Item 1. Financial Statements

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Item 1. Financial Statements

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







___________________________
(1) Costs and operating expenses include equity-based compensation expense as follows:
Cost of revenue	$	0.3	$	0.3
Technology and development	39.0		41.2
Marketing and advertising	6.5		8.2
Customer care	4.9		5.1
General and administrative	24.6		25.6


Total equity-based compensation expense	$	75.3	$	80.4

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In millions)


	Three Months Ended March 31,
	2026		2025
Net income	$	214.6	$	219.5
Foreign exchange forward contracts gain (loss), net(1)	8.5		(15.0)
Unrealized swap gain (loss), net(1)	1.7		(15.7)
Change in foreign currency translation adjustment(1)	0.9		0.8
Comprehensive income	$	225.7	$	189.6


___________________________
(1) Amounts are net of the provision (benefit) for income taxes reflected below:
Foreign exchange forward contracts gain (loss), net	$	2.6	$	(4.5)
Unrealized swap gain (loss), net	$	0.4	$	(4.8)
Foreign currency translation adjustment (net investment hedges)	$	3.1	$	(5.6)

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Consolidated Statements of Stockholders' Equity (Deficit) (unaudited)

(In millions, except shares in thousands)


	Class A Common Stock			Additional Paid-in Capital	Accumulated Deficit		Accumulated Other Comprehensive Income				Total
	Shares	Amount
Balance at December 31, 2025	134,737	$	0.1		$	2,975.2	$	(2,789.4)	$	29.2		$	215.1
Net income	—	—			—		214.6		—			214.6
Equity-based compensation, including amounts capitalized	—	—			75.9		—		—			75.9

Repurchases of Class A common stock(1)	(2,952)	—			—		(281.7)		—			(281.7)
Impact of derivatives, net	—	—			—		—		10.2			10.2
Change in foreign currency translation adjustment	—	—			—		—		0.9			0.9
Vesting of restricted stock units and other	873	—			2.3				—			2.3
Balance at March 31, 2026	132,658	$	0.1		$	3,053.4	$	(2,856.5)	$	40.3		$	237.3

_________________________________

(1)Includes a 1% excise tax expense (benefit) on shares repurchased, net of the fair market value of new share issuances, of $2.0 million for the three months ended March 31, 2026.

GoDaddy Inc.

Consolidated Statements of Stockholders' Equity (Deficit) (unaudited) (continued)

(In millions, except shares in thousands)


	Class A Common Stock			Additional Paid-in Capital	Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)				Total
	Shares	Amount
Balance at December 31, 2024	141,208	$	0.1		$	2,611.8	$	(2,052.3)	$	132.5		$	692.1
Net income	—	—			—		219.5		—			219.5
Equity-based compensation, including amounts capitalized	—	—			80.9		—		—			80.9

Repurchases of Class A common stock(1)(2)	—	—			—		(765.1)		—			(765.1)
Impact of derivatives, net	—	—			—		—		(30.7)			(30.7)
Change in foreign currency translation adjustment	—	—			—		—		0.8			0.8
Vesting of restricted stock units and other	1,223	—			2.3		(0.1)		—			2.2
Balance at March 31, 2025	142,431	$	0.1		$	2,695.0	$	(2,598.0)	$	102.6		$	199.7

_________________________________

(1)Includes a 1% excise tax expense (benefit) on shares repurchased, net of the fair market value of new share issuances, of $(2.3) million for the three months ended March 31, 2025.

(2)Includes $767.4 million of upfront payments to repurchase shares of our Class A common stock in conjunction with two accelerated share repurchase agreements (ASRs).

GoDaddy Inc.

Consolidated Statements of Cash Flows (unaudited)

(In millions)


	Three Months Ended March 31,
	2026		2025
Operating activities
Net income	$	214.6	$	219.5

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24.2		30.8
Equity-based compensation	75.3		80.4





Deferred taxes	62.2		34.9

Other	4.4		14.1

Changes in operating assets and liabilities:


Prepaid domain name registry fees	(22.2)		(31.5)



Accounts payable	27.1		(19.1)
Accrued expenses and other current liabilities	(32.3)		(18.0)

Deferred revenue	133.0		156.5
Other operating assets and liabilities	(14.8)		(62.9)
Net cash provided by operating activities	471.5		404.7

