分组1 - Dropbox reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, but down from $0.73 per share a year ago, representing an earnings surprise of +2.52% [1] - The company achieved revenues of $636.2 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.39%, although this is a decrease from $643.6 million in the same quarter last year [2] - Over the last four quarters, Dropbox has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed, losing about 11.2% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $618.88 million, and for the current fiscal year, it is $3.06 on revenues of $2.5 billion [7] - The Zacks Industry Rank places the Internet - Services sector in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Dropbox (NasdaqGS:DBX) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Company ParticipantsDrew Houston - CEO and Co-FounderMatt Bullock - Equity Research AssociatePeter Stabler - Head of Investor RelationsRishi Jaluria - Managing Director of Software Equity ResearchRoss Tennenbaum - CFOConference Call ParticipantsGeorge Kurosawa - Equity Research AnalystJaiden Patel - Equity Research AnalystOperatorThank you for standing by, and welcome to the Dropbox fourth quarter 2025 earnings conference call. At th ...

Financial Data and Key Metrics Changes - In Q4 2025, revenue was $636 million, a decline of 110 basis points year-over-year, but increased 40 basis points when excluding FormSwift, which was a 150 basis point headwind [22] - Total ARR was $2.526 billion, down 190 basis points year-over-year, and down 30 basis points when excluding FormSwift [23] - Average revenue per paying user (ARPU) increased to $139.68 from $139.07 in the prior quarter, primarily due to FX tailwinds and a shift from annual to monthly plans [23][24] - Gross margin was 80.8%, down 230 basis points year-over-year, while operating margin was 38.2%, exceeding guidance of 37% [24][25] Business Line Data and Key Metrics Changes - The core FSS business showed steady growth in 2025, with improvements in funnel quality, pricing, and retention drivers [6][17] - The individuals business demonstrated growth, indicating that focused innovation can lead to better retention and growth [6] - The introduction of Dash capabilities within Teams plans has shown promising early engagement, with over half of active users returning multiple days per week [8] Market Data and Key Metrics Changes - The company exited Q4 with 18.08 million paying users, a sequential increase of approximately 10,000 users, driven by momentum in the simple plan [23] - The company expects modestly negative net new paying users in Q1 2026, largely due to seasonality and FormSwift headwinds, with flat growth anticipated for the remainder of the year [32] Company Strategy and Development Direction - The company aims to restore revenue growth while focusing on efficiency and improving the core business [12][16] - The strategy includes scaling Dash as a standalone product and integrating AI capabilities into the core FSS offering [10][19] - M&A is viewed as a potential growth lever, with a focus on strategic acquisitions that can expand the product portfolio and contribute to incremental ARR [19][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the direction of the company, emphasizing the importance of execution and scaling successful initiatives [12][22] - The company acknowledges the competitive landscape of the FSS market but believes that recent leadership changes and product innovations will drive sustained improvements in retention and growth [17][68] - The outlook for 2026 includes expectations for flat revenue growth, with continued investments in product development and customer engagement [32][33] Other Important Information - The company repurchased approximately 14 million shares in Q4, spending about $415 million, with $1.17 billion remaining under the share repurchase authorization [29] - The company has executed subleases in its real estate portfolio, expecting to generate approximately $97 million in total future cash payments [28] Q&A Session Questions and Answers Question: Can you provide quantitative metrics around Dash? - Management indicated that the focus is currently on product quality and engagement, with specific metrics to be shared as adoption scales [38][39] Question: What metrics can you provide around engagement with Dash? - Management noted strong early engagement from users, with good results from initial trials, and plans to accelerate the rollout of Dash [51] Question: What drove improvements in retention? - Improvements were attributed to new leadership and initiatives aimed at enhancing the customer journey and product experience [68]

Dropbox (NasdaqGS:DBX) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Speaker4Thank you for standing by, and welcome to the Dropbox fourth quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star ...

Financial Results & Investor Presentation Q4 2025 Safe Harbor Statement This presentation contains forward-looking statements. These statements may relate to, but are not limited to, plans for growth, technological capabilities and new features and products and the long-term financial targets of Dropbox, Inc. ("Dropbox," "we," "us," or similar terms), as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predic ...

