The earnings call presented a mix of positive developments such as improved operating margins, product enhancements, and increased revenue guidance, alongside challenges like declining revenue and paying users. Despite the setbacks, the company's strategic initiatives, particularly around Dash, show promising early engagement and potential for future growth.

Company Guidance

During Dropbox's Third Quarter 2025 Earnings Call, the company provided guidance for the fourth quarter and full year 2025. For Q4 2025, Dropbox expects revenue to range between $626 million and $629 million, with a currency tailwind of approximately $3 million. The non-GAAP operating margin is projected to be approximately 37%, while diluted weighted average shares outstanding are anticipated to fall between 256 million and 261 million. For the full year 2025, Dropbox raised its revenue guidance midpoint by $18 million, expecting between $2.511 billion and $2.514 billion, and increased its constant currency revenue guidance midpoint by $17 million. The non-GAAP operating margin outlook has been raised by 100 basis points to approximately 40%, and unlevered free cash flow is projected to reach or exceed $1 billion. The company also lowered its CapEx guidance to between $20 million and $25 million, maintaining finance lease additions at about 6% of revenue. Finally, Dropbox revised its diluted weighted average shares outstanding expectation to between 273 million and 278 million shares for 2025.

Improved Non-GAAP Operating Margin

The non-GAAP operating margin was 41.1%, ahead of guidance, and up roughly 490 basis points from the previous year.

Dash Product Enhancements

Significant improvements in the Dash product were noted, such as a 75% reduction in search latency and enhanced AI capabilities.

Financial Performance and Cash Flow

Cash flow from operations increased by 10% year-over-year to $302 million, with unlevered free cash flow rising 39% year-over-year.

Positive Response to Dash

60% of managed Dash weekly active users are using the product at least two days a week, indicating integration into daily workflows.

Increased Revenue Guidance

For the full year 2025, the company has raised the midpoint of its as-reported revenue guidance by $18 million.

Dropbox (DBX) Earnings, Revenues Date & History

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DBX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 12, 2026	2025 (Q4)	0.66 / -	0.73	―	―	―
Nov 06, 2025	2025 (Q3)	0.65 / 0.74	0.6	23.33% (+0.14)
Aug 07, 2025	2025 (Q2)	0.63 / 0.71	0.6	18.33% (+0.11)
May 08, 2025	2025 (Q1)	0.62 / 0.70	0.58	20.69% (+0.12)
Feb 20, 2025	2024 (Q4)	0.62 / 0.73	0.5	46.00% (+0.23)
Nov 07, 2024	2024 (Q3)	0.53 / 0.60	0.56	7.14% (+0.04)
Aug 08, 2024	2024 (Q2)	0.52 / 0.60	0.51	17.65% (+0.09)
May 09, 2024	2024 (Q1)	0.50 / 0.58	0.42	38.10% (+0.16)
Feb 15, 2024	2023 (Q4)	0.48 / 0.50	0.4	25.00% (+0.10)
Nov 02, 2023	2023 (Q3)	0.49 / 0.56	0.43	30.23% (+0.13)

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

DBX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 06, 2025	$28.67	$30.87	+7.67%
Aug 07, 2025	$26.20	$26.91	+2.71%
May 08, 2025	$29.69	$29.46	-0.77%
Feb 20, 2025	$31.88	$26.73	-16.15%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.