Short answer
DigitalOcean Holdings, Inc. (DOCN) filed its fiscal 2025 10-K annual report with the SEC on Feb 24, 2026. It reported revenue of $901M (+15.5% year over year) and net income of $259M.
- Top risk flagged: Regulatory risk: Potential impact from U.S. tariffs and trade restrictions amid ongoing trade tensions affecting international operations
FY2025 key financial metrics · XBRL
- Revenue
- $901M
- +15.5% YoY
- Net income
- $259M
- +206.8% YoY
- Operating margin
- 17.4%
- +5.8 pp YoY
- Gross margin
- 59.9%
- +0.2 pp YoY
- EPS (diluted)
- $2.52
- +183.1% YoY
- ROE
- -903.7%
- −862.0 pp YoY
- Operating cash flow
- $310M
- +9.5% YoY
Source: XBRL data from the DigitalOcean Holdings, Inc. (DOCN) FY2025 10-K on SEC EDGAR. USD.
DigitalOcean Holdings, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Agentic inference cloud platform offering IaaS, PaaS, SaaS, and AI/ML services to AI and Digital Native Enterprises
- New emphasis: Launch of DigitalOcean Gradient® AI Agentic Cloud including GPU Droplets, Bare Metal GPUs, LLMs, and AI Agents
- Strategic shift: Reclassification of customer support personnel costs from R&D and sales to cost of revenue for better comparability
- Quantitative highlight: Net income surged to $259.3M in 2025 from $84.5M in 2024; employees and share count slightly decreased
- Noteworthy fact: Purchased capped calls related to 2030 Convertible Notes totaling $104.7M net of tax for risk management
Management Discussion & Analysis
- Revenue $901.4M, up 15% YoY from $780.6M; driven by 24% revenue growth from DNE Customers
- Gross margin stable at 60% for both years; operating expenses increased 2% to $382.6M from $374.9M
- Best segment: DNE Customers driving 24% revenue growth; no distinct worst segment highlighted
- Operating cash flow $309.6M, up from $282.7M; $82.1M stock repurchases in 2025; $268.3M net cash used in investing, $216.9M net cash used in financing including $1.13B convertible notes repurchase
- Management expects cash flows, credit facility ($420M borrowing capacity), and cash on hand ($254.5M) sufficient for at least 12 months; repurchase program authorized up to $100M through July 2027
Risk Factors
- Regulatory risk: Potential impact from U.S. tariffs and trade restrictions amid ongoing trade tensions affecting international operations
- Macroeconomic threat: 62% revenue sourced outside U.S., exposed to geopolitical tensions including Russia, Ukraine, Middle East conflicts
- Operational vulnerability: Exclusion of legacy Bare Metal CPU offerings reflects migration risk off older infrastructure affecting customer base
- Competitive disruption: Growing AI/ML platform competing with hyperscalers offering advanced GPU and large language model services
- Financial risk: Increased general and administrative expenses $138.5M in 2025 vs $160.9M in 2024 amid scaling business complexities
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