Revenue growth stabilized at 0.9% YoY in Q2 2026, with gross margin contracting 300bps to 80.2% but operating margin rebounding to 26.1% from 13.7% in Q4 2024.
Dropbox, Inc. (DBX) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 2.53B | 2.52B | 2.55B | 2.5B | 2.32B | 2.16B | 1.91B | 1.66B | 1.39B | 1.11B | 844.8M | 603.8M |
| Revenue Growth % | 0.24% | -1.07% | 1.86% | 7.6% | 7.74% | 12.75% | 15.2% | 19.37% | 25.74% | 31.01% | 39.91% | - |
| Cost of Goods Sold | 508.8M | 500.8M | 445.1M | 478.5M | 444.2M | 444.2M | 414.6M | 411M | 394.7M | 368.9M | 390.6M | 407.4M |
| COGS % of Revenue | - | 19.87% | 17.47% | 19.13% | 19.11% | 20.58% | 21.66% | 24.74% | 28.36% | 33.33% | 46.24% | 67.47% |
| Gross Profit | 2.03B | 2.02B | 2.1B | 2.02B | 1.88B | 1.71B | 1.5B | 1.25B | 997M | 737.9M | 454.2M | 196.4M |
| Gross Margin % | 79.92% | 80.13% | 82.53% | 80.87% | 80.89% | 79.42% | 78.34% | 75.26% | 71.64% | 66.67% | 53.76% | 32.53% |
| Gross Profit Growth % | - | -3.94% | 3.95% | 7.57% | 9.74% | 14.3% | 19.92% | 25.41% | 35.11% | 62.46% | 131.26% | - |
| Operating Expenses | 1.35B | 1.33B | 1.62B | 1.48B | 1.7B | 1.44B | 1.78B | 1.33B | 1.49B | 851.6M | 647.7M | 502.6M |
| OpEx % of Revenue | - | 52.85% | 63.45% | 59.34% | 73.1% | 66.7% | 92.81% | 80.11% | 107.14% | 76.94% | 76.67% | 83.24% |
| Selling, General & Admin | 610M | 600.4M | 701.9M | 703.1M | 632.3M | 652.1M | 650.6M | 668.7M | 722.8M | 471.3M | 358M | 301M |
| SG&A % of Revenue | - | 23.82% | 27.54% | 28.11% | 27.2% | 30.22% | 33.99% | 40.25% | 51.94% | 42.58% | 42.38% | 49.85% |
| Research & Development | 744.6M | 732M | 914.9M | 936.5M | 891.9M | 755.9M | 727.5M | 662.1M | 768.2M | 380.3M | 289.7M | 201.6M |
| R&D % of Revenue | - | 29.04% | 35.9% | 37.44% | 38.36% | 35.03% | 38.01% | 39.85% | 55.2% | 34.36% | 34.29% | 33.39% |
| Other Operating Expenses | 0 | 0 | 100K | -155.2M | 175.2M | 31.3M | 398.2M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 671.1M | 691.5M | 486.2M | 538.7M | 181.3M | 274.4M | -277M | -80.5M | -494M | -113.7M | -193.5M | -306.2M |
| Operating Margin % | 26.48% | 27.43% | 19.08% | 21.53% | 7.8% | 12.72% | -14.47% | -4.85% | -35.5% | -10.27% | -22.9% | -50.71% |
| Operating Income Growth % | - | 42.23% | -9.75% | 197.13% | -33.93% | 199.06% | -244.1% | 83.7% | -334.48% | 41.24% | 36.81% | - |
| EBITDA | 822.6M | 848.9M | 623.5M | 708.7M | 338.4M | 425.8M | -117.7M | 93M | -327.2M | 68.1M | -1.9M | -156.6M |
| EBITDA Margin % | 32.46% | 33.67% | 24.47% | 28.33% | 14.56% | 19.73% | -6.15% | 5.6% | -23.51% | 6.15% | -0.22% | -25.94% |
