and the high quality and responsiveness of our customer care team, all of which are key to our high level of customer retention.

To that end, we continue to monitor our customer cohorts to ensure growth and stability of our customer base.

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Financial Highlights

Below are our key consolidated financial highlights for 2024, with comparisons to 2023.

• Total revenue of $4,573.2 million, an increase of 7.5% on a reported and constant currency basis (1) .

Below are our key consolidated financial highlights for the year ended December 31, 2025, with comparisons to the year ended December 31, 2024.

• Total revenue of $4,951.1 million, an increase of 8.3%, or approximately 8.4% on a constant currency basis (1) .

• International revenue of $1,626.8 million, an increase of 11.4%, or approximately 11.8% on a constant currency basis (1) .

• Total bookings of $5,038.8 million, an increase of 9.5%, or approximately 9.7% on a constant currency basis (1) .

• Total bookings of $5,400.0 million, an increase of 7.2%, on a reported and constant currency basis (1) .

• Operating income of $1,127.3 million, an increase of 26.2%.

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• Net cash provided by operating activities of $1,599.4 million, an increase of 24.2%.

(1) Discussion of constant currency is set forth in "Quantitative and Qualitative Disclosures about Market Risk."

(2) Our operating results for the year ended December 31, 2024 and December 31, 2023 included $39.4 million and $90.8 million, respectively, in restructuring and other charges, as further discussed in Note 14 to our financial statements.

Net income for the year ended December 31, 2023 included a $971.8 million benefit for income taxes primarily due to a $1,014.0 million release of the majority of our domestic valuation allowance .

(1) Discussion of constant currency is set forth in "Quantitative and Qualitative Disclosures about Market Risk" below.

(2) Our operating results for the years ended December 31, 2025 and December 31, 2024 included $11.1 million and $39.4 million, respectively, in restructuring and other charges, as further discussed in Note 13 to our financial statements.

(3) Net income for the year ended December 31, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million.

Net income for the year ended December 31, 2024 included a non-routine, non-cash benefit to income taxes of $267.4 million related to the conversion of GoDaddy's Desert Newco, LLC (Desert Newco) subsidiary from a partnership to a disregarded entity for U.S.

income tax purposes.

(4) A reconciliation of Normalized EBITDA to net income, its most directly comparable GAAP financial measure, is set forth in "Reconciliation of NEBITDA" below .

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$ % of Total Revenue $ % of Total Revenue $ % of Total Revenue

A&C $ 1,653.0 36.1 % $ 1,430.4 33.6 % $ 1,279.7 31.3 %

Core 2,920.2 63.9 % 2,823.7 66.4 % 2,811.6 68.7 %

Applications and Commerce $ 1,889.0 38.2 % $ 1,653.0 36.1 % $ 1,430.4 33.6 %

Core Platform 3,062.1 61.8 % 2,920.2 63.9 % 2,823.7 66.4 %

Total revenue 4,951.1 100.0 % 4,573.2 100.0 % 4,254.1 100.0 %

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Interest expense (151.0) (3.1) % (158.3) (3.5) % (179.0) (4.2) %

Loss on debt extinguishment (4.6) (0.1) % (1.5) — % (3.6) (0.1) %

Gain (loss) on debt extinguishment 1.4 — % (4.6) (0.1) % (1.5) — %

Other income (expense), net 42.3 0.9 % 34.8 0.8 % 36.9 0.8 %

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ARPU is one measure that provides insight into our ability to sell additional products to our customers.

Domains under management (DUM).

DUM is a business metric representing the total number of domains that are registered through GoDaddy and its affiliated registrars.

Reconciliation of NEBITDA

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Equity-based compensation expense 317.8 299.1 294.0

299.1 294.0 264.4

Interest expense, net of interest income 114.2 130.4 155.4

Acquisition-related expenses, net of reimbursements 0.2 12.1 35.1

Restructuring and other (1)

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_________________________________

(1) The year ended December 31, 2024 and 2023 excludes $0.8 million and $2.3 million, respectively, of equity-based compensation expense associated with our restructuring activities, which is included within restructuring and other.