Investing activities





Purchases of property and equipment	(4.6)		(3.6)



Net cash used in investing activities	(4.6)		(3.6)

Financing activities










Repurchases of Class A common stock	(280.5)		(767.4)









Other financing activities	(4.7)		(4.8)

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)
Cash and cash equivalents, beginning of period	1,080.9		1,089.0
Cash and cash equivalents, end of period	$	1,261.7	$	719.4


Cash paid during the period for:
Interest on long-term debt, including impact of interest rate swaps	$	33.3	$	32.9
Income taxes, net of refunds received	$	7.7	$	2.4

See accompanying notes to consolidated financial statements.

GoDaddy Inc.

Notes to Consolidated Financial Statements (unaudited)

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


Note 1	Organization and Background	7
Note 2	Summary of Significant Accounting Policies	8
Note 3	Goodwill and Intangible Assets	10
Note 4	Stockholders' Equity	11
Note 5	Prepaid Expenses and Other Current Assets	11
Note 6	Equity-Based Compensation Plans	11
Note 7	Deferred Revenue	12
Note 8	Accrued Expenses and Other Current Liabilities	13
Note 9	Long-Term Debt	13
Note 10	Derivatives and Hedging	14

Note 11	Commitments and Contingencies	16

Note 12	Income Taxes	17
Note 13	Income Per Share	17
Note 14	Segment Information	18
Note 15	Accumulated Other Comprehensive Income (Loss)	20

1. Organization and Background

Description of Business

We deliver simple, easy-to-use cloud-based solutions, outcome-driven, personalized guidance in a one-stop shop solution with ease and access to our payment solutions. Our solutions, tools and services, including our AI-powered platform Airo®, enable our customers to establish a digital presence, connect with their customers and manage their presence.

Basis of Presentation

Our financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and include our accounts and the accounts of our subsidiaries. All material intercompany accounts and transactions have been eliminated.

Our interim financial statements are unaudited and, in our opinion, include all adjustments of a normal recurring nature necessary for the fair presentation of the periods presented. The results for interim periods are not necessarily indicative of the results to be expected for any subsequent period or for the year ending December 31, 2026.

These financial statements should be read in conjunction with our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the 2025 Form 10-K).

Prior Period Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on our previously reported balance sheets, net income net cash flows or total stockholders' equity.

Use of Estimates

GAAP requires us to make estimates and assumptions affecting amounts reported in our financial statements. We periodically evaluate our estimates and adjust prospectively, if necessary. We believe our estimates and assumptions are reasonable; however, actual results may differ.

Segments

We report our operating results through two reportable segments: Applications and Commerce (A&C) and Core Platform (Core), as further discussed in Note 14.

2. Summary of Significant Accounting Policies

Equity Investments

We hold investments in privately held equity securities, which are recorded in other assets, with a carrying value of $58.8 million as of March 31, 2026 and December 31, 2025.

Revenue Recognition

Disaggregated Revenue

Revenue by major product type was as follows:


	Three Months Ended March 31,
	2026		2025
Applications and Commerce	$	498.2	$	446.4
Core Platform: domains	586.2		561.9
Core Platform: other	182.5		186.0
	$	1,266.9	$	1,194.3

No single customer represented over 10% of our total revenue for any period presented.

Revenue by geography is based on the customer's billing address and was as follows:


	Three Months Ended March 31,
	2026		2025

U.S.	$	851.0	$	805.5
International	415.9		388.8
	$	1,266.9	$	1,194.3

No country outside the U.S. represented more than 10% of total revenue in any period presented.

See Note 7 for information regarding our deferred revenue.

Assets Recognized from Contract Costs

Fees paid to various registries at the inception of a domain registration or renewal represent costs to fulfill a contract. We capitalize and amortize these prepaid domain name registry fees to cost of revenue consistent with the pattern of transfer of the product to which the assets relate. Amortization expense of such assets was $209.2 million and $201.8 million for the three months ended March 31, 2026 and 2025, respectively.

We have no other material capitalized contract costs.

Fair Value Measurements

Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:

Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and

Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.