Dropbox Announces Fourth Quarter and Fiscal 2025 Results Fourth Quarter GAAP Operating Margin of 25.5% and Non-GAAP Operating Margin of 38.2% Net Cash Provided by Operating Activities of $235.4 Million and Unlevered Free Cash Flow of $250.5 Million Revenue of $636.2 Million, down 1.1% year-over-year; excluding FormSwift, up 0.4% year-over-year Fiscal 2025 GAAP Operating Margin of 27.3% and Non-GAAP Operating Margin of 40.6% Net Cash Provided by Operating Activities of $951.8 Million and Unlevered Free Cash ...

By Jo Constantz   International Business Machines Corp. said it will triple entry-level hiring in the US in 2026, even as artificial intelligence appears to be weighing on broader demand for early-career workers.    While the company declined to disclose specific hiring figures, it said the expansion will be “across the board,” affecting a wide range of departments.   “And yes, it’s for all these jobs that we’re being told AI can do,” said Nickle LaMoreaux, IBM’s chief human resources officer, speaking ...

Company Performance - Dropbox closed at $24.41, down 2.28% from the previous trading session, underperforming the S&P 500's loss of 0.01% [1] - Prior to the recent trading day, Dropbox shares had declined 6.62%, compared to a 1.54% loss in the Computer and Technology sector and a 0.28% loss in the S&P 500 [1] Upcoming Earnings - Dropbox is set to report earnings on February 19, 2026, with an expected earnings per share (EPS) of $0.66, reflecting a year-over-year decline of 9.59% [2] - The Zacks Consensus Estimate for revenue is projected at $627.51 million, down 2.5% from the previous year [2] Fiscal Year Projections - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.82 per share and revenue of $2.51 billion, indicating a 13.25% increase in earnings but a 1.41% decrease in revenue compared to the prior year [3] Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Dropbox suggest confidence in the company's business performance and profit potential [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks Dropbox at 3 (Hold) [5] Valuation Metrics - Dropbox has a Forward P/E ratio of 8.16, which is lower than the industry average of 15.58 [6] - The company has a PEG ratio of 1.32, compared to the Internet - Services industry average PEG ratio of 1.8 [6] Industry Context - The Internet - Services industry, which includes Dropbox, has a Zacks Industry Rank of 159, placing it in the bottom 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Thesis - Dropbox, Inc. is facing significant challenges in a commoditized market dominated by Microsoft and Google, leading to declines in user growth and market share [2][3] Company Performance - As of Q3 2025, Dropbox reported an annual recurring revenue (ARR) of $2.5 billion and had 18 million paying users [2] - The company's share price was trading at $26.75 with trailing and forward P/E ratios of 15.20 and 8.89 respectively [1] Competitive Position - Dropbox's standalone cloud storage offering is at a disadvantage compared to Microsoft 365 and Google One, which integrate storage into broader ecosystems [2] - The integration of AI tools by competitors has further weakened Dropbox's competitive position, leading to subscriber losses and pricing pressures [3] Strategic Challenges - Dropbox's attempts to diversify its product offerings have been insignificant, hindered by a lack of enterprise go-to-market capabilities and a history of unsuccessful acquisitions [3] - The company's ability to sustain stock buybacks is diminishing due to upcoming convertible maturities consuming cash, limiting repurchases [4] Financial Outlook - Management has guided for additional revenue contraction in 2026 with no margin expansion, indicating a structurally declining business [4] - Trading at approximately 8x forward EV/EBITDA, Dropbox is considered overvalued compared to negative-growth peers, suggesting potential downside risks [4]

Core Viewpoint - Dropbox, Inc. (NASDAQ:DBX) is identified as one of the most undervalued tech stocks to buy in 2026, with analysts from RBC Capital reiterating a Buy rating and a price target of $35 [1]. Group 1: Analyst Ratings and Price Targets - RBC Capital has a Buy rating on Dropbox with a price target of $35, while Citi has a Hold rating with a price target of $30 [1]. - Analysts expect 2026 to be a pivotal year for AI adoption, which will benefit companies like Dropbox that are well-prepared [2]. Group 2: Financial Performance and Expectations - Dropbox is expected to release its fiscal Q4 2025 results on February 20, with Wall Street estimating revenue around $627.83 million and a GAAP EPS of $0.39 [3]. - The company's enterprise spending appears to be stabilizing, driven by innovations in generative AI [2]. Group 3: Company Overview - Dropbox is a cloud-based platform that facilitates file storage and collaboration, offering solutions for both individuals and businesses, including Dropbox Paper and HelloSign [3].