At a glance
DigitalOcean Holdings Inc is worth $12.35B, about 42 times its fiscal 2025 earnings. Revenue grew 15.5% to $901.4M in fiscal 2025, with 28.8% kept as profit; over 5 years it has grown 23.1% a year. It pays no dividend; it spent $1.58B buying back its shares over FY2021–FY2025. The stock returned +164.5% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
DigitalOcean rents cloud computing to developers and growing technology companies, in fields from online gaming to fintech, whose needs larger cloud providers don't fully meet. It offers Droplets, which are virtual machines (rented slices of a server), plus storage and networking. Managed services, where DigitalOcean handles the upkeep, include Managed Hosting (from its Cloudways acquisition) and Managed Databases. Its Gradient AI line began with its Paperspace acquisition. It rents out AMD and NVIDIA GPUs, the chips used for AI work, and offers tools for building AI agents.
Customers pay for the services they use, under pricing the company calls transparent and predictable. It relies mainly on customers signing themselves up online, supported by inside sales staff, a dedicated AI sales team and partners. Every customer gets free 24/7 support. Revenue reached $901.4 million in the year ended December 31, 2025, up 15.5%.
The 10-K does not break revenue out by product, segment or region. Its key customer group, which it calls Digital Native Enterprises, is customers spending more than $500 in a month. About 21,000 of them produced 60% of 2025 revenue. Net dollar retention tracks how much existing customers spend from one year to the next. It rose from 98% in 2024 to 100% in 2025, meaning existing customers' spending held steady.
Price history
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DOCN +164.5% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $281.2M, up 28.6% from a year earlier, and net income was $35.4M (-4.3%).
- For fiscal 2025, revenue was $901.4M (+15.5% year over year; +23.1% a year from FY2020 to FY2025) with a 28.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +23.1% good |
|---|---|
| Operating margin | 17.4% good |
| Free cash flow margin | 20% good |
| Return on assets (FY2025) | 14.1% good |
| Net cash (cash minus debt) | $-154.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $318.4M | $-43.6M | $-39.9M |
| FY2021 | $428.6M | $-19.5M | $36.0M |
| FY2022 | $576.3M | $-27.8M | $88.8M |
| FY2023 | $692.9M | $19.4M | $115.6M |
| FY2024 | $780.6M | $84.5M | $104.6M |
| FY2025 | $901.4M | $259.3M | $180.5M |
Valuation snapshot
| Market value | $12.35B |
|---|---|
| P/E ratio | 41.7 |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
DigitalOcean Holdings’s market value went from $2.45B at the end of 2022 to $12.35B on Oct 28, 2026, about 5.0 times as much; since the end of 2025 it is up 181%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $12.35B | +180.6% |
| 2025 | $4.40B | +40.0% |
| 2024 | $3.14B | -0.4% |
| 2023 | $3.16B | +28.7% |
| 2022 | $2.45B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DOCN price data to Oct 28, 2026 | +118.3% | +164.5% | +72.3% | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +118.3% |
| 2025 | +41.2% |
| 2024 | -7.1% |
| 2023 | +44.0% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 8 sales ($7.2M), 7 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 2, 2026 | Matt Steinfort Chief Financial Officer | sell (plan) | $1.7M |
| Sep 21, 2026 | Padmanabhan T Srinivasan Chief Executive Officer, Director | sell (plan) | $1.6M |
| Sep 3, 2026 | Matt Steinfort Chief Financial Officer | sell (plan) | $1.1M |
| Aug 17, 2026 | Padmanabhan T Srinivasan Chief Executive Officer, Director | sell (plan) | $736K |
| Sep 3, 2026 | Padmanabhan T Srinivasan Chief Executive Officer, Director | sell (plan) | $602K |
Who owns it
Large shareholders (13G filings)
| JPMORGAN CHASE & CO | 10.3% | May 29, 2026 |
| JPMORGAN CHASE & CO. | 9.6% | Sep 30, 2026 |
| BlackRock, Inc. | 7.6% | Jun 30, 2026 |
| Vanguard Portfolio Management | 4.38% | Jun 30, 2026 |
ETFs with the most weight in DOCN
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 1.11% |
| SKYY First Trust Cloud Computing ETF | 1.1% |
| WTAI WisdomTree Artificial Intelligence and Innovation Fund | 0.91% |
| FCLD Fidelity Cloud Computing ETF | 0.9% |
| GSC Goldman Sachs Small Cap Core Equity ETF | 0.68% |
| AOTG AOT Growth and Innovation ETF | 0.52% |
| RZG Invesco S&P SmallCap 600® Pure Growth ETF | 0.5% |
| SCDS JPMorgan Fundamental Data Science Small Core ETF | 0.46% |
What could go wrong
- Big AI push may not pay off. DigitalOcean is expanding into AI through GPU rentals and its Gradient AI platform. The 10-K warns these products may not succeed and that its AI focus could bring reputational harm or legal liability.
