Dropbox (DBX) AI Stock Analysis

• Market Cap: $7.48B
• Dividend Yield: N/A
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.84
• Revenue Growth: -0.44%
• EPS Growth: 2.47%
• Country: US
• Employees: 2,204
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.74
• Shares Outstanding: 174,422,940
• 10 Day Avg. Volume: 3,794,876
• 30 Day Avg. Volume: 3,478,119
• PEG Ratio: 3.12
• Price to Book (P/B): -12.70
• Price to Sales (P/S): 3.75
• P/FCF Ratio: 10.97
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 4.09
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: 13.05
• 1Y Price Target: $30.60
• Price Target Upside: 2.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.81
• Revenue Forecast (FY): $2.51B

• Rating: 65 Neutral
• Price Target: $33.00 ▲(10.44% Upside)

Dropbox's overall stock score reflects a balance of strong profitability and cash flow generation against risks from declining revenue growth and negative equity. Technical indicators are moderately positive, supporting a stable outlook. Valuation is fair, but the lack of a dividend yield may deter some investors. The company's strategic initiatives, particularly around Dash, offer potential for future growth, but challenges in user retention and revenue growth remain.

Positive Factors

Cash Flow Management

Strong cash flow management indicates Dropbox's ability to generate cash efficiently, supporting operations and strategic investments.

Operating Margin Improvement

Improved operating margins reflect enhanced cost management and operational efficiency, bolstering long-term profitability.

Product Enhancements

Enhancements in Dash improve user experience and engagement, potentially driving future growth and competitive positioning.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining sales momentum, which could impact long-term growth prospects.

High Leverage

High leverage poses financial risks, limiting flexibility and potentially affecting the company's ability to invest in growth.

Decline in Paying Users

A decline in paying users indicates potential issues with user retention and product appeal, impacting revenue stability.

Dropbox Business Overview & Revenue Model

Company Description

Dropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. As of December 31, 2021, the company had approximately 700 million registered users. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

How the Company Makes Money

Dropbox generates revenue primarily through a subscription-based model. The company offers various pricing tiers for individual users and businesses, with features that scale according to the needs of the user. Key revenue streams include monthly and annual subscription fees from its personal plans (like Dropbox Plus and Dropbox Family) and numerous business solutions (like Dropbox Business and Dropbox Enterprise). Additionally, Dropbox has established partnerships with third-party applications and services, enhancing its offerings and driving user engagement. The company also monetizes through enterprise-level services that provide advanced security and administrative controls for organizations. Overall, the combination of diverse subscription plans, partnerships, and a focus on user retention contributes significantly to Dropbox's earnings.

Dropbox Financial Statement Overview

Summary

Dropbox shows strong profitability and cash flow generation, with gross profit margins consistently above 80% and a healthy net profit margin around 20%. However, the declining revenue growth rate and negative stockholders' equity pose significant risks, indicating potential financial instability.

Income Statement

Dropbox shows strong gross profit margins consistently above 80%, indicating efficient cost management. However, the TTM revenue has declined by 17.4%, which is a concern. Net profit margins are healthy at around 20%, but the declining revenue growth rate suggests potential challenges in sustaining growth.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, resulting in a negative debt-to-equity ratio, which is a significant risk factor. The return on equity is also negative, indicating inefficiencies in generating returns from equity. These factors suggest financial instability and potential leverage risks.

Cash Flow

Dropbox has demonstrated strong free cash flow growth and a high free cash flow to net income ratio, indicating effective cash generation. The operating cash flow to net income ratio is below 1, suggesting some room for improvement in converting income to cash flow, but overall cash flow health is robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.53B	2.55B	2.50B	2.32B	2.16B	1.91B
Gross Profit	2.04B	2.10B	2.02B	1.88B	1.71B	1.50B
EBITDA	792.20M	623.60M	553.50M	513.60M	457.10M	280.50M
Net Income	502.50M	452.30M	453.60M	553.20M	335.80M	-256.30M
Balance Sheet
Total Assets	2.80B	3.33B	2.98B	3.11B	3.09B	2.39B
Cash, Cash Equivalents and Short-Term Investments	925.30M	1.59B	1.36B	1.34B	1.72B	1.12B
Total Debt	3.25B	3.00B	2.03B	2.29B	2.37B	1.12B
Total Liabilities	4.33B	4.08B	3.15B	3.42B	3.39B	2.05B
Stockholders Equity	-1.53B	-752.40M	-165.80M	-309.40M	-293.90M	333.80M
Cash Flow
Free Cash Flow	916.40M	871.60M	759.10M	762.40M	700.90M	490.50M
Operating Cash Flow	930.20M	894.10M	783.70M	797.30M	729.80M	570.80M
Investing Cash Flow	179.80M	443.80M	395.20M	-48.50M	-524.80M	-233.60M
Financing Cash Flow	-866.00M	-586.60M	-799.20M	-1.04B	16.20M	-577.70M

