AI-extracted from the 10-Q filed 2026-08-04 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
DigitalOcean's Q2 FY2026 revenue grew 29% YoY to $281.2M, powered by a 45% jump in Digital Native Enterprise customer revenue and AI Customer ARR nearly tripling to $234M, while gross margin compressed to 55% on data center expansion costs.
Biggest Revenue Drivers
Digital Native Enterprise Customers$187.2M+45% YoY
Driven by addition of new customers, including expanding AI Customer base, and continued adoption of products by existing customers leading to higher average usage
Developers and other$93.9M
Users spending $500 or less monthly, plus legacy Bare Metal CPU and miscellaneous revenue
Biggest Revenue Drivers
Total revenue: $281.2M+29% YoY
Digital Native Enterprise Customers$187.2M+45% YoY
Driven by addition of new customers, including expanding AI Customer base, and continued adoption of products by existing customers leading to higher average usage
Within Digital Native Enterprise Customers
Above $1M Customers$64.7M
Largest ARR tier within DNE Customers, up sharply from $20.6M a year earlier
Above $6K and under $100K Customers$88.4M
Largest single DNE sub-tier by revenue, representing 31% of total revenue
Developers and other$93.9M
Users spending $500 or less monthly, plus legacy Bare Metal CPU and miscellaneous revenue
Largest Expense Items
Cost of revenue$126.5M+44% YoY
Data center expansions drove $17.2M higher D&A, $12.4M higher co-location costs, and increases in third-party licenses and ancillary equipment
Research and development$57.5M+45% YoY
Personnel costs from headcount growth, stock-based compensation for new hires, and annual merit-based salary raises
General and administrative$45.2M+24% YoY
Increase in personnel costs driven by headcount growth, stock-based compensation, and merit-based salary raises
Sales and marketing$22.6M+17% YoY
Higher personnel costs from headcount growth and merit raises, plus depreciation on purchased software
Margins: Gross margin fell to 55% from 60% a year ago as the company incurred costs for data center expansions ahead of the revenue ramp from new data centers; operating margin declined to 10% from 16% on the same dynamic plus higher opex.
Watch Items from the Filing
Top 25 customers rose to approximately 20% of Q2 2026 revenue, up sharply from about 9% a year earlier, indicating growing customer concentration.
AI Customer ARR reached $234M as of June 30, 2026, up from $75M a year earlier, more than tripling and signaling strong AI product traction.
$312.3M of 2026 Convertible Notes mature December 1, 2026 and are now freely convertible by holders at their option since June 1, 2026.
2030 Convertible Notes have been convertible at holder option since April 1, 2026 after the stock price exceeded 130% of the $39.17 conversion price for 20+ trading days.
Subsequent to quarter-end, the company repurchased $471.8M principal of 2030 Convertible Notes using proceeds from a $117.54/share direct offering of 12.5M new shares, adding dilution.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About DigitalOcean Holdings, Inc. (DOCN): stock profile, AI score and financials
DigitalOcean Holdings, Inc. (DOCN) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores DOCN at 67.4/100 on a composite quality score built from its SEC filings, placing it at rank #371 of 2,925 stocks — the top 25% of the AI-ranked universe. DOCN scores in the top quartile across profitability (86.8), balance sheet strength (84.7), revenue growth (77.3). Areas of concern include institutional flow (32.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 17.0/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), DigitalOcean Holdings, Inc. reports quarterly revenue of $281.2M, net income of $35.4M, an operating margin of 10.4%. Top institutional holders of DOCN by reported 13-F value include JPMORGAN CHASE, BlackRock, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. DOCN trades on the NYSE exchange and files with the SEC under CIK 1582961. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate DOCN daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for DigitalOcean Holdings, Inc. directly from SEC EDGAR.