DOCN Technology

DigitalOcean Holdings, Inc.

$90.50+0.79%

Price as of close on Nov 3, 2026 · Financials updated Oct 8, 2026

Basics

Sector: Technology
Industry: Software - Infrastructure
Country: United States
Market cap: 10.6B USD
Enterprise value: 11.8B USD
Full-time employees: 1,462

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.70 vs a peer median of 0.87), less short-term liquidity (current ratio 1.31 vs a peer median of 1.83) and more debt relative to equity (0.99× vs a peer median of 0.25×)higher risk: bigger price swings (beta 1.70 vs peers 0.87), less liquidity (current ratio 1.31 vs peers 1.83) and more debt vs equity (0.99× vs peers 0.25×)

Ranks #849 of 1,612 technology companies (bottom 48%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 22% from December 2022 to July 2026.
DigitalOcean had 22% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.DigitalOcean had 22% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.
Returning more cash than it generates. Paid out $630M vs $401M of free cash flow over the 3 fiscal years to 2025.
DigitalOcean returned $630M to shareholders over three years, 157% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.
Operating margin at a 6-year high. 17% in 2025, the best of the last 6 years.
DigitalOcean kept 17% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.
Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $318M in 2020 to $901M in 2025.
DigitalOcean's fiscal-year revenue rose in each of the five years to 2025, from $318M to $901M.

StockQuotient Score

50/ 100

Oct 5 49 → Nov 4 50 (+1)

Valuation

Is the price right?

39/100

Weak▲ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: ▼ Weaker

Share count up 12.7% (existing holders diluted)

Valuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 37 → 39

Share price -14.9%+3
Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ EBITDA yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield2.2%

SEC filings · 12 months to Jun 2026Reported value30% base weight · Z-score -0.02Sector median: 0.0225 · MAD: 0.0225

EBITDA yield3.0%

SEC filings · 12 months to Jun 2026Reported value50% base weight · Z-score -0.35Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield1.8%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.33Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield8.7%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

79/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 6.6%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth
▲ EPS growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth44.0%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.08Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth15.9%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 1.39Sector median: 0.0483 · MAD: 0.0793

Revenue growth21.4%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.27Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

71/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin
▲ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin14.8%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.20Sector median: 0.0631 · MAD: 0.0710

Return on assets7.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 1.27Sector median: 0.0293 · MAD: 0.0362

Return on invested capital10.9%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 0.48Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin57.2%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity25.3%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 12 → 11

Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.70

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -2.24Sector median: 0.8710 · MAD: 0.3700

Current ratio1.31×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.76Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.99×

SEC filings · latest balance sheetReported value33% base weight · Z-score -3.26Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about DigitalOcean

Is DigitalOcean getting weaker?: Its latest SEC filing (Aug 4, 2026) got weaker in some ways: share count up 12.7%. Its overall score is unchanged at 50/100 since Oct 28, 2026.
How is DigitalOcean valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 39/100 against 1,711 technology peers. EBITDA yield 3.0% vs a peer median of 4.2% (weaker than 61% of peers).EBITDA yield 3.0% vs peers 4.2% (weaker than 61% of peers).
Is DigitalOcean growing?: Yes, faster than most of its peers. Growth scores 79/100 against 1,711 technology peers. 3-year revenue growth 15.9% vs a peer median of 4.8% (stronger than 80% of peers).3-year revenue growth 15.9% vs peers 4.8% (stronger than 80% of peers).
How profitable is DigitalOcean?: More profitable than most of its peers. Profitability scores 71/100 against 1,711 technology peers. Return on assets 7.5% vs a peer median of 2.9% (stronger than 78% of peers).Return on assets 7.5% vs peers 2.9% (stronger than 78% of peers).
How risky is DigitalOcean?: Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Beta 1.70 vs a peer median of 0.87 (weaker than 88% of peers).Beta 1.70 vs peers 0.87 (weaker than 88% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 4, 2026 · compared with the quarter ended Mar 31, 2026

Got weaker

Share count up 12.7% (existing holders diluted)

	Previous quarter	Latest quarter	Change
Revenue (12 months)	948.6M USD	1.0B USD	+6.6%
Net income (12 months)	236.8M USD	235.2M USD	−0.7%
Operating margin	16.4%	14.8%	−1.6 pts
Free cash flow (12 months)	185.3M USD	194.5M USD	+4.9%
Debt	919.7M USD	921.1M USD	+0.1%
Cash	741.4M USD	767.0M USD	+3.5%
Shares outstanding	104.4M	117.6M	+12.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Infrastructure · 71 companies

