DigitalOcean Holdings, Inc. Q3 2025 Earnings Recap

DOCN Q3 2025 November 7, 2025

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DigitalOcean delivered a robust third quarter, outperforming expectations with 16% revenue growth and record organic ARR, bolstered by strong demand from AI-native and digital enterprise customers.

Earnings Per Share Beat

$0.33 vs $0.31 est.

+6.5% surprise

Revenue Miss

229634000 vs 237729640 est.

-3.4% surprise

Market Reaction

1-Day +5.1%

5-Day -4.01%

30-Day -5.23%

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Key Takeaways

Revenue reached $230 million, the highest growth rate since Q3 2023, with $44 million in organic incremental ARR.
Adjusted EBITDA and non-GAAP EPS exceeded guidance, achieving a trailing 12-month adjusted free cash flow margin of 21%.
Revenue from customers with over $1 million in annual run rate grew 72% year-over-year, highlighting increased retention and spending.
The company's expanding AI infrastructure is attracting significant traction among major AI-native companies, enhancing future growth potential.
DigitalOcean's balance sheet was strengthened through strategic equipment leasing and the repurchase of its 2026 convertible debt.

This summary was generated by AI from the official earnings call transcript and is provided for informational purposes only. It does not constitute financial advice. For the complete transcript and financial data, visit DOCN on AllInvestView.

Next Q1 2026