Filing Flows › Dropbox (DBX) › Q1 2025
Dropbox (DBX) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
Dropbox (DBX) reported revenue of $625M for the first quarter 2025 (Q1 2025), -1% from a year earlier and -3% from the quarter before. Operating margin was 29.4%, net earnings $150M (24.1% of revenue).
Dropbox, Q1 2025: revenue $625M (-1% year over year), operating margin 29.4%, net earnings $150M, operating cash flow $154M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $625M | -3% | -1% |
| Gross profit | $508M | -3% | -3% |
| Operating profit | $184M | +109% | +28% |
| Net earnings | $150M | +46% | +14% |
| Operating cash flow | $154M | -28% | -12% |
| Free cash flow | $154M | — | -8% |
What changed
Revenue was $624.7M in Q1 2025, down 1% year over year and down 3% from the previous quarter.
Gross margin was 81.3%, down 1.9 points from a year earlier. Operating profit was $183.8M, a 29.4% margin (up 6.7 points year over year). Operating expenses fell 15% while revenue fell 1%. Net earnings were $150.3M, up 14% year over year. The effective tax rate was 11.3%.
Operating cash flow was $153.8M (down 12% year over year), 102% of net earnings. Non-cash charges added back $38.1M of depreciation and amortization and $67.1M of share-based compensation. Working capital and other items used $101.7M. After capital expenditures ($100K), free cash flow as the company reports it was $153.7M.
Questions
What was Dropbox's revenue in the first quarter 2025?
Dropbox (DBX) reported revenue of $625M for the first quarter 2025 (Q1 2025), -1% from a year earlier and -3% from the quarter before.
Was Dropbox profitable in the first quarter 2025?
Operating profit was $184M (29.4% of revenue) and net earnings $150M.
Source: Dropbox 10-Q on SEC EDGAR.