At a glance
Dropbox Inc is worth $8.24B, about 20 times its fiscal 2025 earnings. Revenue fell 1.1% to $2.52B in fiscal 2025, with 20.2% kept as profit; over 5 years it has grown 5.7% a year. It pays no dividend; it spent $5.35B buying back its shares over FY2021–FY2025. The stock returned +24.7% over the past year with dividends reinvested and +3.8% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 30.1% in the 2020 crash (S&P 500: 33.7%) and 24.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 13 months after the lows.
The business in plain English
Dropbox sells subscriptions to its online storage and file-sharing platform. Anyone can sign up free through its website or app, store files on Dropbox's servers (the cloud), and reach them from any phone, tablet or computer. Customers who want premium features, such as longer version history or password-protected links, pay for a plan. Dropbox had 18.08 million paying users as of December 31, 2025. They range from individuals and families to freelancers, small businesses and Fortune 100 companies.
Most sales happen without a salesperson. Over 90% of revenue comes from self-serve channels, meaning users buy a subscription in the app or on the website. Beyond storage and sharing, Dropbox offers other products. These include Dropbox Backup; DocSend, which tracks who opens shared documents; Dash, an AI-powered search tool that covers Dropbox and other connected apps; and Reclaim, an AI scheduling tool. Dropbox also connects with software from Microsoft, Google, Zoom, Atlassian and Slack.
Dropbox reports its revenue by region rather than by product line. Revenue was $2.52 billion in fiscal 2025, which ended December 31, 2025. About 56% came from the United States and 44% from customers in other countries.
Price history
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DBX +24.7% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| United States | $1.42B | 56.4% |
| International | $1.10B | 43.6% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $631.5M, up 0.9% from a year earlier, and net income was $95.8M (-23.7%).
- For fiscal 2025, revenue was $2.52B (-1.1% year over year; +5.7% a year from FY2020 to FY2025) with a 20.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +5.7% good |
|---|---|
| Operating margin | 27.3% good |
| Free cash flow margin | 36.9% good |
| Return on assets (FY2025) | 17.9% good |
| Net cash (cash minus debt) | $423.1M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.91B | $-256.3M | $490.7M |
| FY2021 | $2.16B | $335.8M | $707.7M |
| FY2022 | $2.32B | $553.2M | $763.5M |
| FY2023 | $2.50B | $453.6M | $759.4M |
| FY2024 | $2.55B | $452.3M | $871.6M |
| FY2025 | $2.52B | $508.4M | $930.8M |
Valuation snapshot
| Market value | $8.24B |
|---|---|
| P/E ratio | 19.6 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DBX price data to Oct 28, 2026 | +31.3% | +24.7% | +12.1% | +3.8% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +31.3% |
| 2025 | -7.5% |
| 2024 | +1.9% |
| 2023 | +31.7% |
| 2022 | -8.8% |
| 2021 | +10.6% |
| 2020 | +23.9% |
| 2019 | -12.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 6.6% over that stretch · deepest drop along the way 30.1%, back to its old high 2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.8% over that stretch · deepest drop along the way 24%, back to its old high 12.7 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 19 sales ($33.4M), 18 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 1, 2026 | Andrew Houston Co-CEO, Director, 10% owner | sell (plan) | $12.0M |
| Sep 10, 2026 | Andrew Houston Co-CEO, Director, 10% owner | sell (plan) | $11.4M |
| Sep 10, 2026 | Ross Tennenbaum Chief Financial Officer | sell (plan) | $3.4M |
| Sep 10, 2026 | Andrew Houston Co-CEO, Director, 10% owner | sell (plan) | $2.1M |
| Oct 12, 2026 | Andrew Houston Co-CEO, Director, 10% owner | sell (plan) | $1.0M |
Who owns it
Large shareholders (13G filings)
| Andrew Houston | 35.3% | Mar 31, 2026 |
| BlackRock, Inc. | 10.1% | Mar 31, 2025 |
| LSV ASSET MANAGEMENT | 7.3% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.21% | Sep 30, 2026 |
| Arrowstreet Capital, Limited Partnership | 5.4% | Mar 31, 2026 |
| Vanguard Capital Management | 4.87% | Jun 30, 2026 |
| Renaissance Technologies LLC | 4.58% | Dec 31, 2025 |
| Ameriprise Financial, Inc. | 3.3% | Jun 30, 2025 |
ETFs with the most weight in DBX
| CLOU Global X Cloud Computing ETF | 4.36% |
| MVPA Miller Value Partners Appreciation ETF | 4.21% |
| SRHQ SRH U.S. Quality GARP ETF | 1.89% |
| WCLD WisdomTree Cloud Computing Fund | 1.82% |
| FCLD Fidelity Cloud Computing ETF | 1.72% |
| CALF Pacer US Small Cap Cash Cows ETF | 1.45% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 1.19% |
| JSMD Janus Henderson Small/Mid Cap Growth Alpha ETF | 1.17% |
What could go wrong
- Revenue has stopped growing. Dropbox says its growth rate has declined and it has had negative growth. Revenue fell 1.1% in fiscal 2025. Its new products, including AI tools, need investment and may not reverse the trend.
