EarningsQ2 2026 Earnings Report
DE:0SU Q2 2026 EPS Results
Actual EPS€0.40
Consensus EPS€0.23
Beat/MissBeat by +€0.17
One Year Ago EPS€0.52
DE:0SU Q2 2026 Revenue Results
Actual Revenue€248.22M
Expected Revenue€246.32M
Beat/MissBeat by +€1.90M
YoY Revenue Growth+28.57%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeBefore Open
Conference CallTuesday, August 4, 2026
DE:0SU Upcoming Earnings
DigitalOcean Holdings's next earnings date is estimated for November 9, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:0SU Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong set of operational and financial positives: accelerating revenue growth, record incremental ARR, very rapid adoption of the inference engine and AI workloads, robust margins, a significantly larger RPO, and balance sheet improvements. The primary negatives are capacity and timing constraints tied to data center buildouts and industry supply chain realities, RPO lumpiness, and potential effects of recent GPU price increases. On balance, the positive developments (strong growth, profitability, AI traction, and financial flexibility) substantially outweigh the challenges, though execution of capacity plans will be critical to sustain the momentum into 2027.Company Guidance
Strong Top-Line Growth and Record ARR Addition
Q2 revenue of $281M, up ~29% year-over-year; record $93M incremental ARR in Q2 (largest quarterly ARR addition in company history).
Rapid Expansion of AI Customer ARR
AI customer ARR reached $234M, growing ~212% year-over-year; 85% of AI customer ARR was non-bare metal (inference + core cloud).
Explosive Growth of Inference Services
Inference services grew nearly 800% year-over-year; inference engine launched late April with >6,000 customers and average customer count growth of ~60% month-over-month; token volume increased ~30x over 60 days.
Product and Ecosystem Traction
Model catalog now includes 75+ open and closed-source models with 14 day‑0 launches since April; open weight token share rose from ~15% to ~75%; Kimi K3 launch (July 27) drove >400 net new customers in first week; OpenRouter traffic >20 billion tokens/day (up >330% in last 60 days).
High-Quality Customer Cohort Expansion
ARR from $100k+ customers grew 98% YoY; $500k+ customer ARR grew 160% YoY; $1M+ customer ARR grew 214% YoY; highest-spending cohort grew from 9% to 23% of total ARR year-over-year.
Strong Profitability and Cash Flow
Adjusted EBITDA margin 40% (Adjusted EBITDA $114M); adjusted operating income margin 24%; GAAP operating income margin 10% ($29M); Q2 adjusted free cash flow $61M; trailing 12-month adjusted free cash flow margin 17% ($175M).
Improved Financial Visibility and Debt Reduction
Remaining performance obligations (RPO) increased to $894M (over 12x YoY) with a 3.7-year average life; retired ~$472M of 2030 convertible notes, reducing pro forma net leverage to ~0.7x.
Raised 2026 Outlook and Exit Momentum
Raised full-year 2026 revenue outlook to ~$1.17–1.18B (~30.5% YoY) with Q4 exit growth expected ≥35%; Q3 revenue guide $304–307M (32–34% YoY); full-year adjusted EBITDA margin ~39% and adjusted free cash flow margin 11–13%.
Capacity Expansion and Operational Execution
Secured incremental ~20 MW of capacity this quarter, bringing total committed capacity to ~155 MW (majority expected online by end of 2027); new data centers launched on or ahead of schedule (Richmond, Kansas City) and Memphis on track.
DE:0SU Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed