DigitalOcean Holdings, Inc. (DOCN) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 16, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 4, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the DOCN SEC filings page.
DigitalOcean Holdings, Inc. (DOCN) reported $1.0B in revenue over the twelve months to Jun 30, 2026, up 21.4% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
DigitalOcean has shifted from losses to profitable growth, but 2025’s cash and balance-sheet metrics reveal tighter short-term financial flexibility.
Operating margin moved from-4.5% in FY2022 to17.4% in FY2025 while gross margin remained broadly similar, pointing to operating-cost absorption rather than a clearly richer revenue mix. The improvement therefore appears to come mainly from controlling operating expenses as the business expanded, not from a fundamental change in gross economics.
FY2025 operating cash flow of
The current ratio fell from 2.5x in FY2024 to 0.7x in FY2025, showing that short-term obligations became larger than current assets. Long-term debt was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of DigitalOcean Holdings, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
DigitalOcean Holdings, Inc. has an operating margin of 17.4%, meaning the company retains $17 of operating profit per $100 of revenue. This results in a moderate score of 58/100, indicating healthy but not exceptional operating efficiency. This is up from 11.7% the prior year.
DigitalOcean Holdings, Inc.'s revenue surged 15.5% year-over-year to $901.4M, reflecting rapid business expansion. This strong growth earns a score of 74/100.
DigitalOcean Holdings, Inc.'s current ratio of 0.69 is below the typical benchmark, resulting in a score of 8/100. This tight liquidity could limit financial flexibility if cash inflows slow.
DigitalOcean Holdings, Inc. converts 20.0% of revenue into free cash flow ($180.5M). This strong cash generation earns a score of 83/100.
DigitalOcean Holdings, Inc. scores 4.34, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($11.6B) relative to total liabilities ($1.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
DigitalOcean Holdings, Inc. passes 8 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, DigitalOcean Holdings, Inc. generates $1.19 in operating cash flow ($309.6M OCF vs $259.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
DigitalOcean Holdings, Inc. earns $17.16 in operating income for every $1 of interest expense ($157.0M vs $9.2M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
DigitalOcean Holdings, Inc. generated $281.2M in revenue in Q2 2026. This represents an increase of 28.6% from the same quarter a year earlier. Against the prior quarter it is up 9.0%.
DigitalOcean Holdings, Inc.'s EBITDA was $79.1M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 26.4% from the same quarter a year earlier. Against the prior quarter it is down 3.6%.
DigitalOcean Holdings, Inc. reported $35.4M in net income in Q2 2026. This represents a decrease of 4.3% from the same quarter a year earlier. Against the prior quarter it is up 124.7%.
DigitalOcean Holdings, Inc. earned $0.29 per diluted share (EPS) in Q2 2026. This represents a decrease of 25.6% from the same quarter a year earlier. Against the prior quarter it is up 93.3%.
Cash & Balance Sheet
DigitalOcean Holdings, Inc. generated $68.4M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 15.4% from the same quarter a year earlier. Against the prior quarter it is up 886.9%.
DigitalOcean Holdings, Inc. held $767.0M in cash against $609.4M in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Margins & Returns
DigitalOcean Holdings, Inc.'s gross margin was 55.0% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 4.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.1 percentage points.
DigitalOcean Holdings, Inc.'s operating margin was 10.4% in Q2 2026, reflecting core business profitability. This is down 5.8 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.7 percentage points.
DigitalOcean Holdings, Inc.'s net profit margin was 12.6% in Q2 2026, showing the share of revenue converted to profit. This is down 4.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 6.5 percentage points.
DigitalOcean Holdings, Inc.'s ROE was 3.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. Against the prior quarter it is up 2.0 percentage points.
Capital Allocation
DigitalOcean Holdings, Inc. invested $57.5M in research and development in Q2 2026. This represents an increase of 45.1% from the same quarter a year earlier. Against the prior quarter it is up 17.8%.
DigitalOcean Holdings, Inc. repurchased no shares in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier.
DigitalOcean Holdings, Inc. invested $41.6M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 25.3% from the same quarter a year earlier. Against the prior quarter it is up 4.0%.
