DBX on Nasdaq

Dropbox Inc.

Dropbox Inc. is an American company based in San Francisco, founded in 2007.1 It was founded by Arash Ferdowsi and Drew Houston.1 Its chief executive is Drew Houston.1 It employed 1,200 people in 2016.1 Its shares trade on Nasdaq under the symbol DBX.1

Price unavailable

Last updated Oct 21, 2026.

Overview

$2.5BRevenue, fiscal 20253
$508.4MNet income, fiscal 20253
2007Founded1

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  • TickerDBX on Nasdaq1
  • IndustryServices-Prepackaged Software1
  • HeadquartersSan Francisco1
  • Websitewww.dropbox.com
  • Incorporated inNV4
  • Business address50 Hawthorne St., San Francisco, Ca 941054
  • Filer categoryLarge accelerated filer4

Dropbox, Inc. (the “Company”, “we”, or “us”) is the one place to keep life organized and keep work moving.6 From its latest annual report

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

80.1%Gross margin3
27.3%Operating margin3
20.2%Net margin3
-1.1%Revenue growth, 20253
$930.8MFree cash flow3

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Regions

United States brought in 56% of the revenue Dropbox Inc. broke down this way in fiscal 2025.

  1. United States$1.4B356%down 2% from 2024
  2. Outside the United States$1.1B344%down 0% from 2024
Regions by year
Regions202320242025
United States$1.4B$1.4B$1.4B
Outside the United States$1.1B$1.1B$1.1B

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue20¢$500.8M
  • Research and development29¢$732.0M
  • Other costs27¢$670.6M
  • Income tax4¢$109.2M
  • Profit20¢$508.4M

Out of $2.5B in revenue.3

Where each dollar of operating cash went, fiscal 2025

  • Capital spending1¢$21.0M
  • Share buybacks99¢$1.7B

Out of $951.8M of cash from operations. Spending exceeded cash from operations; the rest came from savings or borrowing.3

Financial statements

Revenue78910113$2.5B in 2025+81% since 2018
0$1.0B$2.0B$3.0B2018: $1.4B$1.4B20182019: $1.7B$1.7B2019+19%2020: $1.9B$1.9B2020+15%2021: $2.2B$2.2B2021+13%2022: $2.3B$2.3B2022+8%2023: $2.5B$2.5B2023+8%2024: $2.5B$2.5B2024+2%2025: $2.5B$2.5B2025−1%
Gross profit78910113$2.0B in 2025+103% since 2018
0$1.0B$2.0B$3.0B2018: $997.0M$997.0M20182019: $1.3B$1.3B2019+25%2020: $1.5B$1.5B2020+20%2021: $1.7B$1.7B2021+14%2022: $1.9B$1.9B2022+10%2023: $2.0B$2.0B2023+8%2024: $2.1B$2.1B2024+4%2025: $2.0B$2.0B2025−4%
Operating income78910113$689.1M in 2025
-$500.0M0$500.0M$1.0B2018: -$494.0M-$494.0M20182019: -$80.5M-$80.5M2019−84%2020: -$277.0M-$277.0M2020+244%2021: $274.4M$274.4M20212022: $181.3M$181.3M2022−34%2023: $538.7M$538.7M2023+197%2024: $486.2M$486.2M2024−10%2025: $689.1M$689.1M2025+42%
Net income78910113$508.4M in 2025
-$500.0M0$500.0M$1.0B2018: -$484.9M-$484.9M20182019: -$52.7M-$52.7M2019−89%2020: -$256.3M-$256.3M2020+386%2021: $335.8M$335.8M20212022: $553.2M$553.2M2022+65%2023: $453.6M$453.6M2023−18%2024: $452.3M$452.3M2024−0%2025: $508.4M$508.4M2025+12%

Every line of the income statement as filed: the last 3 fiscal years, latest first.3