(2) In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, adjustments to the fair value of our equity investments, expenses incurred in relation to the refinancing of our long-term debt, and incremental expenses associated with certain professional services.

(1) In addition to the restructuring and other in our statements of operations, other charges are primarily composed of lease-related expenses associated with closed facilities, charges related to certain legal matters, adjustments to the fair value of our equity investments, expenses incurred in relation to the refinancing of our long-term debt, acquisition-related expenses, and incremental expenses associated with certain professional services.

Constant Currency

The following table provides a reconciliation of constant currency:

December 31, 2025

Revenue $ 4,951.1

Constant currency adjustment 5.6

Constant currency revenue $ 4,956.7

Year-Over-Year Comparison

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Total revenue increased 8.3%, due to the increases in our A&C and Core revenues, as described below:

The 15.6% increase in A&C revenue for the year ended December 31, 2024 was driven by:

(i) 20.3% growth in revenue related to our productivity applications, most notably from our pricing and bundling initiatives;

(ii) 8.7% growth in revenues due to continued customer adoption of our subscription-based products designed to establish and grow an online presence;

and (iii) 40.1% growth in revenue related to our commerce solutions, as continued customer adoption has resulted in an increase in payment volume.

The 3.4% increase in Core revenue for the year ended December 31, 2024 was driven by 7.1% growth in domain registration and add-on revenues and 5.0% growth in aftermarket revenues due to increasing sales volume.

Partially offsetting these increases was an 11.6% decrease in hosting revenues primarily due to end-of-life and migration activities from certain products and disposition of certain hosting assets.

The $236.0 million, or 14.3%, increase in A&C revenue for the year ended December 31, 2025 was due to continued customer adoption of our subscription-based products.

The $141.9 million, or 4.9%, increase in Core revenue for the year ended December 31, 2025 was driven by $104.6 million growth in domain registration and add-on revenues and $53.2 million growth in aftermarket revenue.

This increase was partially offset by a shift in sales mix as well as an $11.9 million decrease in hosting revenues related to end-of-life migrations away from certain products and the disposition of certain hosting assets in 2024.

The following table presents our total bookings for the periods indicated:

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$ 5,400.0 $ 5,038.8 $ 4,603.1 $ 361.2 7.2 % $ 435.7 9.5 %

The 9.5% increase in total bookings for the year ended December 31, 2024 was primarily driven by continued customer adoption of our productivity solutions and related add-ons as well as pricing and bundling initiatives , strength in domains, and continued strong adoption of our website-building presence products and commerce solutions.

The $361.2 million, or 7.2%, increase in total bookings for the year ended December 31, 2025 was driven by strength in domains and aftermarket and continued customer adoption of our subscription-based A&C products .

These increases were partially offset by a decrease in hosting bookings related to end-of-life migrations away from certain products and the disposition of certain hosting assets in 2024.

Following a competitive rebid in the second quarter of 2025, we no longer operate as the registry service provider for the .CO top-level domain after October 3, 2025.

This transition did not have a material impact to our financial results during the year ended December 31, 2025, and we will continue to offer .CO to customers in our capacity as an accredited registrar.

Costs and Operating Expenses

Cost of revenue

Cost of revenue primarily represents the direct costs incurred in connection with selling an incremental product to our customers.

Such costs primarily relate to domain registration fees, payment processing fees, third-party commissions and licensing fees for third-party productivity applications.

Cost of revenue is primarily the direct costs we incur in connection with selling an incremental product to our customers.

Substantially all cost of revenue relates to domain registration fees, fees for third-party productivity applications, third-party commissions and payment processing fees.

Similar to our billing practices, we pay domain costs at the time of purchase for the life of each subscription but recognize the costs of service ratably over the term of our customer contracts.

The terms for domain costs are established by agreements between registries and registrars and can vary significantly depending on the top-level domain (TLD).

The terms for domain costs are established by agreements between registries and registrars and can vary significantly depending on the TLD.

We expect cost of revenue to increase in absolute dollars in future periods due to increased sales of domains and third-party productivity applications.

