DOCNDigitalOcean Holdings, Inc.

$134.90+269% 1Y

$134.90

$34.1652 weeks$181.29

Is the business good?

Excellent

A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (2.6×), and margins widening.

3 good, 1 without data

Fundamental health (F-score)7 / 9SEC EDGAR · Dec 31, 2025

High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.

Profits arrive as cash2.62×derived · Jun 30, 2026

Operating profit is fully backed by cash.

Margin direction, 3 years+20.8 ptsderived

Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionbehind 70% of the market

Leverage (Debt/EBITDA)middle of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

DigitalOcean Holdings, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

11%

Return on invested capital · cost of capital 9.0% · 1.9 points above what the capital costs: growth creates value

Operating margin: 15%
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
Cash conversion: 2.62×
Cash conversion · 2.60× a year ago · operating cash flow covers the operating profit after tax
Share count, year on year: +26%
Share count, year on year · shareholders own a smaller slice than a year ago

Details›

Gross margin12 months to Q2 2026: 57%
Operating margin12 months to Q2 2026: 15%
Net margin12 months to Q2 2026: 23%
Free cash flow margin: 19%
R&D as % of revenue: 19%
Revenue, trailing twelve months: $1.01B
Free cash flow, trailing twelve months: $194M
Net income, trailing twelve months: $235M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 11%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

Ranks #34 of 80 by RyuScore