Description
Dropbox’s Hidden AI Engine — 150,000 Users Are Already Connecting Claude & ChatGPT!
Dropbox, Inc. reported second quarter 2026 revenue of $631.5 million, up 0.9% year-over-year, or 1.7% excluding FormSwift. The company added about 96,000 paying users, its third consecutive quarter of growth, bringing total paying users to 18.19 million. Annual recurring revenue rose 1% to $2.566 billion, or 1.7% excluding FormSwift, indicating early signs of renewed momentum after stagnation. Non-GAAP operating margin reached 39.7%, above guidance but about 180 basis points below the prior year. Gross margin declined roughly 60 basis points to 81.6% due to higher AI-related compute costs and normalized marketing spending. Non-GAAP net income fell to $170 million from $197.7 million, mainly because of higher interest expense from term loan borrowings, while diluted EPS rose slightly to $0.75 due to share repurchases. Operating cash flow declined to $238.5 million from $260.5 million, largely because of higher interest payments. Unlevered free cash flow rose 3% to $283.5 million, or $1.
