Digitalocean Hldgs Inc Financials
Digitalocean Hldgs 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).
Operating leverage is widening margins, while debt reduction has not prevented a new short-term liquidity squeeze.
Operating margin widened from11.7% to17.4% between FY2024 and FY2025, indicating that more revenue was reaching operating profit. Gross margin stayed near60.0% as revenue grew, so the improvement points to better operating-cost absorption rather than visibly richer gross economics.
The tax benefit of
Debt reduction is visible: long-term debt fell from
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 Hldgs 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 Hldgs 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 59/100, indicating healthy but not exceptional operating efficiency. This is up from 11.7% the prior year.
Digitalocean Hldgs Inc's revenue surged 15.5% year-over-year to $901.4M, reflecting rapid business expansion. This strong growth earns a score of 73/100.
Digitalocean Hldgs Inc's current ratio of 0.69 is below the typical benchmark, resulting in a score of 9/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Digitalocean Hldgs Inc converts 20.0% of revenue into free cash flow ($180.5M). This strong cash generation earns a score of 83/100.
Digitalocean Hldgs Inc scores 4.80, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($13.0B) 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 Hldgs 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 Hldgs 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 Hldgs 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 Hldgs Inc generated $901.4M in revenue in fiscal year 2025. This represents an increase of 15.5% from the prior year.
Digitalocean Hldgs Inc's EBITDA was $294.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 33.2% from the prior year.
Digitalocean Hldgs Inc reported $259.3M in net income in fiscal year 2025. This represents an increase of 206.8% from the prior year.
Digitalocean Hldgs Inc earned $2.52 per diluted share (EPS) in fiscal year 2025. This represents an increase of 183.1% from the prior year.
Cash & Balance Sheet
Digitalocean Hldgs Inc generated $180.5M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 72.6% from the prior year.
Digitalocean Hldgs Inc held $254.5M in cash against $970.7M in long-term debt as of fiscal year 2025.
Not reported for fiscal year 2025.
Margins & Returns
Digitalocean Hldgs Inc's gross margin was 59.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.2 percentage points from the prior year.
Digitalocean Hldgs Inc's operating margin was 17.4% in fiscal year 2025, reflecting core business profitability. This is up 5.8 percentage points from the prior year.
Digitalocean Hldgs Inc's net profit margin was 28.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 17.9 percentage points from the prior year.
Not reported for fiscal year 2025.
Capital Allocation
Digitalocean Hldgs Inc invested $161.6M in research and development in fiscal year 2025. This represents an increase of 13.4% from the prior year.
Digitalocean Hldgs Inc spent $82.1M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 37.4% from the prior year.
Digitalocean Hldgs Inc invested $129.1M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 27.5% from the prior year.
DOCN Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $281.2M+9.0% | $257.9M+6.4% | $242.4M+5.6% | $229.6M+5.0% | $218.7M+3.8% | $210.7M+2.8% | $204.9M+3.2% | $198.5M |