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$ 1,801.5 $ 1,652.0 $ 1,573.6 $ 149.5 9.0 % $ 78.4 5.0 %

The 5.0% increase in cost of revenue for the year ended December 31, 2024 was driven by:

(i) 7.1% growth in domain registration and add-on revenues and 5.0% growth in aftermarket revenues;

(ii) 20.3% growth in revenue related to our productivity applications, most notably our pricing and bundling initiatives;

(iii) 8.7% growth in revenues due to continued customer adoption of our subscription-based products designed to establish and grow an online presence;

and (iv) 40.1% growth in revenue related to our commerce solutions.

The $149.5 million, or 9.0%, increase in cost of revenue for the year ended December 31, 2025 was driven by the increases in revenue described above.

Technology and development

Technology and development expenses represent the costs associated with the creation, development and distribution of our products and websites.

Technology and development expenses represent the costs associated with the creation, development and distribution of our products and services.

These expenses primarily consist of personnel costs associated with the design, development, deployment, testing, operation and enhancement of our products, as well as costs associated with the operation of our data centers and systems infrastructure supporting those products, excluding depreciation expense.

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$ 841.5 $ 814.4 $ 839.6 $ 27.1 3.3 % $ (25.2) (3.0) %

The 3.0% decrease in technology and development expenses for the year ended December 31, 2024 was attributable to a $13.0 million decrease in personnel costs driven by lower average headcount and acquisition related employee retention payments, and a $6.8 million decrease in legal, professional, and technology license costs.

Additionally, data center and systems infrastructure costs decreased by $12.4 million, offset by a $9.3 million increase in public cloud cost as we migrate to a cloud-based infrastructure.

The $27.1 million, or 3.3%, increase in technology and development expenses for the year ended December 31, 2025, was attributable to a $19.7 million increase in personnel costs associated with our continued investment in product development.

Marketing and advertising

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$ 375.1 $ 356.9 $ 352.9 $ 18.2 5.1 % $ 4.0 1.1 %

The 1.1% increase in marketing and advertising for the year ended December 31, 2024 was primarily attributable to increased discretionary advertising spend in support of our strategic initiatives.

The $18.2 million, or 5.1%, increase in marketing and advertising expenses for the year ended December 31, 2025 was attributable to an increase in discretionary advertising spend in support of our strategic initiatives, including building broader awareness of our GoDaddy Airo experience.

Customer care

Customer care expenses represent the costs to guide and service our customers, primarily consisting of personnel costs.

We expect customer care expenses to fluctuate depending on the methods of customer interaction utilized as well as the level of personnel required to support our business.

We expect customer care expenses to fluctuate depending on the methods of customer interaction utilized as well as the level of

personnel required to support our business.

Year Ended December 31, 2025 to 2024 2024 to 2023

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$ 289.1 $ 287.5 $ 304.5 $ 1.6 0.6 % $ (17.0) (5.6) %

The 5.6% decrease in customer care for the year ended December 31, 2024 was attributable to a $20.1 million decrease in personnel costs driven by lower average headcount in conjunction with cost optimization initiatives including our use of alternative technologies and an increase in hiring in lower cost regions.

There was no material change in customer care expenses for the year ended December 31, 2025.

General and administrative

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$ 388.9 $ 394.2 $ 374.0 $ (5.3) (1.3) % $ 20.2 5.4 %

The 5.4% increase in general and administrative expenses for the year ended December 31, 2024 was primarily attributable to a $14.8 million increase in personnel costs, driven by higher stock-based compensation, and an $11.4 million increase in legal and professional costs.

These increases were partially offset by a $6.1 million reduction in rent and utilities expenses, primarily the result of closed facilities and lease abandonments during 2024.

There was no material change in general and administrative expenses for the year ended December 31, 2025.

Restructuring and other

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$ 11.1 $ 39.4 $ 90.8 $ (28.3) (71.8) % $ (51.4) (56.6) %

Restructuring and other of $39.4 million during 2024 primarily includes $18.2 million in severance, employee benefits and equity-based compensation, as well as individually immaterial amounts resulting from non-cash impairment charges and abandonment of certain operating leases.

Restructuring and other of $90.8 million during 2023 primarily includes costs incurred pursuant to restructuring activities as further discussed in Note 14 to our financial statements, as well as a charge of $17.0 million related to the termination of a revenue sharing agreement.