- Relies on free users upgrading to paid. Many users start free. Revenue depends on converting them to paid plans and keeping subscribers renewing. Over 90% of revenue comes from self-serve purchases, which rely on word of mouth, not a big sales team.
- Data breaches, outages or lost files. Dropbox has had privacy and data security incidents before. Customers trust it with their files, so a breach, service disruption or loss of content could damage its brand and drive users away.
- Competition and fast-changing technology. Dropbox faces strong competition and must keep releasing new features, including AI tools, to keep up. It also depends on working smoothly with devices, operating systems and third-party apps it does not control.
- Debt and possible share dilution. Dropbox has a term loan and convertible notes due 2026 and 2028 (bonds that can turn into shares). Paying them may take a lot of cash, and if notes convert, existing shareholders could own a smaller slice.
- Voting control sits with early insiders. Dropbox has several share classes, which puts most voting power with holders from before its IPO (initial public offering). Co-CEO Andrew Houston reported holding 35.3% as of March 31, 2026.
Recent events
- Quarterly results released; Restructuring or exit costs; Executive or board change
- Quarterly results released; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement; Other company announcement
- Shareholder vote results
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
Dropbox does not pay a dividend, and its 10-K says it does not intend to pay one for the foreseeable future. An investor who wants cash from the holding would have to sell shares, so all the return depends on the share price. Instead, the company buys back its own shares, which reduces the share count. It spent $5.35 billion on buybacks from fiscal 2021 through fiscal 2025, including $1.71 billion in fiscal 2025. That was more than the year's $930.8 million of free cash flow (the cash left after running and investing in the business).
The shares have fallen hard in past downturns. In the 2020 COVID crash they dropped 30.1% and recovered in about two months. In the 2022 bear market they fell 24% and took about 13 months to recover. The deepest decline in the stock's 8.6-year price history was 62.6%, as of October 28, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
Does Dropbox pay a dividend?
No. Dropbox does not pay a dividend, and its 10-K for fiscal 2025 says it does not intend to pay dividends for the foreseeable future. Instead, it returns cash by buying back its own shares, and it spent $5.35 billion on buybacks from fiscal 2021 through fiscal 2025. For an income investor, that means the stock pays no regular cash. Any return comes from changes in the share price.
How does Dropbox make money?
From subscriptions. Anyone can use Dropbox free, and people pay for plans that add premium features such as longer version history, full-text search and password-protected sharing links. Dropbox had 18.08 million paying users as of December 31, 2025. Over 90% of revenue comes from self-serve channels, meaning customers buy through the app or website rather than through a salesperson. Revenue was $2.52 billion in fiscal 2025, and about 56% of it came from the United States.
Is Dropbox still growing?
Not much. Revenue was $2.52 billion in fiscal 2025, down 1.1% from $2.55 billion the year before, though net income rose 12.4% to $508.4 million. In the quarter ended June 30, 2026, revenue rose 0.9% from a year earlier to $631.5 million, while net income fell 23.7%. From fiscal 2020 to fiscal 2025, revenue grew about 5.7% a year. Dropbox is investing in new products, including AI tools such as Dash, but warns they may not restore growth.
How has Dropbox stock performed?
Unevenly. As of October 28, 2026, the share price had risen 24.7% over one year. Over three years it gained an average of 12.1% a year, and over five years only 3.8% a year. Calendar-year results swung from a 31.7% gain in 2023 to a 7.5% loss in 2025. The worst fall in its price history was 62.6%. On October 28, 2026, the shares traded at about 19.6 times fiscal 2025 earnings, a measure called the price-to-earnings (P/E) ratio.
Who controls Dropbox?
Co-CEO Andrew Houston is the largest reported holder, with a 35.3% stake as of March 31, 2026, according to his ownership filing. Dropbox has several share classes, which puts most voting power with holders from before its IPO. The company warns this may weigh on the share price. Other large reported holders include BlackRock, with 10.1% as of March 31, 2025, and Vanguard Portfolio Management, with 7.46% as of March 31, 2026. Houston sold shares in September and October 2026 under trading plans set up in advance.