GoDaddy 10-Q 2026-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-36904

GoDaddy Inc.

(Exact name of registrant as specified in its charter)

Delaware												46-5769934
(State or other jurisdiction of incorporation or organization)												(I.R.S. Employer Identification Number)

100 S. Mill Ave, Suite 1600

Tempe, Arizona 85281

(Address of principal executive offices) (zip code)

(480) 505-8800

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol(s)						Name of each exchange on which registered
Class A Common Stock, $0.001 par value per share						GDDY						New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer			☒						Accelerated filer			☐
Non-accelerated filer			☐						Smaller reporting company			☐
									Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 24, 2026, there were 132,409,847 shares outstanding of GoDaddy Inc.'s Class A common stock, $0.001 par value per share.

GoDaddy Inc.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended March 31, 2026

TABLE OF CONTENTS

Note About Forward-Looking Statements						ii
PART I. FINANCIAL INFORMATION
Item 1			Financial Statements (unaudited)			1
			Consolidated Balance Sheets			1
			Consolidated Statements of Operations			2
			Consolidated Statements of Comprehensive Income			3
			Consolidated Statements of Stockholders' Equity (Deficit)			4
			Consolidated Statements of Cash Flows			6
			Notes to Consolidated Financial Statements			7
Item 2			Management's Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3			Quantitative and Qualitative Disclosures About Market Risk			31
Item 4			Controls and Procedures			33
PART II. OTHER INFORMATION
Item 1			Legal Proceedings			34
Item 1A			Risk Factors			34
Item 2			Unregistered Sales of Equity Securities and Use of Proceeds			68
Item 3			Defaults Upon Senior Securities			68
Item 4			Mine Safety Disclosures			68
Item 5			Other Information			68
Item 6			Exhibits			69
Signatures						70

i

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this Quarterly Report), including the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors," contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended, involving substantial risks and uncertainties. The words "believe," "may," "will," "potentially," "plan," "could," "should," "predict," "ongoing," "estimate," "continue," "anticipate," "intend," "project," "expect," "seek," or the negative of these words, or terms or similar expressions conveying uncertainty of future events or outcomes, or that concern our expectations, strategy, plans or intentions, are intended to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, or expected. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed under the heading "Risk Factors" in Part II, Item 1A, and in our publicly available filings and press releases. These statements include, among other things, those regarding:

• our ability to continue to increase sales to new and existing customers;

• our ability to develop new solutions and bring them to market in a timely manner;

• our ability to timely and effectively scale and adapt our existing solutions;

• our ability to deploy new and evolving technologies, such as artificial intelligence, generative and artificial intelligence, machine learning, and similar tools (collectively, AI) in our offerings;

• our dependence on establishing and maintaining a strong brand;

• the occurrence of service interruptions and security or privacy incidents and related remediation efforts and fines;

• system failures or capacity constraints;

• the rate of growth of, and anticipated trends and challenges in, our business and in the market for our products;

• our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, including changes in technology and development, marketing and advertising, general and administrative and customer care expenses, and our ability to maintain future profitability;

• our ability to maintain our high customer retention rates and grow the level of our customers' lifetime spend;

• our ability to provide high quality customer care;

• the effects of increased competition in our markets and our ability to compete effectively;

• our ability to grow internationally;

• the impact of fluctuations in foreign currency exchange rates on our business and our ability to effectively manage the exposure to such fluctuations;

• our ability to effectively manage our growth and associated investments, including the migration of applications and services to the public cloud;

• our ability to integrate acquisitions, our entry into new lines of business and our ability to achieve expected results from our integrations and new lines of business;

• our ability to maintain our relationships with our partners;

• adverse consequences of our level of indebtedness and our ability to repay our debt;

• our ability to maintain, protect and enhance our intellectual property;

• our ability to maintain or improve our market share;

• sufficiency of cash and cash equivalents to meet our needs for at least the next 12 months;

• our beliefs and objectives for future operations;

• our ability to stay in compliance with laws, rules and regulations currently applicable to, or which may become applicable to, our business both in the United States (U.S.) and internationally;

• economic and industry trends or trend analysis;

ii

NOTE ABOUT FORWARD-LOOKING STATEMENTS (continued)

• our ability to attract and retain qualified employees and key personnel;

• anticipated income tax rates, tax estimates and tax standards;

• our future taxable income and ability to realize our deferred tax assets;

• interest rate changes;

• the future trading prices of our Class A common stock;

• our expectations regarding the outcome of any regulatory investigation or litigation; and

• the amount and timing of future repurchases of our Class A common stock under any share repurchase program; as well as other statements regarding our future operations, financial condition, growth prospects and business strategies.