We hold certain assets and liabilities required to be measured at fair value on a recurring basis. These include time deposits and notice deposits, which we classify within Level 1 because we use quoted market prices to determine their fair value. Level 2 assets and liabilities include commercial paper and derivative financial instruments associated with hedging activity, as further discussed in Note 10. Derivative financial instruments are measured at fair value on the contract date and are subsequently remeasured each reporting period using inputs such as spot rates, discount rates and forward rates. There are no active markets for the commercial paper or hedge contracts themselves; however, the inputs used to calculate the fair value of the instruments are tied to active markets.

The following tables set forth our material assets and liabilities measured and recorded at fair value on a recurring basis:


	March 31, 2026
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Commercial paper	$	—	$	164.1	$	—	$	164.1
Time deposits	150.0		—		—		150.0
Notice deposits	300.0		—		—		300.0





Derivative assets	—		57.3		—		57.3
Total assets	$	450.0	$	221.4	$	—	$	671.4
Liabilities:



Derivative liabilities	$	—	$	102.7	$	—	$	102.7


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Commercial paper	$	—	$	208.9	$	—	$	208.9
Time deposits	100.0		—		—		100.0
Notice deposits	250.0		—		—		250.0




Derivative assets	—		49.2		—		49.2
Total assets	$	350.0	$	258.1	$	—	$	608.1
Liabilities:

Derivative liabilities	$	—	$	136.0	$	—	$	136.0

We have no other material assets or liabilities measured at fair value on a recurring basis.

Recent Accounting Pronouncements

There have been no material changes to recent accounting pronouncements from those disclosed in our 2025 Form 10-K.

3. Goodwill and Intangible Assets

The following table summarizes changes in our goodwill balance by segment:


	A&C		Core		Total
Balance at December 31, 2025	$	1,541.1	$	2,092.2	$	3,633.3

Impact of foreign currency translation	(8.0)		(11.1)		(19.1)


Balance at March 31, 2026	$	1,533.1	$	2,081.1	$	3,614.2

Intangible assets, net are summarized as follows:


	March 31, 2026
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets:
Trade names and branding	$	445.0	n/a		$	445.0
Domain portfolio	216.6		n/a		216.6
Contractual-based assets	292.7		n/a		292.7
Finite-lived intangible assets:
Customer-related	424.2		$	(421.9)	2.3
Developed technology	234.3		(233.5)		0.8
Trade names and other	99.0		(85.8)		13.2

	$	1,711.8	$	(741.2)	$	970.6


	December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-lived intangible assets:
Trade names and branding	$	445.0	n/a		$	445.0
Domain portfolio	217.4		n/a		217.4
Contractual-based assets	292.7		n/a		292.7
Finite-lived intangible assets:
Customer-related	430.5		$	(417.5)	13.0
Developed technology	241.2		(238.8)		2.4
Trade names and other	100.3		(84.5)		15.8
	$	1,727.1	$	(740.8)	$	986.3

Amortization expense was $14.8 million and $18.9 million for the three months ended March 31, 2026 and 2025. As of March 31, 2026, the weighted-average remaining amortization period was 23 months for total amortizable intangible assets, 26 months for trade names and other, 15 months for customer-related, and 3 months for developed technology.

Based on the balance of finite-lived intangible assets as of March 31, 2026, expected future amortization expense is as follows:


Year Ending December 31:
2026 (remainder of)	$	8.9
2027	4.3
2028	1.9
2029	1.2


	$	16.3

4. Stockholders' Equity

Share Repurchases

In April 2025, our board approved the repurchase of up to $3.0 billion of our Class A common stock through the end of 2027. Shares may be repurchased in open market purchases, block transactions and privately negotiated transactions, in accordance with applicable federal securities laws. This authorization does not obligate us to make any repurchases and may be modified, suspended or terminated by us at any time without prior notice. 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. As of March 31, 2026, we had $1,885.5 million remaining authorization available for share repurchases.

5. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	March 31, 2026		December 31, 2025
Derivative assets	$	57.3	$	49.2
Prepaid software and maintenance expenses	44.7		36.8
Usage-based prepaid expenses(1)	15.8		16.4
Other	18.3		18.4
	$	136.1	$	120.8

_________________________________

(1)Usage-based prepaid expenses include various cost of sales, marketing, rent and other prepaid commitments that are amortized as the related services are utilized.