The $28.3 million, or 71.8%, decrease in restructuring and other expenses for the year ended December 31, 2025 was attributable to an $8.0 million decrease in severance, employee benefits and equity-based compensation pursuant to restructuring activities.

The remaining decrease was attributable to individually immaterial amounts resulting from non-cash impairment charges and abandonment of certain operating leases during the year ended December 31, 2024 .

Depreciation and amortization

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$ 116.6 $ 135.3 $ 171.3 $ (18.7) (13.8) % $ (36.0) (21.0) %

The 21.0% decrease for the year ended December 31, 2024 was attributable to a $26.4 million decrease in amortization of acquired intangible assets driven by certain intangible assets reaching the end of their useful life and an $8.1 million decrease in depreciation primarily due to property and equipment being fully depreciated or disposed of during the period.

The $18.7 million, or 13.8%, decrease in depreciation and amortization expense for the year ended December 31, 2025 was attributable to an $11.8 million reduction in depreciation from fully depreciated assets in 2024 and accelerated depreciation related to 2024 office closures.

Interest expense

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$ 151.0 $ 158.3 $ 179.0 $ (7.3) (4.6) % $ (20.7) (11.6) %

The 11.6% decrease in interest expense for the year ended December 31, 2024 was attributable to the refinancing of the 2029 Term Loans in July 2023, January 2024 and December 2024 and the 2031 Term Loans in May 2024, each of which reduced our interest margin.

See Note 10 to our financial statements for additional discussion.

There was no material change in interest expense for the year ended December 31, 2025.

Other income (expense), net

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$ 42.3 $ 34.8 $ 36.9 $ 7.5 21.6 % $ (2.1) (5.7) %

The 5.7% decrease in other income (expense), net for the year ended December 31, 2024 was attributable to the $12.1 million increase in the carrying value of one of our equity investments during the year ended December 31, 2023 which did not occur during the year ended December 31, 2024 as well as a $4.8 million decrease in foreign exchange gains, driven by the

strengthening of the USD relative to other currencies in 2024.

This decrease was partially offset by a $4.4 million increase in interest income from higher invested cash balances.

Loss on debt extinguishment

In 2024, we recognized a loss on debt extinguishment of $4.6 million related to the refinancing of the 2027 and 2029 Term Loans.

In 2023, we recognized a loss on debt extinguishment of $1.5 million related to the refinancing of the 2029 Term Loans.

See Note 10 to our financial statements for additional discussion.

There was no material change in other income (expense), net for the year ended December 31, 2025.

Benefit (provision) for income taxes

As described below, on January 1, 2024, we completed the DNC Restructure and Desert Newco was converted from a partnership to a disregarded entity for U.S.

income tax purposes, which resulted in a one-time non-cash income tax benefit in the first quarter of 2024 of $267.4 million.

During 2023, we released a majority of our domestic valuation allowance on a portion of our deferred tax assets resulting in a $1,014.0 million non-cash income tax benefit.

This release was related to our U.S.

federal and state domestic NOLs, credit carryforwards and other deferred tax assets (DTAs).

Year Ended December 31, 2025 to 2024 2024 to 2023

2025 2024 2023 $ change % change $ change % change

Benefit (provision) for income taxes

$ (145.0) $ 171.5 $ 971.8 $ (316.5) (184.5) % $ (800.3) (82.4) %

The $316.5 million, or 184.5%, change in benefit (provision) for income taxes was primarily due to the completion of the DNC Restructure, as defined and further discussed in Note 15 to our financial statements, which resulted in the conversion of Desert Newco from a partnership to a disregarded entity for U.S.

income tax purposes, and resulted in a one-time non-cash income tax benefit in the first quarter of 2024 of $267.4 million.

Additionally, income before income taxes increased $254.6 million year over year, contributing to a higher income tax provision in the current period.

This increase was partially offset by a $34.6 million income tax benefit recognized during the first quarter of 2025 related to the recognition of an uncertain tax position in a foreign jurisdiction as a result of a favorable tax court ruling.

