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Dropbox (DBX) investor relations material

Dropbox Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Q2 2025 revenue ranged from $625.7M to $634.5M, down 1.4% year-over-year, mainly due to reduced FormSwift investment and Teams plan weakness, but supported by improved retention and engagement.

  • Net income for Q2 2025 was $125.6M–$198M, up year-over-year, driven by lower operating expenses and efficiency initiatives.

  • Paying users declined to 18.13M as of June 30, 2025, reflecting strategic shifts and macroeconomic headwinds.

  • Free cash flow for Q2 2025 was $258.5M–$276M, with H1 2025 free cash flow at $412.2M, up year-over-year.

  • Continued investment in AI-powered products like Dash, with positive early adoption and engagement signals.

Financial highlights

  • Q2 2025 revenue: $625.7M–$634.5M (down 1.4% year-over-year); constant currency revenue declined 1.3%.

  • Gross margin was 80%–83.1%, down year-over-year; operating margin improved to 41.5% (non-GAAP).

  • Net income for Q2 2025 was $125.6M–$198M; diluted EPS was $0.45–$0.71, both up year-over-year.

  • Free cash flow for Q2 2025 was $258.5M–$276M; H1 2025 free cash flow was $412.2M.

  • Total ARR was $2.542B, down 1.2% year-over-year; ARPU was $138.32, slightly down.

Outlook and guidance

  • FY25 revenue guidance: $2.49B–$2.5B; constant currency revenue $2.488B–$2.498B.

  • FY25 non-GAAP gross margin expected at ~82%; operating margin at ~39%.

  • Unlevered free cash flow projected at or above $970M for FY25; CapEx guidance $25M–$30M.

  • Q3 2025 revenue guidance: $622M–$625M, with a $3M currency tailwind.

  • Paying users expected to decline by ~300,000 for the year, with FormSwift accounting for about half.

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Frequently asked questions

Dropbox, Inc. provides a content collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. Content on the Dropbox platform includes various file types, such as text and image files (e.g., Portable Document Format (PDF), Microsoft Office formats), digital media files (e.g., videos or audio recordings), Web-based content (e.g., HTML files), multiple file types that are put together in various electronic forms (e.g., interactive forms or brochures). Products offered by the company include Dropbox Business that helps teams focus on the work that matters; Dropbox Professional for individual users and freelancers; Dropbox Plus for teams and individuals; and a free version of Dropbox with space for photos and important documents.

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