Business overview
“Business” in this Annual Report on Form 10-K, as well as the factors set forth below. We may not successfully accomplish any of our objectives and, as a result, it is difficult for us to forecast our future results of operations. If the assumptions that we use to plan our business are incorrect or change in reaction to changes in our market, we may be unable to maintain consistent revenue or revenue growth, our stock price could be volatile, and it may be difficult to achieve and maintain profitability.
In addition to the other risks described herein, factors that may affect our results of operations include the following: • fluctuations in demand for or pricing and usage of our platform and products; • our ability to attract new customers and retain existing customers, including increasing their usage of our products; • customer expansion rates; • integration of new products; • timing and amount of our investments and capital expenditures related to successfully optimizing, utilizing and expanding our data center facilities; • the investment in and integration of new products and features relative to investments in our existing infrastructure and products; • our ability to control costs, including our operating expenses, and the timing of payment for expenses; • the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges; • the amount and timing of costs associated with recruiting, training and integrating new employees and retaining and motivating existing employees; • the effects of acquisitions and their integration; • general economic conditions, both domestically and internationally, including heightened inflation or changes in interest rates, uncertainty regarding changes in trade policies, and economic conditions specifically affecting industries in which our customers participate; • changes in regulatory or legal environments that may cause us to, among other elements, be unable to continue operating in a particular market, remove certain customers from our platform, and/or incur expenses associated with compliance; • changes in the competitive dynamics of our market, including consolidation among competitors or customers or new entrants into our market; • significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products and platform capabilities; • our ability to control fraudulent registrations and usage of our platform, reduce bad debt and lessen capacity constraints on our data centers, servers and equipment; and • the impact of new accounting pronouncements.
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Any of these and other factors, or the cumulative effect of some of these factors, may cause our results of operations to vary significantly. If our results of operations fall below the expectations of investors and securities analysts who follow our stock, the price of our common stock could decline substantially, and we could face costly lawsuits, including securities class action suits. We may not be able to sustain profitability in the future. While we have experienced revenue growth in recent periods, we are not certain whether or when we will obtain a high enough volume of sales to sustain or increase our growth or maintain profitability in the future.
We also expect our costs and expenses will increase in future periods, which could negatively affect our future results of operations if our revenue also does not increase. Our efforts to grow our business may be costlier than we expect, or the rate of our growth in revenue may be slower than we expect, and we may not be able to increase our revenue enough to offset our increased 15 operating expenses. We may incur significant losses in the future for a number of reasons, including the other risks described herein, and unforeseen expenses, difficulties, complications or delays, and other unknown events. If we are unable to sustain profitability, the value of our business and common stock may significantly decrease.
In addition, we expect to continue to expend substantial financial and other resources on: • our technology infrastructure, including systems architecture, scalability, availability, performance, security, hardware, equipment and other capital expenditures, including expenses to increase or maintain data center capacity and to successfully optimize and operate data center facilities; • product development, including the development of new products and new functionality for our platform as well as investments in both further optimizing our existing products and infrastructure; • our sales and marketing organization to engage our existing and prospective customers, increase brand awareness and drive adoption of our products; • strategic investments and acquisitions; and • general administration, including increased legal and accounting expenses.
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Source: 10-K · Period ended December 31, 2025 · View report
Latest developments
Recent company filings, newest first. Excerpts retain the original wording.
September 10, 2026Contracts8-K
Entry into a material agreement
Original filing excerpt · Item 1.01, 2.03, 7.01
Entry into a Material Definitive Agreement. On September 10, 2026, DigitalOcean Holdings, Inc. (the “Company”) and its wholly owned subsidiary DigitalOcean, LLC (the “Lessee”) entered into a Transaction Agreement with MUFG Americas Capital Leasing & Finance, LLC, as lessor (the “Lessor”), MUFG Bank, Ltd., as administrative agent and collateral agent, and the rent assignees party thereto, together with a related Master Lease Agreement between the Lessee and the Lessor and a Guaranty by the Company and certain of its subsidiaries in favor of MUFG Bank, Ltd., as administrative agent (collectively, the “Equipment Finance Agreements”). The Equipment Finance Agreements provide for up to $725 million of committed financing to fund purchases of data center equipment (“Equipment”) as well as an accordion feature permitting the Company to increase the committed financing thereunder by up to $300.0 million, to $1.025 billion in the aggregate, with any such increase on the same terms as the existing commitments (the “Equipment Finance Facility”).
