DigitalOcean Holdings, Inc.

DOCN Technology Software Infrastructure

DigitalOcean Holdings, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $901.4 million, up 15.5% from fiscal 2024.

Revenue
+39.9%
EPS
−121.3%
Free cash flow
+180.8%
Total debt
−75.9%

Quarter to September 2026, against a year earlier

90.22 0.43 +0.48%
Market cap
$10.6B
P/E
215×
Fwd P/E
175×
Dividend yield
—
F-score
8/9
Altman Z
2.03
Beneish M
−2.25
Dividend safety
n/a

DigitalOcean Holdings, Inc. (DOCN) Earnings & Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Latest quarter

DigitalOcean reported Q2 FY2026 revenue of $281.2 million, above the consensus of $277.8 million and up from $218.7 million a year earlier. The company’s filing attributed the increase to revenue growth from its DNE customers, including new AI customers and greater usage by existing customers.

Gross margin fell to 55.0% from 59.9%. The filing attributed the decline to data center expansion costs incurred ahead of revenue from the new facilities. It also said research and development and administrative expenses rose in part because of higher personnel costs.

DigitalOcean reported an operating margin of 10.4%, down from 16.3% a year earlier, and diluted earnings per share of $0.29, compared with $0.39. The filing said an increase in excess tax benefits on stock-based compensation contributed to an income tax benefit for the quarter. Free cash flow was $20.8 million, compared with $57.0 million a year earlier.

Q2 FY2026 Q2 FY2025 Change
Revenue $281.2 million $218.7 million 28.6%
Diluted EPS $0.29 $0.39 −25.6%
Gross margin 55.0% 59.9% −4.9 percentage points
Operating margin 10.4% 16.3% −5.8 percentage points
Free cash flow $20.8 million $57.0 million −63.4%
Against the consensus Reported Consensus Result
Revenue $281.2 million $277.8 million Beat by 1.23%

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

An earnings call was not available for the quarter, so there is no call commentary to report.

Guidance

DigitalOcean said it raised its FY2026 revenue outlook, citing customer momentum and early product traction. The company expects revenue growth to reach 35.0% or more by Q4 FY2026.

Metric For Guide Previous guide Change
Revenue growth, Growth FY2027 50.0% — New
Revenue growth, Growth Q4 FY2026 35.0% — New
EPS, non-GAAP FY2026 $1.35–$1.40 — New
Free cash flow growth, Non Gaap Margin FY2026 11.0%–13.0% — New
EBITDA growth, Non Gaap Margin FY2026 38.5%–39.5% — New
Revenue FY2026 $1.2 billion–$1.2 billion — New
EPS, non-GAAP Q3 FY2026 $0.28–$0.30 — New
EBITDA growth, Non Gaap Margin Q3 FY2026 38.0%–39.0% — New
Revenue Q3 FY2026 $304.0 million–$307.0 million — New