Dropbox Financials
This page shows Dropbox (DBX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 10 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Dropbox's cash engine comes from a very low-capex model, while buybacks reshape the balance sheet faster than revenue does.
Across recent years, free cash flow has remained above net income; in the latest year it reached$930.8M on only$21M of capex, which identifies a highly asset-light business whose cash output depends more on operating discipline than on reinvestment. The less obvious consequence is that negative equity says as much about capital returns as operating stress, because buybacks of$1.71B in the latest year outpaced internally generated cash and pulled book value further below zero.
The latest year's gross margin slipped to
The balance sheet now looks tighter on paper, with a current ratio below 1.0x and liabilities above assets, but that is easier to carry in a working-capital-light model. Accounts receivable were only
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Dropbox's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Dropbox has an operating margin of 27.3%, meaning the company retains $27 of operating profit per $100 of revenue. This strong profitability earns a score of 75/100, reflecting efficient cost management and pricing power. This is up from 19.1% the prior year.
Dropbox's revenue declined 1.1% year-over-year, from $2.5B to $2.5B. This contraction results in a growth score of 34/100.
Dropbox has elevated debt relative to equity (D/E of -2.58), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.
Dropbox's current ratio of 0.63 is below the typical benchmark, resulting in a score of 7/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Dropbox converts 36.9% of revenue into free cash flow ($930.8M). This strong cash generation earns a score of 100/100.
Dropbox scores 0.29, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($6.0B) relative to total liabilities ($4.6B). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Dropbox passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Dropbox generates $1.87 in operating cash flow ($951.8M OCF vs $508.4M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Dropbox generated $2.5B in revenue in fiscal year 2025. This represents a decrease of 1.1% from the prior year.
Dropbox's EBITDA was $936.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 33.6% from the prior year.
Dropbox reported $508.4M in net income in fiscal year 2025. This represents an increase of 12.4% from the prior year.
Dropbox earned $1.86 per diluted share (EPS) in fiscal year 2025. This represents an increase of 32.9% from the prior year.
Cash & Balance Sheet
Dropbox generated $930.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 6.8% from the prior year.
Dropbox held $891.3M in cash against $0 in long-term debt as of fiscal year 2025.
Margins & Returns
Dropbox's gross margin was 80.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.4 percentage points from the prior year.
Dropbox's operating margin was 27.3% in fiscal year 2025, reflecting core business profitability. This is up 8.2 percentage points from the prior year.
Dropbox's net profit margin was 20.2% in fiscal year 2025, showing the share of revenue converted to profit. This is up 2.4 percentage points from the prior year.
Capital Allocation
Dropbox invested $732.0M in research and development in fiscal year 2025. This represents a decrease of 20.0% from the prior year.
Dropbox spent $1.7B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 38.0% from the prior year.
