DigitalOcean Holdings Inc.
Revenue
$281M
Net Income
$35M
DigitalOcean Holdings Inc.
Revenue
$281M
Net Income
$35M
DigitalOcean Holdings Inc.
CIK: 0001582961
Earnings Analysis
Analyzed 11 of 12 reports
Performance Summary - Q2 2026bullish (70)not_provided
Reality-Based Sentiment Analysisbullish70/100
Based on actual market data, not just management spin. Weighted score: 10% management tone + 40% earnings beat/miss + 30% price action + 20% guidance accuracy.
Financial Performance Trend
Overall Analysis & Outlook
Over the past 5 quarters, DigitalOcean Holdings Inc. has been consistently bullish with stable guidance. Revenue has grown 58.8% during this period. The latest quarter shows neutral sentiment with neutral tone from management.
Latest Quarter Highlights:
DigitalOcean delivered Q2 2026 revenue of $281.2M (28.6% YoY growth) with net income of $35.4M, up slightly from Q2 2025's $37.0M despite higher interest expense. ARR reached $1,125M (+28.6% YoY) with AI Customer ARR growing 212% to $234M, indicating strong traction in strategic AI/ML offerings. The company raised $887.9M in net proceeds from a follow-on offering in March 2026 and subsequently repurchased $471.8M of convertible notes, improving its capital structure while investing heavily in infrastructure (capex of $93.4M for H1 2026).
Detailed Quarterly Reports
In-depth analysis of each quarter's earnings filing
Q2 2026
10-Q • Filed 8/4/2026
Summary
DigitalOcean delivered Q2 2026 revenue of $281.2M (28.6% YoY growth) with net income of $35.4M, up slightly from Q2 2025's $37.0M despite higher interest expense. ARR reached $1,125M (+28.6% YoY) with AI Customer ARR growing 212% to $234M, indicating strong traction in strategic AI/ML offerings. The company raised $887.9M in net proceeds from a follow-on offering in March 2026 and subsequently repurchased $471.8M of convertible notes, improving its capital structure while investing heavily in infrastructure (capex of $93.4M for H1 2026).
Revenue
$281.184M
Net Income
$35.437M
Guidance
Tone
Capex
$93.36B(-1.9% YoY)
Key Quotes
"DigitalOcean is an AI-Native Cloud, purpose-built for inference and agentic workloads that brings infrastructure, core cloud services, inference, data, and agents together in one integrated stack"
"Revenue from our DNE Customers as a percentage of total revenue was 67% in the three months ended June 30, 2026, up from approximately 59% in the three months ended June 30, 2025"
"Our AI Customer ARR as of June 30, 2026 was $234 million, up from $75 million as of June 30, 2025"
Q1 2026
10-Q • Filed 5/5/2026
Summary
DigitalOcean delivered strong Q1 2026 results with revenue growing 22.4% YoY to $257.9M and net income of $15.8M, though down from prior year's $38.2M due to higher debt extinguishment costs. The company achieved strategic milestones including a successful $887.9M follow-on offering, debt repayment, and expanded credit facility, while maintaining healthy operating cash flow of $46.9M. Digital Native Enterprise customers grew to 22,000 (+10% YoY) generating 64% of revenue, with AI Customer ARR surging 220% to $170M, demonstrating strong traction in the high-margin AI inference market.
Revenue
$257.905M
Net Income
$15.771M
Guidance
Tone
Capex
$44.732M(-27.8% YoY)
Partnerships
Key Quotes
"ARR increased from $843 million as of March 31, 2025 to $1,032 million as of March 31, 2026"
"AI Customer ARR as of March 31, 2026 was $170 million, up from $53 million as of March 31, 2025"
"Revenue from our DNE Customers as a percentage of total revenue was 64% in the three months ended March 31, 2026, up from approximately 57% in the three months ended March 31, 2025"
Q4 2025
10-K • Filed 2/24/2026
Summary
DigitalOcean delivered full-year 2025 revenue of $665.8M (+18% YoY) with modest net income of $16.7M, driven by strong growth in DNE Customers (21K, +17% YoY) and improving net dollar retention (100% in 2025 vs 98% in 2024). The company is heavily investing in AI/ML infrastructure and capabilities while facing significant headwinds from GPU supply constraints, evolving regulatory frameworks for AI, and intense competition from hyperscalers.
Revenue
$242.39M
Net Income
$25.66M
Guidance
Tone
Capex
$111.2M
Key Quotes
"Revenue from our DNE Customers as a percentage of total revenue was 60% in 2025, 55% in 2024, and 53% in 2023."
