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DigitalOcean Holdings, Inc. DOCN R2KAI

Technology · Software - Infrastructure · United States
https://www.digitalocean.com
Company Profile ↓
$126.30
+343.47% 1Y
Mkt Cap$13.18B
P/E55.39
P/B20.04
52W High$181.29
52W Low$25.74
Book Value$8.51
EPS (TTM)$2.28

Company Overview

DigitalOcean Holdings, Inc., through its subsidiaries, operates an agentic inference cloud platform in North America, Europe, Asia, and internationally. The company provides AI and Digital Native Enterprises build, run, and scale intelligent applications for growing technology companies. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute, storage, and networking products, including cloud firewalls, managed load balancers, NAT gateways, and virtual private cloud software, as well as IP address management and domain name system management. In addition, the company provides platform-as-a-service (PaaS) and software-as-a-service (SaaS) solutions, such as managed databases; managed Kubernetes and container registry; application platform to build, deploy, and scale applications; Functions, a serverless compute solution; and Uptime for real-time uptime and latency alerts, as well as managed hosting and DigitalOcean Marketplace, a platform where developers can find pre-configured applications and solutions. Further, it offers artificial intelligence (AI)/machine learning (ML) applications comprising GPU droplets; bare metal GPUS, which provides access to a GPU server without any virtualization layer and gives developers with customizable server for their use case; and Jupyter Notebooks that provides cloud workspace and managed interactive development environment for exploring data and training, and building machine learning models. Its customers use its platform in various industry verticals, such as online gaming, fintech, and cybersecurity, as well as for a range of use cases, including building and hosting websites, web and mobile applications development, AI integration, and building AI products and applications. DigitalOcean Holdings, Inc. was incorporated in 2012 and is headquartered in Broomfield, Colorado.

Why Investors Should Care

Strong Return on Equity

Generates a return on equity of 70.0%, reflecting efficient use of shareholder capital.

Steady Revenue Expansion

Revenue has grown at a 23.4% CAGR over the past five years.

Healthy Margins

Maintains a net profit margin of 25.0%.

Positive Free Cash Flow

Generates positive free cash flow, funding growth and shareholder returns internally.

Recent Developments

  • Dec 2025 Revenue of $901.43M (+15.5% YoY); net profit $259.26M.
  • Trailing 12 Months Year-on-year growth — revenue +22.4%, earnings -61.7%.
  • 5-Year Trend Long-term compounding — revenue CAGR 23.4%.

Growth & Price Performance

Compounded Sales Growth

5 Years:23.44%
1 Year:22.40%

Compounded Profit Growth

5 Years:-
1 Year:-61.70%

Stock Price Performance

1 Year:+343.47%
6 Months:+137.41%
3 Months:+58.13%
1 Month:-27.73%

Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.

AI Exposure AI Cloud Software / AI Inference Cloud

DigitalOcean operates a developer-focused cloud platform, now offering an agentic AI/inference cloud for digital-native businesses.

Core Focus

Simple IaaS/PaaS for SMBs and developers, plus GPU/AI inference and agentic-AI services.

Key Initiatives
  • AI inference cloud DigitalOcean offers GPU compute and an agentic inference platform to build and scale AI applications.
  • Developer-simple IaaS Compute, storage and networking products serve SMBs and digital-native firms.
  • GenAI platform (GenAI) Managed GenAI tools let smaller customers deploy AI without complexity.
Why Investors Should Care
  • Profitable, cash-generative cloud (net ~25%, high ROE) adding AI/GPU services.
  • Differentiated SMB/developer focus versus hyperscalers.
  • Smaller scale and competition from large clouds are risks.
  • AI-GPU economics and capex discipline are watch items.
AI InvestmentInvestment targets GPU capacity and the agentic AI/inference platform.
AI RevenueAI/GPU is an emerging revenue stream on top of core IaaS; it is growing but small.
ROI (Now)Core cloud drives ROI today; AI services are an early, additive contributor.
ROI (Expected)Scaling AI/inference for SMBs is the incremental growth lever.

Curated from public filings and analyst commentary; figures are illustrative.

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Price Chart

Robinhood TradingView

Fundamental Growth Charts

Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.

PROS

  • Strong return on equity of 70.0%.
  • Excellent profit margin of 25.0%.
  • Compounding revenue at 23.4% over 5 years.
  • Generates positive free cash flow.
  • In a confirmed uptrend (50-DMA above 200-DMA).

CONS

  • Trading at a high P/E of 55.4.
  • Trading 30.3% below its 52-week high.

* The pros and cons are auto-generated from financial metrics.

