Detailed financial statements for DigitalOcean Holdings, Inc. (DOCN): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
DigitalOcean Holdings, Inc., through its various operating entities, provides a global cloud computing environment with reach across North America, Europe, Asia, and beyond. This adaptable platform delivers on-demand infrastructure and essential developer tools, specifically designed for individual developers, new start-ups, and small to mid-sized businesses.
Analysis Summary
DigitalOcean Holdings, Inc. reported revenue of $901.4M in the most recent fiscal year, growing at a 5-year CAGR of 23.1%.
Trailing-twelve-month margins: gross margin 57.2%, operating margin 14.8%, net margin 23.3%.
At $105.07 (closing price, October 28, 2026), DOCN trades at a P/E of 47.76 and an ROE of 54.71%. Market capitalisation stands at $12.4B, placing it among large-cap names.
Balance sheet quality for DOCN: current ratio of 0.7, net debt of $476.1M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is below average: free cash flow of $41.1M represents 16% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $203.1M | $254.8M | $318.4M | $428.6M | $576.3M | $692.9M | $780.6M | $901.4M |
| Cost of Revenue | $97.0M | $122.3M | $145.5M | $170.6M | $211.9M | $284.0M | $314.7M | $361.8M |
| Gross Profit | $106.1M | $132.6M | $172.8M | $258.0M | $364.4M | $408.9M | $465.9M | $539.6M |
| Research & Development | $44.9M | $60.0M | $75.0M | $115.7M | $143.9M | $140.4M | $142.5M | $161.6M |
| Selling, General & Admin | $88.5M | $102.5M | $113.7M | $153.5M | $246.2M | $235.8M | $232.4M | $221.0M |
| Operating Expenses | $133.4M | $162.5M | $188.6M | $269.2M | $390.1M | $397.0M | $374.9M | $382.6M |
| Operating Income | -$27.3M | -$29.9M | -$15.8M | -$11.2M | -$25.7M | $11.9M | $91.0M | $157.0M |
| EBITDA | $23.9M | $32.8M | $46.5M | $73.9M | $86.7M | $153.6M | $236.9M | $362.1M |
| Interest Expense | $6.3M | $9.4M | $13.6M | $3.7M | $8.4M | $8.9M | $9.1M | $17.9M |
| Pre-tax Income | -$34.8M | -$39.6M | -$42.7M | -$18.2M | -$23.9M | $26.8M | $97.7M | $206.7M |
| Income Tax | $1.2M | $793,000 | $911,000 | $1.3M | $3.9M | $7.4M | $13.2M | -$52.6M |
| Net Income | -$36.0M | -$40.4M | -$43.6M | -$19.5M | -$27.8M | $19.4M | $84.5M | $259.3M |
| EPS | $-0.41 | $-0.38 | $-0.41 | $-0.18 | $-0.24 | $0.22 | $0.92 | $2.83 |
| EPS (Diluted) | $-0.41 | $-0.38 | $-0.41 | $-0.18 | $-0.24 | $0.20 | $0.89 | $2.52 |
| Shares Outstanding (Diluted) | 87.1 M | 105.3 M | 105.3 M | 107.2 M | 100.8 M | 96.4 M | 94.5 M | 105.3 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $229.6M | $242.4M | $257.9M | $281.2M |
| Gross Profit | $136.9M | $142.3M | $144.7M | $154.7M |
| Operating Income | $44.9M | $38.8M | $36.6M | $29.4M |
| EBITDA | $130.4M | $77.8M | $80.5M | $85.8M |
| Net Income | $158.4M | $25.7M | $15.8M | $35.4M |
| EPS | $1.73 | $0.28 | $0.17 | $0.34 |
| EPS (Diluted) | $1.51 | $0.25 | $0.15 | $0.29 |