| EBITDA Growth % | 6.03% | 36.15% | -12.02% | 109.43% | -20.53% | 461.77% | -226.56% | 128.42% | -580.47% | 3684.21% | 98.79% | - |
| D&A (Non-Cash Add-back) | 151.5M | 157.4M | 137.3M | 170M | 157.1M | 151.4M | 159.3M | 173.5M | 166.8M | 181.8M | 191.6M | 149.6M |
| EBIT | 709.4M | 732.4M | 486.3M | 383.5M | 356.5M | 305.7M | 121.2M | -80.5M | -494M | -113.7M | -193.5M | -306.2M |
| Net Interest Income | -163M | -78.6M | 13.9M | 19.4M | 3.3M | -5.2M | 1.7M | 12.5M | 7.1M | -11M | -16.4M | -15.2M |
| Interest Income | 14.6M | 36.2M | 39M | 34.6M | 15.7M | 7.5M | 12.5M | 22.8M | 7.1M | 0 | 0 | 0 |
| Interest Expense | 177.6M | 114.8M | 25.1M | 15.2M | 12.4M | 12.7M | 10.8M | 10.3M | 0 | 11M | 16.4M | 15.2M |
| Other Income/Expense | -139.3M | -73.9M | 23.6M | 15.7M | 11.4M | 24.9M | 26.8M | 28.5M | 13.9M | 2.2M | -11.5M | -19.4M |
| Pretax Income | 531.8M | 617.6M | 509.8M | 554.4M | 192.7M | 299.3M | -250.2M | -52M | -480.1M | -111.5M | -205M | -325.6M |
| Pretax Margin % | 20.98% | 24.5% | 20.01% | 22.16% | 8.29% | 13.87% | -13.07% | -3.13% | -34.5% | -10.07% | -24.27% | -53.93% |
| Income Tax | 96.7M | 109.2M | 57.5M | 100.8M | -360.5M | -36.5M | 6.1M | 700K | 4.8M | 200K | 5.2M | 300K |
| Effective Tax Rate % | 18.18% | 17.68% | 11.28% | 18.18% | -187.08% | -12.2% | -2.44% | -1.35% | -1% | -0.18% | -2.54% | -0.09% |
| Net Income | 435.1M | 508.4M | 452.3M | 453.6M | 553.2M | 335.8M | -256.3M | -52.7M | -484.9M | -111.7M | -210.2M | -325.9M |
| Net Margin % | 17.17% | 20.17% | 17.75% | 18.13% | 23.79% | 15.56% | -13.39% | -3.17% | -34.84% | -10.09% | -24.88% | -53.97% |
| Net Income Growth % | -13.41% | 12.4% | -0.29% | -18% | 64.74% | 231.02% | -386.34% | 89.13% | -334.11% | 46.86% | 35.5% | - |
| Net Income (Continuing) | 435.1M | 508.4M | 452.3M | 453.6M | 553.2M | 335.8M | -256.3M | -52.7M | -484.9M | -111.7M | -210.2M | -325.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.93 | 1.86 | 1.40 | 1.31 | 1.52 | 0.85 | -0.62 | -0.13 | -1.35 | -0.28 | -0.59 | -1.74 |
| EPS Growth % | 4.52% | 32.86% | 6.87% | -13.82% | 78.82% | 237.1% | -376.92% | 90.37% | -382.14% | 52.54% | 66.09% | - |
| EPS (Basic) | - | 1.89 | 1.42 | 1.33 | 1.53 | 0.87 | -0.62 | -0.13 | -1.35 | -0.28 | -0.59 | -1.74 |
| Diluted Shares Outstanding | 225.1M | 272.8M | 323.4M | 345.6M | 363.3M | 395.8M | 414.3M | 411.6M | 358.6M | 393.02M | 358.6M | 187.33M |
| Basic Shares Outstanding | 218.2M | 268.3M | 318.2M | 341.2M | 361.2M | 388M | 414.3M | 411.6M | 358.6M | 393.02M | 358.6M | 187.33M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying DBX stock.
