DigitalOcean Holdings
DOCN on NYSE. DigitalOcean sells cloud and AI services to technology companies. Market value $16.1bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
See Technology stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $1.14 of spare cash in the past 12 months. A savings account pays about $4.
You pay 106.7 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 1 cents a year. Above 10 is good.
Quality score: 43 of 100. Price score: 14 of 100. Our list needs 70 on quality and 60 on price.
$131.01 a share, 253% above its 1-year low
Over the past year the price has ranged from $37.09 to $187.50.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | $429m | $576m | $693m | $781m | $901m |
| Operating margin | |||||
| Operating margin | -2.6% | -4.5% | 1.7% | 11.7% | 17.4% |
| Debt to equity | |||||
| Debt to equity | 2.53 | 30.91 | n/a | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.10bn | 0.09bn | 0.09bn | 0.09bn | 0.12bn |
Health checks
- Free cash flow positive5 of 5 years
- Accounting looks honest (Beneish)Nothing unusual
- Financial strength (Piotroski)8 of 9
- Profit backed by cash (accruals)Yes
- DebtUnknown
- Revenue growth, five yearsStrong, 20.4% a year
- Buying back its own sharesNo, 22% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $281 million last quarter, up 29% on a year ago.
- Profit: $35 million, down 4% on a year ago.
- It keeps 15 cents of each $1 of sales as operating profit, down from 16 cents a year earlier.
- Spare cash over the past 12 months: $175 million, up from $96 million.
- 26% more shares than a year ago. Each share owns a bit less of the company.
- Debt is $564 million more than cash, down from $1.1 billion a year ago.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $198m |
| December 2024 | $205m |
| March 2025 | $211m |
| June 2025 | $219m |
| September 2025 | $230m |
| December 2025 | $242m |
| March 2026 | $258m |
| June 2026 | $281m |
| Quarter to | Amount |
|---|---|
| September 2024 | $33m |
| December 2024 | $18m |
| March 2025 | $38m |
| June 2025 | $37m |
| September 2025 | $158m |
| December 2025 | $26m |
| March 2026 | $16m |
| June 2026 | $35m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 24 February 2026
- Next quarterly (estimated, 10-Q)
- 3 November 2026
Who owns it
4 long-term investors we follow own it, unchanged from 4 last quarter. 568 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Royce & AssociatesChuck Royce | $32m | 0.3% | Cut |
| Polen CapitalDan Davidowitz | $16m | 0.1% | Added |
| Glenview Capital ManagementLarry Robbins | $13m | 0.3% | Cut |
| Gotham Asset ManagementJoel Greenblatt | $2m | <0.1% | Cut |
Largest holders overall
- JPMorgan Chase$2.1bnAdded
- BlackRock$1.4bnCut
- Vanguard Portfolio Management$715mCut
- Hood River Capital Management$660mAdded
- Vanguard Capital Management$587mAdded
- Fuller & Thaler Asset Management$413mAdded
- State Street$394mCut
- TWO Sigma Investments, LP$296mAdded
- Geode Capital Management$296m
- Price T Rowe Associates$294mCut
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
3 investors own more than 5%.
- Access Industries Management, LLCat least 15.9%−2.0 pts(filed with 5 related holders)Since 4 August 2026
- JPMORGAN CHASE & CO.Passive investor13.0%+2.7 ptsSince 30 June 2026
- BlackRock, Inc.Passive investor7.6%Since 30 June 2026
- Vanguard Portfolio ManagementPassive investorSold down below 5%Since 30 June 2026
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
Access Industries Management, LLC | at least 15.9%−2.0 pts (filed with 5 related holders) | 4 August 2026 | |
JPMORGAN CHASE & CO. Passive investor | 13.0%+2.7 pts | 30 June 2026 | |
BlackRock, Inc. Passive investor | 7.6% | 30 June 2026 | |
Vanguard Portfolio Management Passive investor | Sold down below 5% | 30 June 2026 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 6 sold $17m, $7m of it under preset trading plans.
- Srinivasan Padmanabhan TChief Executive Officer, DirectorSoldunder a preset trading plan
- Date
- 21 September 2026
- Shares
- 11,394
- Price
- $140.00
- Value
- $2m
- Barrett CherieSVP, Chief Accounting OfficerSoldunder a preset trading plan
- Date
- 3 September 2026
- Shares
- 3,985
- Price
- $105.73
- Value
- $421,334
- Srinivasan Padmanabhan TChief Executive Officer, DirectorSoldunder a preset trading plan
- Date
- 3 September 2026
- Shares
- 5,697
- Price
- $105.73
- Value
- $602,344
- Steinfort MattChief Financial OfficerSoldunder a preset trading plan
- Date
- 3 September 2026
- Shares
- 10,000
- Price
- $105.73
- Value
- $1m
- Srinivasan Padmanabhan TChief Executive Officer, DirectorSoldunder a preset trading plan
- Date
- 17 August 2026
- Shares
- 5,697
- Price
- $129.11
- Value
- $735,540
- Barrett CherieSVP, Chief Accounting OfficerSoldunder a preset trading plan
- Date
- 13 August 2026
- Shares
- 4,456
- Price
- $132.37
- Value
- $589,841
- Adelman Warren JDirectorSold
- Date
- 7 August 2026
- Shares
- 4,200
- Price
- $124.01
- Value
- $520,855
- Steinfort MattChief Financial OfficerSoldunder a preset trading plan
- Date
- 2 June 2026
- Shares
- 10,000
- Price
- $170.07
- Value
- $2m
- JENSON WARRENDirectorSold
- Date
- 19 May 2026
- Shares
- 20,000
- Price
- $147.62
- Value
- $3m
- Steinfort MattChief Financial OfficerSold
- Date
- 15 May 2026
- Shares
- 25,000
- Price
- $152.50
- Value
- $4m
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 21 September 2026 | Srinivasan Padmanabhan T Chief Executive Officer, Director | Sold under a preset trading plan | 11,394 | $140.00 | $2m |
| 3 September 2026 | Barrett Cherie SVP, Chief Accounting Officer | Sold under a preset trading plan | 3,985 | $105.73 | $421,334 |
| 3 September 2026 | Srinivasan Padmanabhan T Chief Executive Officer, Director | Sold under a preset trading plan | 5,697 | $105.73 | $602,344 |
| 3 September 2026 | Steinfort Matt Chief Financial Officer | Sold under a preset trading plan | 10,000 | $105.73 | $1m |
| 17 August 2026 | Srinivasan Padmanabhan T Chief Executive Officer, Director | Sold under a preset trading plan | 5,697 | $129.11 | $735,540 |
| 13 August 2026 | Barrett Cherie SVP, Chief Accounting Officer | Sold under a preset trading plan | 4,456 | $132.37 | $589,841 |
| 7 August 2026 | Adelman Warren J Director | Sold | 4,200 | $124.01 | $520,855 |
| 2 June 2026 | Steinfort Matt Chief Financial Officer | Sold under a preset trading plan | 10,000 | $170.07 | $2m |
| 19 May 2026 | JENSON WARREN Director | Sold | 20,000 | $147.62 | $3m |
| 15 May 2026 | Steinfort Matt Chief Financial Officer | Sold | 25,000 | $152.50 | $4m |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 24 Feb 2026, plus the 10-Q filed 4 Aug 2026 and 8 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- It owes more than it owns on paper (negative equity). Often that's from borrowing to buy back shares.
- It isn't cheap on profits: 106.7× operating profit.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.