DOCN Q2 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025

Earnings

DigitalOcean delivered a standout second quarter, posting non-GAAP diluted EPS of $0.59 against a consensus estimate of $0.47, a beat of 26.18%, while revenue of $218.70 million edged past expectations and grew 13.6% year-over-year, signaling that th… Read more DigitalOcean delivered a standout second quarter, posting non-GAAP diluted EPS of $0.59 against a consensus estimate of $0.47, a beat of 26.18%, while revenue of $218.70 million edged past expectations and grew 13.6% year-over-year, signaling that the cloud provider's focused strategy is gaining real traction. The clearest engine behind the outperformance was the rapid expansion of its Scalers+ cohort, high-spending digital native enterprises whose revenue surged 35% year-over-year and now accounts for 24% of total revenue, while net dollar retention improved to 99% and ARPU climbed 12% to $111.70. AI momentum added further fuel, with AI/ML revenue more than doubling year-over-year and the company recording its highest incremental ARR since Q4 2022. The stock's sharp post-earnings move reflected a market reassessing a business that some had viewed skeptically on margin grounds, yet adjusted free cash flow margin expanded to 26% from 19% a year ago. Management raised full-year 2025 revenue guidance to $888 to $892 million and lifted its adjusted EBITDA margin target to 39% to 40%, suggesting confidence that the momentum is sustainable.