Short answer
Digital Realty (DLR) filed its fiscal 2025 10-K annual report with the SEC on Feb 13, 2026. It reported revenue of $6.1B (+10.0% year over year) and net income of $1.3B.
- Top risk flagged: ASC 842 lease accounting risk: revenue recognition hinges on probable collection of lease payments, affected by customer credit and economic trends
FY2025 key financial metrics · XBRL
- Revenue
- $6.1B
- +10.0% YoY
- Net income
- $1.3B
- +117.2% YoY
- Operating margin
- 10.8%
- +2.3 pp YoY
- EPS (diluted)
- $3.58
- +122.4% YoY
- ROE
- 5.7%
- +2.9 pp YoY
- Operating cash flow
- $2.4B
- +6.7% YoY
Source: XBRL data from the Digital Realty (DLR) FY2025 10-K on SEC EDGAR. USD.
Digital Realty FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: global provider of data center, colocation, and interconnection services via PlatformDIGITAL® spanning 310 data centers in 30+ countries
- Emphasis on data gravity solutions through PDx® methodology and Data Gravity Index as a distinctive competitive advantage this year
- Strategic expansion with 769 MW under construction, 64% pre-leased, and over 3,500 MW future developable capacity including 1,000 MW in Northern Virginia
- Portfolio leased at ~84.7% with over 57.6 million rentable sq ft including 9.7 million sq ft under active development as of Dec 31, 2025
- Acquisition of majority interest in Teraco platform in South Africa completed prior fiscal year, strengthening presence in Africa's largest interconnection market
Management Discussion & Analysis
- Revenue $6.11B, up 10.0% YoY (+$557.7M); stabilized portfolio revenue up 6.1% (+$244.7M), non-stabilized up 16.6% (+$241.8M)
- Total operating expenses $5.45B, up 7.3% YoY; property level expenses up 8.2% to $2.73B; general & admin up 17.8% to $565M; operating margin approx. 10.8%
- Best segment: Non-stabilized portfolio revenue increased $241.8M (16.6%) driven by development completions; worst margin pressure from increased utility (+7%) and maintenance costs (+9.7%)
- Cash flow/capital allocation: Issued €3.8B in notes netting ~$3.4B gross proceeds in 2025; repaid €1.725B notes and redeemed €1.075B early; issued 6.4M shares raising $1.1B; contributed assets to joint ventures worth over $1.4B
- Forward outlook: Expect positive rental rate growth on renewals in 2026; risks include rising power/utility costs and regulatory impacts potentially pressuring margins
Risk Factors
- ASC 842 lease accounting risk: revenue recognition hinges on probable collection of lease payments, affected by customer credit and economic trends
- Geopolitical exposure via Teraco acquisition minority shareholder put rights obligating cash/share payout impacting dilution and financial flexibility
- Operational impairment risk from property carrying values tied to triggering events and future undiscounted net cash flows with potential write-downs
- Competitive threat from alternative cloud and edge infrastructure technologies potentially reducing demand for traditional data center leasing
- Financial risk from significant minority interests and put rights at Teraco complicating earnings per share dilution and FFO calculations
Generated from the filing text; verify against the original. How to read a 10-K
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