Period ending2025-12-312024-12-312023-12-31
Revenue$2.5B$2.5B$2.5B
Cost of revenue$500.8M$445.1M$478.5M
Gross profit$2.0B$2.1B$2.0B
Research and development$732.0M$914.9M$936.5M
Sales and marketing$369.9M$460.7M$466.0M
General and administrative$230.5M$241.2M$237.1M
Net (gain) loss on real estate assets-$1.3M$100.0K-$155.2M
Total operating expenses$1.3B$1.6B$1.5B
Income from operations$689.1M$486.2M$538.7M
Interest (expense) income, net-$78.6M$13.9M$19.4M
Other income (loss), net$7.1M$9.7M-$3.7M
Income before income taxes$617.6M$509.8M$554.4M
Provision for income taxes-$109.2M-$57.5M-$100.8M
Net income$508.4M$452.3M$453.6M
Basic net income per share (in dollars per share)$1.89$1.42$1.33
Diluted net income per share (in dollars per share)$1.86$1.40$1.31
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares)268.3M shares318.2M shares341.2M shares
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares)272.8M shares323.4M shares345.6M shares
Allocated share-based compensation expense (reversal)$300.8M$346.5M$338.0M

Compare Dropbox Inc. with another company

Corporate structure

Dropbox Inc. sits at the top of its group. 26 entities, 17 countries on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of Dropbox Inc.

  • Dropbox Inc. San Francisco
    • CloudOn, Inc. Subsidiary · Delaware, United States
    • DocSend, Inc. Subsidiary · Delaware, United States
    • Dropbox Australia Pty Ltd. Subsidiary · Australia
    • Dropbox Canada Limited Subsidiary · British Columbia, Canada
    • Dropbox Denmark ApS Subsidiary · Denmark
    • Dropbox France S.A.S Subsidiary · France
    • Dropbox France S.A.S, Paris, Zweigniederlassung Zurich Subsidiary · Switzerland
    • Dropbox Germany GmbH Subsidiary · Germany
    • Dropbox Holding, LLC Subsidiary · Delaware, United States
    • Dropbox International Unlimited Company Subsidiary · Ireland
    • Dropbox Israel Online Ltd. Subsidiary · Israel
    • Dropbox Japan KK Subsidiary · Japan
    • Dropbox Mexico S. de R.L. de C.V Subsidiary · Mexico
    • Dropbox Netherlands B.V. Subsidiary · Netherlands
    • Dropbox Poland sp. z.o.o. Subsidiary · Poland
    • Dropbox Singapore Pte. Ltd. Subsidiary · Singapore
    • Dropbox Sweden AB Subsidiary · Sweden
    • Dropbox Taiwan Co. Ltd. Subsidiary · Taiwan
    • Dropbox UK Online Ltd. Subsidiary · United Kingdom
    • Find Your Info, LLC Subsidiary · Delaware, United States
    • Hypertools, Inc. Subsidiary · Delaware, United States
    • King Street Labs, LLC Subsidiary · Oregon, United States
    • Orcinus Holdings, LLC Subsidiary · Delaware, United States
    • Reclaim.ai, LLC Subsidiary · Delaware, United States
    • Valt Inc. Subsidiary · Delaware, United States

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; subsidiaries, stakes and holdings from Wikidata (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What Dropbox Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Property and equipment, before depreciation$937.6M3 Dec 31, 2025$943.0M3 Dec 31, 2024−0.6%
Accumulated depreciation$559.2M3 Dec 31, 2025$584.2M3 Dec 31, 2024−4.3%
Property and equipment, net$378.4M3 Dec 31, 2025$358.8M3 Dec 31, 2024+5.5%
Operating-lease assets (leased space)$270.7M3 Dec 31, 2025$158.9M3 Dec 31, 2024+70.4%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$891.3M3 Dec 31, 2025$1.3B3 Dec 31, 2024−32.9%
Marketable securities, current$146.9M3 Dec 31, 2025$265.9M3 Dec 31, 2024−44.8%
Debt securities available for sale$146.9M3 Dec 31, 2025$265.9M3 Dec 31, 2024−44.8%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$454.9M3 Dec 31, 2025$442.8M3 Dec 31, 2024+2.7%
Intangible assets, net (excluding goodwill)$33.7M3 Dec 31, 2025$54.9M3 Dec 31, 2024−38.6%
Accumulated amortization$148.8M3 Dec 31, 2025$123.7M3 Dec 31, 2024+20.3%
Finite-lived intangibles, net$33.7M3 Dec 31, 2025$54.9M11 Dec 31, 2024−38.6%

Properties, in its own words

Our corporate headquarters are located in San Francisco, California, pursuant to an operating lease that expires in 2033. We lease additional offices in San Francisco and around the world, including in Seattle, Washington and Dublin, Ireland. We have datacenter co-location facilities in Oregon, Texas, Virginia, Paris, and Hamburg. We believe that these facilities are generally suitable to meet our needs.

