Tax Credit Carryforward Valuation Allowance
DigitalOcean Tax Credit Carryforward Valuation Allowance decreased by 100.0% to $0.00 in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 100.0%, from $109.54M to $0.00. Over 5 years (FY 2020 to FY 2025), Tax Credit Carryforward Valuation Allowance shows a downward trend with a -100.0% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase signals management's reduced confidence in utilizing tax credits, while a decrease suggests improved prospects for tax savings.
Detailed definition
This is a contra-asset account established against deferred tax assets related to tax credit carryforwards when it is mo...
Peer comparison
Varies significantly based on profitability and tax jurisdiction; peers with stable earnings typically maintain lower valuation allowances.
tax_credit_carryforward_valuation_allowanceHistorical Data
| Q4 '21 | Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|---|
| Value | $42.92M | $47.36M | $60.52M | $109.54M | $0.00 |
| QoQ Change | — | +10.3% | +27.8% | +81.0% | -100.0% |
| YoY Change | — | +10.3% | +27.8% | +81.0% | -100.0% |
Tax Credit Carryforward Valuation Allowance at Other Companies
Frequently Asked Questions
- What is DigitalOcean's tax credit carryforward valuation allowance?
- DigitalOcean (DOCN) reported tax credit carryforward valuation allowance of $0.00 in Q4 2025.
- How has DigitalOcean's tax credit carryforward valuation allowance changed year-over-year?
- DigitalOcean's tax credit carryforward valuation allowance decreased by 100.0% year-over-year, from $109.54M to $0.00.
- What is the long-term trend for DigitalOcean's tax credit carryforward valuation allowance?
- Over 5 years (2020 to 2025), DigitalOcean's tax credit carryforward valuation allowance has grown at a -100.0% compound annual growth rate (CAGR), from $20.95M to $0.00.
- What does tax credit carryforward valuation allowance mean?
- A reserve account reducing the value of tax credits that the company may not be able to use.