6. Equity-Based Compensation Plans

Equity Plan Activity

We have granted stock options at exercise prices equal to the fair market value of our Class A common stock on the grant date as well as granted both stock options and restricted stock awards (RSUs) vesting solely upon the continued service of the recipient. Performance-based awards (PSUs) vest based on our relative total stockholder return (TSR) as compared to an index of public internet companies.

We have not granted stock options since 2020, and as of March 31, 2026, there were 313 unexercised options outstanding.

The following table summarizes stock award activity:


						Number of Shares of Class A Common Stock (#)

Outstanding at December 31, 2025						3,064
Granted: RSUs						2,546
Granted: TSR-based PSUs						255

TSR-based PSU achievement above target						47
Vested						(839)
Forfeited						(108)
Outstanding at March 31, 2026(1)						4,965

_________________________________

(1)The balance of outstanding awards consisted of the following:


	Number of Shares of Class A Common Stock (#)	Weighted- Average Grant- Date Fair Value Per Share ($)



RSUs	4,394	112.61
TSR-based PSUs	571	163.71

Outstanding at March 31, 2026	4,965

As of March 31, 2026, total unrecognized compensation expense related to non-vested equity grants was $456.0 million with an expected remaining weighted-average recognition period of 2.4 years.

7. Deferred Revenue

Deferred revenue consisted of the following:


	March 31, 2026		December 31, 2025
Current:
Applications and Commerce	$	928.6	$	875.2
Core Platform	1,557.9		1,509.0
	$	2,486.5	$	2,384.2
Noncurrent:
Applications and Commerce	$	224.3	$	217.8
Core Platform	739.8		717.1
	$	964.1	$	934.9

The increase in deferred revenue is primarily driven by payments received in advance of satisfying our performance obligations, offset by $931.0 million of revenue recognized during the three months ended March 31, 2026 that was included in the deferred revenue balance as of December 31, 2025. Deferred revenue as of March 31, 2026 represents our aggregate remaining performance obligations that will be recognized as revenue over the period in which the performance obligations are expected to be satisfied, as follows:


	Remainder of 2026		2027		2028		2029		2030		Thereafter		Total

Applications and Commerce	$	825.2	$	235.9	$	70.9	$	12.7	$	5.0	$	3.2	$	1,152.9
Core Platform	1,340.9		565.9		186.3		83.7		48.1		72.8		2,297.7
	$	2,166.1	$	801.8	$	257.2	$	96.4	$	53.1	$	76.0	$	3,450.6

8. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	March 31, 2026		December 31, 2025

Derivative liabilities	$	102.7	$	136.0

Accrued payroll and employee benefits	97.4		135.9

Tax-related accruals	89.2		84.6
Accrued hosting and software licenses	34.6		34.1
Accrued legal and professional	28.6		32.1
Accrued marketing and advertising expenses	19.2		16.2







Other	90.4		89.8
	$	462.1	$	528.7

9. Long-Term Debt

Long-term debt consisted of the following:


	Maturity Date	March 31, 2026		December 31, 2025
2029 Term Loans (effective interest rate of 6.0% at March 31, 2026 and 6.6% at December 31, 2025)	November 10, 2029	$	1,440.6	$	1,444.2
2031 Term Loans (effective interest rate of 5.6% at March 31, 2026 and 6.2% at December 31, 2025)	May 31, 2031	982.5		985.0

2027 Senior Notes (effective interest rate of 5.5% at March 31, 2026 and 5.5% at December 31, 2025)	December 1, 2027	600.0		600.0
2029 Senior Notes (effective interest rate of 3.7% at March 31, 2026 and 3.6% at December 31, 2025)	March 1, 2029	800.0		800.0
Revolver	November 10, 2027	—		—
Total		3,823.1		3,829.2

Less: unamortized original issue discount and debt issuance costs(1)		(45.5)		(48.9)
Less: current portion of long-term debt		(15.1)		(15.1)
		$	3,762.5	$	3,765.2

_________________________________

(1)Original issue discount and debt issuance costs are amortized to interest expense over the life of the related debt instruments using the interest method.

Credit Facility

As described in our 2025 Form 10-K, our secured credit agreement (the Credit Facility) includes two tranches of term loans (the 2029 Term Loans and the 2031 Term Loans). A portion of the term loans is hedged by interest rate swap agreements, as discussed in Note 10.

