DigitalOcean Holdings files 8-K: results of operations

Item 2.02 Results of Operations and Financial Condition.

On August 4, 2026 , the Company issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Million+ Dollar Customer ARR grew 214% year-over-year to $259 million

AI Customer ARR grew 212% year-over-year to $234 million

Record $93 million in incremental ARR

BROOMFIELD, Colo., August 4, 2026 – DigitalOcean Holdings, Inc. (NYSE: DOCN), the AI-Native Cloud purpose-built for inference and agentic workloads, today announced results for its second quarter ended June 30, 2026.

"Our growth rate is accelerating, as revenue grew 29% year-over-year, more than double our growth rate a year ago," said Paddy Srinivasan, CEO of DigitalOcean. "The acceleration is coming from our highest spending customers and sophisticated AI Natives, and we are now beginning to land nine-figure annual commitments. Early Inference Engine customers drove their total token consumption up approximately 30x in the last 60-days, and 85% of our AI customer ARR now comes from inference and core cloud rather than bare metal. Just as important is how we are growing: attractive margins, positive free cash flow, capacity delivered on or ahead of schedule, and a stronger balance sheet. Our customer momentum and early product traction give us confidence to raise our 2026 revenue outlook to approximately 30%, reaching 35% or more by Q4 2026, and strengthen our conviction in our ability to exceed 50% growth in 2027." Second Quarter 2026 Financial Highlights (1) :

• Revenue was $281 million, an increase of 29%.

• Annual Run-Rate Revenue (“ARR”) ended the quarter at $1,125 million, an increase of 29%. AI Customer ARR was $234 million, an increase of 212%.

• Record $93 million of incremental ARR added during the quarter, an increase of 191%.

• Net income attributable to common stockholders was $35 million, a decrease of 4%, and net income margin was 13%.

• Operating income was $29 million, a decrease of 18%, and operating income margin was 10%.

• Adjusted operating income was $67 million, an increase of 9%, and adjusted operating income margin was 24%.

• Adjusted EBITDA was $114 million, an increase of 27%, and adjusted EBITDA margin was 40%.

• Diluted net income per share was $0.29 and non-GAAP diluted net income per share was $0.45.

• Net cash from operating activities increased to $110 million at a 39% margin, from $92 million at a 42% margin in the second quarter of 2025.

• Adjusted free cash flow increased to $61 million at a 22% margin, from $57 million at a 26% margin in the second quarter of 2025.

• Cash and cash equivalents was $767 million as of June 30, 2026.

• Remaining Performance Obligation (“RPO”) (2) was $894 million, of which, $366 million is expected to be recognized over the next 12 months. RPO was $71 million in the second quarter of 2025.

Second Quarter 2026 Operational Highlights (1) :

• Launched Inference Engine as part of AI-Native Cloud.

• Shipped more than 80 product releases since April.

• Signed first nine-figure annual customer commitments with leading AI-Natives, extending weighted average contract life from 1.6 years to over 3 years.

• Secured an incremental 20 MW of committed data center capacity expected to come online in 2027 and 2028, bringing total committed capacity to approximately 155 MW, with additional capacity actively being pursued.

• Added to the Russell 1000 Index, recognition of a business that has scaled with discipline, pairing durable growth with consistent execution.

• The number of $100K+ Customers (3) grew 9%, while the revenue from these customers, which now represents 35% of total revenue, grew 98%.

• The number of $500K+ and $1M+ Customers grew 35% and 73%, respectively. Revenue from these customers, which now represents 26% and 23% of total revenue, grew 160% and 214%, respectively.

Recent Developments:

• Repurchased approximately $472 million of our 0.00% Convertible Senior Notes due 2030, funded by a concurrent registered direct offering, reducing leverage with minimal cash usage and minimal dilution, with issued shares offset by the retired notes and an intended repurchase of approximately 500,000 shares.

(1) All growth rates are year-over-year unless otherwise specified.

(2) Beginning in the fourth quarter of 2025, the RPO amount represents all contracts regardless of the duration of their original expected term. Prior periods have been recast to conform to the current period presentation. Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for further details.

(3) Beginning in the fourth quarter of 2025, we redefined our total customer count and our customer category naming and disaggregation. Prior periods have been recast to conform to the current period presentation. Refer to our Annual Report on Form 10-K for the year ended December 31, 2025 for further details.

Financial Outlook:

DigitalOcean is initiating guidance for the third quarter ending September 30, 2026 as follows:

• Total revenue of $304 to $307 million, up 32% to 34% year-over-year.

• Adjusted EBITDA margin of 38% to 39%.

• Non-GAAP diluted net income per share of $0.28 to $0.30.

• Fully diluted weighted average shares outstanding of approximately 126 to 127 million shares.

For the full year 2026, we now expect:

• Total revenue of $1.170 to $1.180 billion, up 30% to 31% year-over-year.

• Adjusted EBITDA margin of 38.5% to 39.5%.

• Adjusted free cash flow margin in the range of 11% to 13% of revenue.

• Non-GAAP diluted net income per share of $1.35 to $1.40.

• Fully diluted weighted average shares outstanding of approximately 122 to 123 million shares.

A reconciliation of non-GAAP outlook measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. For example, stock-based compensation expense-related charges are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation is not available without unreasonable effort and we are unable to assess the probable significance of the unavailable information, although it is important to note that these factors could be material to our results computed in accordance with GAAP.

The financial guidance presented in this release are estimates based on information available to management as of the date of this release. There can be no assurance that our actual results will not differ from the financial guidance presented in this release.

Conference Call Information:

DigitalOcean will host a conference call today, August 4, 2026, at 8:00 a.m. ET to review its results. The conference call and presentation can be accessed by registering for the webcast at https://events.q4inc.com/attendee/684389800. A live webcast and replay of the conference call in addition to the presentation can be accessed from the DigitalOcean investor relations website at investors.digitalocean.com .