{"schemaVersion":1,"research":true,"symbol":"gddy","name":"GoDaddy","topic":"moat","path":"/stock/gddy/moat","status":"published","version":4,"updatedAt":"2026-10-18T14:40:40.584Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"uncertain","summary":"GoDaddy has demonstrated repeat subscription demand and growing monetization, while integrated commerce and productivity workflows suggest switching friction. The passages do not establish the magnitude or durability of that friction relative to alternatives. Pricing power is mixed: ARPU and recurring revenue increased, but pricing changes have also impaired customer or bookings growth. Improving profitability supports execution, not a moat by itself. ANS remains a potential advantage rather than an established network effect.","advantages":[{"mechanism":"switching_costs","claim":"An existing integrated platform connects online and in-person commerce, while email supports customers' daily operations. Reported renewals and platform expansion support repeat demand, but economically significant migration costs remain unproven.","durability":"Potentially persistent for customers using multiple operational products, but the passages provide neither cohort retention nor evidence that customers cannot readily replace these services.","risks":"Realized price sensitivity, competing bundles, dependence on third-party productivity providers, and AI tools that change website creation or reduce demand for traditional web presence could weaken attachment.","invalidation":"The switching-cost hypothesis would be undermined by sustained deterioration in renewals and recurring revenue following repricing, or disclosed evidence that customers replace integrated workflows with little disruption. ARR growth alone would not validate it without separating new sales from existing-customer behavior.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5"],"counterEvidenceIds":["e6","e7","e8","e9"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Business / Point-of-Sale and Payment Acceptance Solutions","excerpt":"In addition, the Smart Terminal line seamlessly integrates with our Websites + Marketing Online Store to unify in-person and online sales so businesses can offer \"Buy online, pick up in-store\" experiences to their customers."},{"id":"e2","sourceId":"filing-1","location":"Risk Factors / dependence on email and productivity partnerships","excerpt":"Our email offerings are a core component of many customers' productivity and daily operations and our ability to provide these services at scale depends, in significant part, on the continued availability, functionality and commercial terms of our partnerships, including with Microsoft and other email providers."},{"id":"e3","sourceId":"filing-1","location":"Risk Factors / historical subscription growth, renewals and platform expansion","excerpt":"We have experienced growth in recent years, due in large part to sustained subscription growth and strong levels of subscription renewals, including customers who expand their use of our integrated platform over time."},{"id":"e4","sourceId":"filing-2","location":"MD&A / operating results and operating metrics","excerpt":"Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 $ % of Total Revenue $ % of Total Revenue $ % of Total Revenue $ % of Total Revenue Revenue: Applications and Commerce $ 514.8 39.7 % $ 463.9 38.1 % $ 1,013.0 39.5 % $ 910.3 37.7 % Core Platform 783.2 60.3 % 753.7 61.9 % 1,551.9 60.5 % 1,501.6 62.3 % Total revenue 1,298.0 100.0 % 1,217.6 100.0 % 2,564.9 100.0 % 2,411.9 100.0 % Costs and operating expenses: Cost of revenue (excluding depreciation and amortization) 469.8 36.2 % 442.3 36.3 % 928.9 36.2 % 882.8 36.6 % Technology and development 211.4 16.3 % 214.3 17.6 % 424.6 16.6 % 419.6 17.4 % Marketing and advertising 89.0 6.9 % 93.4 7.7 % 181.3 7.1 % 193.5 8.0 % Customer care 72.8 5.6 % 73.5 6.0 % 147.2 5.7 % 144.6 6.0 % General and administrative 90.5 7.0 % 96.9 8.0 % 181.5 7.1 % 194.0 8.0 % Restructuring and other 8.7 0.6 % 0.3 — % 10.9 0.4 % 2.4 0.2 % Depreciation and amortization 13.3 1.0 % 30.6 2.5 % 37.5 1.4 % 61.4 2.5 % Total costs and operating expenses 955.5 73.6 % 951.3 78.1 % 1,911.9 74.5 % 1,898.3 78.7 % Operating income 342.5 26.4 % 266.3 21.9 % 653.0 25.5 % 513.6 21.3 % Interest expense (37.4) (2.9) % (38.3) (3.1) % (75.2) (2.9) % (75.5) (3.1) % Other income (expense), net 11.9 0.9 % 11.1 0.8 % 21.1 0.7 % 21.0 0.8 % Income before income taxes 317.0 24.4 % 239.1 19.6 % 598.9 23.3 % 459.1 19.0 % Provision for income taxes (76.9) (5.9) % (39.2) (3.2) % (144.2) (5.6) % (39.7) (1.6) % Net income $ 240.1 18.5 % $ 199.9 16.4 % $ 454.7 17.7 % $ 419.4 17.4 % 22 Table of Contents 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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Normalized EBITDA $ 434.1 $ 381.7 $ 847.6 $ 746.1 Annualized recurring revenue $ 4,421.4 $ 4,181.0 $ 4,421.4 $ 4,181.0 Total bookings $ 1,422.1 $ 1,345.3 $ 2,877.4 $ 2,762.3 ARPU $ 250 $ 230 $ 250 $ 230 June 30, 2026 December 31, 2025 Total customers at period end (in thousands) 20,457 20,422 Domains under management (in thousands) 81,985 80,793 Normalized EBITDA (NEBITDA)."