Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
GoDaddy's cash conversion improved both sequentially and year-over-year, driven by higher operating cash flow and disciplined capital spending. Free cash flow margin strengthened, reflecting efficient cash generation relative to revenue.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow rose significantly from both periods, while capital expenditure declined from the prior quarter but edged up from the year-ago level. This combination produced notably higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics strengthened, with free cash flow margin notably better.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$466.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$471.5M
Cash generated by operations before capital spending.
CapEx
$4.6M
Capital spending and related asset purchases.
FCF margin
36.9%
The share of revenue converted into free cash flow.
TTM FCF yield
13.6%
TTM FCF divided by market capitalization.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-06-30 | $1.2B | $379.9M | $4.1M | $375.8M | 30.9% |
| 2025-09-30 | $1.3B | $444.2M | $9.3M | $434.9M | 34.4% |
| 2025-12-31 | $1.3B | $370.6M | $6.9M | $363.7M | 28.6% |
| 2026-03-31 | $1.3B | $471.5M | $4.6M | $466.9M | 36.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 217.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong free cash flow generation
Free cash flow margin improved substantially from both the prior quarter and the year-ago period, driven by higher operating cash flow and controlled capital spending. This reflects efficient conversion of revenue into cash.
Enhanced free cash flow provides greater financial flexibility for strategic capital allocation, including potential share repurchases as noted in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow rose significantly from both periods, while capital expenditure declined from the prior quarter but edged up from the year-ago level. This combination produced notably higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics strengthened, with free cash flow margin notably better.
Monitor whether the relatively low capital expenditure level persists, as it was a key factor in the current quarter's strong free cash flow.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $12.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 13.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.