DOCN Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $281.2M+28.6% | $257.9M+22.4% | $242.4M+18.3% | $229.6M+15.7% | $218.7M+13.6% | $210.7M+14.1% | $204.9M+13.3% | $198.5M+12.1% |
| Cost of Revenue | $126.5M+44.2% | $113.2M+39.3% | $100.1M+27.0% | $92.7M+13.2% | $87.8M+12.0% | $81.3M+7.5% | $78.8M+1.6% | $81.9M+11.8% |
| Gross Profit | $154.7M+18.1% | $144.7M+11.8% | $142.3M+12.8% | $136.9M+17.5% | $130.9M+14.7% | $129.4M+18.6% | $126.1M+22.1% | $116.6M+12.3% |
| R&D Expenses | $57.5M+45.1% | $48.8M+23.3% | $44.3M+9.8% | $38.1M+5.1% | $39.6M+20.2% | $39.6M+20.2% | $40.3M+34.5% | $36.3M+14.3% |
| SG&A Expenses | $45.2M+24.2% | $37.6M+14.7% | $36.7M+8.5% | $32.7M-19.2% | $36.4M-10.9% | $32.8M-28.3% | $33.8M-24.6% | $40.4M+101.5% |
| Operating Income | $29.4M-17.5% | $36.6M-2.8% | $38.8M+19.2% | $44.9M+82.6% | $35.6M+59.5% | $37.6M+226.2% | $32.5M+196.2% | $24.6M-30.6% |
| EBITDA | $79.1M+26.4% | $82.0M+22.7% | $92.1M+49.1% | $73.0M+37.0% | $62.5M+29.4% | $66.9M+53.9% | $61.8M+47.9% | $53.3M-8.7% |
| Interest Expense | $233K+28.7% | $5.7M+4414.3% | $5.8M+158.7% | $3.1M+2309.4% | $181K-92.2% | $126K-94.5% | $2.2M-3.7% | $128K-94.5% |
| Income Tax | -$8.3M-253.0% | $8.7M+174.7% | $6.9M-36.1% | -$68.1M-1957.3% | $5.4M-4.4% | $3.2M+2637.9% | $10.7M+545.7% | -$3.3M-118.4% |
| Net Income | $35.4M-4.3% | $15.8M-58.7% | $25.7M+40.5% | $158.4M+380.7% | $37.0M+93.5% | $38.2M+170.2% | $18.3M+14.6% | $32.9M+71.8% |
| EPS (Basic) | $0.34-17.1% | $0.17-59.5% | $0.27+35.0% | $1.74+383.3% | $0.41+95.2% | $0.42+162.5% | $0.20+11.1% | $0.36+63.6% |
| EPS (Diluted) | $0.29-25.6% | $0.15-61.5% | $0.21+10.5% | $1.51+357.6% | $0.39+95.0% | $0.39+160.0% | $0.19+11.8% | $0.33+65.0% |
| Diluted Shares (Avg) | 127M+25.8% | 112M+9.4% | N/A | 106M+2.9% | 101M+7.2% | 102M+9.1% | 94M+2.6% | 103M-0.1% |
DOCN Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.1B+81.6% | $2.6B+56.6% | $1.8B+12.1% | $1.7B+13.1% | $1.7B+11.9% | $1.6B+10.5% | $1.6B+12.2% | $1.5B+7.1% |
| Current Assets | $1.0B+99.6% | $944.3M+97.0% | $427.0M-21.2% | $367.6M-33.4% | $509.8M-6.2% | $479.2M-7.1% | $541.7M+7.7% | $552.0M+17.1% |
| Cash & Equivalents | $767.0M+97.8% | $741.4M+105.7% | $254.5M-40.6% | $236.6M-46.2% | $387.7M-12.5% | $360.4M-14.0% | $428.4M+35.1% | $439.9M+454.3% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0-100.0% | $0-100.0% |
| Accounts Receivable | $115.0M+41.5% | $105.5M+37.7% | $90.9M+25.4% | $84.4M+22.4% | $81.3M+20.5% | $76.6M+20.0% | $72.5M+16.6% | $68.9M+14.4% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $350.7M+0.6% | $350.7M+0.6% | $348.7M0.0% | $348.7M0.0% | $348.7M0.0% | $348.7M+0.1% | $348.7M+0.1% | $348.7M+0.1% |
| Total Liabilities | $2.2B+15.7% | $1.7B-9.1% | $1.9B+1.3% | $1.8B+3.3% | $1.9B+5.8% | $1.9B+4.6% | $1.8B+3.8% | $1.7B-2.6% |
| Current Liabilities | $776.1M+245.7% | $647.0M+226.2% | $619.5M+180.4% | $325.0M+84.6% | $224.5M+2.0% | $198.3M+5.0% | $221.0M+14.7% | $176.0M-4.5% |
| Non-Current Liabilities | $1.4B-15.2% | $1.0B-37.4% | $1.2B-23.1% | $1.5B-5.9% | $1.7B+6.4% | $1.7B+4.5% | $1.6B+2.5% | $1.6B-2.3% |
| Long-Term Debt | $609.4M-59.1% | $608.5M-59.1% | $970.7M-34.7% | $1.3B-13.4% | $1.5B+0.5% | $1.5B+0.5% | $1.5B+0.5% | $1.5B+0.5% |
| Total Equity | $930.7M+631.2% | $887.4M+521.1% | -$28.7M+85.9% | -$69.6M+67.1% | -$175.2M+31.0% | -$210.7M+26.3% | -$203.0M+35.3% | -$211.7M+41.0% |
| Retained Earnings | $7.5M+104.1% | -$28.0M+87.3% | -$43.7M+83.1% | -$69.4M+74.9% | -$183.5M+40.8% | -$220.5M+33.2% | -$258.7M+24.8% | -$277.0M+22.6% |
Not reported in any period shown, so not listed: Inventory.