We operate in very competitive and rapidly-changing environments, and new risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Quarterly Report may not occur, and actual results could differ materially and adversely from those implied in our forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Neither we, nor any other person, assume responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to publicly update any forward-looking statements for any reason after the date of this Quarterly Report to conform such statements to actual results or to changes in our expectations, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Investors and others should note that we use our Investor Relations website (https://investors.godaddy.net) as a means of disclosing material financial information. Accordingly, investors should monitor our Investor Relations website, in addition to following press releases, Securities and Exchange Commission filings, public conference calls and webcasts.

Unless expressly indicated or the context suggests otherwise, references to "GoDaddy," "company," "we," "us" and "our" refer to GoDaddy Inc. and its consolidated subsidiaries.

iii

Part I - FINANCIAL INFORMATION

GoDaddy Inc.

Consolidated Balance Sheets

(In millions, except shares in thousands and per share amounts)

			March 31,						December 31,
			2026						2025
Assets			(unaudited)
Current assets:
Cash and cash equivalents			$	1,261.7					$	1,080.9
Accounts and other receivables			85.3						83.1
Registry deposits			41.9						43.9
Prepaid domain name registry fees			528.3						512.2
Prepaid expenses and other current assets			136.1						120.8
Total current assets			2,053.3						1,840.9
Property and equipment, net			142.2						145.4
Operating lease assets			50.0						41.9
Prepaid domain name registry fees, net of current portion			246.9						241.2
Goodwill			3,614.2						3,633.3
Intangible assets, net			970.6						986.3
Deferred tax assets			983.4						1,052.6
Other assets			93.8						93.3
Total assets			$	8,154.4					$	8,034.9
Liabilities and stockholders' equity
Current liabilities:
Accounts payable			$	94.4					$	67.5
Accrued expenses and other current liabilities			462.1						528.7
Deferred revenue			2,486.5						2,384.2
Long-term debt			15.1						15.1
Total current liabilities			3,058.1						2,995.5
Deferred revenue, net of current portion			964.1						934.9
Long-term debt, net of current portion			3,762.5						3,765.2
Operating lease liabilities, net of current portion			70.5						62.0
Other long-term liabilities			61.9						62.2
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value - 50,000 shares authorized; none issued and outstanding			—						—
Class A common stock, $0.001 par value - 1,000,000 shares authorized;132,658 and 134,737 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			0.1						0.1
Additional paid-in capital			3,053.4						2,975.2
Accumulated deficit			(2,856.5)						(2,789.4)
Accumulated other comprehensive income			40.3						29.2
Total stockholders' equity			237.3						215.1
Total liabilities and stockholders' equity			$	8,154.4					$	8,034.9

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Operations (unaudited)

(In millions, except shares in thousands and per share amounts)

			Three Months Ended March 31,
			2026						2025
Revenue:
Applications and Commerce			$	498.2					$	446.4
Core Platform			768.7						747.9
Total revenue			1,266.9						1,194.3
Costs and operating expenses(1):
Cost of revenue (excluding depreciation and amortization)			459.1						440.5
Technology and development			213.2						205.3
Marketing and advertising			92.3						100.1
Customer care			74.4						71.1
General and administrative			91.0						97.1
Restructuring and other			2.2						2.1
Depreciation and amortization			24.2						30.8
Total costs and operating expenses			956.4						947.0
Operating income			310.5						247.3
Interest expense			(37.8)						(37.2)
Other income (expense), net			9.2						9.9
Income before income taxes			281.9						220.0
Provision for income taxes			(67.3)						(0.5)
Net income			$	214.6					$	219.5
Net income per share of Class A common stock:
Basic			$	1.61					$	1.55
Diluted			$	1.60					$	1.51
Weighted-average shares of Class A common stock outstanding:
Basic			133,626						141,684
Diluted			134,289						145,173

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The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and related notes included in this Quarterly Report as well as our audited financial statements and related notes and the discussions and analysis in the section titled "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2025 Form 10-K. Some of the information contained in this discussion and analysis, including information with respect to our plans and strategies for our business, includes forward-looking statements involving significant risks and uncertainties. As a result of many factors, such as those set forth in "Risk Factors," actual results may differ materially from the results described in, or implied by, these forward-looking statements.