},{"id":"e5","sourceId":"filing-3","location":"2025 business highlights / conversion, attach rates and renewals","excerpt":"•Improved conversion, attach rates and renewal rates by applying our large-scale experimentation engine"},{"id":"e6","sourceId":"filing-2","location":"Risk Factors / realized and potential effects of pricing changes","excerpt":"However, no assurance can be given that any new pricing model or price points will be optimal and changes in our price points or pricing model have and could result in a loss, decrease or slowing of our total customers or total bookings."},{"id":"e7","sourceId":"filing-2","location":"Risk Factors / observed customer price sensitivity","excerpt":"Individuals as well as small- and medium-sized businesses have been and could be sensitive to price increases or swayed by different price points offered by our competitors."},{"id":"e8","sourceId":"filing-2","location":"Risk Factors / generic competitor categories","excerpt":"Our competitors include providers of domain registration services, web-hosting solutions, website creation and management solutions, e-commerce enablement providers, payment facilitation providers, cloud computing service and online security providers, alternative web presence and marketing solutions providers and providers of productivity tools such as business-class email."},{"id":"e9","sourceId":"filing-2","location":"Risk Factors / AI changes to website creation and management","excerpt":"In addition, advances in AI, including tools that enable customers to create, modify, and deploy websites, applications or digital experiences using AI-powered platforms, including those that utilize natural language or other high-level inputs rather than traditional development workflows, may alter customer expectations and behavior with respect to website creation, hosting and management."},{"id":"e10","sourceId":"filing-1","location":"MD&A / ARPU definition","excerpt":"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."},{"id":"e11","sourceId":"filing-2","location":"Risk Factors / changes to pricing models and price points","excerpt":"From time to time, we have changed our overall pricing model and the various price points of our solutions, and we expect to do so in the future."},{"id":"e12","sourceId":"filing-2","location":"Risk Factors / discretion to impose customer service fees","excerpt":"While we do not currently do so, we have the discretion to impose service fees on our customers in the future."},{"id":"e13","sourceId":"filing-2","location":"Risk Factors / lack of control over domain registry fees","excerpt":"We have no control over ICANN, Verisign or other domain name registries and cannot predict their future fee structures."},{"id":"e14","sourceId":"filing-2","location":"Risk Factors / subscription contract terms","excerpt":"Our subscriptions can range from monthly terms to multi-annual terms of up to ten years, depending on the product."},{"id":"e15","sourceId":"filing-1","location":"Consolidated Statements of Cash Flows / 2023–2025","excerpt":"Consolidated Statements of Cash Flows (In millions) Year Ended December 31, 2025 2024 2023 Operating activities Net income $ 875.0 $ 936.9 $ 1,375.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 116.6 135.3 171.3 Equity-based compensation 317.8 299.9 296.3 Deferred taxes 157.4 (189.7) (993.2) Other 29.6 44.1 67.1 Changes in operating assets and liabilities: Prepaid domain name registry fees (35.1) (42.3) (41.9) Accounts payable (14.5) (65.5) 28.3 Accrued expenses and other current liabilities 2.8 0.3 56.2 Deferred revenue 206.8 235.4 149.2 Other operating assets and liabilities (57.0) (66.7) (61.3) Net cash provided by operating activities 1,599.4 1,287.7 1,047.6 Investing activities Maturities (purchases) of short-term investments — 40.0 (40.0) Purchases of intangible assets — — (35.4) Purchases of property and equipment (23.9) (26.6) (42.0) Other investing activities, net (1.2) 8.1 15.0 Net cash provided by (used in) investing activities (25.1) 21.5 (102.4) Financing activities Proceeds received from: Issuance of term loans — 4,214.8 1,759.9 Issuance of Class A common stock under employee stock purchase plan 30.5 31.8 30.0 Payments made for: Repurchases of Class A common stock (1,601.9) (676.5) (1,270.2) Repayment of term loans (24.6) (4,237.1) (1,786.3) Other financing activities 8.9 (10.4) 4.9 Net cash used in financing activities (1,587.1) (677.4) (1,261.7) Effect of exchange rate changes on cash and cash equivalents 4.7 (1.6) 1.3 Net increase (decrease) in cash and cash equivalents (8.1) 630.2 (315.2) Cash and cash equivalents, beginning of period 1,089.0 458.8 774.0 Cash and cash equivalents, end of period $ 1,080.9 $ 1,089.0 $ 458.8 Cash paid during the period for: Interest on long-term debt, including impact of interest rate swaps $ 139.5 $ 150.2 $ 169.8 Amounts included in the measurement of operating lease liabilities $ 34.5 $ 39.7 $ 44.4 Supplemental disclosure of non-cash transactions Operating lease assets obtained in exchange for operating lease obligations $ 2.1 $ 11.5 $ 8.3 See accompanying notes to consolidated financial statements."