Segment Results of Operations

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Segment EBITDA Margin 45.4 % 44.7 % 41.5 % n/a 70 bps n/a 320 bps

The 24.4% increase in A&C Segment EBITDA for the year ended December 31, 2024 was attributed to a $222.6 million increase in revenue as described above.

This increase was partially offset by an increase in cost of revenue resulting from 20.3% growth in revenue related to our productivity applications, most notably our pricing and bundling initiatives and increased adoption of our products containing proprietary software, a 40.1% growth in revenue related to our commerce solutions, and a $20.4 million increase in operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization) attributable to higher technology and development costs and marketing costs.

Core Platform

The $117.6 million, or 15.9%, increase in A&C Segment EBITDA for the year ended December 31, 2025 was attributed to a $236.0 million increase in revenue as described above.

This increase was partially offset by a $118.4 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue and increased operating expenses (excluding acquisition-related costs, equity-based compensation expense and depreciation and amortization expense) attributable to technology and development and marketing costs.

The following table presents the results for our Core segment for the periods indicated:

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Segment EBITDA Margin 33.0 % 31.9 % 28.9 % n/a 110 bps n/a 300 bps

The 14.1% increase in Core Segment EBITDA for the year ended December 31, 2024 was attributed to a $96.6 million increase in revenue as described above and a $42.1 million decrease in operating expenses (excluding acquisition-related costs and equity-based compensation expense and depreciation and amortization) attributable to lower marketing, customer care and technology and development costs.

Partially offsetting these increases was an increase in cost of revenue due to 7.1% growth in domain registration and add-on revenues and 5.0% growth in aftermarket revenues.

The $78.6 million, or 8.4%, increase in Core Segment EBITDA for the year ended December 31, 2025 was attributed to a $141.9 million increase in revenue as described above.

This increase was partially offset by a $63.3 million increase in other segment items driven by higher cost of revenue attributable to the increase in revenue.

Liquidity and Capital Resources

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Our liquidity position also benefits from U.S.

and state DTAs such that we have not historically paid a significant amount of U.S.

and state deferred tax assets (DTAs) such that we have not historically paid a significant amount of U.S.

federal or state income taxes.

In general, we seek to deploy our capital by focusing on requirements for our operations, on growth investments and on stockholder returns.

In general, we seek to deploy our capital by focusing on requirements for our operations, growth investments and stockholder returns.

Our strategy is to deploy capital, whether debt, equity or internally generated cash, depending on the adequacy and availability of the source of capital and which source may be used most efficiently and at the lowest cost at such time.

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We expect cash outflows from operating activities to be affected by the timing of payments we make to registries and other operating costs as we continue to grow our business.

Net cash provided by operating activities increased $240.1 million from $1,047.6 million in 2023 to $1,287.7 million in 2024, primarily driven by the growth in total bookings.

Bookings growth was due to strong adoption across our A&C product suite, particularly within productivity solutions as a result of our pricing and bundling initiatives, as well as continued strength in domains.

The increase was also driven by lower restructuring related payments as well as lower technology and development related spending.

Net cash provided by operating activities increased $311.7 million driven by the growth in total bookings.

The increase was also driven by lower restructuring related payments.

Investing Activities

Our investing activities generally consist of strategic acquisitions, dispositions and purchases of property and equipment to support the overall growth of our business.

We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures, strategic acquisitions or other growth opportunities we decide to pursue.

Net cash provided by investing activities increased $123.9 million from $102.4 million net cash used in 2023 to $21.5 million net cash provided in 2024, due to maturities of short-term investments of $40.0 million, a $15.4 million reduction in capital expenditures and $35.4 million of intangible asset purchases that occurred in 2023.

Our investing activities generally consist of strategic investments, dispositions and purchases of property and equipment to support the overall growth of our business.

We expect our investing cash flows to be affected by the timing of payments we make for capital expenditures.

Net cash used in investing activities increased $46.6 million due to maturities of short-term investments of $40.0 million as well as proceeds from dispositions of certain assets and liabilities of our hosting business in the year ended December 31, 2024.

Financing Activities

Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, Employee Stock Purchase Plan (ESPP) proceeds and share repurchases.

