Dropbox's earnings call highlighted stronger-than-expected revenue and margin performance, successful product engagement with Dash, and growth in document workflow services. However, there were challenges such as a decline in overall revenue, a reduction in paying users, and impacts from the FormSwift business. Despite these issues, the positive financial metrics and product successes indicate a stable outlook.

Company Guidance

During Dropbox's Second Quarter 2025 Earnings Call, the company provided various metrics and guidance for the future. Revenue for Q2 2025 was $626 million, reflecting a 1.4% year-over-year decline, with total Annual Recurring Revenue (ARR) at $2.542 billion, down 1.2% from the previous year. The company ended the quarter with 18.13 million paying users, a sequential decline of approximately 34,000. Average revenue per paying user was $138.32. Operating margin was reported at 41.5%, significantly exceeding the guidance of 37.5%, and net income for the second quarter was $198 million, a 2% year-over-year increase. For the third quarter of 2025, Dropbox expects revenue between $622 million and $625 million and a non-GAAP operating margin of approximately 37%. For the full year 2025, the company raised its revenue guidance midpoint by $12.5 million, now expecting a range of $2.490 billion to $2.500 billion, and increased its operating margin guidance to approximately 39%. Cash flow from operations was $261 million, up 13% year-over-year, with capital expenditures of $2 million, resulting in unlevered free cash flow of $276 million. The company plans to continue investing in its Dash product, with a self-serve version launch anticipated, and aims to address the small to medium-sized business market with this offering.

Revenue and Margin Performance

Revenue came in ahead of guidance at $626 million, with operating margin at 41.5%, exceeding expectations and reflecting a disciplined approach to hiring and marketing spend.

Product and Engagement Momentum

Dash for Business showed positive early signals with increasing customer engagement and key cohort metrics, such as weekly active users and activity rates per week.

Document Workflow Growth

DocSend continues to grow at a double-digit pace year-over-year, reflecting ongoing investment and customer satisfaction.

Share Repurchase Program

Dropbox repurchased approximately 14 million shares, spending around $400 million, with $470 million remaining under the existing authorization.

Improved Cash Flow

Cash flow from operations increased by 13% compared to the previous year, reaching $261 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
Oct 30, 2025	2025 (Q3)	0.65 / -	0.6	―	―	―
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)
Aug 03, 2023	2023 (Q2)	0.46 / 0.51	0.38	34.21% (+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
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%
Nov 07, 2024	$27.88	$27.04	-3.01%

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.