},{"id":"e16","sourceId":"filing-2","location":"Note 4 / completed first-half 2026 repurchases","excerpt":"During the six months ended June 30, 2026, we repurchased a total of approximately 9.6 million shares of our Class A common stock, which were retired upon repurchase, for an aggregate purchase price of $833.6 million."},{"id":"e17","sourceId":"filing-1","location":"Note 12 / non-cancelable vendor commitments","excerpt":"Future minimum obligations under these non-cancelable agreements with initial terms in excess of one year at December 31, 2025 are as follows: Year Ending December 31: 2026 $ 529.0 2027 546.1 2028 406.6 2029 14.0 2030 2.3 Thereafter 3.8 $ 1,501.8 Litigation 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."},{"id":"e18","sourceId":"filing-3","location":"Proxy Summary / compensation practices and ownership guidelines","excerpt":"The following list highlights our compensation practices: WHAT WE DO WHAT WE DON’T DO Annual “Say-on-Pay” vote Cap on maximum payouts for each NEO under our short-term incentive plan Independent compensation consultant engaged by the Compensation Committee Equity ownership guidelines for our CEO (6X annual base), other executive officers (2X annual base) and non-employee directors (5X annual cash retainer) Clawback policies on incentive compensation Ongoing engagement with our stockholders regarding our compensation practices Annual compensation review and risk assessment No hedging of shares by officers or directors under any circumstances No pledging of shares by officers, directors or employees No tax gross-ups to cover excise taxes No resetting of performance targets No “single trigger” change in control payments No excessive perquisites No evergreen provisions in our equity plan Given the positive Say-on-Pay result at our 2024 annual meeting and perspectives from stockholder engagement, the Compensation Committee approved a 2025 compensation program with similar core design features as the 2024 program, with one important change to the short-term incentive plan."},{"id":"e19","sourceId":"filing-3","location":"Executive Compensation / 2025 incentive metrics and vesting","excerpt":"CEO Other NEOs (average) 6 About GoDaddy Proxy Summary Board and Governance Matters Executive Compensation Audit Matters Other Management Proposals Other Information Compensation Program Elements Base Salary (Fixed) Establishes competitive pay that properly incentivizes executive officers’ day-to-day responsibilities Targeted at competitive levels and based on past experience and expected future contributions 2025 Short-Term Incentive Plan (Variable) Provides appropriate incentives for our executive officers to work collaboratively as a team to achieve important financial, business and strategic goals in our operating plan and to reward individual contributions; for the 2025 STIP, the Compensation Committee chose to move from four to two corporate performance metrics, utilizing NEBITDA and Bookings, weighted equally, and discontinuing the use of revenue and unlevered free cash flow 80% - Corporate Performance Goal •50% NEBITDA •50% Bookings 20% - Individual Performance Goal 2025 Long-Term Incentive Plan (Variable) Strengthens the alignment between the interests of our executive officers and those of our stockholders by tying vesting of awards to achievement of relative total stockholder return (“rTSR”), which incentivizes driving long-term stockholder value and promotes executive officer retention by linking vesting to continued employment 50% Performance Stock Units (“PSUs”) •100% rTSR performance metric measured against the Nasdaq Internet Index •Cliff vest after a 3-year performance period 50% Restricted Stock Units (“RSUs”) •Vest quarterly over 3-years For more information about our compensation program, please review our Compensation Discussion and Analysis beginning on page 33."},{"id":"e20","sourceId":"filing-2","location":"Note 6 / actual RSU and PSU grants and vesting conditions","excerpt":"Equity Plan Activity We have granted restricted stock awards (RSUs) which vest solely upon the continued service of the recipient and performance-based awards (PSUs) which vest based on our relative total stockholder return (TSR) as compared to an index of public internet companies."