- Adjusted free cash flow was $57 million or 26% of revenue, significantly improved from Q1, with full year free cash flow margin guidance raised to 17%-19%.
- DigitalOcean reported Q2 2025 revenue of $219 million, a 14% year-over-year increase, driven by strong growth in AI/ML revenue which grew over 100% year-over-year.
- Gross margin improved to 60%, up 100 basis points year-over-year, while adjusted EBITDA was $89 million, up 10% year-over-year, with a margin of 41%.
- Incremental ARR in Q2 was $32 million, the highest organic incremental ARR in over 3 years and since Q4 2022.
- Non-GAAP diluted net income per share increased 23% year-over-year to $0.59, and GAAP diluted net income per share nearly doubled to $0.39.
- Revenue from Scalers+ customers (annual run rate over $100,000) grew 35% year-over-year and accounted for 24% of total revenue.
- The company ended Q2 with $388 million in cash and continued share repurchases totaling $20 million in the quarter, with $3.4 million remaining on the current authorization.
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