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Dec 31, 2025
DigitalOcean Q4 2025 Earnings Report
DigitalOcean reported strong fourth quarter 2025 results with double-digit revenue growth, expanding AI traction, and solid profitability.
Key Takeaways
DigitalOcean delivered 18% year-over-year revenue growth in Q4 2025, reaching $242390000 in revenue. Profitability improved with net income of $25660000 and adjusted EBITDA of $99264000, while ARR grew to $970000000 and net dollar retention increased to 101%.
Revenue increased 18% year over year to 242390000.
Adjusted EBITDA reached 99264000 with a 41% margin.
ARR grew 18% year over year to 970000000.
Net dollar retention rate improved to 101%.
Forward Guidance
The company initiated Q1 2026 guidance and raised its full year 2026 outlook following strong Q4 performance.
Positive Outlook
- Q1 2026 revenue expected between 249000000 and 250000000.
- Full year 2026 revenue expected between 1075000000 and 1105000000.
- 2026 adjusted EBITDA margin expected between 36% and 38%.
- 2026 adjusted free cash flow margin expected between 15% and 17%.
- Non-GAAP diluted EPS for 2026 expected between 0.75 and 1.00.
Challenges Ahead
- Q1 2026 adjusted EBITDA margin expected to be lower than Q4 2025.
- Adjusted free cash flow margin guidance below current quarter level.
- Cash balance declined sequentially due to financing activities.
- Interest expense increased year over year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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