},{"id":"e21","sourceId":"filing-2","location":"Note 6 / outstanding awards, grants and vesting activity","excerpt":"The following table summarizes stock award activity: Number of Shares of Class A Common Stock (#) Outstanding at December 31, 2025 3,064 Granted: RSUs 2,722 Granted: TSR-based PSUs 255 TSR-based PSU achievement above target 47 Vested (1,390) Forfeited (242) Outstanding at June 30, 2026(1) 4,456 _________________________________ (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 3,885 110.71 TSR-based PSUs 571 163.71 Outstanding at June 30, 2026 4,456 11 Table of Contents As of June 30, 2026, total unrecognized compensation expense related to non-vested equity grants was $400.1 million with an expected remaining weighted-average recognition period of 2.2 years."},{"id":"e22","sourceId":"filing-3","location":"Proxy Summary / existing corporate governance practices","excerpt":"The following list highlights our corporate governance practices: Independent Board Chair 100% independent committee members Annual election of directors Majority vote standard for director elections with director resignation policy No supermajority voting requirement Robust Board, committee and director self-evaluation process Board guidelines related to service on other public company boards and audit committees Disclosure of director skills matrix on an individual basis Responsive stockholder engagement program Robust and deliberate succession planning process Code of Business Conduct and Ethics for directors, officers and employees Annual review of committee charters and governance policies Regular meetings of independent directors without management Formalized Governance Committee oversight of sustainability matters Formalized Compensation Committee oversight of human capital management Formalized Audit Committee oversight of cybersecurity For more information about our Board, including their biographical information, please see the section “Director Nominees” beginning on page 10."},{"id":"e23","sourceId":"filing-3","location":"Stockholder Engagement / implemented governance changes","excerpt":"These changes include: Governance Proxy Disclosure •Declassified the Board with annual elections •Formalized Board-level oversight of human capital management with the Compensation Committee •Formalized Board-level oversight of sustainability matters with the Governance Committee •Removed the supermajority vote requirement to amend our charter and bylaws •Adopted majority vote standard for director elections •Expanded disclosures related to our Board skills, director onboarding and continuing director education •Expanded disclosures related to annual highlights of each committee •Enhanced disclosures regarding Board and committee self-assessment processes •Enhanced disclosure related to the Board’s oversight of cybersecurity and AI Executive Compensation Environmental and Social •Significantly increased disclosures in our CD&A in recent years, including disclosure of individual achievements and CEO compensation scorecard •Removed evergreen provisions beginning in 2023 from our 2015 equity and employee stock purchase plans and instituted new plans without evergreen provisions in 2024 •Updated our STIP metrics to align executive compensation with the Company’s business strategy •Achieved our first Scope 1 and 2 market-based emissions reduction target by 50% in 2023, from a 2019 baseline, and announced a new emissions reduction target in 2025 •Maintained an ~88% reduction in our Scope 1 and 2 market-based emissions from our 2019 baseline in 2025 •Joined the UN Global Compact to further drive commitment to sustainability •Published our EEO-1 data 26 About GoDaddy Proxy Summary Board and Governance Matters Executive Compensation Audit Matters Other Management Proposals Other Information Other Governance Policies Communications with the Board of Directors Stockholders or other interested parties may communicate directly with the Board, the Board Chair, any of the Company’s other non-management directors or the non-management directors as a group by mailing correspondence to the Company’s Corporate Secretary at GoDaddy Inc., 100 S."},{"id":"e24","sourceId":"filing-4","location":"Controls and Procedures / remediation of income-tax control weakness","excerpt":"As part of our assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024, management has performed adequate testing to conclude that the material weakness in the design of our controls related to the accounting for income taxes and related disclosures with regard to management review controls and the completeness and accuracy of information used in the execution of those controls identified in the prior fiscal year has been remediated as of December 31, 2024."},{"id":"e25","sourceId":"filing-4","location":"Controls and Procedures / financial-statement effects of control weakness","excerpt":"This material weakness did not result in any material misstatements to our consolidated financial statements or any changes to previously filed financial statements."