Quarterly ResultMay 7, 2026, 04:20 PM
Dropbox Q1 Revenue $629.5M; Non-GAAP Operating Margin 40.1%
AI Summary
Dropbox announced its first quarter 2026 financial results, reporting total revenue of $629.5 million, a 0.8% increase year-over-year, and a 2.0% increase excluding FormSwift. The company achieved a GAAP operating margin of 27.5% and a Non-GAAP operating margin of 40.1%. Net cash provided by operating activities significantly increased to $204.5 million, and unlevered free cash flow reached $236.4 million. The company also posted Non-GAAP diluted net income per share of $0.76, exceeding prior year's $0.70, despite a decrease in GAAP net income. Dropbox will wind down FormSwift operations by the end of 2026 and continues to expand Dash.
Key Highlights
- Total revenue was $629.5 million, an increase of 0.8% year-over-year; excluding FormSwift, revenue grew 2.0%.
- GAAP operating margin was 27.5%, and Non-GAAP operating margin was 40.1%.
- Net cash provided by operating activities was $204.5 million, up from $153.8 million year-over-year.
- Unlevered free cash flow was $236.4 million, compared to $174.4 million in Q1 2025.
- GAAP diluted net income per share was $0.48, while Non-GAAP diluted net income per share was $0.76.
- Total ARR was $2.560 billion, an increase of 0.3%; excluding FormSwift, it increased 1.3%.
- Paying users totaled 18.09 million, with average revenue per paying user at $141.18.
- Cash, cash equivalents and short-term investments ended at $1.289 billion.