Is the business good?
How good a business is DOCN?
DigitalOcean Holdings, Inc. earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
12%
Return on invested capital · cost of capital 9.0% · 2.6 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q1 2026
- Cash conversion
- 0.78×
Cash conversion · 0.77× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +9.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −5.0% |
| FY2021 | −2.6% |
| FY2022 | −4.5% |
| FY2023 | 1.7% |
| FY2024 | 12% |
| FY2025 | 17% |
Details›
- Gross margin12 months to Q1 2026
- 58%
- Operating margin12 months to Q1 2026
- 16%
- Net margin12 months to Q1 2026
- 25%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $949M
- Free cash flow, trailing twelve months
- $185M
- Net income, trailing twelve months
- $237M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #51 of 78 by Smart Score