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. In the quarter to June 2026, revenue grew 28.6%, EPS fell 17.1%, free cash flow fell 63.4% and total debt fell 8.07%, each against the same quarter a year earlier. Revenue growth for five consecutive years, operating cash flow growth for five.
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DigitalOcean Holdings, Inc. (DOCN) Altman Z-score
DigitalOcean Holdings, Inc.'s Altman Z-score for fiscal 2025 is 2.03, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.03 | 0.34 |
| FY2024 | 1.69 | 0.15 |
| FY2023 | 1.54 | 0.05 |
| FY2022 | 1.49 | (2.50) |
| FY2021 | 3.99 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.10) | — | −0.13 | |
| Retained earnings / total assets | (0.02) | — | −0.03 | |
| EBIT / total assets | 0.09 | — | 0.28 | |
| Market value of equity / total liabilities | 2.36 | — | 1.42 | |
| Sales / total assets | 0.49 | — | 0.49 | |
| Altman Z-score | Grey zone | 2.03 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.21 | ||
Z and Z″ put DigitalOcean Holdings, Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TOST Toast, Inc. compare | 14.5× |
| SAIL SailPoint, Inc. compare | 6.8× |
| CHKP Check Point Software Technologies Ltd. compare | 6.1× |
| GTLB GitLab Inc. compare | 5.2× |
| AKAM Akamai Technologies, Inc. compare | 2.3× |
| DOCN DigitalOcean Holdings, Inc. | 2.0× |
| GDDY GoDaddy Inc. compare | 1.7× |
| GEN Gen Digital Inc. compare | 1.2× |
| KSPI Joint Stock Company Kaspi.kz Sponsored ADR compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets