$DBX · DROPBOX, INC.
Dropbox filed its Q3 FY2026 10-Q. Revenue was $637.3M (+0.5% YoY), gross margin 80.6%, operating margin 27.5%, and diluted EPS $0.52 versus $0.47 a year ago. Net income declined to $116.1M from $123.8M, driven by net interest expense rising to $51.2M from $20.3M. Nine-month net income fell to $326.4M from $399.7M.
- Revenue grew only 0.5% YoY to $637.3M in Q3 FY2026.
- Net income fell to $116.1M from $123.8M a year earlier.
- Net interest expense more than doubled to $51.2M from $20.3M.
- Non-current term loan balance rose to $2,580.2M from $1,433.7M at year-end 2025.
- Weighted-average diluted shares fell to 225.1M from 265.1M, lifting EPS.
Price data unavailable.
Dropbox's stagnant top line and rising debt-service costs show a mature business leaning on buybacks and leverage rather than growth.
Dropbox's near-flat revenue growth reflects the mature, competitive content-collaboration market where AI-native rivals are pressuring legacy storage players.
The filing flags negative growth in past periods and warns servicing term loan and 2028 Notes debt may require significant cash that could exceed available cash flow.