Dropbox (NASDAQ:DBX) Announces Earnings Results

Dropbox (NASDAQ:DBX) released its quarterly earnings data on Thursday. The company reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.02, FiscalAI reports. The firm had revenue of $636.20 million for the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. The business’s revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.73 earnings per share.

Here are the key takeaways from Dropbox’s conference call:

• Q4 results beat expectations with margin outperformance and the company generated over $1 billion of unlevered free cash flow, while repurchasing more than 50 million shares in 2025.
• Full‑year 2026 guidance implies roughly flat revenue (excluding the FormSwift wind‑down) and the company plans material Dash investments this year, so management does not expect margin expansion in 2026.
• Early Dash adoption is encouraging — over half of initial Dash‑and‑Dropbox active users return multiple days per week — and Dropbox is scaling the rollout with Dash positioned both to improve FSS retention and to become a standalone monetization opportunity (early Protect & Control enterprise demand noted).
• Leadership resets and go‑to‑market/product changes in core FSS improved funnel quality, pricing/packaging, onboarding and retention, producing sequential paying‑user improvement and modest ARPU tailwinds heading into 2026.

Dropbox Stock Up 1.9%

DBX traded up $0.47 on Friday, hitting $25.20. The company’s stock had a trading volume of 2,110,666 shares, compared to its average volume of 3,996,359. The firm has a market cap of $6.52 billion, a P/E ratio of 14.23, a price-to-earnings-growth ratio of 2.02 and a beta of 0.63. The company’s 50 day simple moving average is $26.53 and its 200-day simple moving average is $28.35. Dropbox has a 12 month low of $23.63 and a 12 month high of $32.40.

Insider Buying and Selling

In other news, CAO Sarah Elizabeth Schubach sold 1,416 shares of the company’s stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $24.49, for a total transaction of $34,677.84. Following the sale, the chief accounting officer directly owned 86,319 shares in the company, valued at $2,113,952.31. This represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Andrew Houston sold 164,502 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $25.66, for a total transaction of $4,221,121.32. The disclosure for this sale is available in the SEC filing. Insiders have sold 430,423 shares of company stock worth $11,705,876 in the last 90 days. 29.95% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dropbox

A number of institutional investors have recently added to or reduced their stakes in DBX. Palisade Asset Management LLC purchased a new position in shares of Dropbox during the third quarter worth about $30,000. Kestra Advisory Services LLC purchased a new position in Dropbox in the 4th quarter worth approximately $31,000. Geneos Wealth Management Inc. increased its holdings in shares of Dropbox by 78.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock worth $36,000 after buying an additional 558 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Dropbox during the 4th quarter valued at $38,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in shares of Dropbox by 88.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock worth $48,000 after acquiring an additional 787 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday, January 21st. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. Royal Bank Of Canada lowered their target price on shares of Dropbox from $35.00 to $30.00 and set an “outperform” rating for the company in a report on Friday. Finally, UBS Group reissued a “sell” rating and set a $23.00 price target on shares of Dropbox in a research report on Friday. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $28.33.

Key Stories Impacting Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q4 results: Dropbox reported $0.68 EPS vs. $0.66 expected and revenue of $636.2M vs. $627.8M expected; management highlighted accelerating customer growth despite slight year‑over‑year revenue decline. Dropbox’s Q4 CY2025: Beats On Revenue, Customer Growth Accelerates
• Positive Sentiment: Revenue guidance: Dropbox gave Q1 revenue guidance of $618.0M–$621.0M (vs. consensus ~$615.5M) and maintained FY‑26 revenue near $2.5B, suggesting modest upside to Street revenue assumptions. Dropbox Announces Fourth Quarter and Fiscal 2025 Results
• Neutral Sentiment: Earnings tone and transcript: Management emphasized operating discipline and reshaping investments — constructive long‑term messaging but short‑term execution risks remain; full call transcript available for details. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Insider activity: CAO Sarah Schubach sold 1,416 shares (~$34.7K) — a small reduction in a large holding; not large enough to signal material insider de‑risking. SEC Filing
• Negative Sentiment: Analyst PT cut: RBC lowered its price target from $35 to $30 (still an “Outperform” rating), trimming a previously higher upside expectation and likely capping near‑term buying interest. RBC price target cut coverage
• Negative Sentiment: Premarket weakness: DBX was called out among names falling in premarket trading alongside other tech stocks, contributing to early pressure despite the quarter beat. Premarket movers

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.