Item 2 of the 10-K filed Feb 20, 2026.6

Stakes and holdings (Wikidata)

Things Wikidata records the company as owning, with the share when stated.1

The story

Founded by Arash Ferdowsi and Drew Houston in 2007.1

Leadership

Who has led Dropbox Inc., and when. Pick a name to see everywhere that person has worked.

Board members and other officers (28)

Products and brands

  • software

Listed on Wikidata.1

Subsidiaries and ownership

Also owns

Subsidiaries (Exhibit 21)

  • CloudOn, Inc. Delaware5
  • DocSend, Inc. Delaware5
  • Dropbox Australia Pty Ltd. Australia5
  • Dropbox Canada Limited British Columbia5
  • Dropbox Denmark ApS Denmark5
  • Dropbox France S.A.S France5
  • Dropbox France S.A.S, Paris, Zweigniederlassung Zurich Switzerland5
  • Dropbox Germany GmbH Germany5
  • Dropbox Holding, LLC Delaware5
  • Dropbox International Unlimited Company Ireland5
  • Dropbox Israel Online Ltd. Israel5
  • Dropbox Japan KK Japan5
  • Dropbox Mexico S. de R.L. de C.V Mexico5
  • Dropbox Netherlands B.V. Netherlands5
  • Dropbox Poland sp. z.o.o. Poland5
  • Dropbox Singapore Pte. Ltd. Singapore5
  • Dropbox Sweden AB Sweden5
  • Dropbox Taiwan Co. Ltd. Taiwan5
  • Dropbox UK Online Ltd. United Kingdom5
  • Find Your Info, LLC Delaware5
  • Hypertools, Inc. Delaware5
  • King Street Labs, LLC Oregon5
  • Orcinus Holdings, LLC Delaware5
  • Reclaim.ai, LLC Delaware5
All 25 listed subsidiaries
  • Valt Inc. Delaware5

From Wikidata.1 The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Employees over time

  • 20161,2001

Former names

  • Evenflow, Inc.Jul 7, 2009 to Jul 7, 20094

Timeline

  1. Aug 6, 20268-K Results of operations; Regulation FD disclosure50
  2. Jun 3, 2026New chief executive Ashraf Alkarmi becomes CEO17
  3. Jun 1, 20268-K Entered a material agreement; New debt or obligation; Regulation FD disclosure51
  4. May 26, 20268-K Executive or director change; Regulation FD disclosure52
  5. May 26, 20268-K Shareholder vote53
  6. May 7, 20268-K Results of operations; Regulation FD disclosure54
  7. Feb 19, 20268-K Results of operations; Regulation FD disclosure55
  8. Dec 10, 20258-K Executive or director change; Regulation FD disclosure56
  9. Nov 6, 20258-K Results of operations; Regulation FD disclosure57
  10. Sep 9, 20258-K Entered a material agreement; New debt or obligation; Regulation FD disclosure58
  11. Aug 25, 20258-K Executive or director change59
  12. Aug 7, 20258-K Results of operations; Regulation FD disclosure60
  13. May 19, 20258-K Shareholder vote61
  14. Mar 22, 2018New chief executive Drew Houston becomes CEO1
  15. 2018Went public Listed on NASDAQ1
  16. 2007Founded Founded1

Calendar

Coming up

  1. Nov 5, 2026 · After the closeReports results for the quarter ending Sep/2026 A year earlier it reported $0.49 a share, on Nov 6, 2025.62

