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DigitalOcean Holdings (DOCN) FY2025 results: revenue $901 million, up 15.5% on the year

DigitalOcean Holdings, Inc. (DOCN) reported revenue of $901 million for fiscal 2025, the year ended 31 December 2025, up 15.5% on the year before. Net income was $259 million, up 206.8%, and diluted earnings per share $2.52. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2026.

Revenue
$901 million
+15.5% on the year
FY2019FY2025
Operating margin
17.4%
11.7% a year earlier
FY2019FY2025
Net income
$259 million
+206.8% on the year
FY2019FY2025
Diluted EPS
$2.52
+183.1% on the year
FY2019FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 2 raised, 5 new.

  • Fourth-quarter revenue rose 18%: Fourth-quarter revenue was $242 million, up from $205 million a year earlier.
  • Fiscal 2025 revenue reached $901 million: Fiscal 2025 revenue was $901 million, up from $781 million in fiscal 2024.
  • Inference and core cloud carry most AI ARR: Management said more than 70% of AI customer ARR comes from inference services and core cloud products rather than from bare metal.
  • Net dollar retention rose to 101%: Net dollar retention was 101% for the fourth quarter, up from 99% a year earlier. The prior release gave 99% for the third quarter of 2025.
  • Remaining obligations rose to $134 million: Remaining performance obligation was $134 million, of which $73 million is expected within 12 months, against $22 million a year earlier.
Read the Q4 FY2025 earnings call summary

From this 10-K

DigitalOcean rents cloud computing to growing technology companies: virtual machines, storage, networking, managed software services and GPU infrastructure for building and running AI applications. It describes itself as an agentic inference cloud platform aimed at AI and digital-native businesses. Its customers range across industries from online gaming to fintech to cybersecurity, and use the platform to host websites, build web and mobile applications and build AI products. It was incorporated in Delaware in 2012 and completed its initial public offering in March 2021.

DigitalOcean Holdings, Inc., the 10-K for 2025

DigitalOcean rents cloud computing to growing technology companies: virtual machines, storage, networking, managed software services and GPU infrastructure for building and running AI applications. It describes itself as an agentic inference cloud platform aimed at AI and digital-native businesses. Its customers range across industries from online gaming to fintech to cybersecurity, and use the platform to host websites, build web and mobile applications and build AI products. It was incorporated in Delaware in 2012 and completed its initial public offering in March 2021.

Infrastructure

Its first product, launched in 2012, was the Droplet, a virtual machine a developer can start in under a minute. Droplets are still the core compute offering, in basic and dedicated configurations, and pricing is the same across regions and usage volumes. Storage includes Spaces object storage with a built-in content delivery network, Volumes block storage, and daily or weekly backups and on-demand snapshots of Droplets. Networking includes free Cloud Firewalls, managed load balancers, virtual private cloud networks, reserved IP addresses, DNS management and NAT gateways, and bandwidth bought with each Droplet is pooled across the customer's account.

Managed services

For customers who want less to manage, it offers Managed Hosting, which takes on the day-to-day running of hosting. Managed Databases covers PostgreSQL, MySQL and MongoDB, among others. It also sells Managed Kubernetes with a free control plane and a container registry, App Platform for deploying applications without managing servers, Functions for serverless computing, Uptime alerts, and a Marketplace of pre-configured applications.

The AI products

GPU Droplets give developers GPUs with drivers and software pre-installed, for running AI applications and training models without buying hardware. Bare Metal GPUs give access to GPU servers with no virtualization layer. The Gradient AI platform provides third party foundation models through a serverless service, with tools such as knowledge bases, guardrails, evaluations and observability for building AI agents. Jupyter Notebooks run on GPUs as a managed workspace for exploring data and building machine learning models.

Where it runs

Its data centers are connected by a private backbone and serve nine geographic regions. It leases data centers in the New York, San Francisco and Atlanta metropolitan areas, and in Australia, Canada, Germany, India, the Netherlands, Singapore and the United Kingdom. The company states that it intends to open new facilities in 2026 in Memphis, Richmond and Kansas City.

How it sells

Most customers come in through self-service sign-up, supported by inside sales, targeted outside sales and partnerships. Pricing is mainly consumption-based, and most customers use the platform month to month. All customers get technical support at no charge, 24/7. At December 31, 2025 it had approximately 21,000 customers spending more than $500 a month, which it calls Digital Native Enterprise customers.

Competition and people

The company names Amazon, Microsoft, Google, IBM, Alibaba and Oracle as its main large competitors, and smaller cloud providers such as OVHcloud, Akamai (Linode), Hetzner, Vultr and Contabo. In AI infrastructure it also competes with Coreweave and Lambda Labs, and its Managed Hosting competes with Kinsta and WP Engine. At December 31, 2025 it had 1,462 employees, 848 of them outside the United States, none represented by a labor union.

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

Written from the 10-K filed 24 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
Revenue901781693+15.5%
Cost of revenue362315295+15.0%
Gross profit540466397+15.8%
Gross margin59.9%59.7%57.4%
Research and development162142137+13.4%
Operating income15791.011.9+72.5%
Operating margin17.4%11.7%1.7%
Interest expense17.99.18.9+96.9%
Pre-tax income20797.726.8+111.5%
Income tax-52.613.27.4
Effective tax rate-25.5%13.5%27.5%
Net income25984.519.4+206.8%
Net margin28.8%10.8%2.8%
Diluted EPS$2.52$0.89$0.20+183.1%
$ 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 flow310283235+9.5%
Capital expenditure129178119-27.5%
Free cash flow181105116+72.6%
Free cash flow margin20.0%13.4%16.7%
Cash from investing-268-94.8401
Cash from financing-217-76.4-469
Depreciation and amortisation137130118+5.7%
Share-based compensation80.390.588.3-11.3%
Buybacks82.159.8488+37.4%
Diluted shares, weighted105m95m96m+11.5%
Shares outstanding at period end92m92m90m-0.3%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity-28.7-203-314
Redeemable equityn/an/a0.0
Debt1,2961,4851,478-12.8%
Operating lease liabilities16713091.2+28.0%
Finance lease liabilities99.1n/a4.5
Other liabilities305226201+34.7%
Total liabilities and equity1,8381,6391,461+12.1%
Fixed assets589433305+36.2%
Goodwill3493493480.0%
Intangible assets99.5118140-15.5%
Investmentsn/a0.094.5
Cash and equivalents254428317-40.6%
Receivables90.972.562.2+25.4%
Other assets455239193+90.3%
Total assets1,8381,6391,461+12.1%

10-K for the year ended 31 December 2025, filed 24 February 2026: the filing.