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

Overview

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 our 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.

• 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.

Consolidated First Quarter Financial Highlights

Below are our key consolidated financial highlights for the three months ended March 31, 2026, with comparisons to the three months ended March 31, 2025.

• Total revenue of $1,266.9 million, an increase of 6.1%, or approximately 5.6% on a constant currency basis(1).

• International revenue of $415.9 million, an increase of 7.0%, or approximately 5.5% on a constant currency basis(1).

• Total bookings of $1,455.3 million, an increase of 2.7%, or 1.7% on a constant currency basis(1).

• Operating income of $310.5 million, an increase of 25.6%.

• Net income of $214.6 million, a decrease of 2.2%(2).

• Normalized EBITDA(3) of $413.5 million, an increase of 13.5%.

• Net cash provided by operating activities of $471.5 million, an increase of 16.5%.

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

(2) Net income for the three months ended March 31, 2025 included a one-time benefit for the recognition of an uncertain tax position of $34.6 million.

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

Consolidated Results of Operations

The following table sets forth our consolidated results of operations for the periods presented and as a percentage of our total revenue for those periods. The period-to-period comparison of financial results is not necessarily indicative of future results.

			Three Months Ended March 31,
			2026												2025
			$						% of Total Revenue						$						% of Total Revenue
Revenue:
Applications and Commerce			$	498.2					39.3		%				$	446.4					37.4		%
Core Platform			768.7						60.7		%				747.9						62.6		%
Total revenue			1,266.9						100.0		%				1,194.3						100.0		%
Costs and operating expenses:
Cost of revenue (excluding depreciation and amortization)			459.1						36.2		%				440.5						36.9		%
Technology and development			213.2						16.8		%				205.3						17.2		%
Marketing and advertising			92.3						7.3		%				100.1						8.4		%
Customer care			74.4						5.9		%				71.1						5.9		%
General and administrative			91.0						7.2		%				97.1						8.1		%
Restructuring and other			2.2						0.2		%				2.1						0.2		%
Depreciation and amortization			24.2						1.9		%				30.8						2.6		%
Total costs and operating expenses			956.4						75.5		%				947.0						79.3		%
Operating income			310.5						24.5		%				247.3						20.7		%
Interest expense			(37.8)						(3.0)		%				(37.2)						(3.1)		%
Other income (expense), net			9.2						0.8		%				9.9						0.8		%
Income before income taxes			281.9						22.3		%				220.0						18.4		%
Provision for income taxes			(67.3)						(5.4)		%				(0.5)						—		%
Net income			$	214.6					16.9		%				$	219.5					18.4		%

Non-GAAP Financial Measures, Operating Metrics and Business Metrics

In addition to our results determined in accordance with GAAP, we believe that the following non-GAAP financial measures, operating metrics and business metrics may be useful as supplements in evaluating our ongoing operational performance:

			Three Months Ended March 31,
			2026						2025
Normalized EBITDA			$	413.5					$	364.4
Annualized recurring revenue			$	4,288.4					$	4,053.8
Total bookings			$	1,455.3					$	1,417.0
ARPU			$	246					$	225

			March 31, 2026						December 31, 2025
Total customers at period end (in thousands)			20,435						20,422
Domains under management (in thousands)			81,391						80,793

Normalized EBITDA (NEBITDA). NEBITDA is a supplemental measure of our operating performance used by management to evaluate our business. We calculate NEBITDA as net income excluding depreciation and amortization, interest expense (net), provision or benefit for income taxes, equity-based compensation expense, acquisition-related costs, restructuring-related expenses and certain other items. We believe that the inclusion or exclusion of certain recurring and non-recurring items provides a supplementary measure of our core operating results and permits useful alternative period-over-period comparisons of our operations. NEBITDA should not be viewed as a substitute for comparable GAAP measures.

