olivLaw · US equity research
DigitalOcean Holdings, Inc. DOCN
Services-Computer Programming, Data Processing, Etc. · SIC 7370 · Vertical: Services-Computer Programming, Data Processing, Etc. (SIC 7370)
DigitalOcean operates an AI-native inference cloud combining GPU infrastructure, core cloud services and agent tools, aimed mainly at growing technology companies. It matters now because its AI customer revenue has grown sharply and quarterly revenue reached 281 million USD, up 29%.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, DigitalOcean Holdings, Inc. (DOCN) stock was 84.02 USD (−7.16% on the day), with market capitalisation 9.9 bn USD, P/E 281.3 on diluted EPS of 0.30 USD over the last 12 months, beta 2.30, 52-week range 43.18–181.29 USD. Latest reported quarter (Q3 2026): revenue of 321.2 m USD (+39.9% YoY), net income of -42.6 m USD (−126.9% YoY), diluted EPS -0.37 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 31.2
- weak (30–45)
- Bollinger (20, 2)
- 75.73 – 133.00
- in the lower half of the band · %B 0.14 · band width 54.9%
- SMA 50 / 200
- 118.29 / 112.05
- mixed trend
- MACD (12, 26, 9)
- -9.57 / -8.25
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −38.8% | −2.0% | −36.8 pp | — |
| 3 months | −32.5% | −2.2% | −30.3 pp | — |
| 6 months | −47.8% | +4.3% | −52.1 pp | — |
| Year to date | +74.6% | +10.6% | +64.0 pp | — |
| 1 year | +116.4% | +10.5% | +106.0 pp | −21.0% |
| 3 years | +239.3% | +73.7% | +165.7 pp | +0.8% |
| 5 years | −18.1% | +61.7% | −79.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 204.9 m | 210.7 m | 218.7 m | 229.6 m | 242.4 m | 257.9 m | 281.2 m | 321.2 m |
| Cost of revenue | 78.8 m | 81.3 m | 87.8 m | 92.7 m | 100.1 m | 113.2 m | 126.5 m | 160.1 m |
| Gross profit | 126.1 m | 129.4 m | 130.9 m | 136.9 m | 142.3 m | 144.7 m | 154.7 m | 161.1 m |
| Research & development | 40.3 m | 39.6 m | 39.6 m | 38.1 m | 44.3 m | 48.8 m | 57.5 m | 58.8 m |
| Operating income | 32.5 m | 37.6 m | 35.6 m | 44.9 m | 38.8 m | 36.6 m | 29.4 m | 33.0 m |
| Depreciation & amortisation | 29.2 m | 29.2 m | 32.8 m ≈ | 35.1 m ≈ | 40.4 m | 45.5 m | 51.2 m ≈ | 75.1 m ≈ |
| Interest expense | 2.2 m | 2.2 m | 2.2 m | 5.0 m | 8.5 m | 10.6 m | 7.5 m | 16.4 m |
| Pre-tax income | 29.0 m | 41.4 m | 42.4 m | 90.3 m | 32.5 m | 24.5 m | 27.1 m | -36.4 m |
| Income tax | 10.7 m | 3.2 m | 5.4 m | -68.1 m | 6.9 m | 8.7 m | -8.3 m | 6.2 m |
| Net income | 18.3 m | 38.2 m | 37.0 m | 158.4 m | 25.7 m | 15.8 m | 35.4 m | -42.6 m |
| Diluted EPS | 0.19 | 0.39 | 0.39 | 1.51 | 0.23 ≈ | 0.15 | 0.29 | -0.37 |
| Operating cash flow | 71.3 m | 64.1 m | 92.4 m ≈ | 95.8 m ≈ | 57.3 m | 46.9 m | 110.0 m ≈ | 161.2 m ≈ |
| Capex | 45.3 m | 62.0 m | 33.2 m ≈ | 7.8 m ≈ | 26.2 m | 40.0 m | 41.6 m ≈ | 23.5 m ≈ |
| Share repurchases | 29.9 m | 59.1 m | 20.1 m ≈ | 2.9 m ≈ | 0 | 0 | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 92 percentile of its own 12-quarter history (min 13.8, median 43.3, max 446.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 254.8 m | 318.4 m | 428.6 m | 576.3 m | 692.9 m | 780.6 m | 901.4 m |
| Revenue YoY | unavailable | +24.9% | +34.6% | +34.5% | +20.2% | +12.7% | +15.5% |
| Net income | -40.4 m | -43.6 m | -19.5 m | -27.8 m | 19.4 m | 84.5 m | 259.3 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | +335.3% | +206.8% |
| Diluted EPS | -1.06 | -1.05 | -0.21 | -0.28 | 0.20 | 0.89 | 2.52 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | +345.0% | +183.1% |
| net % | -15.9% | -13.7% | -4.6% | -4.8% | 2.8% | 10.8% | 28.8% |
| Free cash flow | -13.6 m | -39.9 m | 36.0 m | 88.8 m | 115.6 m | 104.6 m | 180.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 254.5 m USD
- Financial debt
- 1.3 bn USD
- Net debt
- 1.0 bn USD
- Equity
- -28.7 m USD
- Total assets