Balance Sheet (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $30.0M | $32.9M | $100.3M | $1.71B | $140.8M | $317.2M | $428.4M | $254.5M |
| Short-term Investments | 0 | 0 | 0 | 0 | $723.5M | $94.5M | 0 | 0 |
| Receivables | $16.4M | $20.7M | $28.1M | $39.6M | $53.8M | $62.2M | $91.1M | $90.9M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $50.5M | $60.6M | $148.0M | $1.77B | $946.0M | $503.0M | $541.7M | $427.0M |
| Property, Plant & Equipment | $175.4M | $178.8M | $239.0M | $249.6M | $426.9M | $460.6M | $620.4M | $859.9M |
| Goodwill | 0 | $2.7M | $2.7M | $32.2M | $315.2M | $348.3M | $348.7M | $348.7M |
| Intangible Assets | $34.4M | $56.9M | $34.6M | $42.9M | $118.9M | $140.2M | $117.7M | $99.5M |
| Total Assets | $245.1M | $302.5M | $430.3M | $2.10B | $1.82B | $1.46B | $1.64B | $1.84B |
| Accounts Payable | $13.7M | $27.2M | $12.4M | $12.7M | $21.1M | $4.0M | $54.6M | $38.8M |
| Short-term Debt | $23.3M | $14.2M | $17.5M | 0 | 0 | 0 | 0 | $464.6M |
| Total Current Liabilities | $63.5M | $72.5M | $84.8M | $58.2M | $165.5M | $192.6M | $221.0M | $619.5M |
| Long-term Debt | $108.0M | $173.0M | $242.2M | $1.46B | $1.47B | $1.48B | $1.49B | $266.0M |
| Total Liabilities | $178.7M | $251.5M | $502.3M | $1.52B | $1.77B | $1.77B | $1.84B | $1.87B |
| Retained Earnings | -$83.1M | -$123.5M | -$167.0M | -$186.5M | -$214.3M | -$344.2M | -$258.7M | -$43.7M |
| Total Equity | -$56.9M | $51.0M | -$72.1M | $578.2M | $47.6M | -$313.7M | -$203.0M | -$28.7M |
| Total Debt | $135.9M | $191.1M | $259.7M | $1.46B | $1.64B | $1.66B | $1.70B | $730.6M |
| Net Debt | $106.0M | $158.2M | $159.4M | -$250.7M | $771.2M | $1.24B | $1.27B | $476.1M |
| Working Capital | -$13.0M | -$11.9M | $63.2M | $1.71B | $780.5M | $310.3M | $320.8M | -$192.5M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $236.6M | $254.5M | $741.4M | $767.0M |
| Total Assets | $1.73B | $1.84B | $2.57B | $3.12B |
| Total Liabilities | $1.80B | $1.87B | $1.68B | $2.19B |
| Total Equity | -$69.6M | -$28.7M | $887.4M | $930.7M |
| Total Debt | $1.59B | $730.6M | $899.6M | $1.50B |
Cash Flow (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income | -$36.0M | -$40.4M | -$43.6M | -$19.5M | -$24.3M | $19.4M | $84.5M | $259.3M |
| Depreciation & Amortization | $52.4M | $63.1M | $75.6M | $88.4M | $102.2M | $117.9M | $130.1M | $137.4M |
| Stock-based Compensation | $12.2M | 0 | $29.5M | $61.6M | $105.8M | $88.3M | $90.5M | $80.3M |
| Change in Working Capital | -$2.7M | -$2.8M | -$29.6M | -$8.0M | -$14.2M | -$22.4M | -$57.3M | -$51.4M |
| Operating Cash Flow | $38.0M | $39.9M | $58.5M | $133.1M | $195.2M | $234.9M | $282.7M | $309.6M |
| Capital Expenditure | -$61.3M | -$70.4M | -$115.8M | -$109.1M | -$120.2M | -$124.8M | -$186.5M | -$268.5M |
| Acquisitions | 0 | -$2.9M | 0 | -$5.0M | -$305.2M | -$99.0M | $43,000 | 0 |
