Filing Flows › DigitalOcean Holdings (DOCN) › Q1 2026
DigitalOcean Holdings (DOCN) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 5, 2026
DigitalOcean Holdings (DOCN) reported revenue of $258M for the first quarter 2026 (Q1 2026), +22% from a year earlier and +6% from the quarter before. Operating margin was 14.2%, net earnings $15.8M (6.1% of revenue).
DigitalOcean Holdings, Q1 2026: revenue $258M (+22% year over year), operating margin 14.2%, net earnings $15.8M, operating cash flow $46.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $258M | +6% | +22% |
| Gross profit | $145M | +2% | +12% |
| Operating profit | $36.6M | -6% | -3% |
| Net earnings | $15.8M | -39% | -59% |
| Operating cash flow | $46.9M | -18% | -27% |
| Free cash flow | $6.9M | -78% | +226% |
What changed
Revenue was $257.9M in Q1 2026, up 22% year over year and up 6% from the previous quarter.
Gross margin was 56.1%, down 5.3 points from Q1 2025. Operating profit was $36.6M, a 14.2% margin (down 3.7 points year over year). Operating profit fell $1.1M even though revenue rose $47.2M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 18% against revenue growth of 22%. The fastest-growing cost line was Research & development (+23%). Net earnings were $15.8M, down 59% year over year. The effective tax rate was 35.6%.
Operating cash flow was $46.9M (down 27% year over year), 298% of net earnings. Non-cash charges added back $45.5M of depreciation and amortization and $22.5M of share-based compensation. Working capital and other items used $36.8M. Capital expenditures of $40.0M left free cash flow of $6.9M.
Questions
What was DigitalOcean Holdings' revenue in the first quarter 2026?
DigitalOcean Holdings (DOCN) reported revenue of $258M for the first quarter 2026 (Q1 2026), +22% from a year earlier and +6% from the quarter before.
Was DigitalOcean Holdings profitable in the first quarter 2026?
Operating profit was $36.6M (14.2% of revenue) and net earnings $15.8M.