Brief: Dropbox Q2 Revenue USD 625.7 Million Vs. IBES Estimate USD 618.5 Million

Dropbox

07/08/2025 21:22

Overview

Dropbox fiscal Q2 revenue down 1.4% yr/yr, beats analyst expectations, per LSEG data

Adjusted EPS for fiscal Q2 beats consensus, reflecting strong operational performance

GAAP operating margin improves to 26.9%, driven by reduced employee-related costs

Outlook

Company to provide guidance during conference call and on investor relations site

Result Drivers

CORE FSS STABILITY - Dropbox notes early signs of stability in its Core FSS business despite lower investment levels

AI MOMENTUM - Increased customer engagement with AI-powered Dash product, contributing to overall business momentum

COST REDUCTION - Improved GAAP operating margin attributed to decreased employee-related costs following headcount reduction

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$625.70 mln
$618.50 mln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.71
$0.63 (10 Analysts)
Q2 EPS
$0.45
Q2 Adjusted Net Income
Beat
$197.70 mln
$178 mln (8 Analysts)
Q2 Net Income
$125.60 mln
Q2 Gross Margin
80.2%
Q2 Adjusted EBIT Margin
41.5%
Q2 EBIT Margin
26.9%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Dropbox Inc is $29.00, about 8.6% above its August 6 closing price of $26.51

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw9Sdl3Qa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)