Business
Dropbox Announces Fiscal 2025 Second Quarter Results
Second Quarter GAAP Operating Margin of 26.9% and Non-GAAP Operating Margin of 41.5% Net Cash Provided by Operating Activities of $260.5 Million and Free
About this update from Dropbox, Inc.
[{"type":"text","content":"\nSecond Quarter GAAP Operating Margin of 26.9% and Non-GAAP Operating Margin of 41.5%\nNet Cash Provided by Operating Activities of $260.5 Million and Free Cash Flow of $258.5 Million\nRevenue of $625.7 Million, down 1.4% year-over-year; on a constant currency basis, down 1.3% year-over-year\n\n\n SAN FRANCISCO--(BUSINESS WIRE)--\nDropbox, Inc. (NASDAQ: DBX), today announced financial results for its second quarter ended June 30, 2025.\n\n\n“We delivered a strong quarter in Q2, underscoring the durability of our business and making progress on our key product initiatives,” said Drew Houston, Dropbox Co-Founder and Chief Executive Officer. “We’re seeing early signs of stability in our Core FSS business, even at more efficient investment levels. At the same time, Dash—powered by AI—continues to build momentum, with stronger customer engagement in the last quarter as people increasingly turn to intelligent tools to improve their work. With a solid foundation and clear strategy, we’re confident in our ability to drive long-term growth across both existing and new product lines.”\n\n\nSecond Quarter Fiscal 2025 Results\n\n\n\nTotal revenue was $625.7 million, a decrease of 1.4% from the same period last year. On a constant currency basis, year-over-year revenue decreased by 1.3%.(1)\n\n\n\n\nTotal ARR was $2.542 billion, a decrease of 1.2% from the same period last year. On a constant currency basis, year-over-year ARR decreased by 1.1%.(2) Total ARR decreased $10.2 million quarter-over-quarter.\n\n\n\n\nPaying users totaled 18.13 million, as compared to 18.22 million for the same period last year. Average revenue per paying user was $138.32, as compared to $139.93 for the same period last year. Paying users decreased by 34,000 quarter-over-quarter.\n\n\n\n\nGAAP gross margin was 80.2%, as compared to 83.1% for the same period last year. Non-GAAP gross margin was 82.2%, as compared to 84.5% for the same period last year as the Company continues to support its datacenter refresh cycle.\n\n\n\n\nGAAP operating margin was 26.9%, as compared to 20.0% for the same period last year. Non-GAAP operating margin was 41.5%, as compared to 35.9% for the same period last year. The increase in GAAP operating margin was partially due to a decrease in employee-related costs driven by a decrease in headcount.\n\n\n\n\nGAAP net income was $125.6 mill...