📊 DBX Key Takeaways
Investment Thesis
Dropbox demonstrates strong operational profitability with 80.1% gross margins and robust free cash flow generation (36.9% FCF margin), but faces concerning structural financial challenges. The negative stockholders' equity of -$1.8B and deteriorating liquidity (0.63x current ratio) present significant solvency risks that offset otherwise healthy operational metrics, requiring careful monitoring of balance sheet recovery.
DBX Strengths
- Exceptional gross margin of 80.1% demonstrates strong pricing power and unit economics
- Robust free cash flow generation of $930.8M with 36.9% FCF margin provides financial flexibility despite balance sheet concerns
- Net income growth of 12.4% YoY and EPS growth of 32.9% YoY show improving profitability and operating leverage
- Operating margin of 27.3% reflects efficient cost management and scalable business model
DBX Risks
- Negative stockholders' equity of -$1.8B indicates liabilities exceed assets, creating serious balance sheet insolvency risk
- Weak liquidity position with current ratio of 0.63x raises concerns about near-term obligations coverage
- Revenue decline of 1.1% YoY suggests top-line growth stalling in mature competitive market
- Long-term debt of $1.4B coupled with negative equity limits financial flexibility and refinancing options
Key Metrics to Watch
- Stockholders' equity recovery trajectory and debt reduction progress
- Revenue growth stabilization and return to positive YoY growth
- Operating cash flow sustainability and capital allocation priorities
- Current ratio improvement and working capital management
DBX Financial Metrics
💡 AI Analyst Insight
The 36.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
DBX Profitability Ratios
DBX vs Technology Sector
How DROPBOX, INC. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DBX Balance Sheet & Liquidity
DBX 5-Year Financial Trend
5-Year Trend Summary: DROPBOX, INC.'s revenue has grown significantly by 18% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.31 reflects profitable operations.
DBX Growth Metrics (YoY)
DBX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $634.4M | $106.7M | $0.34 |
| Q2 2025 | $625.7M | $110.5M | $0.34 |
| Q1 2025 | $624.7M | $132.3M | $0.39 |
| Q3 2024 | $633.0M | $106.7M | $0.33 |
| Q2 2024 | $622.5M | $43.2M | $0.13 |
| Q1 2024 | $611.1M | $69.0M | $0.20 |
| Q3 2023 | $591.0M | $83.2M | $0.23 |
| Q2 2023 | $572.7M | $43.2M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DBX Capital Allocation
DBX SEC Filings
Access official SEC EDGAR filings for DROPBOX, INC. (CIK: 0001467623)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773871544.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773434816.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773434679.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772754687.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772663565.xml | View → |
❓ Frequently Asked Questions about DBX
What is the AI rating for DBX?
DROPBOX, INC. (DBX) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DBX's key strengths?
Claude: Exceptional gross margin of 80.1% demonstrates strong pricing power and unit economics. Robust free cash flow generation of $930.8M with 36.9% FCF margin provides financial flexibility despite balance sheet concerns.
What are the risks of investing in DBX?
Claude: Negative stockholders' equity of -$1.8B indicates liabilities exceed assets, creating serious balance sheet insolvency risk. Weak liquidity position with current ratio of 0.63x raises concerns about near-term obligations coverage.
What is DBX's revenue and growth?
DROPBOX, INC. reported revenue of $2.5B.
Does DBX pay dividends?
DROPBOX, INC. does not currently pay dividends.
Where can I find DBX SEC filings?
Official SEC filings for DROPBOX, INC. (CIK: 0001467623) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DBX's EPS?
DROPBOX, INC. has a diluted EPS of $1.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.