DigitalOcean Reports 381% Surge in Q3 Profit, Revenue Hits $229.6M

UPDATE: DigitalOcean Holdings Inc. (NYSE: DOCN) has just reported a staggering 381% increase in net income for the third quarter ending September 30, 2025, marking a significant moment for the Broomfield-based cloud infrastructure provider. The latest financial results reveal a revenue surge to $229.6 million, up 16% from $198.5 million in the same quarter last year.

The company’s net income attributable to common stockholders skyrocketed to $158 million, a remarkable leap from $32.9 million in Q3 2024. This impressive growth was largely fueled by a one-time income-tax benefit from the release of a valuation allowance totaling $70 million on certain deferred tax assets, alongside a one-time gain of $48 million from the partial extinguishment of 2026 Convertible Notes.

In a statement addressing the company’s performance, CEO Paddy Srinivasan declared, “DigitalOcean’s unified agentic cloud is driving accelerated momentum in Q3.” The results exceeded analysts’ expectations, with DigitalOcean’s net income per share reaching 54 cents, surpassing the Zacks consensus estimate of 50 cents.

Looking ahead, DigitalOcean forecasts fourth-quarter revenue between $237 million and $238 million, with a full-year projection of $896 million to $897 million for 2025. These optimistic projections highlight the company’s strong market position and growth trajectory.

Despite the positive earnings report, DigitalOcean’s stock closed at $49.99 on Tuesday, reflecting a decline of $1.68, or 3.25%. Investors will be keenly monitoring how this financial performance impacts stock movement in the coming days.

This development comes as DigitalOcean, which relocated its headquarters to Broomfield earlier this year, continues to enhance its offerings and solidify its footprint in the competitive cloud market. As the company pushes forward in an evolving tech landscape, stakeholders and market watchers will be eager to see how these financial results translate into long-term growth and strategic initiatives.

Stay tuned for further updates on DigitalOcean’s performance and market strategies as they unfold.