Annualized recurring revenue (ARR). ARR is an operating metric defined as annualized quarterly recurring GAAP revenue, net of refunds, from new and renewed subscription-based services. ARR is exclusive of any revenue that is non-recurring, including, without limitation, domain aftermarket, domain transfers, one-time set-up or migration fees and non-recurring professional website services fees. We believe ARR helps illustrate the scale of certain of our products and facilitates comparisons to other companies in our industry.

Total bookings. Total bookings is an operating metric representing the total value of customer contracts entered into during the period, excluding refunds. We believe total bookings provides additional insight into the performance of our business and the effectiveness of our marketing efforts since we typically collect payment at the inception of a customer contract but recognize revenue ratably over the term of the contract.

Total customers. We define a customer as an individual or entity, each with a unique account and paid transactions in the trailing twelve months or with paid subscriptions as of the end of the period. Total customers is one way we measure the scale of our business and can be a contributing factor to our ability to increase our revenue base.

Average revenue per user (ARPU). We calculate ARPU as total revenue during the preceding 12 month period divided by the average of the number of total customers at the beginning and end of the period. 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

The following table reconciles NEBITDA to net income, its most directly comparable GAAP financial measure:

			Three Months Ended March 31,
			2026						2025
Net income			$	214.6					$	219.5
Depreciation and amortization			24.2						30.8
Equity-based compensation expense			75.3						80.4
Interest expense, net of interest income			28.2						27.6
Restructuring and other(1)			3.9						5.6
Provision for income taxes			67.3						0.5
NEBITDA			$	413.5					$	364.4

_________________________________

(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, 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:

			Three Months Ended March 31, 2026
Revenue			$	1,266.9
Constant currency adjustment			(5.8)
Constant currency revenue			$	1,261.1

Revenue

We generate the majority of our revenue from sales of product subscriptions, as described in our 2025 Form 10-K. Our subscriptions can range from monthly terms to multi-annual terms of up to ten years, depending on the product. Revenue is presented net of refunds, and we maintain a reserve to provide for refunds granted to customers.

			Three Months Ended March 31,												Change
			2026						2025						$						%
Applications and Commerce			$	498.2					$	446.4					$	51.8					11.6		%
Core Platform			768.7						747.9						20.8						2.8
Total revenue			$	1,266.9					$	1,194.3					$	72.6					6.1		%

Total revenue increased 6.1% for the three months ended March 31, 2026 due to the increases in our A&C and Core revenues, as described below:

A&C

The $51.8 million, or 11.6%, increase in A&C revenue for the three months ended March 31, 2026 was due to continued customer adoption of our subscription-based products.

Core

The $20.8 million, or 2.8%, increase in Core revenue for the three months ended March 31, 2026 was driven by $22.9 million growth in primary domain registrations and add-on revenues.

Bookings

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

			Three Months Ended March 31,												Change
			2026						2025						$						%
Total bookings			$	1,455.3					$	1,417.0					$	38.3					2.7		%

The $38.3 million, or 2.7%, increase in total bookings for the three months ended March 31, 2026 was driven by continued customer adoption of our subscription-based A&C products.

Costs and Operating Expenses

Cost of revenue

Cost of revenue is primarily the direct costs we incur in connection with selling an incremental product to our customers. Substantially all cost primarily 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). We expect cost of revenue to increase in absolute dollars in future periods due to increased sales of domains and third-party productivity applications. However, cost of revenue may fluctuate as a percentage of total revenue, depending on the mix of products sold in a particular period.

			Three Months Ended March 31,												Change
			2026						2025						$						%
Cost of revenue (excluding depreciation and amortization)			$	459.1					$	440.5					$	18.6					4.2		%

The $18.6 million, or 4.2%, increase in cost of revenue for the three months ended March 31, 2026 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 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. We expect technology and development expenses to decrease as a percentage of revenue following a period of investment in product development and migration toward a unified infrastructure platform.

			Three Months Ended March 31,												Change
			2026						2025						$			%
Technology and development			$	213.2					$	205.3					$	7.9		3.8		%

The $7.9 million, or 3.8%, increase in technology and development expenses for the three months ended March 31, 2026, was primarily attributable to a $4.5 million increase in public cloud cost as we continue to migrate to a cloud-based infrastructure.

