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Jun 30, 2025
DigitalOcean Q2 2025 Earnings Report
DigitalOcean reported strong growth across core cloud and AI/ML revenue streams in Q2 2025.
Key Takeaways
DigitalOcean delivered a solid Q2 2025 with revenue growth, improved profitability, and strong momentum in its AI and Scalers+ customer segments.
Revenue reached $219 million, up from $192 million in Q2 2024.
Net income rose to $37 million with a 17% margin.
Adjusted EBITDA was $89 million, representing a 41% margin.
AI/ML revenue more than doubled year-over-year.
Forward Guidance
DigitalOcean raised its full-year guidance for both revenue and profitability, signaling confidence in its growth trajectory and operational efficiency.
Positive Outlook
- Full-year revenue guidance increased to $888–$892 million.
- Adjusted EBITDA margin guidance raised to 39%–40%.
- Q3 revenue expected to be $226–$227 million.
- Q3 Non-GAAP EPS forecasted at $0.45–$0.50.
- Strong cash flow supports continued investment and share repurchases.
Challenges Ahead
- No specific customer or geography growth breakdown provided.
- Some metrics rely on adjusted non-GAAP figures.
- Continued reliance on Scalers+ concentration poses potential risk.
- Cash and cash equivalents declined from previous quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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