Digitalocean Holdings, Inc. (DOCN) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Technology / Software · as of Aug 11, 2026
Digitalocean Holdings, Inc. (DOCN)
A forensic read on Digitalocean Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
8.5
Distress distance
Clean
Earnings quality
3
Forensic signals
60.7
P / E (ttm)
$15.4B
Market cap
15.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Digitalocean Holdings, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 8.5, placing it in the Safe zone. 3 forensic signals were flagged in its latest SEC filings, led by share-count dilution.
What the filings flag
+1.5%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +5% over the last 3 years to FY2025 (+1.5%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~1.5% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~4%.
+17.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +17.0% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by PP&E up +36% against revenue +15% and payables paid down 29% against +15% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 5% of net operating assets, diverging from the balance-sheet accrual read.
11.0%
FY2025
Return on invested capital.Return on invested capital is 11.0% in the latest fiscal year and rising from -1% — around its ~10% cost of capital, so growth is roughly value-neutral.
Key fundamentals
Latest Revenue$901.4M
Revenue Growth YoY+15.5%
Revenue CAGR (3yr)+16.1%
Net Margin28.8%
Free Cash Flow$180.5M
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Digitalocean Holdings, Inc.'s actual 10-K/10-Q/8-K filings?