GoDaddy Inc GDDY
GoDaddy Inc scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What GoDaddy Inc does
GoDaddy provides domain registration, web hosting, and online tools to small businesses and individuals, making money through subscriptions and value-added services. The company is leaning into developer tooling, recently launching web app hosting with APIs built for AI coding workflows.
- What it does best
GoDaddy converts sheer scale into customer lock-in across millions of domains, anchoring users to its ecosystem through renewal cycles. Its 63.8% gross margin reflects pricing power on renewals, though it trails VeriSign's 88.5% gross margin due to higher service delivery costs.
- The main risk
A heavy debt load of $3.8 billion paired with high leverage creates vulnerability if subscription growth stalls or customer acquisition costs rise unexpectedly, leaving little room for error on execution.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 25.2% and FCF margin is in the top quartile at 85th sector percentile. Strong operating leverage drives cash conversion higher as scale increases.
Domain registry lock-in anchors its customer base, keeping switching friction high. Operating margin sits in the 72nd percentile of its sector, reflecting durable pricing power on recurring subscriptions.
Revenue grew 8.3% to $5.1 billion, continuing a steady multi-year expansion from $4.1 billion in 2022. Growth ticks upward moderately compared to prior historical periods.
Total debt sits at $3.8 billion with interest coverage at 8.5x, making debt servicing manageable. Free cash flow reached $1.7 billion, supported by aggressive buybacks of $1.6 billion. The balance sheet remains heavily leveraged.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $685K outside pre-planned sales.
Our sealed record on GDDY
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
GoDaddy Inc scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is strong, moat strong, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 2 sold $685K outside pre-planned sales.
Oct 29, 2026, after the close.
See GDDY today
- Today's verdict on GDDY, and why
- Fair value with cautious, base and optimistic cases
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- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “GoDaddy Inc (GDDY)”, https://cluenex.com/stocks/gddy/, data as of Oct 10, 2026.