| Cost of Revenue | $126.5M+11.8% | $113.2M+13.1% | $100.1M+8.0% | $92.7M+5.6% | $87.8M+8.0% | $81.3M+3.1% | $78.8M-3.8% | $81.9M |
| Gross Profit | $154.7M+6.9% | $144.7M+1.7% | $142.3M+3.9% | $136.9M+4.6% | $130.9M+1.2% | $129.4M+2.7% | $126.1M+8.2% | $116.6M |
| R&D Expenses | $57.5M+17.8% | $48.8M+10.3% | $44.3M+16.1% | $38.1M-3.8% | $39.6M+0.1% | $39.6M-1.8% | $40.3M+11.1% | $36.3M |
| SG&A Expenses | $45.2M+20.1% | $37.6M+2.6% | $36.7M+12.4% | $32.7M-10.3% | $36.4M+10.9% | $32.8M-3.0% | $33.8M-16.3% | $40.4M |
| Operating Income | $29.4M-19.7% | $36.6M-5.7% | $38.8M-13.7% | $44.9M+26.1% | $35.6M-5.4% | $37.6M+15.7% | $32.5M+32.2% | $24.6M |
| Interest Expense | $233K-95.9% | $5.7M-1.2% | $5.8M+86.7% | $3.1M+1603.9% | $181K+43.7% | $126K-94.3% | $2.2M+1639.1% | $128K |
| Income Tax | -$8.3M-195.1% | $8.7M+27.2% | $6.9M+110.1% | -$68.1M-1355.4% | $5.4M+70.7% | $3.2M-70.4% | $10.7M+424.3% | -$3.3M |
| Net Income | $35.4M+124.7% | $15.8M-38.5% | $25.7M-83.8% | $158.4M+327.7% | $37.0M-3.1% | $38.2M+109.2% | $18.3M-44.6% | $32.9M |
| EPS (Diluted) | $0.29+93.3% | $0.15-28.6% | $0.21-86.1% | $1.51+287.2% | $0.390.0% | $0.39+105.3% | $0.19-42.4% | $0.33 |
DOCN Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.1B+21.5% | $2.6B+39.9% | $1.8B+6.5% | $1.7B+0.3% | $1.7B+4.8% | $1.6B+0.2% | $1.6B+7.4% | $1.5B |
| Current Assets | $1.0B+7.8% | $944.3M+121.2% | $427.0M+16.1% | $367.6M-27.9% | $509.8M+6.4% | $479.2M-11.5% | $541.7M-1.9% | $552.0M |
| Cash & Equivalents | $767.0M+3.5% | $741.4M+191.3% | $254.5M+7.6% | $236.6M-39.0% | $387.7M+7.6% | $360.4M-15.9% | $428.4M-2.6% | $439.9M |
| Accounts Receivable | $115.0M+9.1% | $105.5M+16.0% | $90.9M+7.7% | $84.4M+3.8% | $81.3M+6.1% | $76.6M+5.7% | $72.5M+5.1% | $68.9M |
| Goodwill | $350.7M0.0% | $350.7M+0.6% | $348.7M0.0% | $348.7M0.0% | $348.7M0.0% | $348.7M0.0% | $348.7M0.0% | $348.7M |
| Total Liabilities | $2.2B+30.3% | $1.7B-9.8% | $1.9B+4.0% | $1.8B-5.3% | $1.9B+2.3% | $1.9B+0.6% | $1.8B+6.0% | $1.7B |
| Current Liabilities | $776.1M+20.0% | $647.0M+4.4% | $619.5M+90.6% | $325.0M+44.7% | $224.5M+13.2% | $198.3M-10.2% | $221.0M+25.5% | $176.0M |
| Long-Term Debt | $609.4M+0.2% | $608.5M-37.3% | $970.7M-24.4% | $1.3B-13.8% | $1.5B+0.1% | $1.5B+0.1% | $1.5B+0.1% | $1.5B |
| Total Equity | $930.7M+4.9% | $887.4M+3193.0% | -$28.7M+58.8% | -$69.6M+60.3% | -$175.2M+16.9% | -$210.7M-3.8% | -$203.0M+4.1% | -$211.7M |
| Retained Earnings | $7.5M+126.7% | -$28.0M+36.1% | -$43.7M+37.0% | -$69.4M+62.2% | -$183.5M+16.8% | -$220.5M+14.8% | -$258.7M+6.6% | -$277.0M |
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.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $110.0M+134.4% | $46.9M-18.1% | $57.3M-40.2% | $95.8M+3.6% | $92.4M+44.2% | $64.1M-10.2% | $71.3M-2.7% | $73.4M |
| Capital Expenditures | $41.6M+4.0% | $40.0M+52.9% | $26.2M+236.6% | $7.8M-76.6% | $33.2M-46.4% | $62.0M+36.8% | $45.3M-21.0% | $57.4M |
| Free Cash Flow | $68.4M+886.9% | $6.9M-77.7% | $31.1M-64.6% | $88.0M+48.6% | $59.3M+2685.6% | $2.1M-91.8% | $26.1M+62.9% | $16.0M |
| Investing Cash Flow | -$89.1M-47.1% | -$60.6M+53.2% | -$129.5M-237.6% | -$38.4M-8.3% | -$35.4M+45.5% | -$65.0M-37.8% | -$47.1M+21.1% | -$59.8M |
| Financing Cash Flow | $4.8M-99.0% | $500.6M+454.6% | $90.3M+142.9% | -$210.3M-608.2% | -$29.7M+55.8% | -$67.2M-89.6% | -$35.4M-110.5% | -$16.8M |
| Share Buybacks | $0 | $0 | $0-100.0% | $2.9M-85.5% | $20.1M-65.9% | $59.1M+97.4% | $29.9M+155.8% | $11.7M |
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.