When it reported results

  1. Aug 6, 2026Reported quarterly or annual results50
  2. May 7, 2026Reported quarterly or annual results54
  3. Feb 19, 2026Reported quarterly or annual results55
  4. Nov 6, 2025Reported quarterly or annual results57
  5. Aug 7, 2025Reported quarterly or annual results60
  6. May 8, 2025Reported quarterly or annual results63
  7. Feb 20, 2025Reported quarterly or annual results64
  8. Nov 7, 2024Reported quarterly or annual results65

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

730 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 44 major events, 379 insider forms, 33 large holders, 254 other. The latest 20:

  1. Oct 15, 2026144 EDGAR
  2. Oct 15, 20264 EDGAR
  3. Oct 13, 2026144 EDGAR
  4. Oct 5, 20264 EDGAR
  5. Oct 2, 20264 EDGAR
  6. Oct 1, 2026144 EDGAR
  7. Sep 30, 2026144 EDGAR
  8. Sep 17, 20264 EDGAR
  9. Sep 15, 20264 EDGAR
  10. Sep 15, 2026144 EDGAR
  11. Sep 14, 20264 EDGAR
  12. Sep 14, 20264 EDGAR
  13. Sep 11, 2026144 EDGAR
  14. Sep 10, 2026144 EDGAR
  15. Sep 10, 2026144 EDGAR
  16. Sep 9, 20264 EDGAR
  17. Sep 9, 20264 EDGAR
  18. Sep 4, 2026144 EDGAR
  19. Sep 4, 2026144 EDGAR
  20. Sep 3, 20264 EDGAR

The 730 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

288 open-market trades by officers, directors and large owners since October 2021: 0 buys and 288 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Sep 15, 2026Schubach Sarah ElizabethChief Accounting OfficerSale2,025$36.78$74.5KForm 4
Sep 11, 2026Alkarmi AshrafCo-CEOSale28,800$35.54$1.0MForm 4
Sep 10, 2026Tennenbaum RossChief Financial OfficerSale97,558$35.02$3.4MForm 4
Sep 10, 2026Houston AndrewCo-CEOSale383,800$35.01$13.4MForm 4
Sep 4, 2026Yoon William TChief Legal OfficerSale12,382$34.78$430.6KForm 4
Sep 4, 2026Campbell Lisa MDirectorSale4,598$34.78$159.9KForm 4
Aug 31, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,631$35.50$57.9KForm 4
Aug 20, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,631$34.01$55.5KForm 4
Aug 18, 2026Webster Eric TChief Business OfficerSale15,830$34.09$539.6KForm 4
Aug 18, 2026Dasdan AliChief Technology OfficerSale11,332$34.13$386.8KForm 4
Jul 31, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,632$31.61$51.6KForm 4
Jul 29, 2026Peacock KarenDirectorSale2,000$33.00$66.0KForm 4
Jul 15, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,306$30.13$39.4KForm 4
Jul 14, 2026Dasdan AliChief Technology OfficerSale12,972$30.00$389.2KForm 4
Jul 7, 2026Peacock KarenDirectorSale2,000$29.00$58.0KForm 4
Jun 30, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,305$27.11$35.4KForm 4
Jun 15, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,306$26.90$35.1KForm 4
Jun 2, 2026Alkarmi AshrafCo-CEOSale22,700$27.86$632.4KForm 4
Jun 1, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,305$27.66$36.1KForm 4
May 19, 2026Schubach Sarah ElizabethChief Accounting OfficerSale1,306$28.14$36.8KForm 4

All 288 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Ashraf AlkarmiGeneral Manager and Senior Vice President, Core Products47$500.0K$17.3M75
2025Ali DasdanChief Technology Officer56$415.1K$17.1M75
2025Timothy ReganFormer Chief Financial Officer$560.0K$7.0M75
2025William YoonChief Legal Officer47$461.2K$5.9M75
2025Andrew W. HoustonChief Executive Officer and Co-Founder43$800.0K$2.2M75
2025Ross TennenbaumChief Financial Officer47$22.9K$372.9K75
2024Timothy ReganFormer Chief Financial Officer$560.0K$6.2M75
2024Andrew W. HoustonChief Executive Officer and Co-Founder43$756.2K$1.7M75
2023Timothy ReganFormer Chief Financial Officer$560.0K$5.7M75
2023Andrew W. HoustonChief Executive Officer and Co-Founder43$625.0K$1.5M75

