Q4 2025 Earnings and Investor Update Presentation February 24, 2026 2026 DigitalOcean. All rights reserved 1 Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding our financial outlook. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results or ou ...

Exhibit 99.1 DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results BROOMFIELD, Colo., February 24, 2026 – DigitalOcean Holdings, Inc. (NYSE: DOCN), the agentic inference cloud, today announced results for its fourth quarter and fiscal year ended December 31, 2025. "AI is reshaping entire industries, and we are built for this shift. DigitalOcean's Agentic Inference Cloud is gaining further traction with large Cloud and AI Native customers that are driving the shift, which is evident in ...

Core Insights - Artificial intelligence presents a significant opportunity for DigitalOcean, which is expanding its portfolio of AI services tailored for small and mid-sized businesses (SMBs) [1][2]. Group 1: Company Overview - DigitalOcean is valued at $5.7 billion and focuses exclusively on serving SMBs, differentiating itself from larger cloud providers like Amazon and Microsoft [2]. - The company has seen its AI revenue double in each of the last five reported quarters, indicating strong growth potential [3][10]. Group 2: AI Services and Market Position - DigitalOcean provides affordable AI services, making advanced technology accessible to even the smallest businesses, and claims to be 75% cheaper than larger competitors [6]. - The company has developed an AI platform called Gradient, which allows SMBs to utilize large language models from third parties like OpenAI, facilitating AI software development [7]. Group 3: Financial Performance - DigitalOcean generated $659 million in total revenue during the first three quarters of 2025, reflecting a 14.5% year-over-year increase, with significant contributions from its AI business [9]. - The company's operating income doubled to $118.2 million during the same period, showcasing effective cost management alongside revenue growth [11]. Group 4: Stock Valuation - Despite a 41% increase in stock price in 2025 and an additional 27% in early 2026, DigitalOcean's price-to-sales (P/S) ratio stands at 7.2, below its historical average [12]. - The stock's price-to-earnings (P/E) ratio of 24.9 is lower than the Nasdaq-100 technology index's P/E ratio of 31.5, indicating attractive valuation relative to larger companies in the cloud and AI sectors [14]. Group 5: Future Outlook - The upcoming fourth-quarter earnings report on February 24 is anticipated to further boost the stock, especially if AI revenue continues to double and management provides positive forward guidance [15].

Core Insights - The article discusses the 14 best cloud computing stocks to buy currently, highlighting the significant growth and potential of the cloud computing industry [1][3]. Industry Overview - Over 95% of enterprise organizations have a cloud footprint, with public cloud workloads increasing from 32% in 2018 to a projected 52% by 2025 [1]. - The cloud sector is identified as one of the 18 future arenas of competition, potentially generating revenues between $29 trillion and $48 trillion by 2040 [2]. - Public cloud consumption has surged from approximately $90 billion in 2019 to an expected $335 billion by 2024, with the industry projected to achieve revenues of $1.6 trillion to $3.4 trillion by 2040 [2]. Company Analysis: DigitalOcean Holdings, Inc. - DigitalOcean Holdings, Inc. (NYSE:DOCN) is recognized as one of the top cloud computing stocks, with 30 hedge fund holders [7]. - Cantor Fitzgerald upgraded DigitalOcean's stock rating to "Overweight" from "Neutral," raising the price target from $47 to $68, reflecting about 6 times the updated revenue targets for CY27 [7][10]. - The company is expected to scale its business effectively, evidenced by its recent acquisition of Character.ai, which is anticipated to enhance traction with its GPU-led platform-as-a-service [8]. - DigitalOcean's focus on a digital-native and developer-first approach positions it well for profitable growth and potential stock re-rating [9]. - BofA analyst raised the price target for DigitalOcean's stock to $72 from $60 while maintaining a "Buy" rating, citing the early adoption of agentic AI and its traction within developer communities [10].

Core Insights - The article discusses the investment potential of DOCN, highlighting a beneficial long position in its shares by the analyst [1]. Group 1 - The analyst expresses a personal opinion on DOCN's stock without receiving compensation from the company [1]. - There is an emphasis on the uncertainty of financial predictions and projections made by analysts [2]. - The article clarifies that past performance does not guarantee future results, and no specific investment advice is provided [3].

