DigitalOcean Reports Record Q3 Surge in Revenue and Profit

UPDATE: DigitalOcean Holdings Inc. has just announced a remarkable surge in revenue and profits for the third quarter ending September 30, 2025. The Broomfield-based cloud infrastructure provider reported $229.6 million in revenue, marking a significant 16% increase from $198.5 million during the same period last year.

The company’s net income skyrocketed to $158 million, an astonishing rise of 381% year-over-year from $32.9 million. This impressive growth can be attributed to a one-time income-tax benefit related to a $70 million release of a valuation allowance on certain deferred tax assets, along with a one-time gain of $48 million from the partial extinguishment of 2026 Convertible Notes in Q3.

DigitalOcean’s earnings per share hit 54 cents, surpassing the Zacks consensus estimate of 50 cents. CEO Paddy Srinivasan expressed optimism, stating, “DigitalOcean’s unified agentic cloud is driving accelerated momentum in Q3.”

Looking ahead, DigitalOcean projects fourth-quarter revenue between $237 million and $238 million, with full-year revenue estimates reaching as high as $897 million. This forward-looking guidance indicates sustained confidence in their growth trajectory.

Despite this robust performance, DigitalOcean’s stock closed at $49.99, down $1.68 or 3.25% on the day. The market response underscores the volatility that can accompany significant earnings announcements.

As DigitalOcean continues to expand its cloud offerings, industry analysts will closely monitor its performance in the upcoming quarters. Stay tuned for further updates on this developing story, as DigitalOcean remains a key player in the cloud infrastructure market.

This report is based on the latest earnings release from DigitalOcean and reflects the company’s strategic position in a rapidly evolving industry landscape.