"What makes the miss particularly jarring is the underlying business strength visible through June. Revenue reached $218.7 million in Q2, up 13.6% year over year. Net income hit $37.0 million with a 15.2% profit margin. Operating margin stood at a healthy 16.3%. The company was printing money. Something shifted between the end of Q2 and the close of Q3, but management commentary on the miss has not yet been fully detailed."
"Despite the Q3 stumble, DigitalOcean's fundamental profitability profile remains intact. Through the first nine months of 2025, the company has generated $1.15 in diluted EPS. Full year 2024 delivered $1.92 per share. That means Q3's $0.00 result represents a one-quarter aberration, not a structural breakdown. The balance sheet and cash generation tell a similar story. EBITDA for the trailing twelve months stands at $254 million on trailing revenue of $832.8 million."
DigitalOcean reported Q3 2025 diluted EPS of $0.00 versus a $0.49 consensus, interrupting eight consecutive quarters of earnings beats. Revenue growth through Q2 was 13.6% year over year, with Q2 revenue of $218.7 million, net income of $37.0 million, and an operating margin of 16.3%. Year-to-date diluted EPS is $1.15 and full-year 2024 EPS was $1.92, indicating the Q3 result appears to be a one-quarter aberration rather than a structural failure. Trailing EBITDA is $254 million on $832.8 million revenue, implying a 30.5% EBITDA margin. Management has not fully explained the shift between Q2 and Q3, and the stock traded near $39.20 on November 4.
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