Key Highlights

  • DigitalOcean disclosed up to USD 725 million of committed equipment financing from MUFG entities, with an accordion that could lift the total to USD 1.025 billion.
  • Second-quarter 2026 Revenue was USD 281 million, up 29 per cent, with AI customer Recurring Revenue of USD 234 million, up 212 per cent.
  • Third-quarter revenue is guided to USD 304 million to USD 307 million, and 2026 revenue guidance was raised to USD 1.170 billion to USD 1.180 billion.

A large equipment financing facility

DigitalOcean Holdings, Inc. (NYSE:DOCN), a cloud infrastructure provider, disclosed in a Form 8-K dated 10 September 2026 a new equipment financing arrangement with entities of MUFG. It provides up to USD 725 million of committed financing for data centre equipment, with an accordion that could raise the total by USD 300 million to USD 1.025 billion, which the company says it intends to use in full, subject to lender commitments.

Until 10 September 2027 the company can request advances covering up to 90 per cent of equipment cost, paying the remaining 10 per cent as prepaid rent. Advances are repaid through monthly rent by 10 September 2030 at a fixed rate equal to a term SOFR swap rate plus 2.75 per cent. The commitment fee on undrawn amounts is 0.20 per cent a year, rising to 0.40 per cent six months after closing. The Facility is secured by the equipment and guaranteed by the company and certain subsidiaries.

Second-quarter results

The latest reported quarter, released on 4 August 2026, was the second quarter. Revenue was USD 281 million, up 29 per cent. Annualised recurring revenue was USD 1.125 billion, also up 29 per cent, and AI customer recurring revenue reached USD 234 million, up 212 per cent. Incremental recurring revenue added in the quarter was USD 93 million.

GAAP Net Income was USD 35 million, down 4 per cent, with Diluted Earnings per Share of USD 0.29; non-GAAP diluted earnings per share were USD 0.45. Non-GAAP Operating Income was USD 67 million, a 24 per cent margin. Operating Cash Flow was USD 110 million and adjusted free cash flow USD 61 million. Remaining performance obligations were USD 894 million.

Cash and equivalents were USD 767 million. Balance-sheet debt, which excludes finance leases and equipment financing obligations, was about USD 921 million.

Of the USD 894 million of remaining performance obligations, USD 366 million is expected to be recognised within twelve months, which gives some visibility on near-term revenue, though no guarantee.

Guidance, not results

Management guided to third-quarter revenue of USD 304 million to USD 307 million, up 32 to 34 per cent, with adjusted EBITDA Margin of 38 to 39 per cent and non-GAAP earnings per share of USD 0.28 to USD 0.30. For 2026, revenue guidance was raised to between USD 1.170 billion and USD 1.180 billion, with adjusted free cash flow margin of 11 to 13 per cent.

Because equipment financing adds fixed obligations, delivery of that growth matters.

What to watch

Third-quarter results are expected on 3 November. Measurable markers include revenue against the USD 304 million to USD 307 million range, growth in AI customer recurring revenue, the free cash flow margin as Capital spending rises, and the extent to which the equipment facility is drawn.