Valuations in Software - Infrastructure are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +19% and earnings +22% (medians): prices and earnings moved broadly together.
Median price-to-sales is +97% vs the whole market, against a usual +103%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	60.2%	63.2%	57.4%	59.7%	59.9%	▲ 0.2 pts
Operating margin	-2.6%	-4.5%	1.7%	11.7%	17.4%	▲ 5.8 pts
Net margin	-4.6%	-4.8%	2.8%	10.8%	28.8%	▲ 18 pts
Return on assets (ROA)	-0.9%	-1.5%	1.3%	5.2%	14.1%	▲ 9.0 pts
Return on equity (ROE)	-3.4%	-58.4%	—	—	—	—
Free cash flow margin	8.4%	15.4%	16.7%	13.4%	20.0%	▲ 6.6 pts
Current ratio	30.39×	5.72×	2.61×	2.45×	0.69×	▼ 72%
Debt to equity	2.53×	30.91×	—	—	—	—
Interest coverage	-2.99×	-3.06×	1.33×	9.99×	8.75×	▼ 12%

DOCN price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.70 vs a peer median of 0.87), less short-term liquidity (current ratio 1.31 vs a peer median of 1.83) and more debt relative to equity (0.99× vs a peer median of 0.25×)higher risk: bigger price swings (beta 1.70 vs peers 0.87), less liquidity (current ratio 1.31 vs peers 1.83) and more debt vs equity (0.99× vs peers 0.25×)

Ranks #849 of 1,612 technology companies (bottom 48%)

See how it ranks against its peers

Worth knowing

Shareholders being diluted. Shares outstanding up 22% from December 2022 to July 2026.

DigitalOcean had 22% more shares at July 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.DigitalOcean had 22% more shares at July 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

Returning more cash than it generates. Paid out $630M vs $401M of free cash flow over the 3 fiscal years to 2025.

DigitalOcean returned $630M to shareholders over three years, 157% of the free cash flow it produced. That gap has to be covered by cash reserves or new debt, which can't last indefinitely.

Operating margin at a 6-year high. 17% in 2025, the best of the last 6 years.

DigitalOcean kept 17% of revenue as operating profit in 2025, its highest in the 6 years of filings we have.

Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $318M in 2020 to $901M in 2025.

DigitalOcean's fiscal-year revenue rose in each of the five years to 2025, from $318M to $901M.

Questions investors ask about DigitalOcean

Is DigitalOcean getting weaker?

Its latest SEC filing (Aug 4, 2026) got weaker in some ways: share count up 12.7%. Its overall score is unchanged at 50/100 since Oct 28, 2026.

How is DigitalOcean valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 39/100 against 1,711 technology peers. EBITDA yield 3.0% vs a peer median of 4.2% (weaker than 61% of peers).EBITDA yield 3.0% vs peers 4.2% (weaker than 61% of peers).

Is DigitalOcean growing?

Yes, faster than most of its peers. Growth scores 79/100 against 1,711 technology peers. 3-year revenue growth 15.9% vs a peer median of 4.8% (stronger than 80% of peers).3-year revenue growth 15.9% vs peers 4.8% (stronger than 80% of peers).

How profitable is DigitalOcean?

More profitable than most of its peers. Profitability scores 71/100 against 1,711 technology peers. Return on assets 7.5% vs a peer median of 2.9% (stronger than 78% of peers).Return on assets 7.5% vs peers 2.9% (stronger than 78% of peers).

How risky is DigitalOcean?

Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Beta 1.70 vs a peer median of 0.87 (weaker than 88% of peers).Beta 1.70 vs peers 0.87 (weaker than 88% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

948.6M USD

1.0B USD

+6.6%

Net income (12 months)

236.8M USD

235.2M USD

−0.7%

Operating margin

16.4%

14.8%

−1.6 pts

Free cash flow (12 months)

185.3M USD

194.5M USD

+4.9%

Debt

919.7M USD

921.1M USD

+0.1%

Cash

741.4M USD

767.0M USD

+3.5%

Shares outstanding

104.4M

117.6M

+12.7%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

60.2%

63.2%

57.4%

59.7%

59.9%

▲ 0.2 pts

Operating margin

-2.6%

-4.5%

1.7%

11.7%

17.4%

▲ 5.8 pts

Net margin

-4.6%

-4.8%

2.8%

10.8%

28.8%

▲ 18 pts

Return on assets (ROA)

-0.9%

-1.5%

1.3%

5.2%

14.1%

▲ 9.0 pts

Return on equity (ROE)

-3.4%

-58.4%

—

Free cash flow margin

8.4%

15.4%

16.7%

13.4%

20.0%

▲ 6.6 pts

Current ratio

30.39×

5.72×

2.61×

2.45×

0.69×

▼ 72%

Debt to equity

2.53×

30.91×

—

Interest coverage

-2.99×

-3.06×

1.33×

9.99×

8.75×

▼ 12%