},{"id":"e26","sourceId":"filing-1","location":"Consolidated Statements of Operations / 2023–2025","excerpt":"Consolidated Statements of Operations (In millions, except shares in thousands and per share amounts) Year Ended December 31, 2025 2024 2023 Revenue: Applications and commerce $ 1,889.0 $ 1,653.0 $ 1,430.4 Core platform 3,062.1 2,920.2 2,823.7 Total revenue 4,951.1 4,573.2 4,254.1 Costs and operating expenses(1): Cost of revenue (excluding depreciation and amortization) 1,801.5 1,652.0 1,573.6 Technology and development 841.5 814.4 839.6 Marketing and advertising 375.1 356.9 352.9 Customer care 289.1 287.5 304.5 General and administrative 388.9 394.2 374.0 Restructuring and other 11.1 39.4 90.8 Depreciation and amortization 116.6 135.3 171.3 Total costs and operating expenses 3,823.8 3,679.7 3,706.7 Operating income 1,127.3 893.5 547.4 Interest expense (151.0) (158.3) (179.0) Gain (loss) on debt extinguishment 1.4 (4.6) (1.5) Other income (expense), net 42.3 34.8 36.9 Income before income taxes 1,020.0 765.4 403.8 Benefit (provision) for income taxes (145.0) 171.5 971.8 Net income 875.0 936.9 1,375.6 Less: net income attributable to non-controlling interests — — 0.8 Net income attributable to GoDaddy Inc."},{"id":"e27","sourceId":"filing-1","location":"Business / ANS production status","excerpt":"ANS is in production with registered agents operational since the end of 2025."},{"id":"e28","sourceId":"filing-1","location":"Business / prospective ANS services and partnerships","excerpt":"ANS is intended to extend GoDaddy's role in supporting the open internet, and over time may present opportunities to offer additional services and partnerships related to agent identity and management."},{"id":"e29","sourceId":"filing-2","location":"Risk Factors / potential substitution by social channels, applications and AI","excerpt":"As reliance on social media channels, applications and AI-powered tools increases, domain names, websites and online stores and marketplaces may become less prominent, and their value may decline."},{"id":"e30","sourceId":"filing-5","location":"Risk Factors / conditional future registrar competition","excerpt":"While VeriSign has not publicly announced whether it will become a registrar, if it were to do so, it would become one of our competitors in this space, which could have a negative impact on our business and industry."},{"id":"e31","sourceId":"filing-2","location":"Note 6 / June 3, 2026 stockholder approval of amended incentive plan","excerpt":"Equity-Based Compensation Plans Equity Plans On June 3, 2026, our stockholders approved the adoption of the GoDaddy Inc."},{"id":"e32","sourceId":"filing-2","location":"Note 6 / effectiveness of amended incentive plan","excerpt":"Our board of directors previously approved the Amended Plan, which became effective at the time of stockholder approval."},{"id":"e33","sourceId":"filing-2","location":"Risk Factors / alternatives for handling registry fee increases","excerpt":"The increase in these fees with respect to any new gTLD either must be included in the prices we charge to our customers, imposed as a surcharge or absorbed by us."}],"changes":["Retain the previous uncertain verdict: repeat demand is evidenced, but durable competitive barriers remain insufficiently established.","Explicitly incorporate reported subscription renewals and improved renewal rates; neither disclosure quantifies migration friction or cohort retention.","Add assessments of actual compensation arrangements, governance changes, cash deployment and execution using the supplied proxy and financial disclosures.","Distinguish the amended incentive plan proposed in April 2026 from its subsequently disclosed June 2026 approval and effectiveness."],"limitations":["The supplied material consists principally of issuer disclosures. Historical financial results and contractual terms support numerical assessments, while qualitative renewal and product claims remain issuer-reported.","Competition passages predominantly identify generic categories. Compensation peers, suppliers, payment partners and interoperable platforms are not established current competitors merely because they are named. VeriSign is identified only as a conditional future registrar competitor; current competitor coverage is insufficient, so the advantage's competitor array is empty.","No quantified cohort renewal rates, migration costs, customer lifetime economics or comparative competitor performance establish the durability of switching friction.","ARPU combines pricing, product mix and cross-selling. The supplied evidence does not isolate realized same-product price increases or quantify the customer and bookings effects of repricing.","Actual incentive arrangements and ownership guidelines are disclosed, but executive beneficial ownership and compliance with those guidelines are not established by the supplied passages.","ANS was operational by the end of 2025, but adoption scale, monetization and network effects are not demonstrated. Potential AI substitution is a risk, not an established realized decline.","Source dates are filing dates, retaining dateKind filed. The latest supplied filing is dated July 31, 2026; no later operating developments are established."