Dropbox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBX, the sentiment is Positive. The current price of 29.88 is above the 20-day moving average (MA) of 29.67, above the 50-day MA of 29.72, and above the 200-day MA of 28.49, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 49.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DBX.

Dropbox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKAM	74 Outperform	$13.05B	26.60	10.64%	―	4.21%	-0.63%
DOCN	73 Outperform	$4.13B	18.32	―	―	14.20%	204.86%
BOX	66 Neutral	$4.35B	24.13	163.44%	―	6.29%	62.03%
DBX	65 Neutral	$7.48B	16.94	―	―	-0.44%	2.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CFLT	59 Neutral	$7.37B	―	-29.62%	―	21.58%	18.88%
VRNS	48 Neutral	$3.71B	―	-22.17%	―	11.37%	-34.44%

Dropbox Corporate Events

Dropbox Earnings Call: Mixed Sentiment and Strategic Growth

The recent earnings call for Dropbox presented a mixed sentiment, highlighting both positive developments and challenges. The company reported improved operating margins, product enhancements, and an increase in revenue guidance. However, these positives were tempered by challenges such as declining revenue and a decrease in paying users. Despite these setbacks, Dropbox’s strategic initiatives, particularly around its Dash product, show promising early engagement and potential for future growth.

Dropbox Reports Strong Margins Amid Revenue Dip

Dropbox, Inc. is a San Francisco-based technology company that provides cloud storage and collaboration tools to over 700 million registered users worldwide, aiming to enhance productivity and organization in both personal and professional settings.

Dropbox Reports Strong Q3 2025 Financial Results

On November 6, 2025, Dropbox announced its fiscal 2025 third-quarter financial results, highlighting a GAAP operating margin of 27.5% and a non-GAAP operating margin of 41.1%. Despite a slight year-over-year revenue decrease of 0.7% to $634.4 million, the company exceeded its revenue guidance and improved its operating margins. The launch of a self-serve version of Dash and integration with Dropbox has been positively received, contributing to enhanced customer retention and execution in its core business. The financial results reflect Dropbox’s focus on sustainable growth, with net cash provided by operating activities reaching $302.1 million and free cash flow at $293.7 million.

The most recent analyst rating on (DBX) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Dropbox stock, see the DBX Stock Forecast page.

Dropbox Secures $700M Loan, Announces Share Buyback

On September 9, 2025, Dropbox, Inc. announced an amendment to its Credit and Guaranty Agreement, securing up to an additional $700 million in delayed draw term loans to address its convertible senior notes due in 2026. Additionally, Dropbox authorized a new share repurchase program for $1.5 billion of its Class A common stock, reflecting strategic financial maneuvers to enhance shareholder value and manage debt obligations.

The most recent analyst rating on (DBX) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Dropbox stock, see the DBX Stock Forecast page.

Dropbox Appoints Sarah Schubach as Chief Accounting Officer

Dropbox, Inc. announced the appointment of Sarah Schubach as the Chief Accounting Officer, effective August 21, 2025. Ms. Schubach has been with the company since 2013, holding various finance leadership roles, and her new position signifies a strategic move to strengthen the company’s financial operations.

The most recent analyst rating on (DBX) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Dropbox stock, see the DBX Stock Forecast page.

Dropbox Earnings Call: Mixed Sentiment Amid Revenue Challenges

The recent earnings call for Dropbox presented a mixed sentiment, reflecting both positive achievements and ongoing challenges. While the company reported better-than-expected revenue and operating margins, along with positive engagement metrics for its Dash product and improvements in its Core FSS business, these were counterbalanced by declines in paying users, overall revenue, and average revenue per user (ARPU). Despite strong cash flow and raised guidance, the persistent issues in user retention and revenue decline contribute to a balanced yet cautious outlook.

Dropbox Reports Resilient Q2 2025 Earnings

Dropbox, Inc., a leading provider of cloud-based file storage and collaboration tools, operates within the technology sector, offering innovative solutions to enhance workplace productivity.