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The Company currently intends to exercise the accordion feature of the Equipment Finance Facility in full, subject to obtaining commitments from new or existing lenders and other conditions. […]
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under
of this Current Report on Form 8-K is incorporated herein by reference.
Regulation FD Disclosure. On September 10, 2026, the Company issued a press release announcing the Equipment Finance Facility. The full text of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The information furnished under this
of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed to be incorporated by reference in any previous or subsequent filing by the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of the general incorporation language in such filings, except as expressly incorporated by specific reference in such filing. Forward-Looking Statements This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the expected availability and use of the Equipment Finance Facility, including with respect to the accordion feature thereof, and the expected accounting treatment of the Equipment Leases.
These forward-looking statements are based on the current expectations of the Company’s management and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements, including those factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and in its subsequent filings with the Securities and Exchange Commission. […]
August 4, 2026Results8-K
Results of operations and financial condition
Original filing excerpt · Item 2.02
Results of Operations and Financial Condition. On August 4, 2026 , the Company issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This information is intended to be furnished under
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July 24, 2026Company update8-K
Other events
Original filing excerpt · Item 8.01
Other Events. On July 23, 2026, DigitalOcean Holdings, Inc. (the “Company”) completed the repurchase of $471,828,000 principal amount of its outstanding 0.00% Convertible Senior Notes due 2030 (the “Existing Notes”) in separate, privately negotiated repurchase transactions with a limited number of holders of the Existing Notes (the “Holders”) for an aggregate repurchase price in cash of approximately $1.474 billion. The repurchase was funded, together with cash on hand, with the net proceeds from the Company’s previously announced concurrent registered direct offering of 12,543,915 shares of its common stock (“Common Stock”) at a price of $117.54 per share (the “Equity Offering”). In connection with the Equity Offering, the Company entered into separate, privately negotiated share purchase agreements with the Holders.
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The Equity Offering was made pursuant to a preliminary prospectus supplement, dated July 14, 2026, and filed with the Securities and Exchange Commission (the “SEC”) on July 15, 2026, a pricing term sheet, dated July 15, 2026, and filed with the SEC as a free writing prospectus on July 16, 2026, a final prospectus supplement, dated July 15, 2026, and filed with the SEC on July 17, 2026, and the base prospectus, dated March 24, 2026, filed as part of the Company’s automatic shelf registration statement (File No. 333-294563) that became effective under the Securities Act of 1933, as amended, when filed with the SEC on March 24, 2026.
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July 23, 2026Company update8-K
Other events
Original filing excerpt · Item 8.01
Other Events. A copy of the opinion of Freshfields US LLP relating to the legality of the issuance and sale of shares of common stock of DigitalOcean Holdings, Inc. (the “Company”), offered pursuant to the Company’s prospectus supplement dated July 15, 2026, is attached hereto as Exhibit 5.1 to this Current Report on Form 8-K.
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July 7, 2026Results8-K
Results of operations and financial condition
Original filing excerpt · Item 2.02
Results of Operations and Financial Condition. On July 7, 2026, DigitalOcean Holdings, Inc. (the "Company") issued a press release announcing certain preliminary, unaudited financial results for the fiscal quarter ended June 30, 2026 (the "Preliminary Results"). The Preliminary Results reflect the Company's current estimates based on information available to management as of the date of the press release and are subject to the completion of the Company's normal quarter-end closing procedures, including final adjustments. Actual results may differ from the Preliminary Results presented herein. The full text of the press release containing the Preliminary Results is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This information is intended to be furnished under
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June 17, 2026Shareholders8-K
Shareholder voting results
Original filing excerpt · Item 5.07
Submission of Matters to a Vote of Security Holders. At the 2026 Annual Meeting of Stockholders (the "Annual Meeting") of DigitalOcean Holdings, Inc. (the "Company") held on June 15, 2026, the Company’s stockholders voted on the three proposals set forth below. A more detailed description of each proposal is set forth in the definitive proxy statement on Schedule 14A (the "Proxy Statement") filed by the Company with the Securities and Exchange Commission on April 24, 2026. The final results with respect to each proposal are set forth below.