- 1.8 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.69x
- ROE
- unavailable
- ROA
- 14.9%
- FCF margin
- 20.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 318.4 m | 428.6 m | 576.3 m | 692.9 m | 780.6 m | 901.4 m | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 145.5 m | 170.6 m | 211.9 m | 295.4 m | 314.7 m | 361.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 172.8 m | 258.0 m | 364.4 m | 397.5 m | 465.9 m | 539.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Research & development | 75.0 m | 115.7 m | 143.9 m | 136.9 m | 142.5 m | 161.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | -15.8 m | -11.2 m | -25.7 m | 11.9 m | 91.0 m | 157.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 75.6 m | 88.4 m | 102.2 m | 117.9 m | 130.1 m | 137.4 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 59.8 m ≈ | 77.2 m ≈ | 76.5 m ≈ | 129.8 m ≈ | 221.1 m ≈ | 294.4 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Interest expense | 13.6 m | 3.7 m | 8.4 m | 8.9 m | 9.1 m | 17.9 m | SEC (XBRL)· 24 Feb 2026verified |
| Pre-tax income | -42.7 m | -18.2 m | -23.9 m | 26.8 m | 97.7 m | 206.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | 911.0 k | 1.3 m | 3.9 m | 7.4 m | 13.2 m | -52.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | -43.6 m | -19.5 m | -27.8 m | 19.4 m | 84.5 m | 259.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | -1.05 | -0.21 | -0.28 | 0.20 | 0.89 | 2.52 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 41.7 m | 93.2 m | 100.8 m | 96.4 m | 94.5 m | 105.3 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 100.3 m | 1.7 bn | 140.8 m | 317.2 m | 428.4 m | 254.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 28.1 m | 39.6 m | 53.8 m | 62.2 m | 72.5 m | 90.9 m | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 148.0 m | 1.8 bn | 946.0 m | 503.0 m | 541.7 m | 427.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 239.0 m | 249.6 m | 273.2 m | 305.4 m | 432.5 m | 589.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Goodwill | 2.7 m | 32.2 m | 315.2 m | 348.3 m | 348.7 m | 348.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 34.6 m | 42.9 m | 118.9 m | 140.2 m | 117.7 m | 99.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 430.3 m | 2.1 bn | 1.8 bn | 1.5 bn | 1.6 bn | 1.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 12.4 m | 12.7 m | 21.1 m | 4.0 m | 54.6 m | 38.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 17.5 m | 0 | — | — | 0 | 325.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 242.2 m | 1.5 bn | 1.5 bn | 1.5 bn | 1.5 bn | 970.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 84.8 m | 58.2 m | 165.5 m | 192.6 m | 221.0 m | 619.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 329.3 m | 1.5 bn | 1.8 bn | 1.8 bn | 1.8 bn | 1.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | -72.1 m † | 578.2 m † | 47.6 m † | -313.7 m † | -203.0 m † | -28.7 m † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 58.5 m | 133.1 m | 195.2 m | 234.9 m | 282.7 m | 309.6 m | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 98.4 m | 97.1 m | 106.4 m | 119.3 m | 178.2 m | 129.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | -39.9 m ≈ | 36.0 m ≈ | 88.8 m ≈ | 115.6 m ≈ | 104.6 m ≈ | 180.5 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -115.6 m | -113.6 m | -1.1 bn | 401.2 m | -94.8 m | -268.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | 124.0 m | 1.6 bn | -610.4 m | -468.9 m | -76.4 m | -216.9 m | SEC (XBRL)· 24 Feb 2026verified |
| Share repurchases | 0 | 350.0 m | 600.0 m | 488.5 m | 59.8 m | 82.1 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 9.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation33
- Returns33
- Quality65
- Balance sheet55
- Growth65
