Dropbox (DBX) reported second-quarter 2026 non-GAAP earnings of 75 cents per share, exceeding the Zacks Consensus Estimate by 1.35% and marking a year-over-year increase of 5.6%. Revenues reached $631.5 million, a 0.9% rise from the previous year, also surpassing expectations by 0.94%. The company reported total annual recurring revenues (ARR) of $2.566 billion and a growth in paying users to 18.19 million, with an addition of approximately 96,000 users in this quarter.
Dropbox’s non-GAAP gross margin fell 60 basis points year-over-year to 81.6% due to increased AI-related costs. Operating margin decreased to 39.7%, down 180 basis points from the previous year. The company generated $238.5 million in net cash from operations, with total cash reserves equaling $1.114 billion as of June 30, 2026.
Looking ahead, Dropbox anticipates third-quarter revenues between $627 million and $630 million, while raising its full-year revenue projection to between $2.513 billion and $2.523 billion. Non-GAAP operating margin guidance has been adjusted upwards to 40-40.5% for the year.
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