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Proposal 1 - Election of Directors Warren Adelman and Pueo Keffer were elected to serve as Class II directors of the Company’s Board of Directors (the “Board”), each for a term expiring at the 2029 Annual Meeting of Stockholders and until their successors are duly elected and qualified, or, if sooner, until their death, resignation or removal, by the following votes: Nominee Votes For Votes Withheld Broker Non-Votes Warren Adelman 66,745,757 16,844,074 9,763,078 Pueo Keffer 70,066,785 13,523,046 9,763,078 Proposal 2 - Ratification of the Selection of Independent Registered Public Accounting Firm The stockholders ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm of the Company for its fiscal year ending December 31, 2026, by the following votes: Votes For Votes Against Abstentions 93,181,571 62,446 108,892 Proposal 3 - Approval, on a Non-Binding Advisory Basis, of the Compensation of the Company's Named Executive Officers The stockholders approved, on a non-binding advisory basis, the compensation of the Company’s named executive […]
May 5, 2026Contracts8-K
Entry into a material agreement
Original filing excerpt · Item 1.01, 2.02, 2.03
Entry into a Definitive Material Agreement. On May 4, 2026, the Company, DigitalOcean, LLC, Paperspace Co., the lenders and L/C issuers party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, entered into an Amendment No. 1 to Credit Agreement (the “First Amendment”), which amends the Company’s existing credit agreement, dated as of May 5, 2025 ((filed as Exhibit 10.1 to the Company’s Form 8-K filed on May 5, 2025), the “Existing Credit Agreement”). The First Amendment amends the Existing Credit Agreement to, among other modifications, (i) provide for a $112.5 million increase in the revolving credit facility thereunder, (ii) provide for a $50 million increase in the letter of credit sublimit thereunder and (iii) amend the definition of “Indebtedness” therein to provide that capitalized leases shall be deemed to be an amount equal to 25% of the capitalized amount thereof.
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The proceeds of the revolving credit facility may be used for working capital, capital expenditures, permitted acquisitions, refinancing of indebtedness and other general corporate purposes. In the ordinary course of their respective businesses, the lenders and their affiliates have engaged, and may in the future engage, in commercial banking and financing transactions with the Company and its affiliates. […]
Results of Operations and Financial Condition. On May 5, 2026, the Company issued a press release announcing its financial results for the fiscal quarter ended March 31, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. This information is intended to be furnished under
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under
of this Current Report on Form 8-K is incorporated herein by reference.
Latest results
Original excerpts. Reporting periods, units and comparisons are retained in the text.
Revenue
We continue to invest in our platform to further penetrate the growing markets in which we operate. We generate revenue primarily from the usage of our agentic inference cloud platform by our customers. We recognize revenue largely based on the customer utilization of our offerings. While our pricing is primarily consumption-based and the majority of our customers use our platform on a month-to-month basis, a growing number of customers are using our platform for larger workloads and some of these customers are opting to enter into committed contracts, committing to a minimum spend on our platform. We serve a large number of customers that range in size from growing or scaled businesses that generate millions of dollars in revenue and serve millions of their own customers to individual developers testing or learning new technology for their own development.
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We further disaggregate our DNE customers into the following categories - $100K+ Customers, $500K+ Customers and $1M+ Customers. See further discussion in “Digital Native Enterprise Customers” below. Growing our DNE Customers is a critical focus for us, and we have successfully increased the number of these customers and their percentage of our total revenue. Revenue from our DNE Customers as a percentage of total revenue was 67% in the three months ended June 30, 2026, up from approximately 59% in the three months ended June 30, 2025. As of June 30, 2026, we had approximately 22,000 DNE Customers using our platform to build, deploy and scale applications. The number of DNE Customers increased from approximately 20,000 as of June 30, 2025 to approximately 22,000 as of June 30, 2026.
Cash flow & liquidity
These conditions include: changes in gross domestic product growth; inflationary pressures and high interest rates; supply chain disruptions; financial and credit market fluctuations, volatility in the capital markets, and liquidity concerns at, or failures of, banks and other financial institutions; trade tension and the imposition, enforceability, or threatened imposition of tariffs, export controls, sanctions, and other trade restrictions or retaliatory actions for those measures by other countries; and geopolitical conditions, including ongoing military conflicts involving Russia, Ukraine, Iran, and the Middle East, political turmoil, political instability or transitions of power in regions where we operate, potential shutdowns of the U.S. federal government, natural catastrophes, and outbreaks of contagious diseases. We will continue to monitor the direct and indirect impacts of these or similar circumstances on our business and our results of operations.
