Filing Flows › DigitalOcean Holdings (DOCN) › Q3 2025
DigitalOcean Holdings (DOCN) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 5, 2025
DigitalOcean Holdings (DOCN) reported revenue of $230M for the third quarter 2025 (Q3 2025), +16% from a year earlier and +5% from the quarter before. Operating margin was 19.6%, net earnings $158M (69.0% of revenue).
DigitalOcean Holdings, Q3 2025: revenue $230M (+16% year over year), operating margin 19.6%, net earnings $158M, operating cash flow $95.8M. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $230M | +5% | +16% |
| Gross profit | $137M | +5% | +17% |
| Operating profit | $44.9M | +26% | +83% |
| Net earnings | $158M | +328% | +381% |
| Operating cash flow | $95.8M | +4% | +31% |
| Free cash flow | $88.0M | +49% | +450% |
What changed
Revenue was $229.6M in Q3 2025, up 16% year over year and up 5% from the previous quarter.
Gross margin was 59.6%, up 0.9 points from a year earlier. Operating profit was $44.9M, a 19.6% margin (up 7.2 points year over year). Of the extra revenue versus a year earlier, 65% reached operating profit, above the 12% margin then. Operating expenses grew 0% against revenue growth of 16%. The fastest-growing cost line was Sales & marketing (+39%). Net earnings were $158.4M, up 381% year over year. The effective tax rate was -75.4%. Non-operating items added $45.4M, 50% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $95.8M (up 31% year over year), 60% of net earnings. Non-cash charges added back $35.1M of depreciation and amortization and $19.8M of share-based compensation. Working capital and other items used $117.4M. Capital expenditures of $7.8M left free cash flow of $88.0M.
Questions
What was DigitalOcean Holdings' revenue in the third quarter 2025?
DigitalOcean Holdings (DOCN) reported revenue of $230M for the third quarter 2025 (Q3 2025), +16% from a year earlier and +5% from the quarter before.
Was DigitalOcean Holdings profitable in the third quarter 2025?
Operating profit was $44.9M (19.6% of revenue) and net earnings $158M.