Dropbox invested $21.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 6.7% from the prior year.
DBX Income Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $629.5M-1.1% | $636.2M+0.3% | $634.4M+1.4% | $625.7M+0.2% | $624.7M-2.9% | $643.6M+0.8% | $638.8M+0.7% | $634.5M |
| Cost of Revenue | $128.1M-3.0% | $132.1M+3.0% | $128.3M+3.7% | $123.7M+6.0% | $116.7M-3.4% | $120.8M+8.3% | $111.5M+4.2% | $107.0M |
| Gross Profit | $501.4M-0.5% | $504.1M-0.4% | $506.1M+0.8% | $502.0M-1.2% | $508.0M-2.8% | $522.8M-0.9% | $527.3M0.0% | $527.5M |
| R&D Expenses | $184.2M-1.4% | $186.9M+2.5% | $182.3M-1.1% | $184.4M+3.4% | $178.4M-26.6% | $243.0M+7.7% | $225.7M-0.6% | $227.1M |
| SG&A Expenses | $57.5M-4.6% | $60.3M+4.7% | $57.6M-2.0% | $58.8M+9.3% | $53.8M-14.5% | $62.9M-0.6% | $63.3M+3.9% | $60.9M |
| Operating Income | $172.8M+6.5% | $162.2M-7.2% | $174.7M+3.7% | $168.4M-8.4% | $183.8M+109.1% | $87.9M-31.2% | $127.8M+0.6% | $127.0M |
| Interest Expense | $37.9M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $26.9M-21.8% | $34.4M+3.0% | $33.4M+50.5% | $22.2M+15.6% | $19.2M+284.6% | -$10.4M-140.0% | $26.0M+12.6% | $23.1M |
| Net Income | $114.5M+5.3% | $108.7M-12.2% | $123.8M-1.4% | $125.6M-16.4% | $150.3M+46.2% | $102.8M-3.7% | $106.7M-3.4% | $110.5M |
| EPS (Diluted) | $0.48 | N/A | $0.47+4.4% | $0.45-11.8% | $0.51 | N/A | $0.340.0% | $0.34 |
DBX Balance Sheet
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $3.0B+6.5% | $2.8B+1.8% | $2.8B+0.6% | $2.8B-6.0% | $3.0B-11.1% | $3.3B+29.0% | $2.6B-5.2% | $2.7B |
| Current Assets | $1.4B+21.7% | $1.2B+10.0% | $1.1B-2.8% | $1.1B-16.6% | $1.3B-23.2% | $1.7B+66.3% | $1.0B-15.1% | $1.2B |
| Cash & Equivalents | $1.2B+35.5% | $891.3M+22.0% | $730.7M-0.8% | $736.3M-21.9% | $942.2M-29.1% | $1.3B+156.6% | $517.6M+0.5% | $515.1M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $74.7M-5.6% | $79.1M+7.0% | $73.9M-2.5% | $75.8M+5.9% | $71.6M+1.7% | $70.4M+1.3% | $69.5M+3.6% | $67.1M |
| Goodwill | $455.5M+0.1% | $454.9M+0.3% | $453.4M+0.2% | $452.3M+2.2% | $442.6M0.0% | $442.8M0.0% | $442.7M+7.5% | $411.9M |
| Total Liabilities | $5.0B+8.6% | $4.6B+7.3% | $4.3B+5.9% | $4.1B+1.3% | $4.0B-1.1% | $4.1B+30.6% | $3.1B+1.1% | $3.1B |
| Current Liabilities | $1.2B-37.9% | $1.9B-0.5% | $1.9B+2.6% | $1.9B+1.0% | $1.8B+51.7% | $1.2B+0.7% | $1.2B+1.5% | $1.2B |
| Long-Term Debt | $2.6B | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | -$2.0B-11.9% | -$1.8B-17.4% | -$1.5B-17.3% | -$1.3B-21.4% | -$1.1B-43.0% | -$752.4M-37.8% | -$546.1M-47.1% | -$371.3M |
| Retained Earnings | -$3.9B-2.8% | -$3.8B-5.0% | -$3.6B-4.2% | -$3.5B-4.6% | -$3.3B-6.0% | -$3.1B-5.1% | -$3.0B-4.2% | -$2.9B |
DBX Cash Flow Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $204.5M-13.1% | $235.4M-22.1% | $302.1M+16.0% | $260.5M+69.4% | $153.8M-28.1% | $213.8M-22.0% | $274.2M+18.9% | $230.6M |
| Capital Expenditures | $1.2M-88.6% | $10.5M+25.0% | $8.4M+320.0% | $2.0M+1900.0% | $100K-97.0% | $3.3M-19.5% | $4.1M-30.5% | $5.9M |
| Free Cash Flow | $203.3M-9.6% | $224.9M-23.4% | $293.7M+13.6% | $258.5M+68.2% | $153.7M-27.0% | $210.5M-22.1% | $270.1M+20.2% | $224.7M |
| Investing Cash Flow | $66.9M+45.8% | $45.9M+157.9% | $17.8M+43.5% | $12.4M-65.4% | $35.8M-68.5% | $113.8M-25.7% | $153.1M+142.2% | $63.2M |
| Financing Cash Flow | $46.2M+132.8% | -$140.8M+56.5% | -$323.6M+33.7% | -$487.8M+15.7% | -$578.5M-210.4% | $523.9M+221.5% | -$431.1M-32.0% | -$326.7M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $366.8M-11.6% | $415.0M+6.5% | $389.8M-4.9% | $410.0M-17.9% | $499.1M+41.3% | $353.3M+1.3% | $348.7M+34.0% | $260.2M |
