Dropbox (DBX) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $637.3M, up 0.5% YoY, with non-GAAP operating margin of 42.2%; revenue grew for a fifth straight quarter excluding FormSwift.

• Paying users grew for a fourth consecutive quarter, with ~20,000 net additions sequentially; FY2026 revenue and operating-margin outlook increased.

• Strategy spans the core file-sync-and-share business, paid content workflows, and AI infrastructure through DBX Agent Cloud and planned Tigris acquisition.

Financial highlights

• Revenue excluding FormSwift grew 1.0% YoY, or 0.2% on a constant-currency basis; total ARR was $2.555B, up 0.8% YoY.

• Non-GAAP net income was $197.8M and diluted EPS was $0.88; GAAP net income was $116.1M and diluted EPS was $0.52.

• Operating cash flow was $259.2M vs. $302.1M; unlevered free cash flow was $303.9M, up 14% per share YoY to $1.35.

• Cash and short-term investments totaled $1.142B at quarter-end.

Outlook and guidance

• Q4 revenue guidance is $630M–$633M; constant-currency revenue is $627M–$630M, with non-GAAP operating margin expected at ~40%.

• FY2026 revenue guidance rose to $2.528B–$2.531B; constant-currency guidance is $2.500B–$2.503B.

• FY2026 non-GAAP operating margin guidance increased to 40.5%; gross margin is expected at ~81.5%, and unlevered free cash flow at or above $1.075B.

• FY2027 revenue is expected to be ~flat excluding Tigris, with ~150 bps of operating-margin expansion; formal guidance is planned for February.