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Dropbox (DBX) FY2025 results: revenue $2.5 billion, down 1.1% on the year

Dropbox, Inc. (DBX) reported revenue of $2.5 billion for fiscal 2025, the year ended 31 December 2025, down 1.1% on the year before. Net income was $508 million, up 12.4%, and diluted earnings per share $1.86. The figures are the company's own, from the 10-K it filed with the SEC on 20 February 2026.

Revenue
$2.5 billion
-1.1% on the year
FY2018FY2025
Operating margin
27.3%
19.1% a year earlier
FY2018FY2025
Net income
$508 million
+12.4% on the year
FY2018FY2025
Diluted EPS
$1.86
+32.9% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Quarter revenue down 1.1 percent: Fourth quarter revenue was $636.2 million, down 1.1% year-over-year. Excluding FormSwift, revenue grew 0.4% year-over-year.
  • Full-year revenue down 1.1 percent: Full-year revenue was $2.521 billion, down 1.1%. Excluding FormSwift, revenue grew 0.2% for the year.
  • Non-GAAP operating margin rose 1.3 points: Non-GAAP operating margin was 38.2%, against 36.9% a year earlier.
  • Gross margin lower year-over-year: GAAP gross margin was 79.2%, against 81.2%. Non-GAAP gross margin was 80.8%, against 83.1%.
  • Quarter operating cash flow and unlevered FCF: Operating cash flow was $235.4 million and unlevered free cash flow was $250.5 million, against $213.8 million and $210.5 million.
Read the Q4 FY2025 earnings call summary

From this 10-K

Dropbox, founded in 2007, runs an online platform where people and teams store files, sync them across devices, share them and work on them together. Anyone can sign up for the free Basic plan through the website or app and upgrade to a paid Personal or Business plan. At December 31, 2025 it had 18.08 million paying users, including approximately 575,000 paying Dropbox Business teams.

Dropbox, Inc., the 10-K for 2025

Dropbox, founded in 2007, runs an online platform where people and teams store files, sync them across devices, share them and work on them together. Anyone can sign up for the free Basic plan through the website or app and upgrade to a paid Personal or Business plan. At December 31, 2025 it had 18.08 million paying users, including approximately 575,000 paying Dropbox Business teams.

What the platform does

The core is file storage and sync across Android, iOS, Windows and Mac, with folders that can be private, shared or set up for a whole team, shared links that work for people without an account, and previews of over 300 file types. Paying users get version history for up to 365 days depending on plan, and Dropbox Rewind can take a folder or a whole account back to an earlier point in time. Around that sit separate products: Dropbox Backup, which copies a computer's folders to the cloud; Dropbox Transfer, for sending large files; Dropbox Sign, for eSignatures and document workflows; DocSend, which shows a sender who opened a document and how long they spent on each page; and FormSwift, for business forms and agreements.

The AI products

Dropbox Dash is an AI-powered search tool that finds, organizes and shares content across Dropbox and other connected third-party apps from one interface. Reclaim is an AI-powered scheduling tool that works with a calendar app. The company states that it continues to invest in products that incorporate AI.

How it finds customers

Most revenue comes from self-serve channels, meaning users who buy a subscription through the app or website without a salesperson. Existing users bring in new ones by sharing content, and the company converts free users through in-product prompts, time-limited trials, email and lifecycle marketing. Targeted outbound sales go after organizations suited to the product, and some users arrive through hardware makers that pre-install the software on their devices. Customers range from freelancers and small businesses to Fortune 100 companies, across industries including professional services, technology, media, education and financial services.

Where the data sits

More than 90% of users' data is stored on infrastructure Dropbox built itself, in datacenter co-location facilities in Oregon, Texas, Virginia, Paris and Hamburg. Amazon Web Services handles the rest, from datacenters in the United States, Australia, Europe and Japan. By default copies of content are stored in at least two separate geographic regions, with hourly incremental backups and daily full backups. File data at rest is encrypted using 256-bit AES.

Competition, patents and people

In cloud storage the company competes with Microsoft, Amazon, Apple, Google and Adobe, and in content collaboration with Microsoft, Atlassian, Slack and Google. It also meets Box with large enterprises, Adobe and DocuSign in e-signature, and Glean, Guru and Notion in AI content search. It has over 1,900 issued patents and more than 280 pending applications. At December 31, 2025 it had 2,113 full-time employees, 1,612 of them in the United States.

From Dropbox's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 20 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue2,5212,5482,502-1.1%
Cost of revenue501445478+12.5%
Gross profit2,0202,1032,023-3.9%
Gross margin80.1%82.5%80.9%
Research and development732915936-20.0%
Operating income689486539+41.7%
Operating margin27.3%19.1%21.5%
Pre-tax income618510554+21.1%
Income tax10957.5101+89.9%
Effective tax rate17.7%11.3%18.2%
Net income508452454+12.4%
Net margin20.2%17.7%18.1%
Diluted EPS$1.86$1.40$1.31+32.9%
$ million except per share.
Read moreFree 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

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow952894784+6.5%
Capital expenditure21.022.524.3-6.7%
Free cash flow931872759+6.8%
Free cash flow margin36.9%34.2%30.4%
Cash from investing112444395-74.8%
Cash from financing-1,531-587-799
Depreciation and amortisation158137170+14.9%
Share-based compensation301346338-13.2%
Buybacks1,7141,242540+38.0%
Diluted shares, weighted273m323m346m-15.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity-1,797-752-166
Debt2,8342,3541,378+20.4%
Operating lease liabilities356250311+42.1%
Finance lease liabilities202204168-1.0%
Other liabilities1,2511,2691,292-1.5%
Total liabilities and equity2,8453,3252,984-14.4%
Fixed assets378359309+5.5%
Goodwill455443402+2.7%
Intangible assets33.754.958.1-38.6%
Investments147266741-44.8%
Cash and equivalents8911,328615-32.9%
Receivables79.170.468.7+12.4%
Other assets861804789+7.0%
Total assets2,8453,3252,984-14.4%

10-K for the year ended 31 December 2025, filed 20 February 2026: the filing.