DigitalOcean
ConvictionWeak
Usage-based + subscription cloud infrastructure. Self-serve, low-touch, transparent pricing for compute (Droplets), managed Kubernetes/databases, storage, plus AI/ML (GenAI Platform, GPU Droplets via Paperspace) and managed hosting (Cloudways). Land-and-expand across a large SMB/developer base.
Revenue
$901.4M FY2025+16% YoY); TTM ~$949M through Q1 2026; total ARR $1.03B exiting Q1 2026Rev growth
FY2025 +16% YoYQ1 2026 +22% YoY ($257.9M); FY2026 guided ~25-27% ($1.130-1.145BGross margin
FY2025 ~60%GAAP); Q1 2026 GAAP gross margin 56%, down from 61% a year earlier on data-center expansion depreciation + colocation costsOp margin
GAAP ~14%Q1 2026, $36.6M op income); adjusted EBITDA margin ~40% (FY2025); FY2026 guided 37-39%Capex intensity
Historically ~11-13% of revenuerising sharply in 2026 with GPU/data-center capacity buildout (~60 MW secured across 4 new locations, +80% committed capacity; per-MW capex higher than 2025Market cap
~$13.6BNYSE: DOCN, price ~$128 in early July 2026The read
Where our coverage leans
Coverage leans bullish
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Not investment advice — analyst work product for a qualified professional.· intel vintage 2026-07· sign in (free) for the analyst summary; Pro unlocks full intelligence