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 8.68 – 62.82 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)41.18 – 62.82 (Mid 49.55)WACC 9.1% · starting FCFF 274.9 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales8.68 – 19.20 (Mid 12.91)10 companies used · median multiple 1.2x · quartiles 0.7x – 1.9xBMBL, FLUT, HCAT, LGCL, MTCH, NIQ, RXT, SNAP, TEAD, WB
- Peers: EV/EBITDA9.85 – 47.01 (Mid 39.07)5 companies used · median multiple 12.6x · quartiles 2.7x – 15.3xAPP, FLUT, LGCL, NIQ, WB
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 54.7% | 37 (on a fixed band) | 11% |
| EBIT margin · Quality | 12.5% | 78 (vs peers) | 9% |
| FCF margin · Quality | 22.1% | 89 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 16.1% | 64 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 15.5% | 66 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.6x | 90 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.2x | 21 (on a fixed band) | 6% |
| EV/Sales · Valuation | 8.8x | 21 (vs peers) | 17% |
| FCF yield · Valuation | 2.5% | 49 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.0% | 33 (on a fixed band) | 4% |
Score groups
- Balance sheet55/100 · 2/2 factors with a value
- Growth65/100 · 2/2 factors with a value
- Quality65/100 · 3/3 factors with a value
- Returns33/100 · 1/1 factors with a value
- Valuation33/100 · 2/2 factors with a value
Memo
DigitalOcean Holdings, Inc. (DOCN). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 901.4 m USD in 2025; YoY growth 15.5%; net margin 3.1%; ROE 5.1%; net debt/EBITDA -0.6x.
The estimated value range is 9.85–47.01 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 39.07 USD, the price of 84.02 USD leaves a potential of -53.5% (value / price − 1) and a margin of safety of -115.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 12.5%
- FCF margin: 22.1%
- Net debt / EBITDA: -0.6x
What contradicts it
- Current ratio: 1.2x
- EV/Sales: 8.8x
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Services-Computer Programming, Data Processing, Etc. (SIC 7370) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| GOOGLAlphabet Inc. | 3,442.7 bn | 14.6 | 44.3% | 50.0% | +15.1% | −13% / +111% |
| APPAppLovin Corporation | 82.3 bn | 18.9 | 203.7% | 64.6% | +70.0% | −59% / +555% |
| FLUTFlutter Entertainment plc | 14.2 bn | — | -9.1% | -5.0% | +16.6% | −61% / −48% |
| SNAPSnap Inc | 10.2 bn | — | -15.6% | -4.9% | +10.6% | −23% / −57% |
| DOCNDigitalOcean Holdings, Inc. | 9.9 bn | 281.3 | 5.1% | 3.1% | +15.5% | +116% / +239% |
| MTCHMatch Group, Inc. | 9.1 bn | 13.7 | — | 20.7% | +0.2% | +21% / +24% |
| NIQNIQ Global Intelligence plc | 6.0 bn | — | -65.3% | -8.0% | +5.7% | +29% / unavailable |
| SIFYSify Technologies Ltd | 5.8 bn | — | -4.1% | -2.0% | +9.0% | +20% / +53% |
| WIXWix.com Ltd. | 4.4 bn | 91.5 | — | 2.5% | +13.2% | −16% / −21% |
| DVDoubleVerify Holdings, Inc. | 2.1 bn | 34.0 | 5.8% | 8.2% | +13.9% | +29% / −59% |
| BZKanzhun Limited | 1.7 bn | 41.6 | 16.0% | 33.1% | +17.3% | −21% / +6% |
| WBWeibo Corporation | 1.6 bn | 3.8 | 12.1% | 25.6% | +0.1% | −35% / −36% |
| HSTMHealthstream Inc | 949.7 m | 45.4 | 6.0% | 6.6% | +4.3% | +29% / +30% |
| NXDRNextdoor Holdings, Inc | 934.4 m | — | -7.2% | -11.1% | +4.2% | unavailable / unavailable |
| CEVACeva, Inc. | 788.9 m | — | -3.6% | -9.5% | +2.5% | +30% / +29% |
| BMBLBumble Inc. | 718.8 m | — | -94.7% | -58.0% | −9.9% | +69% / −57% |
| RXTRackspace Technology, Inc. | 716.2 m | — | — | -5.9% | −1.9% | +165% / +123% |
| HUYAHUYA Inc. | 470.7 m | — | -1.9% | -1.7% | +11.6% | −27% / −38% |
| BLNDBlend Labs, Inc. | 302.7 m | — | — | -3.3% | +6.8% | −59% / +1% |
| HCATHealth Catalyst, Inc. | 119.7 m | — | -118.1% | -90.6% | +1.5% | −47% / −78% |
| JFJ & Friends Holdings Ltd | 68.4 m | — | — | -82.9% | −66.8% | −3% / −17% |
