Earnings Releases·Nov 3, 2026, 8:18 AM ET

DigitalOcean — Third Quarter 2026 Earnings Summary

Q3 2026 revenue reached $321 million, up 40% year-over-year, while Annual Run-Rate Revenue (ARR) grew 40% to $1,285 million; AI Customer ARR surged 288% to $376 million and Million+ Dollar Customer ARR rose 273% to $386 million.
The company raised Q4 2026 revenue guidance to $348–$351 million (44–45% growth) and projected full-year 2027 revenue growth of 60%+, driven by record incremental ARR of $160 million and a 266% year-over-year increase.
Financial efficiency improved with Adjusted EBITDA of $144 million (45% margin) and Adjusted Free Cash Flow of $130 million (41% margin), though GAAP net loss was $43 million including a $57 million induced conversion expense from debt repurchase.
Strategic capital management included the repurchase of approximately $472 million in 2030 Convertible Notes and the securing of a $785 million equipment lease facility, alongside the on-schedule launch of the Memphis data center and 20 MW of new committed capacity.