- Building too much or too little capacity. DigitalOcean must invest in servers and data center capacity ahead of demand. Overbuilding leaves costly equipment idle; underbuilding could mean turning customers away. Either mistake could hurt results.
- Relies on outside data centers and suppliers. It depends on third-party data center operators and a small number of suppliers for some equipment parts. Outages, damage, security breaches or supply shortages could disrupt service or delay expansion.
- Growth depends on bigger-spending customers. Customers spending over $500 a month produced 60% of 2025 revenue. Sales to them carry extra risks compared with smaller users, and existing customers' spending only held steady, with net dollar retention at 100%.
- Competition and getting pricing right. DigitalOcean competes against larger cloud providers by being simpler and more predictable on price. If competitors merge, new rivals arrive or its pricing misses the mark, it could lose customers or revenue.
- Debt exceeds cash; convertibles could dilute. Debt of $921.1 million topped cash and investments of $767.0 million as of June 30, 2026. Its 2030 convertible notes, bonds that can become shares, may dilute owners. A September 2026 filing reported new debt.
Recent events
- Major agreement signed; New debt or financial obligation; Investor presentation or announcement
- Quarterly results released
- Other company announcement
- Quarterly results released
- Shareholder vote results
- Major agreement signed; Quarterly results released; New debt or financial obligation
- Other company announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Quarterly results released
For income and retirement investors
DigitalOcean paid no dividend in the five years from 2021 through 2025, so income investors would have to trim their holding to draw cash from it. The company has used buybacks instead, spending about $1.58 billion from 2021 through 2025. Most of that came from 2021 to 2023, and buybacks fell to $82 million in 2025. Even so, the share count rose 7.7%, from about 109.2 million in October 2021 to 117.6 million in July 2026, as new shares outpaced repurchases.
Our price history for DOCN covers about four years, so it does not show how the shares held up in the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Within that history, the deepest fall from a peak was 60.3%. In the year to October 28, 2026, the stock gained 164.5% but also dropped as much as 49.3% along the way. A single stock carries more risk than a diversified fund.
Questions investors ask
How does DigitalOcean make money?
DigitalOcean makes money by renting cloud computing to developers and growing technology companies. Customers pay for what they use: virtual servers called Droplets, storage, networking, managed hosting and databases, and newer AI services such as GPU rentals through its Gradient AI platform. Revenue was $901.4 million in the year ended December 31, 2025. About 21,000 customers spending more than $500 a month produced 60% of that revenue. The 10-K does not split revenue by product or region.
Does DigitalOcean pay a dividend?
No. DigitalOcean paid no dividend in the five years from 2021 through 2025. Instead, it bought back about $1.58 billion of its shares over that period. Even so, the share count rose 7.7% between October 2021 and July 2026 because new shares outpaced repurchases. With no dividend, any return comes from the share price, and investors who need regular income would have to trim their holding to raise cash.
Is DigitalOcean profitable?
Yes, judging by its latest annual results. After losses from 2020 through 2022, it earned net income of $259.3 million in 2025, or $2.52 per diluted share. Operating income, the profit from the core business, was $157.0 million, a 17.4% margin. Net income was higher than that, so items outside day-to-day operations added to the total. Free cash flow, the cash left after equipment spending, was $180.5 million. In the quarter ended June 30, 2026, net income fell 4.3% from a year earlier while revenue rose 28.6%.
How much debt does DigitalOcean have?
As of June 30, 2026, DigitalOcean had total debt of $921.1 million against cash and investments of $767.0 million, or about $154.0 million more debt than cash. Shareholders' equity was $930.7 million. The debt includes 2030 convertible notes, bonds that can be swapped for shares, which could dilute existing owners if converted. Its credit agreement also restricts some business decisions. A September 2026 filing reported a new debt obligation that is not in those June figures.
How volatile is DigitalOcean stock?
Very volatile. As of October 28, 2026, the shares were up 164.5% over one year and 118.3% so far in 2026, but down 22.9% over the prior month. In the past year they fell as much as 49.3% from a peak, and the deepest drop in about four years of price history was 60.3%. The one-year beta, a measure of how much a stock moves compared with the market, was 2.68. That means it tended to swing more than twice as much as the market.