GoDaddy (GDDY) Risk Factor Changes

If we are found to be in violation of the FCPA, the UK Bribery Act or other anti-bribery and anti-corruption laws (either due to acts or inadvertence of our employees, or due to the acts or inadvertence of others), we…

We are subject to evolving regulations and scrutiny from both U.S.

Our business is subject to evolving regulations and scrutiny from investors, regulators and other stakeholders relating to environmental, social and governance issues, which could result in additional costs for us and…

As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal control.

General macro-economic and geopolitical conditions, including, among others, higher interest rates, changes in foreign exchange rates, inflation, a recession or an economic slowdown in the U.S.

The existence of this or any furture share repurchase program could cause our stock price to be higher than it otherwise would and could potentially reduce the market liquidity for our stock.

In the past, our board of directors has approved the repurchase of shares of our Class A common stock.

The trading price of our Class A common stock has in the past been, and is likely to continue to be, highly volatile and these fluctuations could cause you to lose all or part of your investment in our common stock.

that apply to all merchants who accept their payment cards including special operating rules that apply to GoDaddy Payments as a "payment facilitator" providing payment processing services to our GoDaddy Payments' cus…

Due to the global nature of the internet, it is possible that any U.S.

We use open source software in our business, including in our products.

Occasionally, one of our customers may register a domain name identical, or similar, to a third party's trademark or the name of a living person.

As a provider of web and cloud-based products, including as a registrar of domain names and related products, we may become aware of disputes over ownership or control of customer accounts, websites or domain names.

We have faced in the past, are currently facing, and expect to face in the future, claims and litigation by third parties that we infringe upon or misappropriate their intellectual property rights.

suits alleging infringement of proprietary rights, particularly patent rights.

As of December 31, 2025 we had 563 registered and 56 pending trademarks in jurisdictions including the U.S., E.U., UK, China and Germany.

As of December 31, 2025, we had 354 issued patents in the U.S.

The legal and regulatory environment relating to the internet is uncertain, and governments may impose additional regulation in the future.

Our business could be affected by new laws, rules, regulations or court orders regarding the internet.

As a result of the products and services we offer, we may be subject to liability and negative publicity due to our customers' activities on or in connection with their domain names, their websites or the data they st…

Existing and new laws, rules, regulations and orders relating to the security of our networks and data processing, such as NIS2 in the E.U.

We entered into an agreement, which was approved by the FTC on May 21, 2025, to settle FTC charges related to certain of our security practices, advertising and other related matters.

to customers, and, in turn, could adversely impact our business.

ICANN has periodically authorized the introduction of new TLDs and made domain names related to them available for registration.

•ICANN, TLD operators, governments and governmental authorities may impose requirements for verification of domain name registrant information that are inconsistent with our current business practices or that result i…

•international regulatory or governing bodies may gain increased influence over the management and regulation of the domain name registration system, leading to increased regulation in areas such as taxation, privacy,…

•the terms of the Registrar Accreditation Agreement (RAA) under which we are accredited as a registrar or the Registry Agreement (RA) under which we are accredited as a registry, could change in ways that are disadvan…

•the structure and accountability mechanisms contained in the Bylaws for ICANN, as amended, are not fully tested, which may result in ICANN not being accountable to its stakeholders and unable to make, implement or en…

ICANN is a multi-stakeholder, private sector, not-for-profit corporation formed in 1998 for the express purposes of overseeing a number of internet related tasks, including managing the DNS allocation of IP addresses,…

Our ability to obtain any additional financing will depend on a number of factors, such as market conditions, our operating performance, investor interest and, in the case of debt financing, our then-current debt leve…

As described in Note 2 to our audited financial statements, we generally recognize revenue from our customers ratably over the respective terms of their subscriptions in accordance with generally accepted accounting p…

In addition, maintaining profitability will require that we manage our cost structure and avoid significant liabilities.

We had net income of $875.0 million, $936.9 million and $1,375.6 million for the years ended December 31, 2025, 2024 and 2023 respectively.

We release guidance in our quarterly earnings webcasts, quarterly earnings releases, or otherwise, based on forecasts by management, which are necessarily speculative in nature and subject to assumptions and inherent…

Any of the factors above, or the cumulative effect of multiple factors, or factors that may not be known to us at this time, may result in significant fluctuations in our quarterly or annual operating results, includi…

•macroeconomic conditions and the related impact on the worldwide economy, including the effects of inflation, deflation or a recession, tariffs and trade policy changes, geopolitical conflict or other adverse economi…

•shortcomings in, or misinterpretations of, our metrics and data which cause us to fail to anticipate or identify market trends or affect our ability to forecast results;

•changes in interest rates or foreign currency exchange rates;

•the mix of products sold and our use of "freemium" and other promotions and free trials for our solutions;

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

Competition for highly skilled personnel, particularly employees with technical and engineering skills, is frequently intense.

We have in the past and may in the future expand our solutions through acquisitions.

Our future performance and success also depends, in part, on our ability to continue to hire, retain, manage and motivate highly skilled personnel around the globe.

transmission of payment information will adequately prevent cybersecurity incidents affecting systems.

We could also incur significant fines or lose our ability to give customers the option of using credit cards to pay for our products if we fail to follow payment card industry data security standards, even if there is…

The reliability, security and continuous availability of the software, hardware and workflow processes underlying our internal systems, networks and infrastructure and the ability to deliver our products are critical…

System and process failures related to our domain name registration service may result in inaccurate and incomplete information in our domain name database.

