Dropbox

DBX · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

DBX · Last close · October 26, 2026

$37.73

Dropbox's revenue fell 1.1% to $2.5 billion in fiscal 2025. Its operating margin was 27.3%, up from 19.1% a year earlier. Free cash flow was $931 million, up 6.8%. It paid out $1.7 billion in dividends and buybacks, 184% of free cash flow. The diluted share count fell 15.7%.

Dropbox, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 20, 2026 · 0001467623-26-000008 Updated October 16, 2026

Revenue

$2.5B

1.1%

Operating margin

27.3%

8.2 pts

Net income

$508M

12.4%

Free cash flow

$931M

6.8%

Return on equity

—

Market cap

$8.6B

Oct 26 close

P/E

21.0x

On $1.80 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Dropbox does

Dropbox sells subscriptions to a cloud service where people and teams store files, share them and work on them together from any device. Anyone can sign up free and upgrade to a paid plan. Its customers range from individuals and families to freelancers, small businesses and large companies. Related products include document signing, document sharing with tracking, backup, and AI-powered search and scheduling tools.

Dropbox makes its money from subscription plans. It had 18.08 million paying users at the end of 2025. It says it gets over 90% of its revenue from self-serve sales, meaning users who buy a subscription through its app or website rather than from a sales team. It says no customer accounted for more than 1% of revenue in 2025, 2024 or 2023.

Dropbox works with other products, including Microsoft, Zoom, Slack, Atlassian and Google, and lets outside developers build apps that connect to it. It says it competes in markets that are competitive and must keep adding features to compete.

Its biggest risks, as it describes them

Slowing growth: its growth rate has fallen and it has had negative growth in past periods.
Failing to attract and keep users, turn free users into paying ones and get paying users to upgrade.
Privacy and data security breaches, or service disruptions that cause a loss of customer content.
Competition in its markets, and the need to keep up with fast technology change.
Debt, including convertible notes and a term loan, that restricts the business and takes cash to repay.

From Dropbox's annual report on Form 10-K, filed February 20, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2021 to 2025, earnings per share grew 21.6% a year and net income 10.9% a year, as buybacks cut the share count by 31%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Dropbox yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Dropbox's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Dropbox's fiscal 2025 free cash flow of $931M, net cash of −$693M at December 31, 2025 and 273 million diluted shares, from its filings. The scenarios are fitted to Dropbox: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 2.7% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Application Software), plus 1 point as a smaller company, worth $8.6B; the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Dropbox's own revenue growth, as above. Cautious: growth of 0.5% then 1% a year, 2% after year 10, a 11% discount rate. Base: growth of 2.5% then 2.5% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 4.5% then 4% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $37.73
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Dropbox's earnings per share of $1.80 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 21×, the middle of Dropbox's own P/E today, its peers' median and its sector's median (Dropbox's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: RingCentral, Tyler Technologies, PTC.

Earnings growth in the years ahead (% a year) Starts at Dropbox's revenue growth over the last 3 years, 2.7% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $37.73
Value at this multiple, against the last close: —
Dropbox's P/E at the last close: 21.0×

Company	Last close	Earnings per share	P/E today
Tyler TechnologiesTYL	$386.38	$7.54	51.2×
DropboxDBX	$37.73	$1.80	21.0×
PTCPTC	$194.25	$10.28	18.9×
RingCentralRNG	$86.31	$7.56	11.4×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	1,718	1,343	1,356	1,594	1,038
Debt incl. finance leases	1,658	1,640	1,662	1,708	1,731
Net debt (negative means net cash)	−60	297	306	114	693
Net debt to EBITDA	−0.1x	0.9x	0.4x	0.2x	0.8x
Debt to equity	—	—	—	—	—
Interest coverage	32.3x	22.1x	51.3x	32.0x	6.5x
Current ratio	1.6x	1.2x	1.3x	1.4x	0.6x
Quick ratio	1.6x	1.2x	1.3x	1.4x	0.6x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Dropbox shares on the open market, and 11 insiders sold $45.6 million, $44.4 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 15, 2026	Sarah Elizabeth SchubachChief Accounting Officer	Sold plan	2,056	$35.79	$73,584	Form 4
Sep 15, 2026	Sarah Elizabeth SchubachChief Accounting Officer	Sold plan	2,025	$36.78	$74,480	Form 4
Sep 11, 2026	Ashraf AlkarmiCo-CEO, Director	Sold plan	28,800	$35.54	$1.0 million	Form 4
Sep 10, 2026	Andrew HoustonCo-CEO, Director, 10% owner	Sold plan	383,800	$35.01	$13.4 million	Form 4
Sep 10, 2026	Ross TennenbaumChief Financial Officer	Sold plan	97,558	$35.02	$3.4 million	Form 4
Sep 4, 2026	William T YoonChief Legal Officer	Sold plan	12,382	$34.78	$430,646	Form 4
Sep 4, 2026	Lisa M CampbellDirector	Sold plan	4,598	$34.78	$159,918	Form 4
Aug 31, 2026	Sarah Elizabeth SchubachChief Accounting Officer	Sold plan	1,631	$35.50	$57,900	Form 4
Aug 20, 2026	Sarah Elizabeth SchubachChief Accounting Officer	Sold plan	1,631	$34.01	$55,470	Form 4
Aug 18, 2026	Eric T WebsterChief Business Officer	Sold	15,830	$34.09	$539,645	Form 4
Aug 18, 2026	Ali DasdanChief Technology Officer	Sold plan	11,332	$34.13	$386,761	Form 4
Jul 31, 2026	Sarah Elizabeth SchubachChief Accounting Officer	Sold plan	1,632	$31.61	$51,588	Form 4