| GOAIEva Live Inc | 31.8 m | — | -58.5% | -39.3% | +82.6% | unavailable / unavailable |
| HOLOMicroCloud Hologram Inc. | 27.2 m | — | -2.3% | -12.4% | +38.6% | −66% / −100% |
| TEADTeads Holding Co. | 27.0 m | — | -196.2% | -43.3% | +46.1% | −61% / −93% |
| IPDNProfessional Diversity Network, Inc. | 23.7 m | — | -95.7% | -143.9% | −2.7% | −15% / −91% |
1- and 3-year price returns: for DOCN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 53.36 Total return -36% · Per year -36% | 93.91 Total return 12% · Per year 12% | 140.87 Total return 68% · Per year 68% |
| 3 years | 63.30 Total return -25% · Per year -9% | 124.20 Total return 48% · Per year 14% | 202.85 Total return 141% · Per year 34% |
| 5 years | 75.08 Total return -11% · Per year -2% | 164.25 Total return 95% · Per year 14% | 292.10 Total return 248% · Per year 28% |
- Exit P/E± 31.05
- Net margin± 21.73
- Annual revenue growth± 16.21
- Annual dilution± 1.83
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
In brief
DigitalOcean operates an AI-native inference cloud combining GPU infrastructure, core cloud services and agent tools, aimed mainly at growing technology companies. It matters now because its AI customer revenue has grown sharply and quarterly revenue reached 281 million USD, up 29% 3.
SWOT
Strengths
- The platform is simple to use, with predictable pricing and round-the-clock support that attracts growing technology customers 1.
- Growth in large-customer and AI inference revenue shows real traction for the offering 3.
- The company reported strong adjusted margins and positive free cash flow, giving it financial flexibility 3.
Weaknesses
Opportunities
Risks
- Concentration in large customershigh
A growing share of revenue comes from the largest customers, and losing some of them could affect results 23.
- Dependence on data center capacityhigh
Additional capacity expected in 2027 and 2028 could be delayed, limiting growth 3.
- Flexible contractsmedium
Customers can reduce usage or leave without notice, making revenue more volatile 1.
- Heavy capital expendituremedium
Investment in GPUs and data centers can weigh on cash flow and may require additional financing 13.
- Security and reputationlow
Security breaches or platform outages could damage customer trust and growth 1.
Investment thesis
What would need to be true (bull case)
- If demand for AI inference keeps rising, the company's revenue and ARR could continue to accelerate 3.
- High margins and positive free cash flow could give the company room to invest without excessive borrowing 3.
- Growth among high-value customers could make the platform an essential provider for AI-native companies 23.
What to watch
- Delivery against third-quarter 2026 revenue guidance of 304 to 307 million USDQ3 2026
- Evolution of AI customer ARR and the number of nine-figure commitmentsQ4 2026
- Commissioning of additional data center capacity2027
- Trend in net dollar retention and concentration of revenue among large customersnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 10-Q (03 Nov 2026).
The business
DigitalOcean describes its product as an agentic inference cloud that combines IaaS, PaaS and SaaS offerings with the Gradient AI platform. Customer acquisition is largely self-service, supplemented by inside sales, targeted outside sales and partnerships 1. The company reported about 21,000 DNE Customers as of December 31, 2025, who generated 60% of revenue that year 1.
DNE Customers are defined as users spending more than 500 USD per month, and this group has become central to the company's strategy 1. In the second quarter of 2026 the company reported that these customers accounted for 67% of revenue 2. Revenue comes mainly from platform usage, and a growing share of customers sign committed minimum-spend contracts 1.