Marketing and advertising

Marketing and advertising expenses represent the costs associated with attracting and acquiring customers, primarily consisting of fees paid to third parties for marketing and advertising campaigns across a variety of channels. These expenses also include personnel costs and affiliate program commissions. We expect marketing and advertising expenses to fluctuate in the future depending on both the mix of internal and external marketing resources used, the size and scope of our campaigns and the level of discretionary investments we make in marketing to drive sales and to promote awareness of our AI-native solutions, including Airo.

			Three Months Ended March 31,												Change
			2026						2025						$						%
Marketing and advertising			$	92.3					$	100.1					$	(7.8)					(7.8)		%

The $7.8 million, or 7.8%, decrease in marketing and advertising expenses for the three months ended March 31, 2026, was attributable to the timing of discretionary advertising spend.

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.

			Three Months Ended March 31,												Change
			2026						2025						$						%
Customer care			$	74.4					$	71.1					$	3.3					4.6		%

There was no material change in customer care expenses for the three months ended March 31, 2026.

General and administrative

General and administrative expenses primarily consist of personnel costs for our administrative functions, professional service fees, office rent for all locations, acquisition-related expenses and other general costs. We expect general and administrative expenses to fluctuate depending on the level of personnel and other administrative costs required to support our business as well as the significance of any strategic acquisitions we choose to pursue.

			Three Months Ended March 31,												Change
			2026						2025						$						%
General and administrative			$	91.0					$	97.1					$	(6.1)					(6.3)		%

There was no material change in general and administrative expenses for the three months ended March 31, 2026.

Depreciation and amortization

Depreciation and amortization expenses consist of charges relating to the depreciation of the property and equipment used in our operations and the amortization of acquired intangible assets. These expenses may increase or decrease in absolute dollars in future periods depending on our future level of capital investments in hardware and other equipment as well as the significance of any future acquisitions.

			Three Months Ended March 31,												Change
			2026						2025						$						%
Depreciation and amortization			$	24.2					$	30.8					$	(6.6)					(21.4)		%

There was no material change in depreciation and amortization expenses for the three months ended March 31, 2026.

Interest expense

			Three Months Ended March 31,												Change
			2026						2025						$						%
Interest expense			$	37.8					$	37.2					$	0.6					1.6		%

There was no material change in interest expense for the three months ended March 31, 2026.

Other income (expense), net

			Three Months Ended March 31,												Change
			2026						2025						$						%
Other income (expense), net			$	9.2					$	9.9					$	(0.7)					(7.1)		%

There was no material change in other income (expense), net for the three months ended March 31, 2026.

Provision for income taxes

			Three Months Ended March 31,												Change
			2026						2025						$						%
Provision for income taxes			$	(67.3)					$	(0.5)					$	(66.8)					NM

The $66.8 million increase in provision for income taxes for the three months ended March 31, 2026, was attributable to a one-time benefit for the recognition of an uncertain tax position of $34.6 million during the three months ended March 31, 2025 as well as an increase in income before income taxes.

Segment Results of Operations

Our two operating segments, A&C and Core, reflect the way we manage and evaluate the performance of our business. Our chief operating decision maker evaluates segment performance based upon several factors, of which the primary financial measures are revenue and Segment EBITDA, our segment measure of profitability. See Note 14 to our financial statements for a reconciliation of Segment EBITDA to net income, its most directly comparable GAAP financial measure.

Applications and Commerce

The following table presents the results for our A&C segment for the periods indicated:

			Three Months Ended March 31,												Change
			2026						2025						$						%/bps
Revenue			$	498.2					$	446.4					$	51.8					11.6		%
Segment EBITDA			$	225.2					$	196.9					$	28.3					14.4		%
Segment EBITDA Margin			45.2		%				44.1		%				n/a						110 bps

The $28.3 million, or 14.4%, increase in A&C Segment EBITDA for the three months ended March 31, 2026 was attributed to a $51.8 million increase in revenue as described above. This increase was partially offset by a $15.1 million increase in cost of revenue attributable to the increase in revenue.

Core Platform

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

			Three Months Ended March 31,												Change
			2026						2025						$						%/bps
Revenue			$	768.7					$	747.9					$	20.8					2.8		%
Segment EBITDA			$	253.5					$	235.3					$	18.2					7.7		%
Segment EBITDA Margin			33.0		%				31.5		%				n/a						150 bps

The $18.2 million, or 7.7%, increase in Core Segment EBITDA for the three months ended March 31, 2026 was attributed to a $20.8 million increase in revenue as described above.