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32 Income Tax Expense Six Months Ended June 30, 2026 2025 $ Change % Change (in thousands) Income tax expense $ 430 $ 8,597 $ (8,167) (95 %) Income tax expense decreased $8.2 million, or 95%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease in income tax expense was primarily driven by an increase in excess tax benefits on stock-based compensation. Liquidity and Capital Resources We have funded our operations since inception primarily with cash flow generated by operations, offerings of our equity and debt securities, borrowings under our credit facilities, equipment financing arrangements and finance leases. […]
Management commentary
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis of our financial condition and results of operations should be considered together with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. This discussion, particularly information with respect to our outlook, key trends and uncertainties, our plans and strategy for our business, and our performance and future success, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q.
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Actual results could differ materially from those discussed below. Overview DigitalOcean is an AI-Native Cloud, purpose-built for inference and agentic workloads that brings infrastructure, core cloud services, inference, data, and agents together in one integrated stack that is open throughout, giving builders the best of the AI ecosystem in one place. The platform combines production-ready GPU infrastructure, a full-stack cloud, model-first inference workflows, and an agentic experience layer to reduce operational complexity and accelerate time to production. Our customers include growing technology companies across numerous industry verticals ranging from online gaming to fintech to cybersecurity, among many others, and leverage our platform for a wide variety of use cases, such as building and hosting websites, developing new web and mobile applications, integrating AI into their businesses, and building AI products and applications, among many others.
We believe that being simple, scalable and approachable, while offering a comprehensive range of integrated cloud and AI products, are our key differentiators, driving a broad range of customers around the world whose needs are not being fully met by larger cloud providers to build and grow their businesses on our platform. We offer a comprehensive set of cloud platform capabilities which span across Infrastructure-as-a-Service (“IaaS”), including Droplet virtual machines, storage and networking offerings; Platform-as-a-Service (“PaaS”) and Software-as-a-Service (“SaaS”), including Managed Hosting, Managed Database, Managed Kubernetes and Marketplace offerings. We also offer a comprehensive artificial intelligence and machine learning (“AI/ML”) platform - DigitalOcean Gradient® AI Agentic Cloud which includes Gradient AI Infrastructure with offerings such as GPU Droplets and Bare Metal GPUs; the Gradient AI Platform which offers various building block services including Large Language Models (“LLMs”); and Gradient AI Agents.
We continue to invest in our platform to further penetrate the growing markets in which we operate. We generate revenue primarily from the usage of our agentic inference cloud platform by our customers. We recognize revenue largely based on the customer utilization of our offerings. While our pricing is primarily consumption-based and the majority of our customers use our platform on a month-to-month basis, a growing number of customers are using our platform for larger workloads and some of these customers are opting to enter into committed contracts, committing to a minimum spend on our platform. We serve a large number of customers that range in size from growing or scaled businesses that generate millions of dollars in revenue and serve millions of their own customers to individual developers testing or learning new technology for their own development.
Thousands of new users come to DigitalOcean every month with some users intending only to utilize our platform for a discrete task, and other users are part of new or existing businesses that intend to operate their 24 production and test workloads on our platform to support their business. Given the wide range of users and their associated spend, we classify customers based on their spend in a given month, which we have found to be a good proxy that distinguishes between casual users and substantial enterprise customers. Our total customer count is represented by the number of Digital Native Enterprise (“DNE”) Customers, which are users that spend more than $500 in a month.
We further disaggregate our DNE customers into the following categories - $100K+ Customers, $500K+ Customers and $1M+ Customers. See further discussion in “Digital Native Enterprise Customers” below. Growing our DNE Customers is a critical focus for us, and we have successfully increased the number of these customers and their percentage of our total revenue. […]
Key risks
Annual risk disclosures
“Risk Factors” and elsewhere in this Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Annual Report on Form 10-K. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject.
These statements are based on information available to us as of the date of this Annual Report on Form 10-K. While we believe such available information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this Annual Report on Form 10-K relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect events or circumstances after the date of this Annual Report on Form 10-K or to reflect new information or the occurrence of unanticipated events, except as required by law.