DOCN Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $110.0M+19.0% | $46.9M-26.8% | $57.3M-19.7% | $95.8M+30.6% | $92.4M+29.6% | $64.1M-3.9% | $71.3M-11.4% | $73.4M+35.7% |
| Depreciation & Amortization | $49.7M+84.6% | $45.5M+55.7% | $40.4M+38.3% | $28.1M-2.1% | $26.9M+3.6% | $29.2M-8.4% | $29.2M-5.0% | $28.7M+25.2% |
| Stock-Based Compensation | $32.7M+55.2% | $22.5M+15.8% | N/A | $19.8M-13.7% | $21.1M-3.4% | $19.4M-15.1% | N/A | $22.9M+1067.9% |
| Capital Expenditures | $41.6M+25.3% | $40.0M-35.5% | $26.2M-42.2% | $7.8M-86.5% | $33.2M+4.2% | $62.0M+41.9% | $45.3M-13.3% | $57.4M+183.5% |
| Free Cash Flow | $68.4M+15.4% | $6.9M+225.8% | $31.1M+19.4% | $88.0M+450.1% | $59.3M+50.1% | $2.1M-90.8% | $26.1M-7.9% | $16.0M-52.7% |
| Investing Cash Flow | -$89.1M-151.5% | -$60.6M+6.8% | -$129.5M-174.7% | -$38.4M+35.8% | -$35.4M-3.1% | -$65.0M-239.9% | -$47.1M-130.8% | -$59.8M-1411.3% |
| Financing Cash Flow | $4.8M+116.2% | $500.6M+845.2% | $90.3M+354.8% | -$210.3M-1149.8% | -$29.7M-129.4% | -$67.2M-497.3% | -$35.4M-899.1% | -$16.8M+84.5% |
| Share Buybacks | $0-100.0% | $0-100.0% | $0-100.0% | $2.9M-75.0% | $20.1M+114.0% | $59.1M+573.3% | $29.9M+121.5% | $11.7M-89.0% |
Not reported in any period shown, so not listed: Dividends Paid.
DOCN Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.0%-4.9pp | 56.1%-5.3pp | 58.7%-2.8pp | 59.6%+0.9pp | 59.9%+0.6pp | 61.4%+2.3pp | 61.5%+4.4pp | 58.7%+0.1pp |
| Operating Margin | 10.4%-5.8pp | 14.2%-3.7pp | 16.0%+0.1pp | 19.6%+7.2pp | 16.3%+4.7pp | 17.9%+11.6pp | 15.9%+9.8pp | 12.4%-7.6pp |
| Net Margin | 12.6%-4.3pp | 6.1%-12.0pp | 10.6%+1.7pp | 69.0%+52.4pp | 16.9%+7.0pp | 18.1%+10.5pp | 8.9%+0.1pp | 16.6%+5.8pp |
| Return on Equity | 3.8% | 1.8% | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 1.1%-1.0pp | 0.6%-1.7pp | 1.4%+0.3pp | 9.2%+7.0pp | 2.1%+0.9pp | 2.3%+1.4pp | 1.1%0.0pp | 2.2%+0.8pp |
| Current Ratio | 1.31-1.0x | 1.46-1.0x | 0.69-1.8x | 1.13-2.0x | 2.27-0.2x | 2.42-0.3x | 2.45-0.2x | 3.14+0.6x |
| Debt-to-Equity | 0.65 | 0.69 | N/A | N/A | N/A | N/A | N/A | N/A |
| Asset Turnover | 0.090.0x | 0.100.0x | 0.130.0x | 0.130.0x | 0.130.0x | 0.130.0x | 0.130.0x | 0.130.0x |
| FCF Margin | 24.3%-2.8pp | 2.7%+1.7pp | 12.8%+0.1pp | 38.3%+30.3pp | 27.1%+6.6pp | 1.0%-11.5pp | 12.7%-2.9pp | 8.1%-11.0pp |
Note: Shareholder equity is negative (-$28.7M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.69), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| DigitalOcean Holdings, Inc. DOCN | FY2025 | $901.4M | $259.3M | 28.8% | $11.6B | 50/100 |
| AvePoint, Inc. AVPT | FY2025 | $419.5M | $34.8M | 8.3% | $3.1B | 61/100 |
| Remitly Global, Inc. RELY | FY2025 | $1.6B | $67.9M | 4.2% | $5.2B | 68/100 |
| Euronet Worldwide Inc EEFT | FY2025 | $4.2B | $309.5M | 7.3% | $2.5B | 66/100 |
| CALIX, INC. CALX | FY2025 | $1.0B | $17.9M | 1.8% | $2.3B | 51/100 |
| Tenable Holdings, Inc. TENB | FY2025 | $999.4M | -$36.1M | -3.6% | $4.3B | 43/100 |
Where DigitalOcean Holdings, Inc. Ranks
Frequently Asked Questions
What is DigitalOcean Holdings, Inc.'s annual revenue?