"ARR as of December 31, 2025 was $970 million, up from $820 million as of December 31, 2024"
"We are subject to a limited number of suppliers for several components of the equipment we use to operate our platform and provide products to our customers, including competition with larger cloud computing companies for high demand equipment such as GPUs"
Q3 2025
10-Q • Filed 11/5/2025
Summary
DigitalOcean delivered strong Q3 2025 results with revenue of $229.6M (+15.7% YoY) and net income of $158.4M, driven by a $48.4M debt extinguishment gain and improved operational efficiency. The company demonstrated solid organic growth with ARPU increasing 13.2% to $116.20 and ARR reaching $919M, while maintaining pricing power evidenced by Scalers+ revenue growth. Key highlights include successful debt refinancing (issued $625M 2030 Convertible Notes, repurchased $1.2B of 2026 notes), establishment of a $500M Term Loan Facility, and significant AI/ML platform investments with DigitalOcean Gradient offerings.
Revenue
$229.634M
Net Income
$158.371M
Guidance
Tone
Capex
$109.47B(-17.6% YoY)
Partnerships
Key Quotes
"Revenue from our Higher Spend Customers as a percentage of total revenue was 89% in the three months ended September 30, 2025, up from approximately 88% in the three months ended September 30, 2024."
"Our annual run-rate (ARR, as further described in 'ARR' below), as of September 30, 2025 was $919 million, up from $794 million as of September 30, 2024."
"We had approximately 177,000 Higher Spend Customers using our platform to build, deploy and scale applications as of September 30, 2025, up from approximately 163,000 as of September 30, 2024."
Q2 2025
10-Q • Filed 8/5/2025
Summary
DigitalOcean delivered strong Q2 2025 results with revenue of $218.7M (13.6% YoY growth) and net income of $37.0M, driven by expansion in Higher Spend Customers (174k, up 8.75% YoY) and improving NDR of 99%. The company is investing heavily in AI/ML infrastructure with capex up 30.5% YoY, while maintaining operational efficiency with gross margins stable at ~60% and positive free cash flow generation.
Revenue
$218.7M
Net Income
$37.027M
Guidance
Tone
Capex
$98.572M(+30.5% YoY)
Partnerships
Key Quotes
"Higher Spend Customers as a percentage of total revenue was 89% in the three months ended June 30, 2025, up from approximately 87% in the three months ended June 30, 2024."
"Our annual run-rate (ARR) as of June 30, 2025 was $875 million, up from $770 million as of June 30, 2024."
"We had approximately 174,000 Higher Spend Customers using our platform to build, deploy and scale applications as of June 30, 2025, up from approximately 160,000 as of June 30, 2024."
Q1 2025
10-Q • Filed 5/6/2025
Summary
DigitalOcean delivered strong Q1 2025 results with revenue of $210.7M (+14.1% YoY) and net income of $38.2M (+170% YoY), demonstrating significant operating leverage and improved profitability. The company achieved 100% net dollar retention, expanded its higher-spend customer base to 171,000 (up 9% YoY), and increased ARR to $843M, driven by successful AI/ML product adoption and disciplined platform investments. Management maintains a confident tone with active pursuit of strategic partnerships and acquisitions to accelerate growth, though no explicit forward guidance was provided in this 10-Q filing.
Revenue
$210.703M
Net Income
$38.204M
Guidance
Tone
Capex
$63.992M(+46.7% YoY)
Partnerships
Key Quotes
"Revenue from our Higher Spend Customers as a percentage of total revenue was 88% as of March 31, 2025, up from approximately 87% as of March 31, 2024."
"Our annual run-rate (ARR) as of March 31, 2025 was $843 million, up from $739 million as of March 31, 2024."
"NDR increased from 97% during the three months ended March 31, 2024 to 100% during the three months ended March 31, 2025 driven by improved net expansion."
Q4 2024
10-K • Filed 2/25/2025
Summary
DigitalOcean reported full-year 2024 revenue of $615.5 million and net income of $5.1 million, with Higher Spend Customers representing 87% of revenue and growing to 165,000 customers. The company achieved 13.4% ARR growth to $820 million and positive operating cash flow of $134 million, though net dollar retention declined to 98% from 101% in 2023. Management maintained a measured tone without providing forward guidance, emphasizing strategic investments in AI/ML capabilities, developer community engagement, and platform expansion.
Revenue
$204.925M
Net Income
$18.266M
Guidance
Tone
Capex
$47M
Partnerships
Key Quotes
"Revenue from our Higher Spend Customers as a percentage of total revenue was 87% in 2024, 86% in 2023 and 85% in 2022."
"Our average revenue per customer (ARPU) has increased from $82.76 in 2022 to $90.99 in 2023 and $100.71 in 2024."
"We have a highly efficient self-service customer acquisition model, which we complement with a sales force focused on inside sales, targeted outside sales and partnership opportunities to drive revenue growth."