The company expanded its infrastructure through leased data centers across several regions and through acquisitions such as Paperspace, which added AI offerings, and Cloudways, which added managed hosting 1. Second quarter 2026 results showed high margins with revenue of 281 million USD and a full-year growth target above 30% 3.
Segments
IaaS and PaaS/SaaS core cloud
The core segment includes Droplets, storage, managed Kubernetes and managed databases aimed at developers and growing technology companies 1. The company said its pricing is predictable and that this segment was the starting point of the platform 1.
Market context
According to the IDC estimate cited by the company, the worldwide IaaS and PaaS market for companies with fewer than 500 employees could grow from about 138 billion USD in 2025 to 251 billion USD in 2028, a 22% compound annual growth rate 1. Actual growth depends on AI adoption and customers' IT spending 1.
The company noted that about two-thirds of revenue historically comes from outside the United States, and North America accounted for 47% of revenue in the second quarter of 2026 12. Expansion into Europe and Asia depends on data center availability and local competition 1.
Trends
- Demand for AI inferencetailwind
AI-native customers are using inference more heavily, and the company said early customers sharply increased their token consumption in recent months 3. If this demand continues, inference revenue could accelerate growth further 3.
- Growth of large customersmixed
Large customers have grown faster than the overall base, suggesting revenue is concentrating in higher-value accounts 23. This could support margins but may also increase dependence on a few clients 2.
- Data center capacitymixed
The company said it secured additional data center capacity expected to come online in 2027 and 2028, and expanding capacity is essential for growing demand 3. Delays in delivering capacity could limit revenue.
- Cost and infrastructure pressureheadwind
Investment in GPUs and data centers raises capital spending, and the company warned that rapid expansion depends on financing and equipment availability 1. High costs could reduce cash flow if demand weakens.
Competitive position
The company describes its competition mainly as large cloud providers, which it considers more complex for small and mid-sized customers but stronger in infrastructure and full ecosystems 1. Providers focused on AI inference or GPUs could attract customers if they offer better pricing or performance 1.
A key risk is that some customers could move quickly to other platforms, since contracts are flexible and do not require minimum usage periods 1. The company noted that shifts in competitive dynamics, including consolidation or new entrants, could directly affect growth 1.
- Large public cloud providers
Competitors offering a broad range of IaaS, PaaS and AI services, which the company describes as more complex for small customers 1.
- GPU and inference specialists
Dedicated AI infrastructure platforms that may compete on inference pricing and performance, a segment where the company is expanding 1.
- Open source cloud platforms
Alternatives that customers can host themselves, reducing the need for a commercial provider for some workloads 1.
- Partners and hardware suppliers
Companies DigitalOcean works with that could also become competitors if they extend their own cloud services 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- DigitalOcean Launches Learning and Data Services to Enable Self-Improving AI AgentsInfoQ · 26 Oct 2026 · EN
- DigitalOcean Quietly Ends Open Source Credits ProgramIt's FOSS · 04 Oct 2026 · EN
- DigitalOcean Managed Agents Brings Managed Cloud Infrastructure to AI AgentsInfoQ · 02 Oct 2026 · EN
- DigitalOcean’s (DOCN) $725M Bet On AI’s Next WaveYahoo Finance — News · 18 Sept 2026 · EN
- DigitalOcean’s (DOCN) AI Bet Is Finally Paying Off In NumbersYahoo Finance — News · 07 Sept 2026 · EN
- DigitalOcean's CFO Sells Over 35,000 Shares for $3.8 Million After a 241% One-Year ReturnYahoo Finance — News · 04 Sept 2026 · EN
- Is DigitalOcean (DOCN)’s AI Push Enough to Justify its Premium Valuation?Yahoo Finance — News · 29 Aug 2026 · EN
- Run OpenBSD on DigitalOcean for $4/monthHacker News · 25 Aug 2026 · EN
The latest news item in our archive is from 26 Oct 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Other events · Financial statements and exhibits
- Current report10 Sept 2026Material agreement · Creation of a direct financial obligation · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report24 Jul 2026Other events
- Current report23 Jul 2026Other events · Financial statements and exhibits
- Current report07 Jul 2026Results of operations · Financial statements and exhibits
- Current report17 Jun 2026Shareholder vote
- Quarterly report05 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / DigitalOcean Holdings, Inc. · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / DigitalOcean Holdings, Inc. · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / DigitalOcean Holdings, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.