Q2 aftermarket revenue was solid compared to the same quarter a year ago, but Q3 2025 will be hard to beat.
GoDaddy (NYSE: GDDY) released its Q2 earnings after the market closed today, reporting steady top-line growth and mixed signals across its core segments. Total revenue reached $1.3 billion, reflecting a 7% increase compared with the same period last year. Bookings — a key indicator of future revenue — rose 6% year over year to $1.4 billion.
The company divides its business into the Cort Platform, which includes domain services, and Applications & Commerce products. The Cort Platform generated $783 million in the quarter, up 4% from the prior year. Within this segment, domain names contributed $470 million, a 5% year-over-year increase. The aftermarket portion of domain revenue showed stronger year-over-year momentum, growing 9% to $129 million.
While the aftermarket result improved compared with Q2 of the prior year, it was slightly down from Q1 2026, when aftermarket revenue was $130 million. GoDaddy also noted that Q3 of last year featured an especially strong aftermarket performance, which creates a tougher year-over-year comparison for the upcoming quarter. That prior-quarter number to beat is $136 million — a figure that would likely require some unusually large domain transactions to surpass. Sellers and brokers with high-value domain assets may therefore find this an opportune moment to surface opportunities.
Applications & Commerce revenue showed healthier growth, increasing 11% year over year to $515 million. The company attributed a moderation in growth within this segment to customer migration toward its newer AI-powered offering, Airo. As clients adopt Airo, they are consolidating services and replacing various third-party or separately purchased subscriptions with a single Airo subscription, which changes the dynamics of recurring revenue recognition and churn.
Airo itself is still a relatively small contributor to overall revenue, but it is accelerating. GoDaddy reported that annualized bookings tied to Airo rose fivefold during the quarter, moving from an annualized run rate of $10 million to $50 million. That rapid increase suggests early customer traction and potential for further expansion, though Airo’s present scale remains limited compared with legacy products.
On guidance, GoDaddy tightened its full-year revenue outlook. The company narrowed its previous range of $5.195 billion to $5.275 billion to a more focused range between $5.215 billion and $5.255 billion. Narrowing guidance can indicate increased confidence in near-term performance or simply reflect management’s updated view of demand trends and product transitions.
Market reaction to the results was negative in after-hours trading: shares fell more than 7% following the announcement. That drop came despite a strong run-up before the report, with shares having climbed over 17% in the month leading up to the earnings release. The sell-off suggests that investors may have been looking for stronger upside in aftermarket growth, clearer visibility on Airo’s path to scale, or more optimistic guidance for the near term.
In summary, GoDaddy’s Q2 results show continued revenue growth, steady domain and aftermarket performance year over year, and accelerating adoption of its AI offering Airo. The main near-term challenge is the tougher comparable in Q3 after a strong performance last year, which may require outsized aftermarket transactions to exceed that prior benchmark. Investors and domain market participants should watch upcoming quarterly results for proof that Airo can scale and that aftermarket sales can regain momentum against the tougher comparables.