Dropbox (DBX)
NASDAQ:DBX
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Earnings Data
Report Date
Jul 30, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.74Last Year’s EPS
0.71Same Quarter Last Year
Based on 5 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented more positive than negative developments: the company beat revenue and operating margin guidance, materially improved cash generation (unlevered FCF +69% YoY) and grew paying users sequentially despite expectations of a decline. Early AI product (Dash) engagement and targeted retention/monetization initiatives produced measurable improvements (mobile churn down mid-single-digits; conversion up 50% among targeted basic users). Offsetting these positives are near-term margin pressure from Dash infrastructure and hardware refresh (gross margin down ~180 bps YoY), constant-currency revenue softness (-80 bps YoY) and the drag from FormSwift (~120 bps revenue headwind). Management raised full-year revenue and margin/FCF targets modestly, signaling confidence in momentum. On balance, the positives and trajectory improvements outweigh the headwinds and execution risks.Company Guidance
Revenue Beat and Growth (Excluding FormSwift)
Q1 non-GAAP revenue of $629M, up 0.8 percentage points year-over-year; revenue grew 2.0% YoY when excluding FormSwift (FormSwift acted as a ~120 bps headwind). Company exceeded the high end of guidance on revenue.
Improved Free Cash Flow and Cash Generation
Unlevered free cash flow of $236M (≈ $1.00 per share), up 69% YoY; cash flow from operations $205M, up 33% YoY; unlevered free cash flow margin ~38% (executive comment) and full-year unlevered FCF guidance raised to at-or-above $1.055B.
Paying Users Increased Sequentially
Paid subscribers ended the quarter at 18.09M, a sequential increase of ~14,000 paying users (beat expectations after a prior forecasted decline); company now expects slightly positive paying user trends for the full year.
ARPU and EPS Improvement
Average revenue per paying user (ARPU) was $141.18 vs. $139.68 in the prior quarter (sequential increase). Diluted EPS $0.76 vs. $0.70 in the year-ago quarter.
Operating Margin Outperformance
Non-GAAP operating margin of 40.1% for the quarter, ahead of guidance (38%) and full-year operating margin guidance raised by 50 bps to a new range of 39.5%–40%.
Dash Early Engagement Signals
Dash rollout in Dropbox shows early engagement: >30% of weekly engaged users used Dash's AI features again the following week and >50% of monthly engaged users used them again the following month — positive retention signals for AI features.
Retention and Monetization Improvements in Individuals and Teams
Mobile churn rate declined by mid-single-digit percentage points due to targeted retention interventions; targeted promotions for basic users nearing storage limits drove a 50% improvement in conversion among those targeted users. Teams funnel, pricing/packaging and onboarding changes improved conversion and activation.
Balance Sheet and Capital Allocation Actions
Ended quarter with $1.29B in cash and short-term investments; repurchased ~14.3M shares for ~$367M in Q1 with ~$800M remaining authorization; drew $700M and repaid March 2026 convertible notes as part of capital management.
DBX 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
DBX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $25.13 | $28.90 | +15.00% |
Feb 19, 2026 | $24.73 | $25.48 | +3.03% |
Nov 06, 2025 | $28.67 | $30.87 | +7.67% |
Aug 07, 2025 | $26.20 | $26.91 | +2.71% |
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.
FAQ
When does Dropbox (DBX) report earnings?
Dropbox (DBX) is schdueled to report earning on Jul 30, 2026, After Close (Confirmed).
What is Dropbox (DBX) earnings time?
Dropbox (DBX) earnings time is at Jul 30, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DBX EPS forecast?
DBX EPS forecast for the fiscal quarter 2026 (Q2) is 0.74.