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
BlackRock, Inc.18,450,111$506.8M0.0%−2,388,980
Vanguard Portfolio Management LLC10,582,149$290.7M0.0%−1,647,313
Arrowstreet Capital, Limited Partnership7,840,023$215.4M0.1%−693,713
Renaissance Technologies LLC7,213,667$198.2M0.3%−507,400
Vanguard Capital Management LLC6,541,220$179.7M0.0%−459,988
Morgan Stanley5,518,521$151.6M0.0%−733,860
State Street Corp5,344,133$146.8M0.0%−424,230
Geode Capital Management, LLC4,679,914$128.6M0.0%+144,439
Jacobs Levy Equity Management, Inc4,356,717$119.7M0.4%−446,504
Royal Bank Of Canada4,089,121$112.3M0.0%+3,627,168
Two Sigma Investments, LP3,955,667$108.7M0.1%−391,974
Goldman Sachs Group Inc3,663,183$100.6M0.0%+1,537,292
Allianz Asset Management GmbH3,562,257$95.7M0.1%−85,401
Robeco Institutional Asset Management B.V.3,144,127$86.4M0.1%+29,097
UBS Group AG3,096,895$85.1M0.0%−142,737
Wedge Capital Management L L P/nc3,005,173$82.6M1.4%+627,111
Dimensional Fund Advisors LP2,806,149$77.1M0.0%+44,264
Barclays PLC2,327,240$63.9M0.0%+642,434
Charles Schwab Investment Management Inc2,274,622$62.5M0.0%−205,707
Gotham Asset Management, LLC2,238,153$61.5M0.1%+1,060,964
Russell Investments Group, Ltd.2,137,460$58.7M0.1%−109,115
Northern Trust Corp2,122,642$58.3M0.0%−175,016
Quantinno Capital Management LP2,078,068$57.1M0.1%+584,553
First Trust Advisors LP1,907,444$52.4M0.0%+121,335
Jpmorgan Chase & Co1,855,162$51.0M0.0%+447,176

13F reports cover disclosed long positions in U.S. stocks only.

Members of Congress who traded it

5 trades disclosed by members of Congress. “Vs S&P since” is the stock’s change since the trade minus the S&P 500’s.

DateMemberTradeAmountVs S&P sinceFiling
Aug 4, 2025Lisa C. McClainRepublican, HouseSale$1,001 - $15,000−11.0%Report
Jul 22, 2025Lisa C. McClainRepublican, HouseBuy$1,001 - $15,000+4.9%Report
Apr 22, 2025Julia LetlowRepublican, HouseSale$1,001 - $15,000+16.5%Report
Jan 13, 2025Robert P. Bresnahan, Jr.Republican, HouseSale$1,001 - $15,000+12.6%Report
Oct 23, 2024Julia LetlowRepublican, HouseBuy$1,001 - $15,000+4.4%Report

Members report amounts as ranges, not exact figures. Returns are price-only (no dividends).

SEC filer profile

How Dropbox Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARDROPBOX, INC.2
  • CIK0001467623
  • Employer ID (EIN)26-01388326
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company6
  • Incorporated inNevada6
  • Fiscal year endsDecember 312
  • Industry code (SIC)7372 Services-Prepackaged Software2
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance2
  • Business address50 Hawthorne St., San Francisco, CA 941052
  • Phone(415) 930-77662
  • Shares outstanding165,704,072 Common Class A shares; 75,484,246 Common Class B shares as of Feb 13, 20266
  • Public float$3.1B as of Jun 30, 20256
  • AuditorErnst & Young LLP, San Francisco, California PCAOB ID 42; it also attests to the company’s internal control over financial reporting6
  • On EDGAR sinceJul 7, 20092
  • Filings1,145 in all: 4 (642), 144 (230), 8-K (73), SC 13G/A (35), 3 (33), 10-Q (26), SC 13G (14), S-8 (11)2
    All 33 form types