Net cash used in financing activities decreased $584.3 million from $1,261.7 million used in 2023 to $677.4 million used in 2024, primarily due to a $593.7 million decrease in share repurchases.

Our financing activities generally consist of long-term debt borrowings, the repayment of principal on long-term debt, stock option exercises, employee stock purchase plan proceeds and share repurchases.

Net cash used in financing activities increased $909.7 million driven by a $925.4 million increase in share repurchases.

Deferred Revenue

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Credit Facility and Senior Notes

Our long-term debt consists of the Credit Facility, which includes two tranches of term loans and a revolving credit facility, and the Senior Notes.

In December 2024, we entered into an amendment to the Credit Facility to provide for a new tranche of term loans maturing in 2029 (the 2029 Term Loans).

In May 2024, we entered into an amendment to the Credit Facility to provide for a new tranche of term loans maturing in 2031 (the 2031 Terms Loans), the proceeds of which were used to refinance and extend the maturity of all outstanding 2027 Term Loans and repay a portion of our 2029 Term Loans.

See Note 10 to our financial statements for additional information regarding our long-term debt.

Our long-term debt consists of our Credit Facility, which includes two tranches of term loans and a revolving credit facility (Revolver), and our Senior Notes.

See Note 9 to our financial statements for additional information regarding our long-term debt, including the Credit Facility and Senior Notes.

Our long-term debt agreements contain covenants restricting, among other things, our ability, or the ability of our subsidiaries, to incur indebtedness, issue certain types of equity, incur liens, enter into fundamental changes including mergers and consolidations, sell assets, make restricted payments including dividends, distributions and investments, prepay junior indebtedness and engage in operations other than in connection with acting as a holding company, subject to customary exceptions.

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Share Repurchases

As discussed in Note 5 to our financial statements, we are authorized to repurchase up to $4,000.0 million of our Class A common stock.

During the year ended December 31, 2024, we repurchased a total of 5,179 shares of our Class A common stock in the open market and through accelerated share repurchase (ASR) transactions for an aggregate purchase price of $668.1 million.

As of December 31, 2024, we had $767.4 million of remaining authorization available for repurchases.

As discussed in Note 4 to our financial statements, our board of directors authorized a stock repurchase program, which commenced in May 2021, and subsequently, in January 2022 and August 2023, our board of directors increased authorization for an aggregate of up to $4.0 billion of our Class A common stock through 2025.

During the three months ended March 31, 2025, we executed two accelerated share repurchase agreements (ASRs) totaling $767.4 million in upfront payments, fully utilizing the amount remaining under this authorization.

These ASRs were fully settled in April 2025 with the delivery of approximately 4.4 million shares at a weighted average price of $176.02 per share.

In April 2025, our board of directors approved the repurchase of up to an additional $3.0 billion of our Class A common stock through the end of 2027.

Additionally, we repurchased a total of approximately 5.9 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $834.8 million during the year ended December 31, 2025.

As of December 31, 2025, we had $2,165.2 million of remaining authorization available for share repurchases.

Restructuring and Other

As discussed in Note 14 to our financial statements, we undertook restructuring activities in 2024.

Cash payments of $24.4 million related to restructuring activities were made during 2024, with approximately $0.8 million remaining to be paid in 2024 relating to the restructuring activities undertaken during the year.

As discussed in Note 13 to our financial statements, we undertook restructuring activities in the year ended December 31, 2025.

Cash payments of $6.9 million were made in the year ended December 31, 2025, and approximately $4.4 million remains to be paid in 2026.

We expect to make substantially all remaining restructuring payments pursuant to these activities by the end of the second quarter of 2026.

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We refer to estimates, assumptions and judgments of this type as our critical accounting policies and estimates, which we discuss further below.

We review our critical accounting policies and estimates with the audit and finance committee of our board of directors on an annual basis.

Of our significant accounting policies, which are described in Note 2 to our financial statements, the following accounting policies and specific estimates involve a greater degree of judgement and complexity.

We review our critical accounting policies and estimates with the Audit Committee of our board of directors on an annual basis.

Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and operating results.

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We sell our products directly to customers and also through a network of resellers.

In certain cases, we act as a reseller of products provided by others.