The borrowing capacity under our Revolver is $1.0 billion, which is reduced by any outstanding letters of credit. As of March 31, 2026, we had $998.6 million available for borrowing under the Revolver.

Senior Notes

As described in our 2025 Form 10-K, we have completed two offerings of senior notes (the Senior Notes), the 2027 Senior Notes due in 2027 and the 2029 Senior Notes due in 2029.

Fair Value

The estimated fair values of our long-term debt instruments are based on observable market prices for these instruments, which are traded in less active markets and therefore classified as Level 2 fair value measurements, and were as follows as of March 31, 2026:


2029 Term Loans	$	1,422.5
2031 Term Loans	$	964.1
2027 Senior Notes	$	598.3
2029 Senior Notes	$	745.5

Future Debt Maturities

Aggregate principal payments, exclusive of any unamortized original issue discount and debt issuance costs, due on long-term debt as of March 31, 2026 were as follows:


Year Ending December 31:
2026 (remainder of)	$	18.5
2027	624.6
2028	24.6
2029	2,210.3
2030	10.0
Thereafter	935.1
			$	3,823.1

10. Derivatives and Hedging

We utilize the following derivative instruments designated as cash flow hedges:

foreign exchange forward contracts to hedge certain forecasted sales transactions denominated in foreign currencies;
cross-currency swaps used to manage variability due to movements in foreign currency exchange rates related to a Euro-denominated intercompany loan; and
pay-fixed rate, receive-floating rate interest rate swaps to effectively convert portions of our variable-rate debt to fixed.

We also utilize cross-currency swaps designated as net investment hedges to mitigate the risk associated with exchange rate fluctuations on our net investment in certain foreign operations.

The following table summarizes our outstanding derivative instruments on a gross basis, all of which are considered Level 2 financial instruments:


	Notional Amount				Fair Value of Derivative Assets(2)				Fair Value of Derivative Liabilities(2)
	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Cash flow hedges:
Foreign exchange forward contracts	$	1,046.5	$	1,064.2	$	7.2	$	0.7	$	13.1	$	22.6
Cross-currency swaps(1)	572.8		584.1		—		—		39.3		49.7
Interest rate swaps	1,913.0		1,918.2		50.1		48.5		—		—
Net investment hedges:
Cross-currency swaps(1)	734.2		748.6		—		—		50.3		63.7
Total hedges	$	4,266.5	$	4,315.1	$	57.3	$	49.2	$	102.7	$	136.0

_________________________________

(1)The notional values of the cross-currency swaps have been translated from Euros to U.S. dollars at the foreign currency rates in effect of approximately 1.16 and 1.17 as of March 31, 2026 and December 31, 2025, respectively.

(2)In our balance sheets, all derivative assets are recorded within prepaid expenses and other current assets and all derivative liabilities are recorded within accrued expenses and other current liabilities.

The following table summarizes the effect of our hedging relationships on accumulated other comprehensive income (AOCI):


	Unrealized Gains (Losses) Recognized in Other Comprehensive Income
	Three Months Ended
	March 31, 2026		March 31, 2025
Cash flow hedges:
Foreign exchange forward contracts(1)	$	11.1	$	(19.5)
Cross-currency swaps	0.8		4.7
Interest rate swaps	1.3		(25.2)
Net investment hedges:
Cross-currency swaps	13.2		(23.7)
Total hedges	$	26.4	$	(63.7)

_________________________________

(1)Amounts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI.

The following table summarizes the locations and amounts of gains (losses) recognized within earnings related to our hedging relationships:


	Three Months Ended March 31, 2026						Three Months Ended March 31, 2025
	Revenue		Interest Expense		Other Income (Expense), Net		Revenue		Interest Expense		Other Income (Expense), Net
Cash flow hedges:
Foreign exchange forward contracts:
Reclassified from AOCI into income	$	(2.4)	$	—	$	—	$	1.3	$	—	$	—
Cross-currency swaps:
Reclassified from AOCI into income(1)	—		2.0		9.7		—		2.4		(23.3)
Interest rate swaps:
Reclassified from AOCI into income	—		9.6		—		—		12.8		—
Net investment hedges:
Cross-currency swaps:
Reclassified from AOCI into income	—		2.6		—		—		3.2		—
Total hedges	$	(2.4)	$	14.2	$	9.7	$	1.3	$	18.4	$	(23.3)

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(1)The amounts reflected in other income (expense), net include $(9.9) million and $23.3 million reclassified from AOCI to offset the earnings impact of the remeasurement of the Euro-denominated intercompany loan hedged by the cross-currency swap during the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, we estimate that $49.9 million of net deferred gains related to our designated hedges will be recognized in earnings over the next 12 months. No amounts have been excluded from our hedge effectiveness testing.