The latest 12 of 62 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Fail	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Fail
F-score	6 of 9	9 of 9	5 of 9
Accruals ratio	−10.8%	−14.0%	−14.4%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Dropbox side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Dropbox	FY25	−1.1%	27.3%	36.9%	—	0.8x	5
RingCentral	FY25	4.8%	4.8%	23.4%	14.7%	3.3x	8	Compare
MongoDB	FY26	22.8%	−5.6%	20.3%	−20.1%	—	4	Compare
Tyler Technologies	FY25	9.1%	15.3%	27.3%	9.0%	−1.0x	6	Compare
PTC	FY25	19.2%	35.9%	31.3%	17.4%	0.9x	8	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	845	1,107	1,392	1,661	1,914	2,158	2,325	2,502	2,548	2,521
Revenue growth	—	31.0%	25.7%	19.4%	15.2%	12.8%	7.7%	7.6%	1.9%	−1.1%
Gross profit	454	738	997	1,250	1,499	1,714	1,881	2,023	2,103	2,020
Research and development	290	380	768	662	728	756	892	936	915	732
Operating income	−194	−114	−494	−80	−277	274	181	539	486	689
Net income	−210	−112	−485	−53	−256	336	553	454	452	508
Diluted EPS (US$)	−1.11	−0.57	−1.35	−0.13	−0.62	0.85	1.52	1.31	1.40	1.86
Diluted shares (millions)	189	196	359	412	414	396	363	346	323	273
Cash flow
Cash from operations	253	330	425	528	571	730	797	784	894	952
Capital expenditure	115	25	63	136	80	22	34	24	22	21
Free cash flow	137	305	362	392	491	708	764	759	872	931
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	398	1,058	795	540	1,242	1,714
Acquisitions	0	0	0	174	0	140	75	0	58	13
Stock-based compensation	148	165	650	261	262	287	331	338	346	301
Balance sheet at fiscal year end
Cash and short-term investments	353	430	1,089	1,159	1,121	1,718	1,343	1,356	1,594	1,038
Debt incl. finance leases	—	—	—	—	271	1,658	1,640	1,662	1,708	1,731
Total assets	—	1,020	1,694	2,699	2,387	3,091	3,110	2,984	3,325	2,845
Total liabilities	—	917	1,017	1,891	2,053	3,385	3,420	3,149	4,078	4,642
Shareholders' equity	123	103	677	808	334	−294	−309	−166	−752	−1,797
Margins and ratios
Gross margin	53.8%	66.7%	71.6%	75.3%	78.3%	79.4%	80.9%	80.9%	82.5%	80.1%
Operating margin	−22.9%	−10.3%	−35.5%	−4.8%	−14.5%	12.7%	7.8%	21.5%	19.1%	27.3%
Net margin	−24.9%	−10.1%	−34.8%	−3.2%	−13.4%	15.6%	23.8%	18.1%	17.8%	20.2%
Free cash flow margin	16.3%	27.6%	26.0%	23.6%	25.6%	32.8%	32.8%	30.4%	34.2%	36.9%
Return on capital	—	—	—	—	—	—	—	—	—	—
Return on equity	—	—	−124.4%	−7.1%	−44.9%	—	—	—	—	—
Return on assets	—	—	−35.7%	−2.4%	−10.1%	12.3%	17.8%	14.9%	14.3%	16.5%
Net debt to EBITDA	—	—	—	—	—	−0.1x	0.9x	0.4x	0.2x	0.8x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Dropbox's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Dropbox.