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.0%-1.1pp | 56.1%-2.6pp | 58.7%-0.9pp | 59.6%-0.2pp | 59.9%-1.6pp | 61.4%-0.1pp | 61.5%+2.8pp | 58.7% |
| Operating Margin | 10.4%-3.7pp | 14.2%-1.8pp | 16.0%-3.6pp | 19.6%+3.3pp | 16.3%-1.6pp | 17.9%+2.0pp | 15.9%+3.5pp | 12.4% |
| Net Margin | 12.6%+6.5pp | 6.1%-4.5pp | 10.6%-58.4pp | 69.0%+52.0pp | 16.9%-1.2pp | 18.1%+9.2pp | 8.9%-7.7pp | 16.6% |
| Return on Equity | 3.8%+2.0pp | 1.8% | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 1.1%+0.5pp | 0.6%-0.8pp | 1.4%-7.8pp | 9.2%+7.0pp | 2.1%-0.2pp | 2.3%+1.2pp | 1.1%-1.1pp | 2.2% |
| Current Ratio | 1.31-0.1x | 1.46+0.8x | 0.69-0.4x | 1.13-1.1x | 2.27-0.1x | 2.420.0x | 2.45-0.7x | 3.14 |
| Debt-to-Equity | 0.650.0x | 0.69 | N/A | N/A | N/A | N/A | N/A | N/A |
| FCF Margin | 24.3%+21.6pp | 2.7%-10.1pp | 12.8%-25.5pp | 38.3%+11.2pp | 27.1%+26.1pp | 1.0%-11.7pp | 12.7%+4.7pp | 8.1% |
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.
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Where Digitalocean Hldgs Inc Ranks
Frequently Asked Questions
What is Digitalocean Hldgs Inc's annual revenue?
Digitalocean Hldgs 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 Hldgs Inc's revenue growing?
Digitalocean Hldgs Inc (DOCN) revenue grew by 15.5% year-over-year, from $780.6M to $901.4M in fiscal year 2025.
Is Digitalocean Hldgs Inc profitable?
Yes, Digitalocean Hldgs Inc (DOCN) reported a net income of $259.3M in fiscal year 2025, with a net profit margin of 28.8%.
What is Digitalocean Hldgs Inc's EBITDA?
Digitalocean Hldgs Inc (DOCN) had EBITDA of $294.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Digitalocean Hldgs Inc have?
As of fiscal year 2025, Digitalocean Hldgs Inc (DOCN) had $254.5M in cash and equivalents against $970.7M in long-term debt.
What is Digitalocean Hldgs Inc's gross margin?
Digitalocean Hldgs 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 Hldgs Inc's operating margin?
Digitalocean Hldgs 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 Hldgs Inc's net profit margin?
Digitalocean Hldgs 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 Hldgs Inc's free cash flow?
Digitalocean Hldgs 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 Hldgs Inc's operating cash flow?
Digitalocean Hldgs Inc (DOCN) generated $309.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Digitalocean Hldgs Inc's total assets?
Digitalocean Hldgs Inc (DOCN) had $1.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Digitalocean Hldgs Inc's capital expenditures?
Digitalocean Hldgs Inc (DOCN) invested $129.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Digitalocean Hldgs Inc spend on research and development?
Digitalocean Hldgs Inc (DOCN) invested $161.6M in research and development during fiscal year 2025.
What is Digitalocean Hldgs Inc's current ratio?
Digitalocean Hldgs 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 Hldgs Inc's return on assets (ROA)?
Digitalocean Hldgs 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.
Why is Digitalocean Hldgs Inc's debt-to-equity ratio negative or not reported?
Digitalocean Hldgs 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 Hldgs Inc's Altman Z-Score?
Digitalocean Hldgs Inc (DOCN) has an Altman Z-Score of 4.80, 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 Hldgs Inc's Piotroski F-Score?
Digitalocean Hldgs 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 Hldgs Inc's earnings high quality?
Digitalocean Hldgs 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 Hldgs Inc cover its interest payments?
Digitalocean Hldgs 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 Hldgs Inc?
Digitalocean Hldgs 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.