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Valuation

Stock P/E
55.39
Industry PE
36.02
Forward P/E
71.87
PEG Ratio
1.54
Book Value
$8.51
Price to Book
20.04
P/S
18.75
EV/EBITDA
62.22
Dividend Yield
0.00%

Growth (CAGR)

Revenue 5Y
23.44%
Profit 5Y
-
Revenue (YoY)
22.40%
Earnings (YoY)
-61.70%

Profitability & Returns

ROCE
12.89%
ROE
70.00%
ROA
4.63%
Profit Margin
24.96%
Op Margin
14.18%
Gross Margin
58.49%
EPS (Latest Qtr)
$0.15
EPS (TTM)
$2.28

Balance Sheet & Liquidity

Debt/Equity
1.70
Quick Ratio
1.31
Current Ratio
1.46
Debt
$1.51B
Total Assets
$2.57B
Current Assets
-
Working Capital
-

Ownership

Promoter Holding
18.77%
Chg in Prom Hold
0.01%
FII / Inst Holding
94.34%
Chg in FII Hold
-0.02%

Financial Snapshot

Enterprise Value
$13.18B
Total Revenue (TTM)
$948.63M
EBITDA
$298.22M
Free Cash Flow
$157.55M
Operating Cash Flow
$292.44M
Shares Outstanding
104.36M
Gross Margin
58.49%
Payout Ratio
0.00%

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 DOCN DigitalOcean Holdings, Inc. R2KAI 126.30 55.39 $13.18B 0.00% 12.89% 70.00% 23.44% -
2 NVDA NVIDIA Corporation NDXSPXAI 211.80 32.43 $5.13T 0.49% 74.66% 114.29% 24.64% 32.12%
3 AAPL Apple Inc. NDXSPX 314.86 38.07 $4.62T 0.37% 68.72% 141.47% 1.81% 3.92%
4 MSFT Microsoft Corporation NDXSPXAI 384.93 22.91 $2.86T 0.93% 26.90% 34.01% 9.48% 10.85%
5 TSM Taiwan Semiconductor Manufacturing Company Limited AI 420.39 36.18 $2.18T 0.90% 30.20% 36.21% 18.94% 19.57%
6 AVGO Broadcom Inc. NDXSPXAI 389.11 64.85 $1.85T 0.68% 16.70% 37.28% 24.38% 26.24%
7 MU Micron Technology, Inc. NDXSPXAI 983.12 46.37 $1.11T 0.06% 13.69% 39.82% 13.68% 26.02%
8 AMD Advanced Micro Devices, Inc. NDXSPXAI 548.13 181.50 $893.78B 0.00% 6.33% 8.06% 13.64% 48.64%
9 ASML ASML Holding N.V. NDXAI 1,775.64 59.55 $684.36B 0.47% 42.97% 52.24% 15.55% 19.55%
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios

Quarterly Results

Figures in USD.

Metric Mar 2020Jun 2020Sep 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Mar 2026
Revenue 72.79M76.91M81.16M93.66M103.81M111.43M-127.33M133.88M152.12M-165.13M169.81M177.06M180.87M184.73M192.48M198.48M204.93M210.70M218.70M229.63M257.90M
Gross Profit 38.11M41.71M44.10M54.12M60.66M67.92M-80.12M86.07M95.39M-90.59M99.83M103.81M103.26M109.15M114.15M116.56M126.08M129.44M130.94M136.93M144.71M
Operating Income -12.49M1.78M-6.72M3.25M-2.63M-1.67M--13.58M-7.95M7.20M--33.06M-1.50M35.47M10.98M11.54M22.33M24.61M32.53M37.64M35.62M44.93M36.57M
Net Income -16.93M-2.57M-10.21M-3.34M-2.19M-1.85M-12.12M-18.57M-6.76M7.90M-10.07M-16.37M665.00K19.18M15.94M14.14M19.14M32.95M18.27M38.20M37.03M158.37M15.77M
Diluted EPS -0.42-0.06-0.24-0.07-0.02-0.02--0.17-0.070.08--0.170.010.200.170.150.200.330.190.390.391.510.15
R&D Expense 19.48M15.13M19.71M22.40M27.12M29.93M-37.24M36.96M30.24M-37.51M37.70M31.73M29.98M32.93M32.98M36.28M40.31M39.59M39.64M38.12M48.83M

Profit & Loss (Annual)

Figures in USD.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Revenue 254.82M318.38M428.56M576.32M692.88M780.62M901.43M
Gross Profit 132.56M172.85M257.97M364.39M397.50M465.94M539.59M
Operating Income -29.91M-15.79M-11.19M-25.70M11.90M91.01M156.99M
Net Income -40.39M-43.57M-19.50M-27.80M19.41M84.49M259.26M
Diluted EPS -1.06-1.05-0.21-0.280.200.892.52
R&D Expense 59.97M74.97M115.68M143.88M136.92M142.50M161.62M

Balance Sheet (Annual)

Figures in USD.

