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DigitalOcean DOCN Operating margin

Operating margin at other companies

Microsoft logo
MicrosoftMSFT
46.8%+1.6pp
Amazon logo
AmazonAMZN
11.5%+0.5pp
Akamai Technologies logo
Akamai TechnologiesAKAM
12.3%-0.6pp
Snowflake logo
SnowflakeSNOW
-26.1%-6.8pp
CoreWeave, Inc.
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CoreWeave, Inc. CRWV
-2.6%-13.0pp
Cloudflare, Inc. logo
Cloudflare, Inc.NET
-9.3%+0.7pp

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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Gross margin58.5%-1.8pp
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 operating margin?
DigitalOcean (DOCN) reported operating margin of 16.4% in Q1 2026.
How has DigitalOcean's operating margin changed year-over-year?
DigitalOcean's operating margin increased by 13.2% year-over-year, from 14.5% to 16.4%.
What is the long-term trend for DigitalOcean's operating margin?
Over 3 years (2022 to 2025), DigitalOcean's operating margin has grown at a 43.8% compound annual growth rate (CAGR), from -21.9% to 65%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.