# DigitalOcean Holdings, Inc. (DOCN)

> Source: Nexqual · https://nexqual.com/DOCN · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, DigitalOcean Holdings, Inc. (DOCN), nexqual.com/DOCN" · informational, not investment advice.

**Price:** USD 92 (-9.34% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 101.48 · day 90.59–98.01 · 52w 37.84–187.5 · market cap $10.8B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.01B, net income $235M (23.3% margin), free cash flow $194M (SEC filings).
- Valuation: P/E 46.0x (avg 80.0x at the last 3 fiscal year-ends).
- 1 of 80 tracked superinvestors hold DOCN (13F, Q2 2026): 0 new, 1 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 13 Form 4 filings, $571M; 6 not under a Rule 10b5-1 plan ($565M); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.88 on a 1–5 scale) (17 analysts), mean target USD 175.13 (range 125–220).
- Total return with dividends: 1Y +132.3% vs S&P 500 +14.9%; 5Y -2.1% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD 0.32, revenue estimate $307M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $429M | $576M | $693M | $781M | $901M | $1.01B |
| Gross profit | $258M | $364M | $397M | $466M | $540M | — |
| Operating income | -$11.2M | -$25.7M | $11.9M | $91.0M | $157M | $150M |
| Net income | -$19.5M | -$27.8M | $19.4M | $84.5M | $259M | $235M |
| EPS (diluted) | -$0.21 | -$0.28 | $0.20 | $0.89 | $2.52 | — |
| Free cash flow | $36.0M | $88.8M | $116M | $105M | $181M | $194M |
| Gross margin | 60.2% | 63.2% | 57.4% | 59.7% | 59.9% | — |
| Operating margin | -2.6% | -4.5% | 1.7% | 11.7% | 17.4% | 14.8% |
| Net margin | -4.6% | -4.8% | 2.8% | 10.8% | 28.8% | 23.3% |
| Revenue growth | +34.6% | +34.5% | +20.2% | +12.7% | +15.5% | — |
| Cash + short-term investments | $1.71B | $864M | $412M | $428M | — | — |
| Total debt | $1.46B | $1.47B | $1.48B | $1.49B | $1.30B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 46.0x · P/S 10.7x · P/FCF 55.6x · P/B 11.6x · FCF yield 1.80% · Earnings yield 2.17% · Buyback yield (TTM) 0.03%
P/E at fiscal year-ends: Dec 2025 19.6x, Dec 2024 38.1x, Dec 2023 182.3x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold DOCN. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Polen Capital | Polen Capital Management | 0.14% | $15.9M | Added +5.3% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
7 of 13 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-21 | Srinivasan Padmanabhan T | Chief Executive Officer | 11,394 | $1.6M | 1.5% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-09-03 | Barrett Cherie | SVP, Chief Accounting Officer | 3,985 | $421K | 6.4% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-09-03 | Steinfort Matt | Chief Financial Officer | 10,000 | $1.1M | 1.9% | Yes | Too little history (no open-market trades in 2023) |
| 2026-09-03 | Srinivasan Padmanabhan T | Chief Executive Officer | 5,697 | $602K | 0.7% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-08-17 | Srinivasan Padmanabhan T | Chief Executive Officer | 5,697 | $736K | 0.7% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-08-13 | Barrett Cherie | SVP, Chief Accounting Officer | 4,456 | $590K | 6.4% | Yes | Too little history (no open-market trades in 2023–2025) |
| 2026-08-07 | Adelman Warren J | Director | 4,200 | $521K | 5.9% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-06-02 | Steinfort Matt | Chief Financial Officer | 10,000 | $1.7M | 1.8% | Yes | Too little history (no open-market trades in 2023) |
| 2026-05-19 | Jenson Warren | Director | 20,000 | $3.0M | 38.1% | No | Too little history (no open-market trades in 2024 or 2025) |
| 2026-05-15 | Steinfort Matt | Chief Financial Officer | 25,000 | $3.8M | 4.2% | No | Too little history (no open-market trades in 2023) |
| 2026-05-15 | Schneider Hilary | Director | 4,338 | $678K | 15.1% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-13 | Access Industries Holdings Llc |  | 3,300,000 | $496M | 96.5% | No | Too little history (no open-market trades in 2023 or 2024) |
| 2026-05-07…2026-05-11 | Access Industries Holdings Llc |  | 391,806 | $60.8M | 1.8% | No | Too little history (no open-market trades in 2023 or 2024) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.88 on a 1–5 scale), 17 analysts; mean target USD 175.13 (low 125, high 220).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-21 | Piper Sandler | Upgrade | Neutral → Overweight | $142 → $126 |
| 2026-10-14 | Oppenheimer | Target raised | Outperform | $190 → $220 |
| 2026-08-27 | Truist Securities | Initiated | Buy | $175 |
| 2026-08-05 | UBS | Target lowered | Neutral | $155 → $140 |
| 2026-08-05 | Citigroup | Target raised | Buy | $185 → $190 |
| 2026-08-05 | Barclays | Target raised | Overweight | $160 → $161 |
| 2026-07-22 | Baird | Initiated | Outperform | $165 |
| 2026-07-22 | Stifel | Upgrade | Hold → Buy | $135 → $160 |
| 2026-07-21 | Barclays | Target lowered | Overweight | $184 → $160 |
| 2026-07-10 | Canaccord Genuity | Maintained | Buy | $200 |
| 2026-07-08 | UBS | Target lowered | Neutral | $175 → $155 |
| 2026-07-08 | Citigroup | Target raised | Buy | $180 → $185 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +132.3% | -2.1% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +132.9% | -0.4% |
| Volatility (annualized) | 84.9% | 69.1% |
| Max drawdown | -49.3% (Jun 2026→Oct 2026) | -84.0% (Nov 2021→Oct 2023) |