We have invested and will continue to invest in our partnerships to provide these product offerings and tools to our customers, to assist us in expanding the suite of solutions and tools we can offer to our customers…

We continue to refine our efforts in customer care so we can adequately serve our domestic and international customers.

We believe our focus on high-quality customer care is critical to retaining, expanding and further penetrating our customer base, including generating additional sales of products to our customers.

In the years ended December 31, 2025, 2024, and 2023, our marketing and advertising expenses were $375.1 million, $356.9 million and $352.9 million, respectively.

Our products and services, and the products and services of our third-party vendors and partners, may be subject to fraudulent usage, including, but not limited to domain name hijacking, revenue share fraud and other…

In addition to threats from external threat actors, we face internal cybersecurity threats related to our own operations.

Our operations depend on our ability to protect our information systems against interruption, a breach of confidentiality, or other damage from cybersecurity threats and incidents.

We maintain information and data (including personal data) on various platforms, systems and applications.

If we or our external business partners were to experience an event that caused a system outage, disruption or degradation, or if a transition among data centers or service providers or an upgrade or maintenance sessi…

We believe a contributor to our success has been our company's culture, which we rely on to foster innovation, experimentation, creativity, a customer-centric focus, passion, teamwork, collaboration and loyalty.

As we continue to manage our business and operations, our management, administrative, operational and financial infrastructure may be strained.

We continue to work to increase the breadth and scope of our business, operations and our product offerings.

•the potential for political, social or economic unrest, terrorism, hostilities or war;

•increased expenses incurred in establishing and maintaining office space and equipment, if needed, in our international locations;

International revenue represented approximately 33%, 32% and 32% of our total revenue for the years ended December 31, 2025, 2024, and 2023, respectively.

Some of our current and potential competitors could have greater resources, more brand recognition and awareness, more diversified product offerings, greater international scope and larger customer bases than we do, a…

In addition, we and our competitors continue to invest in AI and integrate AI capabilities into products, services and internal operations.

Our customers and their businesses rely heavily on tools and solutions that help them manage and grow their Presence, including dedicated websites, online stores and social media channels, such as Meta, TikTok, Snapch…

It is not possible to predict all risks related to the use of AI, and changes in laws, rules, directives and regulations governing AI may adversely affect our development, adoption, use, deployment and maintenance of…

Our use of AI could also pose other concerns.

In addition, many existing laws, rules and regulations apply to certain aspects of AI, such as automated decision making, affecting fundamental data subject rights.

Legal and regulatory frameworks related to the use of AI are rapidly evolving, as regulation of the use of AI continues to be considered and adopted by various U.S.

We are increasingly using new and rapidly evolving technologies, such as AI, including agentic AI, to, among other things, develop new tools and solutions, add new features in our existing solutions and enhance our ow…

We must continue to identify our customers' needs and develop new and enhanced solutions, tools and technology to maintain our competitive position, including solutions and tools powered by AI.

Moreover, we focus our operations on entrepreneurs, customers with new ventures and those with established small and medium-sized businesses.

Our success largely depends on our ability to continue to increase sales to new and existing customers.

If we are unable to continue to increase sales to new and existing customers, our business and operating results would be harmed.

•Our business could be affected by new laws, rules, regulations or court orders regarding the internet.

•Evolving technologies, including AI-based technologies, and changes in customer behavior and practices with respect to the internet may impact the demand for and value of our products and services.

•If we are unable to continue to increase sales to new and existing customers, our business and operating results would be harmed.

In the past we have been subject to, and in the future may become subject to, shareholder activity and demands.

Our business could be negatively impacted by shareholder activism.

As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal control.

shares of our Class A common stock in the open market, which were retired upon repurchase, for an aggregate purchase price of $668.1 million.

At our 2022 annual meeting of stockholders, our stockholders approved certain amendments to our charter, including the recommendation of our board of directors to eliminate its classified structure.

•certain limitations on convening special stockholder meetings.

•advance notice for nominations of directors by stockholders and for stockholders to include matters to be considered at stockholder meetings; and

•the ability of our board of directors to issue one or more series of preferred stock with voting or other rights or preferences that could have the effect of impeding the success of an attempt to acquire us or otherw…

Our charter and bylaws provide for, among other things:

We operate and maintain business in areas of the world in which corruption by government officials exists to some degree and, in certain circumstances, compliance with anti-bribery and anti-corruption laws may conflic…

We face significant risks if we fail to comply with the U.S.

If we are found to be in violation of the export controls laws, rules and regulations or economic sanctions laws, rules and regulations, penalties may be imposed against us and our employees, including loss of export…

Any change in export or import regulations, shift in the enforcement or scope of existing regulations, or change in the countries, governments, persons or technologies targeted by such regulations, could result in dec…

We employ country-specific log-in and/or cart blocks in comprehensively sanctioned jurisdictions, customer screening, and other measures designed to ensure regulatory compliance.

Our business activities are subject to various restrictions under U.S.

open source license or other license granting third parties certain rights of further use.

We have faced in the past, are currently facing, and expect to face in the future, claims and litigation by third parties that we infringe upon or misappropriate their intellectual property rights.

scope.

In addition, other bodies of law, including state criminal laws, may be deemed to apply or new statutes or regulations may be adopted in the future, any of which could expose us to further liability and increase our c…

regulatory or legislative amendments may narrow the scope of protection afforded us under these laws.

Notwithstanding the exculpatory language of these bodies of law, the activities of our customers have resulted in, and may in the future result in, threatened or actual litigation against us.

An increasing number of laws and regulations impose requirements on us to provide content moderation and other restrictions for our products and services.

Program.