Liquidity and Capital Resources

Overview

Our principal sources of liquidity have been cash flow generated from operations and long-term debt borrowings. Our principal uses of cash have been to fund operations and capital expenditures, to make mandatory principal and interest payments on our long-term debt and to effectuate our share repurchase program. Our liquidity position also benefits from U.S. and state 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, 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. Therefore, while cash from operations is our primary source of operating liquidity and we believe our internally generated cash flows are sufficient to support our day-to-day operations, we may use a variety of capital sources to fund our needs for less predictable investment decisions such as strategic acquisitions and share repurchases.

We believe our existing cash and cash equivalents and cash generated by operating activities will be sufficient to meet our anticipated operating cash needs for at least the next 12 months. However, our future capital requirements will depend on many factors, including our growth rate, macroeconomic activity, the timing and extent of spending to support domestic and international development efforts, continued brand development and advertising spend, the level of customer care and general and administrative activities, the introduction of new and enhanced product offerings, the costs to support new and replacement capital equipment, the completion of strategic acquisitions or share repurchases. Should we pursue additional strategic acquisitions or share repurchases, we may need to raise additional capital, which may be in the form of long-term debt or equity financings.

Cash Flows

The following table summarizes our cash flows for the periods indicated:

			Three Months Ended March 31,
			2026						2025
Net cash provided by operating activities			$	471.5					$	404.7
Net cash used in investing activities			(4.6)						(3.6)
Net cash used in financing activities			(285.2)						(772.2)
Effect of exchange rate changes on cash and cash equivalents			(0.9)						1.5
Net increase (decrease) in cash and cash equivalents			$	180.8					$	(369.6)

Operating Activities

Our primary source of cash from operating activities has been cash collections from our customers. Our primary uses of cash from operating activities have been for domain registration costs paid to registries, software licensing fees related to third-party productivity solutions, personnel costs, discretionary marketing and advertising costs, technology and development costs and interest payments. 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 $66.8 million driven by an increase in bookings as well as working capital movements.

Investing Activities

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.

There was no material change in net cash used in investing activities.

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 proceeds and share repurchases.

Net cash used in financing activities decreased $487.0 million driven by lower share repurchases.

Deferred Revenue

See Note 7 to our financial statements for details regarding the expected future recognition of deferred revenue.

Off-Balance Sheet Arrangements

There have been no material changes in our off-balance sheet arrangements as discussed in our 2025 Form 10-K.

Material Cash Requirements and Uses of Cash

Credit Facility and Senior Notes

Our long-term debt consists of our Credit Facility, which includes two tranches of term loans and a revolving credit facility, and our Senior Notes. See Note 9 to our financial statements for additional information regarding our long-term debt.

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. As of March 31, 2026, we were in compliance with all such covenants and had $998.6 million available for borrowing under the Revolver.

As discussed in Note 10 to our financial statements, we have hedged a portion of our long-term debt through the use of cross-currency and interest rate swap derivative instruments. These instruments help us manage and mitigate our risk of exposure to changes in foreign currency exchange rates and interest rates. See "Quantitative and Qualitative Disclosures About Market Risk" for additional discussion of our hedging activities.

Share Repurchases

In April 2025, the board approved the repurchase of up to $3.0 billion of our Class A common stock through the end of 2027 as further discussed in Note 4 to the financial statements. During the three months ended March 31, 2026, we repurchased a total of approximately 3.0 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $279.7 million.

Critical Accounting Policies and Estimates

We prepare our financial statements in accordance with GAAP, and in doing so, we make estimates, assumptions and judgments affecting the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. We base our estimates, assumptions and judgments on historical experience and on various other factors we believe to be reasonable under the circumstances, and we evaluate these estimates, assumptions and judgments on an ongoing basis. Different assumptions and judgments could change the estimates used in the preparation of our financial statements, which, in turn, could change our results from those reported. We refer to estimates, assumptions and judgments of this type as our critical accounting policies and estimates, which we discussed in our 2025 Form 10-K. We review our critical accounting policies and estimates with the audit and risk committee of our board of directors on an annual basis.

There have been no material changes in our critical accounting policies from those disclosed in our 2025 Form 10-K.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, see Note 2 to our financial statements.