DigitalOcean Holdings, Inc. (DOCN) reported $901.4M in total revenue for fiscal year 2025. This represents a 15.5% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is DigitalOcean Holdings, Inc.'s revenue growing?
DigitalOcean Holdings, Inc. (DOCN) revenue grew by 15.5% year-over-year, from $780.6M to $901.4M in fiscal year 2025.
Is DigitalOcean Holdings, Inc. profitable?
Yes, DigitalOcean Holdings, Inc. (DOCN) reported a net income of $259.3M in fiscal year 2025, with a net profit margin of 28.8%.
What is DigitalOcean Holdings, Inc.'s EBITDA?
DigitalOcean Holdings, Inc. (DOCN) had EBITDA of $294.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does DigitalOcean Holdings, Inc. have?
As of fiscal year 2025, DigitalOcean Holdings, Inc. (DOCN) had $254.5M in cash and equivalents against $970.7M in long-term debt.
What is DigitalOcean Holdings, Inc.'s gross margin?
DigitalOcean Holdings, Inc. (DOCN) had a gross margin of 59.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is DigitalOcean Holdings, Inc.'s operating margin?
DigitalOcean Holdings, Inc. (DOCN) had an operating margin of 17.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is DigitalOcean Holdings, Inc.'s net profit margin?
DigitalOcean Holdings, Inc. (DOCN) had a net profit margin of 28.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is DigitalOcean Holdings, Inc.'s free cash flow?
DigitalOcean Holdings, Inc. (DOCN) generated $180.5M in free cash flow during fiscal year 2025. This represents a 72.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is DigitalOcean Holdings, Inc.'s operating cash flow?
DigitalOcean Holdings, Inc. (DOCN) generated $309.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are DigitalOcean Holdings, Inc.'s total assets?
DigitalOcean Holdings, Inc. (DOCN) had $1.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are DigitalOcean Holdings, Inc.'s capital expenditures?
DigitalOcean Holdings, Inc. (DOCN) invested $129.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does DigitalOcean Holdings, Inc. spend on research and development?
DigitalOcean Holdings, Inc. (DOCN) invested $161.6M in research and development during fiscal year 2025.
What is DigitalOcean Holdings, Inc.'s current ratio?
DigitalOcean Holdings, Inc. (DOCN) had a current ratio of 0.69 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is DigitalOcean Holdings, Inc.'s return on assets (ROA)?
DigitalOcean Holdings, Inc. (DOCN) had a return on assets of 14.1% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is DigitalOcean Holdings, Inc.'s P/E ratio?
DigitalOcean Holdings, Inc. (DOCN) trades at 49.3x earnings, its market capitalization divided by net income of $235.2M net income, trailing 12 months to June 30, 2026. The market capitalization is $11.6B as of Oct 16, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is DigitalOcean Holdings, Inc.'s price-to-sales ratio?
DigitalOcean Holdings, Inc. (DOCN) trades at 11.5x sales, its market capitalization divided by revenue of $1.0B revenue, trailing 12 months to June 30, 2026. The market capitalization is $11.6B as of Oct 16, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Why is DigitalOcean Holdings, Inc.'s debt-to-equity ratio negative or not reported?
DigitalOcean Holdings, Inc. (DOCN) has negative shareholder equity of -$28.7M as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is DigitalOcean Holdings, Inc.'s Altman Z-Score?
DigitalOcean Holdings, Inc. (DOCN) has an Altman Z-Score of 4.34, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is DigitalOcean Holdings, Inc.'s Piotroski F-Score?
DigitalOcean Holdings, Inc. (DOCN) has a Piotroski F-Score of 8 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are DigitalOcean Holdings, Inc.'s earnings high quality?
DigitalOcean Holdings, Inc. (DOCN) has an earnings quality ratio of 1.19x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can DigitalOcean Holdings, Inc. cover its interest payments?
DigitalOcean Holdings, Inc. (DOCN) has an interest coverage ratio of 17.16x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is DigitalOcean Holdings, Inc.?
DigitalOcean Holdings, Inc. (DOCN) scores 50 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.