Filing Flows › DigitalOcean Holdings (DOCN) › Q3 2026
DigitalOcean Holdings (DOCN) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 3, 2026
DigitalOcean Holdings (DOCN) reported revenue of $321M for the third quarter 2026 (Q3 2026), +40% from a year earlier and +14% from the quarter before. Operating margin was 10.3%, net loss $42.6M (13.3% of revenue).
DigitalOcean Holdings, Q3 2026: revenue $321M (+40% year over year), operating margin 10.3%, net loss $42.6M, operating cash flow $161M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $321M | +14% | +40% |
| Operating profit | $33.0M | +12% | -27% |
| Net earnings | −$42.6M | -220% | -127% |
| Operating cash flow | $161M | +47% | +68% |
| Free cash flow | $138M | +101% | +56% |
What changed
Revenue was $321.2M in Q3 2026, up 40% year over year and up 14% from the previous quarter.
Gross margin was 50.1%, down 9.5 points from Q3 2025. Operating profit was $33.0M, a 10.3% margin (down 9.3 points year over year). Operating profit fell $11.9M even though revenue rose $91.6M versus Q3 2025, so costs grew faster than sales. Operating expenses grew 39% against revenue growth of 40%. The fastest-growing cost line was Research & development (+54%). The quarter ended with a net loss of $42.6M, after a profit of $35.4M the previous quarter. Net interest and other expense of $69.5M was the main reason.
Operating cash flow was $161.2M (up 68% year over year). Non-cash charges added back $75.1M of depreciation and amortization and $36.0M of share-based compensation. Working capital and other items added $92.6M. Capital expenditures of $23.5M left free cash flow of $137.7M.
Questions
What was DigitalOcean Holdings' revenue in the third quarter 2026?
DigitalOcean Holdings (DOCN) reported revenue of $321M for the third quarter 2026 (Q3 2026), +40% from a year earlier and +14% from the quarter before.
Was DigitalOcean Holdings profitable in the third quarter 2026?
Operating profit was $33.0M (10.3% of revenue) and net loss $42.6M.