| Stock Repurchased | 0 | 0 | -$1.4M | -$350.0M | -$600.0M | -$488.5M | -$59.8M | -$82.1M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$23.3M | -$30.5M | -$57.3M | $24.0M | $74.9M | $110.1M | $96.2M | $41.1M |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $95.8M | $57.3M | $46.9M | $156.9M |
| Capital Expenditure | -$38.5M | -$165.4M | -$44.7M | -$93.4M |
| Free Cash Flow | $57.3M | -$108.1M | $2.2M | $63.5M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $19.8M | $20.0M | $22.5M | $55.2M |
Growth & Margins (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +25.4% | +24.9% | +34.6% | +34.5% | +20.2% | +12.7% | +15.5% | |
| Net Income Growth (YoY) | -12.2% | -7.9% | +55.2% | -42.6% | +169.8% | +335.3% | +206.8% | |
| EPS Growth (YoY) | +7.3% | -7.9% | +56.1% | -33.3% | +191.7% | +318.2% | +207.6% | |
| Shares Change (YoY) | +20.9% | +0.0% | +1.8% | -6.0% | -4.4% | -2.0% | +11.5% | |
| FCF Growth (YoY) | -31.1% | -87.8% | +141.9% | +212.0% | +47.0% | -12.6% | -57.3% | |
| Gross Margin | 52.2% | 52.0% | 54.3% | 60.2% | 63.2% | 59.0% | 59.7% | 59.9% |
| Operating Margin | -13.4% | -11.7% | -5.0% | -2.6% | -4.5% | 1.7% | 11.7% | 17.4% |
| EBITDA Margin | 11.8% | 12.9% | 14.6% | 17.2% | 15.1% | 22.2% | 30.3% | 40.2% |
| Net Margin | -17.7% | -15.9% | -13.7% | -4.6% | -4.8% | 2.8% | 10.8% | 28.8% |
| FCF Margin | -11.5% | -12.0% | -18.0% | 5.6% | 13.0% | 15.9% | 12.3% | 4.6% |
| Effective Tax Rate | -3.5% | -2.0% | -2.1% | -7.2% | -16.4% | 27.5% | 13.5% | -25.5% |
Per-Share Data (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-0.27 | $-0.29 | $-0.54 | $0.22 | $0.74 | $1.14 | $1.02 | $0.39 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 87.1 M | 105.3 M | 105.3 M | 107.2 M | 100.8 M | 90.1 M | 91.6 M | 91.5 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 54.71% |
| Return on Invested Capital | 5.37% |
| Return on Assets | 7.53% |
| Gross Margin | 57.22% |
| Operating Margin | 14.80% |
| Net Margin | 23.27% |
Financial Health
| Debt / Equity | 1.61 |
| Current Ratio | 1.31 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 2.03 |
Key Ratios (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| P/E | -103.66 | -111.84 | -103.66 | -446.28 | -106.12 | 166.77 | 37.03 | 17.00 |
| P/B | -65.12 | 87.78 | -62.08 | 14.89 | 53.97 | -10.54 | -15.38 | -153.44 |
| P/S | 18.23 | 17.56 | 14.06 | 20.10 | 4.46 | 4.77 | 4.00 | 4.88 |
| Gross Margin | 52.2% | 52.0% | 54.3% | 60.2% | 63.2% | 59.0% | 59.7% | 59.9% |
| Operating Margin | -13.4% | -11.7% | -5.0% | -2.6% | -4.5% | 1.7% | 11.7% | 17.4% |
| Net Margin | -17.7% | -15.9% | -13.7% | -4.6% | -4.8% | 2.8% | 10.8% | 28.8% |
Related companies: GDDY · KC · MSFT · PLTR · ORCL · PANW · 0KF5.L · CRWD
Explore sector: Technology · Software - Infrastructure
More sections of DOCN: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Companies that pass the Buffett method today · Companies that pass the Lynch method today · Stocks that pass Graham's defensive investor test today · Investment Academy — learn to analyze stocks