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DBX

Dropbox, Inc.

DBX

Dropbox, Inc. • NASDAQ
$29.88 ▲ 0.71% (+0.21)
Market Cap $8.40 B
52w High $33.33
52w Low $24.42
Dividend Yield 0%
P/E 16.98
Volume 1.39M
Outstanding Shares 281.09M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $634.4M ▲ $331.4M ▲ $123.8M ▼ 19.515% ▼ $0.47 ▲ $217.1M ▲
Q2-2025 $625.7M ▲ $329.9M ▲ $125.6M ▼ 20.074% ▼ $0.46 ▼ $214M ▼
Q1-2025 $624.7M ▼ $322.2M ▼ $150.3M ▲ 24.06% ▲ $0.52 ▲ $234.9M ▲
Q4-2024 $643.6M ▲ $434.9M ▲ $102.8M ▼ 15.973% ▼ $0.34 $126.2M ▼
Q3-2024 $638.8M $399.5M $106.7M 16.703% $0.34 $163.1M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $925.3M ▼ $2.796B ▲ $4.327B ▲ $-1.531B ▼
Q2-2025 $954.7M ▼ $2.779B ▼ $4.085B ▲ $-1.306B ▼
Q1-2025 $1.18B ▼ $2.957B ▼ $4.033B ▼ $-1.076B ▼
Q4-2024 $1.594B ▲ $3.325B ▲ $4.078B ▲ $-752.4M ▼
Q3-2024 $890.8M $2.577B $3.123B $-546.1M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $123.8M ▼ $302.1M ▲ $17.8M ▲ $-323.6M ▲ $-5M ▲ $293.7M ▲
Q2-2025 $125.6M ▼ $260.5M ▲ $12.4M ▼ $-487.8M ▲ $-205.7M ▲ $258.9M ▲
Q1-2025 $150.3M ▲ $153.8M ▼ $35.8M ▼ $-578.5M ▼ $-385.6M ▼ $153.3M ▼
Q4-2024 $102.8M ▼ $213.8M ▼ $113.8M ▼ $523.9M ▲ $842.9M ▲ $210.5M ▼
Q3-2024 $106.7M $274.2M $153.1M $-431.1M $2.5M $270.1M

Five-Year Company Overview

Income Statement

Income Statement Dropbox has grown revenue steadily over the past several years while keeping its gross margins high, which points to a solid underlying business model. Profitability has improved meaningfully since the pandemic period, moving from losses to consistent profits. Operating profit and EBITDA have both strengthened, although operating income dipped slightly most recently after a particularly strong prior year. Net income has been positive for several years in a row, but it has bounced around a bit, suggesting some one‑off items or changing tax and financing effects. Overall, the income statement now reflects a mature, profitable software company with moderate growth rather than a hyper‑growth story.

Balance Sheet

Balance Sheet The balance sheet shows a business that is asset‑light but increasingly leveraged. Total assets have inched up over time, and cash on hand has risen sharply most recently, which gives the company more financial flexibility in the near term. However, debt has also climbed significantly over the years and now sits at a relatively high level compared with the size of the business. Shareholder equity has moved from positive to clearly negative, likely reflecting a combination of share repurchases and accumulated accounting adjustments. This capital structure can enhance returns in good times but leaves a thinner margin for error if conditions worsen or growth slows.

Cash Flow

Cash Flow Cash generation is a clear strength. Operating cash flow has grown steadily, closely tracking the rise in revenue, which is typical of a subscription‑driven software model with high recurring revenue. Free cash flow is very close to operating cash flow because the business spends relatively little on capital expenditures, underscoring its asset‑light nature. This strong and consistent free cash flow gives Dropbox room to service debt, invest in new products, and return capital to shareholders, though the choices it makes here will matter given the already elevated leverage.

Competitive Edge

Competitive Edge Dropbox retains a recognizable brand and a large, long‑standing user base, which is hard for smaller players to replicate. Its early move to build and run its own storage infrastructure provides a cost and performance edge versus newer, smaller competitors that must rent cloud capacity. Deep integrations with tools like Microsoft Office, Google Workspace, and Slack, plus collaboration features and shared folders, create network effects and switching frictions for established teams. At the same time, competition from large platform providers such as Microsoft, Google, and Apple is intense, often bundling storage with broader productivity suites. This puts ongoing pressure on differentiation, pricing power, and enterprise adoption, making execution on its newer, higher‑value offerings critical.

Innovation and R&D

Innovation and R&D The company has clearly shifted its innovation focus from basic file storage to intelligent collaboration and knowledge‑work tools. Investments in AI‑driven features such as Dropbox Dash (universal search) and Dropbox AI (content summarization and Q&A) aim to make Dropbox the control center for scattered digital content, not just a storage locker. Products like Dropbox Paper, Smart Sync, and Studio round out a broader workflow and media toolkit, especially for creative and distributed teams. The key question is less about technology feasibility and more about adoption and monetization: can Dropbox convince enough individuals and, especially, businesses to pay for these premium AI and collaboration capabilities at scale? Success here would deepen its moat; failure would leave it more exposed to commoditized storage pricing.

Summary

Dropbox today looks like a mature, profitable, cash‑generative software provider that grew up from a simple storage utility into a broader collaboration platform. Its income statement shows healthy margins and consistent profits; its cash flow profile is a major strength. The main financial concern lies on the balance sheet, where rising debt and negative equity increase financial leverage and reduce the cushion against shocks. Competitively, the company benefits from brand, network effects, and owned infrastructure, but it operates in a crowded field dominated by tech giants who bundle similar services. The strategic bet is on AI‑powered search, content understanding, and workflow tools, plus deeper enterprise penetration. How well Dropbox converts its strong cash generation and user base into differentiated, paid AI and enterprise offerings will largely shape its long‑term trajectory and risk profile.

NEWS

November 6, 2025 · 4:04 PM UTC

Dropbox Announces Fiscal 2025 Third Quarter Results

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October 16, 2025 · 4:04 PM UTC

Dropbox to Announce Third Quarter 2025 Earnings Results

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