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We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. MARKET, INDUSTRY AND OTHER DATA This Annual Report on Form 10-K contains statistical data, estimates and forecasts, including related to our market opportunity, that are based on independent industry publications and other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information.
Further, while we believe our internal research is reliable, such research has not been verified by any third party. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Part I, Item IA. “Risk Factors,” that could cause results to differ materially from those expressed in these publications and other publicly available information. Certain information in the text of this Annual Report on Form 10-K is contained in an independent industry publication: IDC: Worldwide Software and Public Cloud Services Spending Guide (Feb. 2025). This publication was not prepared on our or on our affiliates’ behalf or at our expense.
ADDITIONAL INFORMATION Unless the context otherwise requires, all references in this Annual Report on Form 10-K to “DigitalOcean,” the “company,” “we,” “our,” “us” or similar terms refer to DigitalOcean Holdings, Inc. and its consolidated subsidiaries. “DigitalOcean®”, “Droplet®”, “Gradient®” and our other pending and/or registered trade names, trademarks and service marks are the property of DigitalOcean. Other trade names, trademarks and service marks used in this Annual Report on Form 10-K are the property of their respective owners. 2 We may announce material business and financial information to our investors using our investor relations website (https://investors.digitalocean.com/), filings with the Securities and Exchange Commission, press releases, public conference calls and webcasts. We use these channels as well as social media and blogs to communicate with our members and the public about our company, our services and other issues.
Therefore, we encourage investors, the media, and others interested in our company to review the information we make public in these locations, as such information could be deemed to be material information. Information on or that can be accessed through our websites or these social media channels is not part of this Annual Report on Form 10-K. 3 RISK FACTORS SUMMARY Our operations and financial results and an investment in our common stock are subject to various risks and uncertainties. The following summary highlights some of the risks we are exposed to in the normal course of our business activities. […]
Quarterly risk disclosures
The quarterly report's own risk disclosure is shown below. No changes have been inferred by comparing reports.
“Risk Factors” and elsewhere in our Annual Report on Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject.
These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe such available information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
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We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. We may announce material business and financial information to our investors using our investor relations website (https://investors.digitalocean.com/). We therefore encourage investors and others interested in our company to review the information that we make available on our website, in addition to following our filings with the Securities and Exchange Commission, webcasts, press releases and conference calls. The information available on our website is not incorporated by reference into, and does not form part of, this Quarterly Report on Form 10-Q.
1 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS DIGITALOCEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) (unaudited) June 30, 2026 December 31, 2025 Current assets: Cash and cash equivalents $ 767,026 $ 254,475 Accounts receivable, less allowance for credit losses of $ 6,812 and $ 6,374 , respectively 115,000 90,908 Prepaid expenses and other current assets 135,584 81,598 Total current assets 1,017,610 426,981 Property and equipment, net 1,049,332 589,094 Restricted cash 156 158 Goodwill 350,651 348,674 Intangible assets, net 93,373 99,504 Operating lease right-of-use assets, net 505,697 270,854 Deferred tax assets 93,991 90,310 Other assets 12,243 12,130 Total assets $ 3,123,053 $ 1,837,705 Current liabilities: Accounts payable $ 10,387 $ 38,836 Accrued other expenses 70,883 42,679 Deferred revenue 53,039 5,882 Debt, current 311,654 325,109 Operating lease liabilities, current 126,233 108,037 Finance lease liabilities and equipment financing obligations, current 129,777 31,411 Other current liabilities 74,139 67,510 Total current liabilities 776,112 619,464 Deferred tax liabilities 3,952 4,092 Debt, long-term 609,399 970,653 Operating lease liabilities, long-term 352,854 166,895 Finance lease liabilities and equipment financing obligations, long-term 447,943 99,103 Other non-current liabilities 2,062 6,188 Total liabilities 2,192,322 1,866,395 Commitments and contingencies (Note 9) Preferred stock ($ 0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025) — — Common stock ($ 0.000025 par value per share; 750,000,000 shares authorized; 105,002,427 and 91,947,614 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) 2 2 Additional paid-in capital 925,014 16,005 Accumulated other comprehensive loss ( 1,756 ) ( 960 ) Retained earnings (Accumulated deficit) 7,471 ( 43,737 ) Total stockholders’ equity (deficit) 930,731 ( 28,690 ) Total liabilities and stockholders’ equity $ 3,123,053 $ 1,837,705 See accompanying notes to condensed consolidated financial statements 2 DIGITALOCEAN HOLDINGS, INC.