Group 1 - Financial giants are showing a bearish sentiment towards DigitalOcean Holdings, with 66% of traders exhibiting bearish tendencies and only 33% bullish [1] - A total of 15 unusual trades were identified, comprising 11 puts valued at $467,240 and 4 calls valued at $145,068 [1] - Significant investors are targeting a price range of $45.0 to $65.0 for DigitalOcean Holdings over the past three months [2] Group 2 - Recent analysis of volume and open interest indicates key insights into liquidity and interest levels for DigitalOcean Holdings's options within the $45.0 to $65.0 strike price range [3] - The current market status shows DigitalOcean Holdings at a price of $57.99, down 3.75% with a trading volume of 3,540,616 [6] - Analysts have issued ratings for DigitalOcean Holdings, with a consensus target price of $61.67, including a Neutral rating from Piper Sandler at $50, an Overweight rating from Barclays at $63, and a Buy rating from B of A Securities at $72 [4][6]

Company Overview - DigitalOcean Holdings, Inc. (DOCN) shares increased by 9.9% to close at $58.94, supported by strong trading volume, significantly higher than normal [1] - The stock has gained 8.3% over the past four weeks, indicating positive momentum [1] - DigitalOcean is recognized for its robust AI infrastructure solutions, catering to AI-driven companies processing live data globally [1] Earnings Expectations - The company is projected to report quarterly earnings of $0.38 per share, reflecting a year-over-year decline of 22.5% [2] - Expected revenues for the upcoming quarter are $237.66 million, which represents a 16% increase compared to the same quarter last year [2] - Trends in earnings estimate revisions are closely linked to short-term stock price movements, highlighting the importance of monitoring these changes [2] Stock Performance and Industry Context - The consensus EPS estimate for DigitalOcean has remained stable over the last 30 days, suggesting a lack of upward momentum in earnings revisions [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [3] - DigitalOcean is part of the Zacks Internet - Software industry, which includes Arista Networks (ANET), another company that saw a 5.4% increase in its stock price, closing at $143.72 [3] - Arista Networks has a consensus EPS estimate of $0.75, reflecting a year-over-year increase of 15.4% and currently holds a Zacks Rank of 2 (Buy) [4]

Core Insights - DigitalOcean has appointed Vinay Kumar as Chief Product and Technology Officer (CPTO) to lead product strategy, development, cloud infrastructure, and security as the company scales its AI inference cloud and core offerings [1][5] Group 1: Leadership and Experience - Vinay Kumar brings over a decade of senior leadership experience in building and scaling large-scale cloud platforms, having been a founding member of Oracle Cloud Infrastructure (OCI) [2] - His previous roles include significant positions at Amazon Web Services, Akamai, and Dell, providing him with extensive exposure to cloud infrastructure and enterprise-grade platforms [3] Group 2: Strategic Focus - As CPTO, Vinay will focus on advancing DigitalOcean's platform strategy, accelerating product delivery, and ensuring security and operational excellence [5] - The company aims to enhance its AI capabilities to support scalable, production-grade inference while maintaining operational discipline and reliability [4] Group 3: Market Position and Customer Base - DigitalOcean has established a strong position as a cloud and AI platform, gaining traction with digital-native and AI-native enterprises [4] - The platform is designed to help over 640,000 customers build, run, and scale intelligent applications with speed and simplicity [6]

Market Overview - The market is at a challenging crossroads in 2026, with stretched valuations causing concerns among investors about the sustainability of the bull market [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, providing insights into current industry themes [1]

Core Viewpoint - DigitalOcean Holdings Inc. (NYSE:DOCN) has experienced a recent stock price drop of 1.62%, but its stock has increased by 4.04% over the past month and 34.71% over the past year, raising questions about its valuation despite current performance issues [1]. Group 1: Stock Performance - The current stock price of DigitalOcean Holdings is $48.01 after a 1.62% decline [1]. - Over the past month, the stock has appreciated by 4.04% [1]. - In the last year, the stock has seen a significant increase of 34.71% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating the company's market performance relative to its earnings [3]. - DigitalOcean Holdings has a lower P/E ratio compared to the IT Services industry's aggregate P/E of 78.51, suggesting potential undervaluation [5]. - A low P/E ratio may indicate undervaluation but could also reflect weak growth prospects or financial instability [7]. Group 3: Investment Considerations - Investors should use the P/E ratio cautiously, as it is just one of many metrics to consider when evaluating a company's financial health [7]. - A comprehensive approach that includes other financial ratios, industry trends, and qualitative factors is essential for making informed investment decisions [7].