DBX Financial Ratios
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 79.7%+0.4pp | 79.2%-0.5pp | 79.8%-0.5pp | 80.2%-1.1pp | 81.3%+0.1pp | 81.2%-1.3pp | 82.5%-0.6pp | 83.1% |
| Operating Margin | 27.5%+2.0pp | 25.5%-2.0pp | 27.5%+0.6pp | 26.9%-2.5pp | 29.4%+15.8pp | 13.7%-6.3pp | 20.0%0.0pp | 20.0% |
| Net Margin | 18.2%+1.1pp | 17.1%-2.4pp | 19.5%-0.6pp | 20.1%-4.0pp | 24.1%+8.1pp | 16.0%-0.7pp | 16.7%-0.7pp | 17.4% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 3.8%-0.0pp | 3.8%-0.6pp | 4.4%-0.1pp | 4.5%-0.6pp | 5.1%+2.0pp | 3.1%-1.0pp | 4.1%+0.1pp | 4.1% |
| Current Ratio | 1.23+0.6 | 0.63+0.1 | 0.57-0.0 | 0.60-0.1 | 0.73-0.7 | 1.44+0.6 | 0.87-0.2 | 1.04 |
| Debt-to-Equity | -1.30+1.3 | -2.58+0.2 | -2.83+0.3 | -3.13+0.6 | -3.75+1.7 | -5.42+0.3 | -5.72+2.6 | -8.32 |
| FCF Margin | 32.3%-3.0pp | 35.4%-11.0pp | 46.3%+5.0pp | 41.3%+16.7pp | 24.6%-8.1pp | 32.7%-9.6pp | 42.3%+6.9pp | 35.4% |
Note: Shareholder equity is negative (-$1.8B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.63), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Dropbox's annual revenue?
Dropbox (DBX) reported $2.5B in total revenue for fiscal year 2025. This represents a -1.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Dropbox's revenue growing?
Dropbox (DBX) revenue declined by 1.1% year-over-year, from $2.5B to $2.5B in fiscal year 2025.
Is Dropbox profitable?
Yes, Dropbox (DBX) reported a net income of $508.4M in fiscal year 2025, with a net profit margin of 20.2%.
What is Dropbox's EBITDA?
Dropbox (DBX) had EBITDA of $936.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Dropbox's gross margin?
Dropbox (DBX) had a gross margin of 80.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Dropbox's operating margin?
Dropbox (DBX) had an operating margin of 27.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Dropbox's net profit margin?
Dropbox (DBX) had a net profit margin of 20.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Dropbox's free cash flow?
Dropbox (DBX) generated $930.8M in free cash flow during fiscal year 2025. This represents a 6.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Dropbox's operating cash flow?
Dropbox (DBX) generated $951.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Dropbox's total assets?
Dropbox (DBX) had $2.8B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Dropbox's capital expenditures?
Dropbox (DBX) invested $21.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Dropbox spend on research and development?
Dropbox (DBX) invested $732.0M in research and development during fiscal year 2025.
What is Dropbox's current ratio?
Dropbox (DBX) had a current ratio of 0.63 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Dropbox's debt-to-equity ratio?
Dropbox (DBX) had a debt-to-equity ratio of -2.58 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Dropbox's return on assets (ROA)?
Dropbox (DBX) had a return on assets of 17.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Dropbox's debt-to-equity ratio negative or unusual?
Dropbox (DBX) has negative shareholder equity of -$1.8B as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Dropbox's Altman Z-Score?
Dropbox (DBX) has an Altman Z-Score of 0.29, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Dropbox's Piotroski F-Score?
Dropbox (DBX) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Dropbox's earnings high quality?
Dropbox (DBX) has an earnings quality ratio of 1.87x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Dropbox?
Dropbox (DBX) scores 36 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.