In certain cases, we act as a reseller of products fulfilled by others.

We record revenue on a gross basis when we are the principal in the arrangement and on a net basis when we are an agent.

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See Notes 2 and 7 to our financial statements for additional information regarding revenue recognition and deferred revenue.

We determine whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets.

If this threshold is met, the single asset or group of assets, as applicable, is accounted for as an asset acquisition.

If the threshold is not met, further assessment is undertaken to ascertain whether the acquisition meets the definition of a business.

We include the results of operations of acquired businesses in our financial statements as of the respective dates of acquisition.

Accounting for business acquisitions requires us to make significant estimates and assumptions, especially at the acquisition date, with respect to tangible and intangible assets acquired, liabilities assumed and pre-acquisition contingencies.

The purchase price, including estimates of the fair value of contingent consideration when applicable, is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the respective acquisition dates, with the excess recorded as goodwill.

Critical estimates used in valuing certain acquired intangible assets include, but are not limited to, future expected cash flows (primarily from customer relationships and developed technology) and discount rates.

Contingent consideration liabilities, which relate to future earn-out payments associated with our acquisitions, are generally valued using discounted cash flow valuation methods.

Critical estimates used in valuing these liabilities include estimated operating results scenarios for the applicable performance periods, probability weightings assigned to operating results scenarios and discount rates.

We use our best estimates and assumptions to determine acquisition-date fair values.

These estimates are inherently uncertain and subject to refinement.

We continue to collect information and reevaluate our preliminary estimates and assumptions and record any qualifying measurement period adjustments to goodwill.

Contingent consideration is adjusted to fair value in subsequent periods as an increase or decrease in general and administrative expenses.

See Notes 2 and 3 to our financial statements for additional information regarding business acquisitions.

Indefinite-Lived Intangible Assets

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If, based on our qualitative analysis, we were to determine it is more-likely-than-not that the indefinite-lived intangible asset is impaired, a quantitative impairment test would be performed to determine if an impairment loss should be recorded.

Our qualitative assessment during 2024 indicated it was more-likely-than-not that certain indefinite-lived intangible assets were impaired.

We performed a quantitative impairment test and recognized an immaterial non-cash impairment charge which was included within restructuring and other in our consolidated statement of operations.

Our qualitative assessment during 2023 and 2022 did not indicate any impairment.

See Notes 2 and 3 to our financial statements for additional information regarding indefinite-lived intangible assets.

We are subject to U.S.

federal, state and foreign income taxes with respect to our allocable share of any taxable income or loss of Desert Newco, as well as any stand-alone income or loss we generate.

On December 11, 2023, we completed a series of transactions (the DNC Restructure) designed to simplify our then-existing capital structure, commonly referred to as an "Up-C" structure, and provide us with additional strategic flexibility.

Completion of these transactions resulted in Desert Newco becoming a wholly-owned subsidiary of GoDaddy Inc.

Subsequent to the DNC Restructure, on January 1, 2024, Desert Newco was converted from a partnership to a disregarded entity and as a result we are now treated as a consolidated C corporation group for U.S.

income tax purposes.

Judgment is required in determining our provision or benefit for income taxes and in evaluating uncertain tax positions.

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets (DTAs) and d eferred tax liabilities (DTLs) for the expected future tax consequences of events included in our financial statements.

We account for income taxes under the asset and liability method, which requires the recognition of DTAs and d eferred tax liabilities (DTLs) for the expected future tax consequences of events included in our financial statements.

Under this method, we determine DTAs and DTLs on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse.

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Actual operating results in future years could differ from our current assumptions, judgments and estimates, which could have a material impact on the amount of DTAs we ultimately realize.

We continue to maintain a valuation allowance against t he DTAs f or which we have concluded it is more-likely-than-not they will not be realized due to certain limitations on character or carryforward period.

continue to maintain a valuation allowance against t he DTAs f or which we have concluded it is more-likely-than-not they will not be realized due to certain limitations on character or carryforward period.

We recognize tax benefits from uncertain tax positions only if it is more-likely-than-not the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.

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What changed 10-K

Item 7. Management’s Discussion and Analysis