## Peers (Software - Infrastructure)
PAYP (PayPay Corporation - American D) USD 15.21 -0.91% · SAIL (SailPoint, Inc.) USD 20.06 +1.93% · GTLB (GitLab Inc.) USD 54.53 -1.66% · NTSK (Netskope, Inc.) USD 22.2 +1.79% · AKAM (Akamai Technologies, Inc.) USD 91.13 +0.95% · ZETA (Zeta Global Holdings Corp.) USD 33.52 -1.73%

## More
Full page: https://nexqual.com/DOCN · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in DOCN's own 10-K filed 2026-02-24 (https://www.sec.gov/Archives/edgar/data/1582961/000158296126000019/docn-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | AMD (AMD) | "In 2025, we entered into multiple strategic partnerships, including with Laravel, which is using DigitalOcean for its Laravel VPS offering, fal, a leading multimodal AI platform for generative media, and an expanded part…" |
| Competitor | Amazon (AMZN) | "Our AI/ML offerings compete with providers of AI/ML infrastructure and services, including the same large, diversified technology companies, Amazon (AWS), Microsoft (Azure), and Google (GCP), and smaller more infrastruct…" |
| Competitor | Microsoft (MSFT) | "Our AI/ML offerings compete with providers of AI/ML infrastructure and services, including the same large, diversified technology companies, Amazon (AWS), Microsoft (Azure), and Google (GCP), and smaller more infrastruct…" |
| Competitor | Alphabet (Google) (GOOGL) | "Our AI/ML offerings compete with providers of AI/ML infrastructure and services, including the same large, diversified technology companies, Amazon (AWS), Microsoft (Azure), and Google (GCP), and smaller more infrastruct…" |

## Company outlook (8-K filed 2026-08-04)

- "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."

Analysts expect $306.7M for the current quarter, +0.4% vs the guidance midpoint $305.5M. Source: https://www.sec.gov/Archives/edgar/data/1582961/000162828026052135/a2026-q2dopressrelease.htm

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.32 | $0.28 | +12.4% | $306.7M | 17 |
| Next quarter (ends 2026-12-31) | $0.27 | $0.28 | -3.4% | $333.4M | 17 |
| Current fiscal year (ends 2026-12-31) | $1.45 | $1.23 | +17.6% | $1.18B | 17 |
| Next fiscal year (ends 2027-12-31) | $1.83 | $1.86 | -1.5% | $1.82B | 16 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-06 (includes earnings 2026-11-03): ±19.8%; earnings reaction alone ±12.9%; last 8 reports averaged ±17%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 95.1% | ±11.3% |
| 2026-11-06 | 14 | 122.6% | ±19.8% |
| 2026-11-13 | 21 | 111.0% | ±21.7% |
| 2026-11-20 | 28 | 100.4% | ±22.5% |
| 2026-11-27 | 35 | 101.2% | ±25.2% |
| 2026-12-04 | 42 | 98.8% | ±26.9% |
| 2026-12-18 | 56 | 93.5% | ±29.0% |
| 2027-01-15 | 84 | 86.5% | ±33.0% |