| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 65 | 20.2x | 17.6x | Around median | |
Growth | 28 | -0.0% | 7.1% | Bottom tier | |
Quality | 97 | 26.0% | 4.5% | Top tier | |
Safety | 32 | 4.0x | 2.6x | Bottom tier | |
Capital Return | 15 | — | 2.15% | Bottom tier | |
Momentum | 88 | 4.7% | 2.3% | Top tier | |
Sentiment | 43 | 5 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dropbox, Inc. (DBX) operates as a cloud content platform serving more than 18 million paying users, combining file storage, synchronization, security, search, permission management, and version history. Revenue generation relies on individual and team subscriptions, with products and services including Core Dropbox, Simple, Dash, and Replay; the company seeks to increase conversion and retention and sell higher-value plans and add-ons, while integrating artificial intelligence capabilities into the Dropbox experience and connecting content to tools such as ChatGPT and Claude.
In fiscal Q2 2026, revenue increased 0.9% year over year to $631.5 million, or 1.7% excluding FormSwift, while growth excluding FormSwift and on a constant-currency basis was only 0.1%. Total annual recurring revenue reached $2.566 billion, and the number of paying users was 18.19 million after a net addition of 96 thousand users, while average revenue per paying user increased to $139.68 from $138.32 a year earlier due to currency effects and a higher mix of monthly plans.
The non-GAAP gross margin was 81.6% in fiscal Q2 2026, down approximately 60 basis points, and the operating margin was 39.7%, exceeding guidance of 38.5% but declining by about 180 basis points year over year. Non-GAAP net income was $170 million, with diluted earnings per share of $0.75, and unlevered free cash flow was $283.5 million, or $1.25 per share, up 25% year over year. The call did not disclose separate revenue for each product, but it explained that Simple was the largest contributor to new-user growth, alongside a return to positive growth in Teams licenses.
The analyst consensus is Buy, with an average price target of $26.83 and a wide range of $20 to $32. The average target is approximately 26% below the 52-week high of $36.366, while the highest target of $32 is also below that peak, reflecting that improving user trends and cash flow are offset by limited revenue growth and pressure from artificial intelligence and interest expenses. The data does not provide a usable price-to-earnings multiple, so the valuation of DBX here is based on the target range, the 52-week range of $21.695–$36.366, and the company’s ability to convert user growth into sustainable growth in revenue and average revenue per user.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue was $631.5 million, up 0.9% year over year, or 1.7% excluding FormSwift. The company recorded a non-GAAP gross margin of 81.6% and an operating margin of 39.7%. Non-GAAP net income was $170 million, diluted earnings per share were $0.75, and unlevered free cash flow was $283.5 million.
Dropbox ended fiscal Q2 2026 with 18.19 million paying users, a sequential increase of approximately 96 thousand users. This was the third consecutive quarter of user growth and the strongest improvement referenced in analyst questions in approximately three years. Simple was the largest contributor to the increase, while Teams licenses turned to positive growth for the first time since fiscal 2024, and management expects positive user growth during fiscal 2026.
The company is integrating Dash intelligence into Dropbox through an intelligent file synchronization and sharing experience being tested with a select group of customers as of August 6, 2026. Functions include semantic search using text or images, automatic folder organization, naming files based on their content, summarizing changes, and executing agentic workflows while respecting permissions and version history. Dropbox plans to significantly expand access during the remainder of fiscal 2026, including to the majority of Teams users, without including a material financial contribution from these capabilities in its full-year guidance.
Automated analysis for informational purposes only — not investment advice.
As of August 6, 2026, more than 150 thousand users had connected Dropbox to the ChatGPT and Claude integrations despite limited investment allocated to them. Customers use these connections to find and repurpose content and then store and share it through Dropbox, and management said engagement and retention indicators are encouraging. However, the company did not disclose revenue or paid-user increases resulting from the integrations, so their commercial significance remains an early usage signal rather than a proven financial driver.
The company expects revenue between $2.513 billion and $2.523 billion in fiscal 2026, equivalent to year-over-year growth of 0.8% at the midpoint excluding FormSwift. It raised its non-GAAP operating margin guidance to 40.0%–40.5% and set expected gross margin at approximately 81.5%. It also raised its unlevered free cash flow guidance to at least $1.070 billion, with expected capital expenditures between $20 million and $25 million.
Fiscal Q2 2026 revenue excluding FormSwift and on a constant-currency basis grew by only 0.1%, and the midpoint of fiscal Q3 2026 guidance indicates roughly flat growth excluding FormSwift. Management expects a modest sequential decline in average revenue per user during the remainder of fiscal 2026, while artificial intelligence computing costs pressure gross margin. Non-GAAP net income also declined to $170 million from $197.7 million due to factors that included higher interest expense associated with the term loan facility.