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Annual report details
Read annual management analysis & tone analysis
Annual MD&A Tone Analysis
+84.6
12 · 92.3%Positive terms
1 · 7.7%Negative terms
724Analyzed annual MD&A words
Only the extracted annual management discussion is evaluated using dictionary version 1.1. Score = (positive − negative) ÷ matched terms × 100. Quarterly reports and current filings are excluded. This lexical measure does not assess financial health and may not fully capture context or negation.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Business Metrics” for more detail on the definition of customer categories and additional information. Our Solution DigitalOcean is an agentic inference cloud, offering customers integrated cloud and AI solutions that are easy to leverage, reliable and scale along with our growing technology companies. Empowered by an easy-to-use self-service model, intuitive control panel and highly predictable pricing, our customers are able to rapidly accelerate innovation and increase their productivity and agility. The key differentiators of our platform are as follows: 5 • Simple . Our platform is engineered to take a user from inquiry to deployment within minutes, without any specialized training or heavy implementation.
We abstract away the complexity that is generally found across legacy cloud providers to provide a compelling, intuitive interface with click-and-go options. In addition, all DigitalOcean products come with detailed product and technical documentation to help our customers quickly and seamlessly deploy to our cloud platform. • Scalable . We offer a comprehensive portfolio of IaaS, PaaS/SaaS and AI/ML products that are specifically designed to address the needs of growing technology companies. Our platform can support a wide range of use cases, including building and hosting websites, developing new web and mobile applications, integrating AI into their businesses, and building AI products and applications, among many others. Customers with any type of use case have the ability to choose from managing their own infrastructure and building their own bespoke solutions using our IaaS or AI/ML offerings, offloading the technical infrastructure entirely through our Managed Hosting offering or delegating certain aspects of management using certain other managed PaaS/SaaS offerings or AI/ML offerings.
Our scalable platform provides reliability and security so that our customers can depend on us both today and in the future as their projects and businesses grow and their needs expand. • Approachable . Creating solutions for cloud and AI is the focus of our business. We offer expert technical support and customer service to all customers free of charge on a 24/7 basis to help ensure our customers quickly achieve their objectives and overcome challenges. Customers cite our attentive support as a key driver of their decision to start and grow their businesses on our platform. Our platform is easy to use and we provide extensive guidance on our website through product documentation and numerous high-quality developer tutorials that attract users and reinforce our highly efficient self-service customer acquisition model.
In addition, our platform is designed to take advantage of open source technology, which helps customers more efficiently write their own integrations. We have built one of the world’s largest developer communities to foster opportunities for developers to learn, grow and innovate on our platform. We continue to invest in supporting developers in myriad ways, including through local knowledge-sharing meetings and webinars in cities around the world. We also host large industry-wide events including Hacktoberfest, a global hackathon, and Deploy, a conference for developers, startups and founders. Being approachable also extends into our pricing model, which is transparent and predictable, eliminating surprises for our customers. Like everything we do, we approach billing with a customer-first focus, enabling our customers to spend more time developing and deploying innovative applications rather than interpreting and navigating convoluted invoices.
• Unified cloud & AI tools . We provide a comprehensive cloud that encompasses both traditional cloud services and multiple layers of AI cloud solutions (including infrastructure, platform, and SaaS layers), that enable our users to build and run AI agents. By pairing our established general purpose cloud with the Gradient® AI Agentic Cloud, our customers can run both traditional and AI workloads that require persistent compute, high-throughput storage, low-latency networking, and scalable runtime environments within one cloud platform, reducing complexity in setup and billing. Our Growth Strategies We are driving significant growth by executing on the following key strategies: • Increasing Usage by Our Existing Customers . Our existing customer base represents a significant opportunity for further sales expansion through increased usage of our platform and adoption of additional product offerings.
We are highly focused on gaining a better understanding of the needs and growth plans of our existing customers, increasing our feature velocity and shaping our product roadmap around the needs of DNE Customers, and leveraging our account management function to provide direct coverage of our top spending accounts. […]