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DigitalOcean DOCN Gross margin

Gross margin at other companies

Microsoft logo
MicrosoftMSFT
68.3%-0.8pp
Amazon logo
AmazonAMZN
50.6%+1.4pp
Akamai Technologies logo
Akamai TechnologiesAKAM
58.3%-0.8pp
Snowflake logo
SnowflakeSNOW
67.1%+0.8pp
CoreWeave, Inc.
 logo
CoreWeave, Inc. CRWV
69.4%-4.9pp
International Business Machines logo
International Business MachinesIBM
58.4%+1.3pp

Other financials

Income statement

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Revenue$257.9M+22.4%
Gross profit$144.7M+11.8%
Operating income$36.6M-2.9%
Net income$15.8M-58.7%
EPS (diluted)$0.15-61.5%

Balance sheet

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Cash & equivalents$741.5M+105%
Total debt$1.3B-25.4%
Total equity$887.4M+521%
Total assets$2.6B+56.6%

Cash flow

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Operating cash flow$46.9M-26.8%
CapEx$40.0M-35.5%
Free cash flow$6.9M+226%

Valuation

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Market cap$18.56B+190%
Enterprise value$19.12B+113%
P/E78.4×+19.4×
P/S19.6×+11.6×

Profitability

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Operating margin16.4%+1.9pp
Net margin25%+11.5pp

Returns & leverage

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Return on equity-8.8%
Debt / equity1.5×
Current ratio1.5×-1.0×

Where this comes from

Calculated from DigitalOcean’s reported figures.

Based on trailing twelve months.

The official record: DigitalOcean’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is DigitalOcean's gross margin?
DigitalOcean (DOCN) reported gross margin of 58.5% in Q1 2026.
How has DigitalOcean's gross margin changed year-over-year?
DigitalOcean's gross margin decreased by 3.0% year-over-year, from 60.3% to 58.5%.
What is the long-term trend for DigitalOcean's gross margin?
Over 4 years (2021 to 2025), DigitalOcean's gross margin has grown at a 1.1% compound annual growth rate (CAGR), from 231.1% to 241.1%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.