Metric Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Total Assets --430.25M2.10B1.82B1.46B1.64B1.84B
Total Equity -56.86M-72.28M-72.09M578.20M47.57M-313.70M-202.96M-28.69M
Cash & Equivalents --100.31M1.71B140.77M317.24M428.45M254.47M
Long Term Debt --242.22M1.46B1.47B1.48B1.49B970.65M
Total Liabilities --329.27M1.52B1.77B1.77B1.84B1.87B
Current Liabilities --84.78M58.24M165.52M192.65M220.96M619.46M

Cash Flows (Annual)

Figures in USD.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Operating Cash Flow 39.90M58.46M133.11M195.15M234.94M282.73M309.60M
Investing Cash Flow -87.38M-115.63M-113.61M-1.15B401.15M-94.81M-268.29M
Financing Cash Flow 49.80M124.03M1.59B-610.36M-468.90M-76.45M-216.91M
Capital Expenditure -53.50M-98.36M-97.07M-106.39M-119.30M-178.17M-129.09M
Free Cash Flow -13.60M-39.90M36.04M88.76M115.64M104.56M180.52M
Share Buybacks 00350.00M600.00M488.45M59.79M82.12M

Ratios (Annual)

Figures in %.

Metric Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Dec 2024Dec 2025
Gross Margin % 52.0%54.3%60.2%63.2%57.4%59.7%59.9%
Operating Margin % -11.7%-5.0%-2.6%-4.5%1.7%11.7%17.4%
Net Margin % -15.9%-13.7%-4.6%-4.8%2.8%10.8%28.8%
ROE % 55.9%60.4%-3.4%-58.4%-6.2%-41.6%-903.7%
ROCE % --4.6%-0.5%-1.6%0.9%6.4%12.9%

Shareholding Pattern

Insiders
18.77%
Institutions
94.34%
Public Float
116.14%

Top Institutional Holders

#Holder% HeldSharesValue
1 Blackrock Inc. 11.48% 11.98M $1.64B
2 Vanguard Portfolio Management LLC 5.71% 5.96M $813.89M
3 JPMORGAN CHASE & CO 4.45% 4.65M $634.25M
4 Hood River Capital Management LLC 3.34% 3.49M $476.13M
5 Vanguard Capital Management LLC 3.32% 3.47M $473.33M
6 Wellington Management Group, LLP 2.83% 2.96M $403.73M
7 State Street Corporation 2.77% 2.89M $394.26M
8 Fuller & Thaler Asset Management Inc. 2.45% 2.56M $349.82M
9 Price (T.Rowe) Associates Inc 2.36% 2.47M $336.60M
10 Citadel Advisors Llc 2.19% 2.29M $312.43M

Analyst View

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Latest News

Recent headlines for DOCN

Google News ue, 14 Jul 2026

DigitalOcean Holdings (DOCN) Could Be 29% Undervalued On 2026 Revenue Growth Guidance - Yahoo Finance

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Google News Wed, 01 Jul 2026

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Google News hu, 09 Jul 2026

Is DigitalOcean (DOCN) Stock Outpacing Its Computer and Technology Peers This Year? - Yahoo Finance

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Google News Wed, 08 Jul 2026

Why DigitalOcean (DOCN) Stock Is Up Today - Quiver Quantitative

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DOCN — Frequently Asked Questions

What is the current share price of DigitalOcean Holdings, Inc. (DOCN)?

As of 2026-07-14 21:23 PDT, DigitalOcean Holdings, Inc. (DOCN) trades at $126.30 on NYSE. Its 52-week range is $25.74 to $181.29.

What is the market capitalisation of DOCN?

DigitalOcean Holdings, Inc. (DOCN) has a market capitalisation of $13.18B on NYSE.

What is the P/E ratio of DOCN?

DOCN trades at a trailing price-to-earnings (P/E) ratio of 55.39. The industry average P/E is 36.02. Its price-to-book (P/B) ratio is 20.04.

What is the return on equity (ROE) of DOCN?

DOCN has a return on equity (ROE) of 70.00%. Its return on capital employed (ROCE) is 12.89%.

Is DOCN a good stock to buy?

This page provides a data-driven analysis of DigitalOcean Holdings, Inc. (DOCN), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.

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