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":null,"rationale":"Integrated commerce and operational email provide a plausible switching-cost mechanism, but repeat demand does not establish an enduring advantage over alternatives. No demonstrated network effect, relative cost advantage or protected market position resolves this uncertainty.","evidenceIds":["e1","e2","e3","e8"]},{"criterion":"durability","grade":null,"rationale":"Historical renewals and subscription terms support continuity of demand, but neither proves a durable competitive barrier. ANS production status does not establish durable adoption or network effects.","evidenceIds":["e3","e14","e27","e28"]},{"criterion":"customer_dependency","grade":null,"rationale":"Email supports daily operations and commerce products integrate sales workflows, but dependency on GoDaddy specifically, rather than on replaceable product categories, cannot be established.","evidenceIds":["e1","e2","e6"]},{"criterion":"erosion_resilience","grade":null,"rationale":"Growing ARR and profitability coexist with realized pricing sensitivity. The evidence cannot establish resilience of a structural advantage against competing bundles, AI website tools or substitution away from traditional web presence.","evidenceIds":["e4","e6","e7","e9","e29"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"ARPU increased from $230 to $250 and ARR from $4,181.0 million to $4,421.4 million year over year at June 2026. These show improved monetization, not isolated price realization. Explicitly disclosed customer or bookings pressure from pricing changes and observed price sensitivity make pricing power mixed.","evidenceIds":["e4","e6","e7","e10"]},{"criterion":"retention","grade":2,"rationale":"Historical subscription growth, strong renewals and improved renewal rates support demonstrated repeat demand. ARR growth provides indirect corroboration, but includes new sales; no cohort retention rate is disclosed, and repricing has adversely affected customers or bookings.","evidenceIds":["e3","e4","e5","e6"]},{"criterion":"margin_resilience","grade":3,"rationale":"Operating income increased from $547.4 million in 2023 to $1,127.3 million in 2025; first-half operating margin increased from 21.3% in 2025 to 25.5% in 2026. This demonstrates operating resilience despite pricing sensitivity. Cost control, mix and lower depreciation contribute, so the improvement cannot be attributed solely to pricing power.","evidenceIds":["e26","e4","e6"]},{"criterion":"contractual_freedom","grade":2,"rationale":"GoDaddy has changed pricing models and price points and expressly retains discretion to impose service fees. Freedom is constrained by subscription terms of up to ten years, customer sensitivity and registry fees it does not control; registry increases must be passed through, surcharged or absorbed.","evidenceIds":["e11","e12","e13","e14","e33","e7"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Operating cash flow rose from $1,047.6 million in 2023 to $1,599.4 million in 2025 while capital expenditures declined. Completed repurchases reduced shares, but 2025 cash repurchases of $1,601.9 million exceeded operating cash flow after capital expenditures, alongside $1,501.8 million of vendor commitments. Further 2026 repurchases are documented, but value creation and returns on investments are not established.","evidenceIds":["e15","e16","e17"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual executive arrangements combine three-year relative-TSR PSUs with time-vesting RSUs, ownership guidelines, clawbacks and prohibitions on hedging and pledging. Subsequent filings confirm actual performance awards and vesting activity. Half of executive LTIP value is service-based, short-term incentives use bookings and adjusted EBITDA, and actual ownership compliance is unavailable; exceptional alignment is not established.","evidenceIds":["e18","e19","e20","e21"]},{"criterion":"execution","grade":3,"rationale":"Multi-year revenue, operating income and operating cash-flow growth, followed by higher first-half 2026 revenue and operating income, demonstrate sustained operating execution. Improved renewals are issuer-reported supporting evidence. These outcomes do not establish management's exclusive causal contribution or future success of AI initiatives.","evidenceIds":["e26","e15","e4","e5"]},{"criterion":"governance","grade":3,"rationale":"An independent chair, independent committees, annual director elections and majority voting provide substantive safeguards. Implemented declassification and removal of supermajority requirements demonstrate changes beyond stated intentions. A prior tax-control weakness was reported remediated by December 2024 without material misstatements. The amended incentive plan's June 2026 approval is subsequently confirmed, rather than inferred from its April proposal; sustained exceptional governance is not 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