DBX
Dropbox, Inc.28.59
+0.73+2.62%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Light on Dash metrics, focus adoption
Q&A largely reaffirmed prepared remarks on core FSS stabilization and Dash scaling, with management non-specific on requested Dash metrics like seats or ARR, prioritizing H1 adoption before H2 monetization. They elaborated on the 'context engine' infrastructure powering AI workflows, agents, and security against overshared content risks from AI tools. Paying users face Q1 decline but flat full-year growth; ARR trails revenue mildly on FX and timing. No contradictions, just prudent tone. Dash engagement drives the thesis.
Key Stats
Market Cap
7.48BP/E (TTM)
16.24Basic EPS (TTM)
1.76Dividend Yield
0%Recent Filings
10-K
FY2025 results
Dropbox's FY2025 revenue dipped 1.1% y/y to $2.52B amid FormSwift de-emphasis and Teams caution, yet Q4 momentum stabilized with Individual plans accelerating while DocSend grew strongly. Operating income soared 42% to $689M on 20% R&D cuts and 20% sales/marketing reductions post-2024 workforce trim, driving gross margin to 80% despite infrastructure refresh. Free cash flow hit $931M (derived), fueled by efficiencies; $1.7B share repurchases trimmed shares 22% y/y, with $1.2B capacity left. No annual guidance disclosed in the 10-K. Growth deceleration persists.
8-K
Q4 revenue dips, margins soar
8-K
CFO transition at Dropbox
Dropbox's CFO Tim Regan resigns effective December 16, 2025, after nine years, transitioning through March 2026 with a $250,000 advisory fee—no disagreements noted. Ross Tennenbaum, ex-Avalara President, succeeds him same day on $550,000 base, $350,000 signing bonus, and $23.25M RSUs. Q4/fiscal 2025 results expected in-line or above prior guidance. Leadership bolsters Dash rollout.
10-Q
Q3 FY2025 results
Dropbox posted Q3 revenue of $634.4M, down 0.7% y/y but stable q/q, with operating income jumping 37% y/y to $174.7M on 19% cuts to R&D and sales expenses post-20% workforce trim. Gross margin slipped to 80% from datacenter depreciation, while diluted EPS rose 38% y/y to $0.47 (reconciles to 265.1M shares). OCF hit $716.4M and FCF $705.9M YTD, funding $1.3B stock buybacks despite $1.1B term debt and $1.4B convertibles. Cash sits at $730.7M. Aggressive repurchases signal confidence. Paying user retention remains the key watch item.
8-K
Q3 revenue dips, margins soar
Dropbox reported Q3 revenue of $634.4 million, down 0.7% year-over-year, yet expanded GAAP operating margin to 27.5% from 20.0% via headcount cuts and efficiency gains. Free cash flow hit $293.7 million. Margins widened sharply. It launched self-serve Dash AI for 575,000 paying businesses, boosting retention amid revenue pressure.
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