Provision for Credit Losses
DigitalOcean Provision for Credit Losses decreased by 24.9% to $3.49M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 16.8%, from $4.20M to $3.49M. Over 4 years (FY 2021 to FY 2025), Provision for Credit Losses shows an upward trend with a 18.2% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
How to read this metric
An increase suggests management expects higher default rates or a deteriorating credit environment, while a decrease suggests improved borrower quality.
Detailed definition
This represents the non-cash expense set aside by a financial institution to cover potential losses from loans or credit...
Peer comparison
Common in banking and credit card issuers; peers adjust this based on macroeconomic forecasts and portfolio seasoning.
provision_for_credit_losses_cfHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.86M | $2.59M | $3.15M | $4.02M | $4.05M | $4.15M | $4.33M | $3.99M | $3.56M | $3.87M | $3.94M | $4.18M | $3.81M | $4.03M | $4.43M | $4.20M | $4.41M | $4.73M | $4.65M | $3.49M |
| QoQ Change | — | +39.1% | +21.8% | +27.6% | +0.6% | +2.5% | +4.5% | -8.0% | -10.6% | +8.4% | +2.0% | +5.9% | -8.7% | +5.9% | +9.8% | -5.2% | +5.1% | +7.3% | -1.7% | -24.9% |
| YoY Change | — | — | — | — | +117.6% | +60.2% | +37.5% | -0.9% | -11.9% | -6.8% | -9.1% | +4.7% | +6.9% | +4.3% | +12.4% | +0.5% | +15.7% | +17.3% | +5.0% | -16.8% |
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is DigitalOcean's provision for credit losses?
- DigitalOcean (DOCN) reported provision for credit losses of $3.49M in Q1 2026.
- How has DigitalOcean's provision for credit losses changed year-over-year?
- DigitalOcean's provision for credit losses decreased by 16.8% year-over-year, from $4.20M to $3.49M.
- What is the long-term trend for DigitalOcean's provision for credit losses?
- Over 4 years (2021 to 2025), DigitalOcean's provision for credit losses has grown at a 18.2% compound annual growth rate (CAGR), from $9.21M to $17.99M.
- What does provision for credit losses mean?
- The amount of money a lender sets aside to cover expected losses from unpaid debts.