Risk Management Strategies

There have been no material changes in the risk management strategies associated with our derivatives from those disclosed in the 2025 Form 10-K.

11. Commitments and Contingencies

From time-to-time, we are a party to litigation and subject to claims, suits, regulatory and government investigations, other proceedings and consent decrees in the ordinary course of business, including intellectual property claims, putative and certified class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and unasserted claims. We investigate claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and reasonably estimable.

There have been no material changes outside of the ordinary course of business to our known contractual obligations, which were included in Note 12 of Item 8 of our 2025 Form 10-K.

Indirect Taxes

We are subject to indirect taxation in some, but not all, of the various states and foreign jurisdictions in which we conduct business. Laws, rules and regulations attempting to subject communications and commerce conducted over the internet to various indirect taxes are becoming more prevalent, both in the U.S. and internationally, and may impose additional burdens on us in the future. Increased regulation could negatively affect our business directly, as well as the businesses of our customers. Taxing authorities may impose indirect taxes on the internet-related revenue we generate based on regulations currently being applied to similar, but not directly comparable, industries. There are many transactions and calculations where the ultimate indirect tax determination is uncertain. In addition, domestic and international indirect taxation laws are complex and subject to change. We

may be audited in the future, which could result in changes to our indirect tax estimates. We continually evaluate those jurisdictions in which nexus exists, and believe we maintain adequate indirect tax accruals.

Our accrual for estimated indirect tax liabilities was $31.8 million and $31.0 million as of March 31, 2026 and December 31, 2025, respectively, reflecting our best estimate of the probable liability based on an analysis of our business activities, revenues subject to indirect taxes and applicable regulations. Although we believe our indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits, litigation or settlements could be materially different than the amounts established for indirect tax contingencies.

12. Income Taxes

Our effective tax rate for the three months ended March 31, 2026 is 23.9%, which differs from the U.S. federal statutory rate primarily due to state income taxes and nondeductible executive compensation, partially offset by benefits from U.S. research and development tax credits.

We monitor the realizability of our deferred tax assets (DTAs) considering all relevant factors at each reporting period. As of March 31, 2026, based on the relevant weight of positive and negative evidence, including our ability to forecast future operating results, historical tax losses and our ability to utilize DTAs within the requisite carryforward periods, we do not maintain a valuation allowance on the majority of our U.S. federal and state DTAs. We maintain valuation allowances on certain U.S., state and foreign carry forwards as we concluded they are not more likely than not to be realized.

Uncertain Tax Positions

The total amount of gross unrecognized tax benefits was $178.5 million as of March 31, 2026, of which $115.0 million, if fully recognized, would decrease our effective tax rate. Although we believe the amounts reflected in our tax returns substantially comply with applicable U.S. federal, state and foreign tax regulations, the respective taxing authorities may take contrary positions based on their interpretation of the law. A tax position successfully challenged by a taxing authority could result in an adjustment to our provision or benefit for income taxes in the period in which a final determination is made.

13. Income Per Share

Basic income per share is computed by dividing net income by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted income per share is computed giving effect to all potentially dilutive shares unless their effect is antidilutive.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted income per share is as follows:


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	214.6	$	219.5







Denominator:
Weighted-average shares of Class A common stock outstanding—basic	133,626		141,684
Effect of dilutive securities:

Stock options	108		408
RSUs, PSUs and employee stock purchase plan shares	555		3,081
Weighted-average shares of Class A common stock outstanding—diluted	134,289		145,173


Net income per share of Class A common stock—basic	$	1.61	$	1.55
Net income per share of Class A common stock—diluted	$	1.60	$	1.51

The following number of weighted-average potentially dilutive shares were excluded from the calculation of diluted income per share because the effect of including such potentially dilutive shares would have been antidilutive:


	Three Months Ended March 31,
	2026	2025


RSUs, PSUs and employee stock purchase plan shares	1,870	39

14. Segment Information

We report our operating results through two reportable segments: A&C and Core.

