| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 631.50 | 0.3% | 0.9% |
| Total Income | 631.50 | 0.3% | 0.9% |
| Expenditure | 466.70 | 2.2% | 2.1% |
| PBT | 117.70 | 16.8% | 20.4% |
| Net Profit | 95.80 | 16.3% | 23.7% |
| OPM | 26.10% | 1.35pp | 0.82pp |
| NPM | 15.17% | 3.02pp | 4.90pp |
| EPS | 0.43 | 12.2% | 6.5% |
Dropbox Announces Second Quarter 2026 Results
07 Aug 2026 · 7 Aug, 1:51 am
Summary
Dropbox announced its financial results for the second quarter ended June 30, 2026, reporting total revenue of $631.5 million, a 0.9% increase year-over-year. Excluding the impact of FormSwift, revenue grew by 1.7%. The company maintained strong profitability with a Non-GAAP operating margin of 39.7% and generated $283.5 million in unlevered free cash flow. Management highlighted the continued positive year-over-year revenue growth in the core business and an increase in paying users, reinforcing their strategy for future growth.
Key Highlights
- 1
Dropbox reported total revenue of $631.5 million for the second quarter of 2026, an increase of 0.9% year-over-year.
- 2
Excluding FormSwift, revenue grew 1.7% year-over-year, and on a constant currency basis, it increased by 0.1%.
- 3
The company achieved a second quarter GAAP operating margin of 26.1% and a Non-GAAP operating margin of 39.7%.
- 4
Net cash provided by operating activities was $238.5 million, and unlevered free cash flow was $283.5 million for the second quarter.
- 5
Total paying users reached 18.19 million, with an increase of 96,000 paying users quarter-over-quarter.
- 6
GAAP diluted net income per share was $0.42, compared to $0.45 in the prior year's second quarter.
- 7
Non-GAAP diluted net income per share was $0.75, an increase from $0.71 in the prior year's second quarter.
Management Comments
Ashraf Alkarmi
Q2 reinforced that our return to growth in the core business is not a one-quarter event. We continued to see positive year-over-year revenue growth excluding FormSwift, added 96,000 paying users for our third consecutive quarter of paying user growth, exceeded our guidance on non-GAAP operating margin at over 39%, and generated $283.5 million of unlevered free cash flow. That performance is the result of disciplined, methodical work, and it's the foundation we're building on. Stepping into this role, I'm excited for what's ahead as we bring Dash intelligence directly into a smarter Dropbox that our customers already trust, and use the infrastructure we've built over nearly two decades to extend that value for the more than 18 million paying customers already on Dropbox today.
Informational and educational content only. Not investment advice.