Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
In fiscal 2025, DigitalOcean Holdings, Inc. recorded $901.43M of revenue, net income of $259.26M, and an operating cash inflow of $309.60M. The $901.43M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $780.62M in fiscal 2024, revenue recorded a 15.5% year-over-year increase. On a per-share basis, diluted EPS was $2.52, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 183.1% from $0.89 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.49x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
Gross profit was $539.59M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 59.9%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $156.99M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 17.4% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $259.26M for the fiscal year. Net margin was 28.8%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $206.66M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 22.9%, relating income before taxes directly to revenue. The reported tax benefit was $52.60M, favorably bridging the pretax and after-tax results. The effective tax-benefit relationship was 25.5% of positive pretax income.Liquidity and Capital Structure
The company held $1.84B of assets against $1.87B of liabilities and -$28.69M of equity, revealing how the asset base was financed. The company reported negative equity of -$28.69M, a capital deficit that reduces its ability to absorb losses through book equity. The near-term balance sheet paired $426.98M of current assets with $619.46M of current liabilities at the reporting date. At 0.69x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. The company held $254.47M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 41.1%, excluding receivables and other current assets. Total debt was $1.30B, establishing the amount of borrowing carried within the company’s capital structure. Relative to total assets, debt measured 70.5%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 101.6%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 13.8%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 12.1% higher than fiscal 2024 assets of $1.64B, measuring the company’s own balance-sheet change.Cash Flow and Earnings Quality
The company reported $309.60M of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.19x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $129.09M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 41.7%, connecting investment intensity with the company’s cash-generation base. Free cash flow came to $180.52M, leaving a positive amount after capital expenditures. The free-cash-flow margin was 20.0%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 9.8%, showing the cash productivity of the company’s assets.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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