For fiscal year 2025, Dropbox, Inc. (DBX) reported total revenue of $2.52B. This represents a 317.5% increase compared to $603.8M in 2015.
Dropbox, Inc. (DBX) is profitable, generating $508.4M in net income for the fiscal year ending 2025 with a net profit margin of 20.2%.
Dropbox, Inc. (DBX) reported an operating income of $691.5M, resulting in an operating profit margin of 27.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Dropbox, Inc. (DBX) generated $2.02B in gross profit for the year, representing a gross profit margin of 80.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
AI integration by incumbents
Metrics are mathematically derived from official filings.
Stabilization After Prolonged Deceleration
Dropbox's revenue growth has stabilized near flat, with Q2 2026 showing 0.9% YoY growth, a slight improvement from the -1.4% trough in Q2 2025, according to recent SEC filings.
The sequential improvement in YoY growth from -1.4% to 0.9% over four quarters suggests the prior deceleration may be bottoming out. However, the absolute growth rate remains negligible, indicating that the core storage business has matured. The recent addition of 96,000 paying users in Q2 2026, as noted in the earnings release, provides a modest offset to ARPU pressures, but the sustainability of this inflection is unproven.
Gross Margin Erosion from Infrastructure Costs
Gross margin has declined from 83.2% in Q1 2024 to 80.2% in Q2 2026, a 300 basis point contraction, as reported in financial statements, suggesting rising infrastructure or service costs.
The steady decline in gross margin over ten quarters indicates that the cost of delivering storage and related services is increasing, possibly due to higher energy costs or investments in AI capabilities. While still robust, this trend warrants monitoring as it could compress operating leverage if it persists. The company's vertical integration strategy may be facing cost headwinds that were not present in earlier periods.
Operating Leverage Recovered Post-2024
Operating margin rebounded from a low of 13.7% in Q4 2024 to 26.1% in Q2 2026, driven by disciplined expense management, as per the latest income statement data.
The sharp recovery in operating margin from 13.7% to 26.1% within six quarters highlights significant cost discipline, particularly in R&D and SG&A, which were elevated in 2024. This suggests that management has successfully reined in spending after a period of heavy investment. However, the recent sequential decline from 27.5% in Q1 2026 to 26.1% in Q2 2026 indicates that further expansion may be limited.
SBC Dilution Masks True Profitability
Stock-based compensation averaged $77 million per quarter in 2026, representing roughly 12% of revenue, which tempers the quality of reported net income, based on the provided financial data.
While net income has been consistently positive, the significant SBC expense reduces the quality of earnings, as it is a non-cash charge that still dilutes shareholders. The company's aggressive buyback program may offset some dilution, but the persistent SBC levels suggest that a portion of reported profits is not backed by cash. Investors should adjust for SBC to assess true cash-generative capacity.
R&D and SG&A Efficiency Gains
Combined R&D and SG&A expenses fell from 65.4% of revenue in Q4 2024 to 54.1% in Q2 2026, indicating improved cost discipline, as reported in the income statement.
The reduction in operating expenses as a percentage of revenue is a key driver of the margin recovery. R&D spending, in particular, dropped from $243 million in Q4 2024 to $188 million in Q2 2026, suggesting a more focused approach to innovation. This efficiency gain may be sustainable if the company continues to prioritize profitability over growth, but it could also signal underinvestment in future product development.
AI Integration Threatens Standalone Value
The rapid integration of generative AI into Microsoft 365 and Google Workspace could render Dropbox's collaboration features redundant, as noted in recent earnings commentary, posing a long-term risk to user growth.
While Dropbox has shown resilience with three consecutive quarters of paying user additions, the competitive threat from incumbents embedding AI-driven file organization and summarization into their ecosystems is significant. If these features become 'good enough,' Dropbox's differentiation as a neutral platform may erode, leading to churn and pricing pressure. The current stabilization could be temporary if the company fails to innovate at the pace of its larger rivals.