AI Earnings Predictions for Dropbox Inc. (DBX)

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Dropbox Announces Third Quarter 2026 Results

Revenue of $637.3 Million, an increase of 0.5% year-over-year; excluding FormSwift, up 1.0% year-over-year

Third Quarter GAAP Operating Margin of 27.5% and Non-GAAP Operating Margin of 42.2%

Net Cash Provided by Operating Activities of $259.2 Million and Unlevered Free Cash Flow of $303.9 Million

Announced $350.0M planned acquisition of Tigris Data, a globally distributed, object storage platform built for AI

SAN FRANCISCO, Calif. - November 5, 2026 - Dropbox, Inc. (NASDAQ: DBX), today announced financial results for its third quarter ended September 30, 2026.

“Q3 was another beat-and-raise quarter, with revenue growth excluding FormSwift and non-GAAP operating margin both ahead of our guidance, marking our fifth consecutive quarter of year-over-year revenue growth excluding FormSwift,” said Ashraf Alkarmi, co-Chief Executive Officer of Dropbox. “We’re executing on our strategy to become the trusted, independent content foundation for the AI era, and I’m excited about the opportunity in front of us. We’re making our customers’ content smarter and more useful by connecting Dropbox to the AI tools they already use. And with DBX Agent Cloud and our agreement to acquire Tigris, we’re putting the infrastructure we’ve built over nearly two decades to work for companies building AI applications, opening a new avenue for growth.”

Third Quarter 2026 Results Compared to Third Quarter 2025

•Total revenue was $637.3 million, an increase of 0.5%. Excluding FormSwift, revenue grew 1.0%. On a constant currency basis, total revenue excluding FormSwift increased by 0.2%.(1)

•Total ARR was $2.555 billion, an increase of 0.8%. Excluding FormSwift, Total ARR grew 1.9%, and 0.4% on a constant currency basis. Total ARR on a constant currency basis decreased $10.4 million quarter-over-quarter due to completion of the wind down of FormSwift as of the end of the third quarter of 2026; excluding FormSwift, it increased $4.7 million quarter-over-quarter.(2)

•Paying users totaled 18.20 million, as compared to 18.07 million. Paying users increased by 20,000 quarter-over-quarter largely due to growth in our Simple plan and slight growth in Teams plan offset by the wind down of FormSwift. Average revenue per paying user was $138.76, as compared to $139.07.

•GAAP gross margin was 80.6%, as compared to 79.8%. Non-GAAP gross margin was 81.8%, as compared to 81.4%.

•GAAP operating margin was flat at 27.5%. Non-GAAP operating margin was 42.2%, as compared to 41.1%.

•GAAP net income was $116.1 million, as compared to $123.8 million. Non-GAAP net income was $197.8 million, as compared to $196.7 million.

•Net cash provided by operating activities was $259.2 million, as compared to $302.1 million. Unlevered free cash flow was $303.9 million, as compared to $314.2 million.

•GAAP diluted net income per share attributable to common stockholders was $0.52, as compared to $0.47. Non-GAAP diluted net income per share attributable to common stockholders was $0.88, as compared to $0.74.(3)

•Cash, cash equivalents and short-term investments ended at $1.142 billion.

Recent Business Highlights

•On November 5, 2026, Dropbox introduced DBX Agent Cloud, a new infrastructure business for companies and developers building AI applications, starting with standalone, S3-compatible object storage and expanding over time to include filesystem and content-processing capabilities.

•On November 5, 2026, Dropbox announced an agreement to acquire Tigris Data Inc., a globally distributed object storage platform, for approximately $350.0 million in cash, subject to customary purchase price adjustments. The acquisition is expected to close in the fourth quarter of 2026, subject to customary closing conditions.

•On November 5, 2026, Dropbox launched the new Dropbox experience, which lets customers find, understand, create, and edit content directly in Dropbox.

(1) We calculate constant currency revenue growth rates by applying the prior period weighted average exchange rates to current period results.

(2) We calculate total annual recurring revenue ("Total ARR") as the number of users who have active paid licenses for access to our platform as of the end of the period, multiplied by their annualized subscription price to our platform. We adjust our exchange rates used to calculate Total ARR on an annual basis, at the beginning of each fiscal year. We calculate constant currency Total ARR growth rates by applying the current period exchange rate to prior period results.

(3) GAAP and Non-GAAP diluted net income per share attributable to common stockholders is calculated based upon 225.1 million and 265.1 million diluted weighted-average shares outstanding of common stock for the three months ended September 30, 2026 and 2025, respectively.

Financial Outlook

Dropbox will provide forward-looking guidance in connection with this quarterly earnings announc

dbx-20261028

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

October 28, 2026

Date of Report (date of earliest event reported)

DROPBOX, INC.

(Exact name of Registrant as specified in its charter)

Nevada001-3843426-0138832

(State or other jurisdiction of incorporation)(Commission File Number)(I. R. S. Employer Identification No.)

50 Hawthorne Street

San Francisco, California 94105

(Address of principal executive offices)

(415) 930-7766

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of exchange on which registered

Class A Common Stock, par value $0.00001 per shareDBXThe NASDAQ Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02Results of Operations and Financial Condition

On October 28, 2026, Dropbox, Inc. (“Dropbox” or the “Company”) announced that it expects its third quarter 2026 financial results to be in-line with or above its guidance ranges for revenue, constant currency revenue, and non-GAAP operating margin, previously provided in the investor supplement posted on the Company’s investors.dropbox.com website on August 6, 2026. These results are based on preliminary unaudited financial and other information, and subject to normal quarterly closing processes and accounting review. As previously announced, the Company is scheduled to report its third quarter 2026 financial results on Thursday, November 5, 2026.

Item 2.05Costs Associated with Exit or Disposal Activities

On October 28, 2026, Dropbox announced a reduction of its global workforce by approximately 9% to align the Company’s investments and team structure with its top product and growth priorities and support its long-term strategy.

Dropbox estimates that the reduction in force will result in total cash expenditures of approximately $27 million to $33 million, primarily consisting of severance payments, employee benefits and related costs. Severance payments will include the pro rata amount of the fiscal year 2026 annual employee bonus.

The Company has accrued compensation expense through September 30, 2026 for a portion of the annual bonus amounts and expects to recognize $20 million to $25 million of incremental expense related to the aforementioned severance, benefits and related costs.

The Company expects to recognize substantially all of the incremental expense and pay a majority of the cash amounts related to this reduction in force in the fourth quarter of 2026, with the remainder to be recognized and paid in 2027. The estimated cash expenditures and incremental expenses are based on certain assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from such estimates.

Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On October 28, 2026, the Company announced that Ali Dasdan, Chief Technology Officer of Dropbox, will step down from the Company effective on November 18, 2026. In connection with his departure, Mr. Dasdan will be entitled to severance benefits under his previously disclosed change in control and severance agreement. In addition, pursuant to the separation agreement (the “Separation Agreement “) entered into between the Company and Mr. Dasdan, Mr. Dasdan will receive a pro rata bonus equal to $515,000 as well as a lump sum cash payment equal to approximately $1.3 million, as well as certain additional benefits consistent with those received by other departing employees.

The foregoing

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