Logo

DOCN

DigitalOcean Holdings, Inc.

DOCN

DigitalOcean Holdings, Inc. • NYSE
$44.52 ▼ -1.35% (-0.61)
Market Cap $4.07 B
52w High $52.20
52w Low $25.45
Dividend Yield 0%
P/E 17.81
Volume 818.66K
Outstanding Shares 91.49M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $229.634M ▲ $92.001M ▼ $158.371M ▲ 68.967% ▲ $1.73 ▲ $130.416M ▲
Q2-2025 $218.7M ▲ $95.326M ▲ $37.027M ▼ 16.93% ▼ $0.41 ▼ $77.452M ▲
Q1-2025 $210.703M ▲ $91.802M ▲ $38.204M ▲ 18.132% ▲ $0.42 ▲ $72.798M ▲
Q4-2024 $204.925M ▲ $84.544M ▼ $18.266M ▼ 8.914% ▼ $0.2 ▼ $60.447M ▼
Q3-2024 $198.484M $94.835M $32.949M 16.6% $0.36 $67.712M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $236.561M ▼ $1.726B ▲ $1.795B ▼ $-69.618M ▲
Q2-2025 $387.745M ▲ $1.72B ▲ $1.895B ▲ $-175.217M ▲
Q1-2025 $360.421M ▼ $1.642B ▲ $1.852B ▲ $-210.747M ▼
Q4-2024 $428.446M ▼ $1.639B ▲ $1.842B ▲ $-202.955M ▲
Q3-2024 $439.872M $1.526B $1.738B $-211.703M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $158.371M ▲ $99.868M ▲ $-38.365M ▼ $-214.382M ▼ $-151.184M ▼ $88.968M ▲
Q2-2025 $37.027M ▼ $92.447M ▲ $-35.432M ▲ $-29.697M ▲ $27.324M ▲ $57.015M ▲
Q1-2025 $38.204M ▲ $64.09M ▼ $-64.975M ▼ $-67.179M ▼ $-68.025M ▼ $-885K ▼
Q4-2024 $18.266M ▼ $71.339M ▼ $-47.144M ▲ $-35.426M ▼ $-11.426M ▼ $24.194M ▲
Q3-2024 $32.949M $73.353M $-59.756M $-16.827M $-3.238M $13.555M

Five-Year Company Overview

Income Statement

Income Statement DigitalOcean’s income statement shows a clear story of scaling up and maturing. Revenue has grown steadily each year, with gross profit rising alongside it, meaning the core business is becoming more efficient as it grows. The company has moved from posting small losses to generating modest operating and net profits, suggesting improving cost discipline and operating leverage. Margins are better than they were a few years ago, but profitability is still not so large that it can easily absorb big shocks in demand or pricing. Overall, it looks like a business that has successfully moved from “growth at any cost” toward a more balanced model of growth with earnings, though still in a relatively early stage of its profit journey.

Balance Sheet

Balance Sheet The balance sheet is more mixed. The company has a sizable asset base for a cloud provider, but it also carries a heavy debt load, and reported equity has slipped into negative territory. That combination signals a leveraged capital structure: lenders, rather than shareholders, effectively finance much of the business. Cash levels are reasonable but not abundant, especially compared with the spike seen shortly after the IPO, when the company was flush with fresh capital. This means DigitalOcean needs to be careful with balance sheet risk: continued profitability and strong cash generation will be important to comfortably service debt and eventually rebuild equity strength.

Cash Flow

Cash Flow Cash flow is a relative bright spot. Operating cash flow has been consistently positive and has improved over time, indicating that the underlying business model converts a meaningful share of revenue into cash. The company spends heavily on infrastructure and data centers, but even after these investments, free cash flow has turned and remained positive in recent years. That gives management some flexibility: it can fund growth, pay interest, and still have some room for strategic initiatives. However, given the debt load, there is less margin for error than at a net-cash, debt-light peer, so maintaining this positive cash flow trajectory is key.

Competitive Edge

Competitive Edge DigitalOcean occupies a focused niche in the cloud market: developers, startups, and smaller businesses that want simplicity, predictable pricing, and less complexity than the giant hyperscalers. Its strengths are ease of use, a strong developer community, and a brand associated with straightforward, affordable cloud services. This positioning creates customer loyalty and some switching friction once teams build workflows around its tools. The flip side is that it competes indirectly with far larger players that have more resources, broader product catalogs, and the ability to undercut on price in some situations. DigitalOcean’s success depends on staying laser-focused on its chosen segment and continuing to feel “lighter and friendlier” than the big clouds, while still offering enough depth and reliability for customers as they scale.

Innovation and R&D

Innovation and R&D Innovation at DigitalOcean centers on simplifying complex technologies—containers, managed databases, Kubernetes, and now AI—so that smaller teams can use them without deep infrastructure expertise. The company has been steadily extending its platform with tools like the App Platform, managed services, and now the Gradient AI suite, including GPU instances and ready-to-use AI models. This keeps the offering relevant as customer needs evolve from simple hosting to more advanced workloads. At the same time, DigitalOcean must innovate with far fewer resources than the hyperscalers, so it tends to focus on curated, opinionated products rather than broad experimental bets. The big opportunity is to make AI and modern cloud tooling accessible to its core SMB and startup audience; the main risk is falling behind if the pace of innovation in AI infrastructure and developer tools outstrips what its lean model can support.

Summary

Overall, DigitalOcean looks like a focused, growing cloud platform that has successfully crossed into consistent profitability and positive free cash flow, while still early in its maturation. Its financials show healthy top-line growth and improving margins, but a leveraged balance sheet with negative equity adds an element of financial risk that needs ongoing attention. The business is differentiated by its simplicity, transparent pricing, and deep connection with developers and smaller companies, which offers a defensible niche against much larger competitors. Its move into AI and higher-level platforms could open new growth avenues if executed well, especially among startups that want modern capabilities without the complexity of the big clouds. The key watchpoints are: sustaining growth while protecting margins, managing debt prudently, and continuing to innovate fast enough to remain the default choice for resource-constrained teams building on the cloud.

NEWS

November 5, 2025 · 7:05 AM UTC

DigitalOcean Announces Third Quarter 2025 Financial Results

Read more

October 23, 2025 · 9:00 AM UTC

DigitalOcean and fal Expand Collaboration to Advance Multimodal AI Innovation

Read more

October 13, 2025 · 9:00 AM UTC

DigitalOcean Announces Date of Third Quarter 2025 Earnings Conference Call

Read more

October 2, 2025 · 7:00 AM UTC

DigitalOcean Launches New Products and Innovations at Deploy Conference

Read more

October 2, 2025 · 5:00 AM UTC

DigitalOcean Expands AI Ecosystem, Launches Partner Program to Accelerate Innovation and Empower Startups and Builders

Read more