Q3 2024
10-Q • Filed 11/4/2024
Summary
DigitalOcean delivered solid Q3 2024 results with revenue of $198.5M (up 12% YoY) and net income of $33M, demonstrating improved profitability versus prior year ($19.2M). Strong cash generation with $211.4M operating cash flow and healthy ARR growth to $798M, though management provided no forward guidance. The company is investing heavily in infrastructure (capex up 108% YoY) and AI/ML capabilities via the Paperspace acquisition while maintaining disciplined capital allocation through share buybacks.
Revenue
$198.484M
Net Income
$32.949M
Guidance
Tone
Capex
$139.38B(+107.8% YoY)
Partnerships
Key Quotes
"Our annual run-rate revenue, or ARR, as of September 30, 2024 was $798 million, up from $713 million as of September 30, 2023."
"Revenue from Builders and Scalers increased 7% and 19%, respectively, for the three months ended September 30, 2024 from the three months ended September 30, 2023."
"We are focusing our sales and support teams to prevent customer churn by ensuring that our products and services provide a high level of value."
Q2 2024
10-Q • Filed 8/8/2024
Summary
DigitalOcean delivered Q2 2024 revenue of $192.5M (+13% YoY) with positive net income of $19.1M, demonstrating improved profitability despite operating in a competitive cloud market. The company added customers across segments (18K Scalers, 143K Builders) and grew ARR to $781M, though NDR moderated to 97% from 104% YoY. Management made significant capital investments ($79.6M capex, +61% YoY) in infrastructure expansion while continuing AI/ML product integration from recent acquisitions.
Revenue
$192.476M
Net Income
$19.138M
Guidance
Tone
Capex
$79.58B(+61.3% YoY)
Partnerships
Key Quotes
"Revenue from Builders and Scalers increased 8% and 19%, respectively, for the three months ended June 30, 2024 from the three months ended June 30, 2023."
"Our annual run-rate revenue, or ARR, as of June 30, 2024 was $781 million, up from $682 million as of June 30, 2023."
"We view Learners, Builders and Scalers as the most appropriate measure of our customer population, and Testers have therefore been excluded from the total customer population count."
Q1 2024
10-Q • Filed 5/10/2024
Summary
DigitalOcean reported Q1 2024 revenue of $184.7M (+12% YoY) with a return to profitability ($14.1M net income vs. -$16.4M loss in Q1 2023). The company achieved strong operating cash flow of $66.7M and improved operating margin despite significant capex investments of $45.2M (+94% YoY). ARR reached $749M and customer metrics showed modest growth with 637K total customers, though net dollar retention declined to 97% from 107% YoY, signaling potential headwinds in customer expansion.
Revenue
$184.73M
Net Income
$14.139M
Guidance
Tone
Capex
$45.228M(+94.1% YoY)
Partnerships
Key Quotes
"Our annual run-rate revenue, or ARR, as of March 31, 2024 was $749 million, up from $669 million as of March 31, 2023."
"Revenue from Builders and Scalers increased 9% and 15%, respectively, for the three months ended March 31, 2024 from the three months ended March 31, 2023."
"We had approximately 637,000 Learners, Builders and Scalers using our platform to build, deploy and scale applications."
Q3 2023
10-Q • Filed 11/2/2023
Summary
DigitalOcean reported Q3 2023 revenue of $177.1M (+16.4% YoY) with net income of $19.2M, a significant improvement from $7.9M in Q3 2022, driven by better cost management and restructuring benefits. The company is aggressively pursuing AI/ML capabilities through the Paperspace acquisition and generating positive operating cash flow of $154.4M YTD, though headcount reduction via restructuring plan remains ongoing. The company maintains a negative equity position of $(358.8)M and carries substantial convertible debt, creating refinancing risks despite improving operational profitability.
Revenue
$177.062M
Net Income
$19.175M
Guidance
Tone
Capex
$71.15B(-10.7% YoY)
Partnerships
Key Quotes
"The acquisition and integration of Paperspace's advanced technology into the Company's platform will extend the Company's offerings, enabling customers to more easily test, develop and deploy artificial intelligence and machine learning (AI/ML) applications."
"In February 2023, the Company initiated a restructuring plan to adjust its cost structure and accelerate its timeline to achieve greater than 20% adjusted free cash flow margins."
"The Company recorded approximately $5,774 of acquisition related costs that were expensed in the nine months ended September 30, 2023."
Sector Comparison
How DOCN performs vs Technology sector and Cloud Infrastructure peers
Sector Ranking (Technology)
Category Ranking (Cloud Infrastructure)
Key Metrics vs Averages
DOCN
$281.184M
Cloud Infrastructure Avg
$70,028.061M
Technology Avg
$40,813.995M
DOCN
-1.9%
Cloud Infrastructure Avg
60.3%
Technology Avg
56.5%
Guidance: not_provided • Tone: neutral