DigitalOcean Holdings, Inc. (NYSE: DOCN) is a cloud infrastructure company headquartered in Broomfield, Colorado, founded in 2011 by Ben Uretsky, Moisey Uretsky, Mitch Wainer, Jeff Carr, and Alec Hartman. It reported $901 million in 2025 revenue and $259 million in net income. In Q2 2026, revenue grew 29% to $281 million and annual run-rate revenue reached $1.125 billion. Paddy Srinivasan has been CEO since February 2024.
What Does DigitalOcean Do?
- Droplets: Linux virtual machines with hourly or monthly pricing.
- Platform services: Managed Kubernetes, managed databases, Spaces object storage, and App Platform.
- Cloudways: Managed hosting for WordPress, WooCommerce, and PHP apps.
- AI-Native Cloud: GPU Droplets, serverless inference, the Inference Engine, and managed agents, launched at Deploy 2026.
How Does DigitalOcean Make Money?
DigitalOcean bills customers for cloud usage and subscriptions. Most of its 650,000+ customers sign up self-serve, while large AI-native customers sign multi-year deals; remaining performance obligations reached $894 million at June 30, 2026, up from $71 million a year earlier. Customers spending $1 million or more a year generated 23% of Q2 2026 revenue.
DigitalOcean Financial Snapshot
- 2025 revenue: $901.4 million (up 15%)
- 2025 net income: $259 million; adjusted EBITDA: $375 million
- 2025 adjusted free cash flow: $168 million
- Q2 2026 revenue: $281 million (up 29%)
- Q2 2026 AI customer ARR: $234 million (up 212%)
- Employees: 1,462 (December 31, 2025)
Who Are DigitalOcean's Competitors?
DigitalOcean competes with AWS, Microsoft Azure, and Google Cloud, budget hosts such as Akamai Linode, Vultr, and Hetzner, and GPU clouds such as CoreWeave and Lambda. It differentiates on simplicity and an integrated inference stack rather than raw GPU rental.
Outlook
Management guided to about 30% revenue growth in 2026 and said it expects to exceed 50% growth in 2027, supported by about 155 MW of committed data center capacity.
