Dropbox Inc. Class A Common Stock (DBX)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and trade at a sensible price. Dropbox is a content collaboration platform with subscription revenue and a global sharing network. In fiscal 2025, the period ended 2025-12-31, it reported revenue of $2.5B, net income of $508.4M, and diluted EPS of $1.86. In fiscal 2024, the period ended 2024-12-31, revenue was also $2.5B, net income $452.3M, EPS $1.40; in fiscal 2023, the period ended 2023-12-31, net income was $453.6M, EPS $1.31. So the long-term record is profitable, but growth has stalled. FairStock's Lynch category calls it a Stalwart: profit grew 10.9% a year over four years while revenue grew 4.0%. The latest quarter is less comforting: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $631.5M and net income was $95.8M, down from $125.6M in fiscal Q2 2025, the quarter ended 2025-06-30. Revenue is barely advancing—0.77%—while profit growth is -23.82%. Free cash flow is the bright spot: $953.8M trailing, an 11.8% FCF yield. At the close on 2026-10-13, price was $35.60, market cap $8.1B, P/E 19.67, EV/EBITDA 13.17, ROCE 15.04%. Piotroski is 6/9, but Altman Z-score is -0.57, so the balance sheet warns caution. Beta is 0.63. My conclusion: a cash-generative, modestly moated subscription business at a fair-to-attractive price, but flat revenue, falling recent profits, and a weak Altman score keep it from being a clear bargain. I would want evidence that profit declines are temporary and cash flow remains durable.

In plain English: Dropbox sells online file storage and collaboration tools to people and businesses. Its subscription business produces a lot of cash, but revenue is barely growing and recent profit has fallen. At $35.60 a share, the price looks roughly fair to a bit cheap compared with its cash flow, though not a clear bargain because growth is weak.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer