Quarterly ResultMay 5, 2026, 07:12 AM
DigitalOcean Q1 Revenue $258M, +22% YoY; Raises 2026/2027 Outlook
AI Summary
DigitalOcean reported strong first-quarter 2026 financial results, with revenue increasing 22% year-over-year to $258 million and adjusted EBITDA reaching $105 million. The company raised its revenue outlook for both 2026 and 2027, with 2027 growth now expected to exceed 50%. Additionally, DigitalOcean amended its credit agreement, increasing its revolving credit facility by $112.5 million and its letter of credit sublimit by $50 million.
Key Highlights
- Q1 2026 Revenue was $258 million, an increase of 22% year-over-year.
- Adjusted EBITDA for Q1 2026 was $105 million, up 21% year-over-year, with a 41% margin.
- Raised full-year 2026 revenue outlook to $1.130-$1.145 billion, up 25-27% YoY.
- Raised full-year 2027 revenue growth outlook to over 50%.
- AI Customer ARR grew 221% year-over-year to $170 million.
- Completed a follow-on offering with $888 million net proceeds, repaying $500 million of Term Loan Facility.
- Amended credit agreement to increase revolving credit facility by $112.5 million.
- Acquired Katanemo Labs and launched DigitalOcean AI-Native Cloud.