Dropbox (DBX) Q2 FY2025 earnings: revenue $626 million, down 1.4% on the year

Dropbox, Inc. (DBX) reported revenue of $626 million for Q2 FY2025, the quarter ended 30 June 2025, down 1.4% on the same quarter a year earlier. Net income was $126 million, up 13.7% on the year, and diluted earnings per share $0.45. The figures are the company's own, from the 10-Q it filed with the SEC on 8 August 2025.

Revenue$626 milliondown 1.4%

Net income$126 millionup 13.7%

Diluted EPS$0.45

QuarterQ2 FY2025ended 30 June 2025

The quarter, against the one before and a year earlier

Line	Q2 FY2025	Q1 FY2025	Q2 FY2024	Change on the year
Revenue	626	625	634	-1.4%
Cost of revenue	124	117	107	+15.6%
Gross profit	502	508	528	-4.8%
Gross margin	80.2%	81.3%	83.1%
Research and development	184	178	227	-18.8%
Operating income	168	184	127	+32.6%
Operating margin	26.9%	29.4%	20.0%
Pre-tax income	148	170	134	+10.6%
Income tax	22.2	19.2	23.1	-3.9%
Effective tax rate	15.0%	11.3%	17.3%
Net income	126	150	110	+13.7%
Net margin	20.1%	24.1%	17.4%
Diluted EPS	$0.45	$0.51	$0.34	+32.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2025	Q1 FY2025	Q2 FY2024	Change on the year
Operating cash flow	260	154	231	+13.0%
Capital expenditure	2.0	0.1	5.9	-66.1%
Free cash flow	258	154	225	+15.0%
Free cash flow margin	41.3%	24.6%	35.4%
Cash from investing	12.4	35.8	63.2	-80.4%
Cash from financing	-488	-578	-327	n/a
Depreciation and amortisation	38.9	38.1	32.3	+20.4%
Share-based compensation	77.7	67.1	90.5	-14.1%
Buybacks	410	499	260	+57.6%
Diluted shares, weighted	277m	296m	324m	-14.5%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2025	Q1 FY2025	Q2 FY2024	Change on the year
Shareholders' equity	-1,306	-1,076	-371	n/a
Debt	2,354	689	1,380	+70.6%
Operating lease liabilities	318	274	275	+15.8%
Finance lease liabilities	200	210	167	+19.8%
Other liabilities	1,212	2,860	1,268	-4.4%
Total liabilities and equity	2,779	2,957	2,718	+2.2%
Fixed assets	362	365	324	+11.9%
Goodwill	452	443	412	+9.8%
Intangible assets	42.5	48.8	56.4	-24.6%
Investments	218	238	547	-60.1%
Cash and equivalents	736	942	515	+42.9%
Receivables	75.8	71.6	67.1	+13.0%
Other assets	892	850	797	+11.9%
Total assets	2,779	2,957	2,718	+2.2%

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	633	635	631	634	639	644	625	626	634	636	630	632
Cost of revenue	120	122	106	107	112	121	117	124	128	132	128	125
Gross profit	513	513	526	528	527	523	508	502	506	504	501	506
Gross margin	81%	81%	83%	83%	83%	81%	81%	80%	80%	79%	80%	80%
R&D	216	222	219	227	226	243	178	184	182	187	184	188
Operating income	131	267	144	127	128	87.9	184	168	175	162	173	165
Operating margin	21%	42%	23%	20%	20%	14%	29%	27%	28%	25%	27%	26%
Pre-tax income	136	272	151	134	133	92.4	170	148	157	143	141	118
Tax rate	16%	17%	12%	17%	20%	-11%	11%	15%	21%	24%	19%	19%
Net income	114	227	132	110	107	103	150	126	124	109	114	95.8
Net margin	18%	36%	21%	17%	17%	16%	24%	20%	20%	17%	18%	15%
Diluted EPS	$0.33	$0.66	$0.39	$0.34	$0.34	$0.34	$0.51	$0.45	$0.47	$0.43	$0.48	$0.42
Operating cash flow	256	200	176	231	274	214	154	260	302	235	204	238
Capital expenditure	9.4	10.0	9.2	5.9	4.1	3.3	0.1	2.0	8.4	10.5	1.2	3.3
Free cash flow	246	190	166	225	270	210	154	258	294	225	203	235
Buybacks	104	106	279	260	349	353	499	410	390	415	367	330
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2025, filed 8 August 2025, accession 0001467623-25-000117: the filing on EDGAR. All of Dropbox, Inc.'s filings: EDGAR company page.

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