Our chief operating decision maker (CODM), which, as of March 31, 2026, was our Chief Executive Officer, evaluates the performance of and allocates resources to our segments based on each segment's revenue and earnings before interest, taxes, depreciation and amortization (Segment EBITDA). Segment EBITDA is evaluated on a monthly basis by the CODM by monitoring actual results versus the annual plan. This comparison is performed to make strategic decisions regarding segment profitability, resource allocation, pricing strategies and cost optimization. Segment EBITDA is defined as segment revenues less costs and operating expenses, 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 Segment EBITDA serves as a measure that assists our CODM and our investors in comparing our segments' performance on a consistent basis.

Our CODM does not use assets by segment to evaluate performance or allocate resources; therefore, we do not provide disclosure of assets by segment. See Note 2 for revenue disaggregated by geography.

The A&C and Core segments provide a view into the product-focused organization of our business and generate revenue as follows:

A&C primarily consists of sales of products containing proprietary software, notably our website building products, as well as our commerce products 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 primarily consists of sales of domain registrations and renewals, aftermarket domain sales, 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.

There are no internal revenue transactions between our reportable segments.

Corporate overhead primarily includes general and administrative expenses and items not allocated to either segment as well as those costs specifically excluded from Segment EBITDA, our segment measure of profitability, such as depreciation and amortization, interest expense and income and provision or benefit for income taxes.

The following table presents our segment information for the periods indicated:


	Three Months Ended March 31,
	2026		2025

A&C
Revenue	$	498.2	$	446.4
Other segment items(1)	(273.0)		(249.5)
Segment EBITDA	225.2		196.9
Core
Revenue	768.7		747.9
Other segment items(2)	(515.2)		(512.6)
Segment EBITDA	253.5		235.3

Total revenue	1,266.9		1,194.3
Total other segment items	(788.2)		(762.1)
Total Segment EBITDA	478.7		432.2
Unallocated corporate overhead	(65.2)		(67.8)
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(3)	(3.9)		(5.6)
Income before income taxes	281.9		220.0
Provision for income taxes	(67.3)		(0.5)
Net income	$	214.6	$	219.5

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(1)Other segment items in A&C are primarily composed of product license fees used in our third-party email and productivity solutions, payment processing fees, personnel costs excluding equity-based compensation, data center and systems infrastructure costs excluding depreciation, customer care and marketing costs. The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.

(2)Other segment items in Core are primarily composed of domain registration fees, payment processing fees, costs associated with sales of aftermarket domains, hosting and security license fees, personnel costs excluding equity-based compensation, data center and systems infrastructure costs excluding depreciation, customer care and marketing costs. The CODM uses consolidated expense information to manage operations and is not regularly provided disaggregated other segment items.

(3)In addition to restructuring and other in our statements of operations, other charges included 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 and incremental expenses associated with certain professional services.

15. Accumulated Other Comprehensive Income (Loss)

The following table presents AOCI activity in equity:


	Foreign Currency Translation Adjustments		Net Unrealized Gains (Losses) on Cash Flow Hedges(1)		Total AOCI
Balance as of December 31, 2025	$	(89.2)	$	118.4	$	29.2

Other comprehensive income (loss) before reclassifications	0.9		(11.3)		(10.4)

Amounts reclassified from AOCI	—		21.5		21.5

Other comprehensive income	0.9		10.2		11.1



Balance as of March 31, 2026	$	(88.3)	$	128.6	$	40.3



Balance as of December 31, 2024	$	(67.7)	$	200.2	$	132.5

Other comprehensive income (loss) before reclassifications	0.8		(27.1)		(26.3)

Amounts reclassified from AOCI	—		(3.6)		(3.6)

Other comprehensive income (loss)	0.8		(30.7)		(29.9)

Balance as of March 31, 2025	$	(66.9)	$	169.5	$	102.6

________________________________

(1)Amounts shown for our foreign exchange forward contracts include gains and losses realized upon contract settlement but not yet recognized into earnings from AOCI. See Note 10 for the effect on net income of amounts reclassified from AOCI related to our hedging relationships.

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