    SCHEDULE 13G/A (10), 4/A (9), 10-K (8), DEF 14A (8), DEFA14A (7), SCHEDULE 13G (6), UPLOAD (5), ARS (4), CORRESP (4), D (2), DRS/A (2), DRSLTR (2), S-1/A (2), 10-Q/A (1), 3/A (1), 424B4 (1), 8-A12B (1), CERT (1), DEF 14C (1), DRS (1), EFFECT (1), FWP (1), PRE 14A (1), PRE 14C (1), S-1 (1)

  • Latest filingsAnnual report (10-K) Feb 20, 2026
    Quarterly report (10-Q) Aug 7, 2026
    Proxy statement (DEF 14A) Apr 7, 2026
    Latest 8-K (8-K) Aug 6, 2026

Securities registered for trading

ClassSymbolExchange
Class A Common Stock, par value $0.00001 per shareDBXThe NASDAQ Stock Market LLC

From the cover page of the 10-K filed Feb 20, 2026 (Section 12(b) of the Exchange Act).6

Risk factors and legal proceedings

The risks Dropbox Inc. names in Item 1A of its 10-K filed Feb 20, 2026: 54 risks under these headings, as written.6

  • Risks Related to Our Business and Operations
  • Our rate of growth has declined and we have experienced negative growth in past periods. If we do not successfully execute our plan for future growth, our growth rate may continue to decline and we may continue to experience negative growth in future periods.
  • Our business depends on our ability to attract and retain users, convert users to paying users and upgrade paying users, and any decline in acquisitions, renewals or upgrades could adversely affect our future results of operations.
  • We have in the past and may continue to experience privacy and data security breaches or incidents.
  • Our business could be harmed by any significant disruption of service on our platform or loss of content.
  • We operate in competitive markets, and we must continue to compete effectively.
  • Failure to respond to rapid technological changes, extend our platform, or develop new features or products may harm our ability to compete effectively, which would adversely affect our business.
  • Our business depends upon the interoperability of our platform across devices, operating systems, and third-party applications that we do not control.
  • We generate revenue from sales of subscriptions to our platform, and declines in demand for our platform, or for content collaboration solutions in general, could negatively impact our business.
  • We depend on our key personnel and other highly qualified personnel, and if we fail to attract, integrate, and retain our personnel, and maintain our unique corporate culture, our business could be harmed.
  • We operate with a Virtual First workforce and the long-term impact of this model on our financial results and business operations remains uncertain.
  • Our business may be significantly impacted by general economic, political, and market conditions, including any resulting effect on consumer or business spending.
The other 43 risks
  • Our lack of a significant outbound sales force may limit the potential growth of our business.
  • We may expand sales to large organizations, which could lengthen sales cycles and result in greater deployment challenges.
  • Any failure to offer high-quality customer support may harm our relationships with our users and our financial results.
  • Our business depends on a strong brand, and if we are unable to maintain and enhance our brand, our ability to expand our base of users will be impaired and our business, results of operations, and financial condition will be harmed.
  • Our current operations outside the United States and our efforts to expand, subject us to increased business and economic risks that could impact our results of operations.
  • We depend on our infrastructure and third-party datacenters, and any disruption in the operation of these facilities or failure to renew the services could adversely affect our business.
  • We have relationships with third parties to provide, develop, and create applications that integrate with our platform, and our business could be harmed if we are unable to continue these relationships.
  • Our use of open source software could negatively affect our ability to offer and sell subscriptions to our platform and subject us to possible litigation.
  • Our ability to sell subscriptions to our platform and retain users could be harmed by real or perceived material defects or errors in our platform.
  • We have acquired or invested in, and may in the future acquire or invest in, other businesses, assets, and technologies, which could require significant management attention, disrupt our business operations, cause us to incur debt or dilute stockholder value, and may not be successful.
  • Our current and future indebtedness may limit our operating flexibility or otherwise affect our business.
  • Our operations may be interrupted and our business, results of operations, and financial condition could be adversely affected if we default on our leasing or credit obligations.
  • Risks Related to Our Financial Performance or Results
  • Our revenue growth rate has declined in recent periods and may continue to slow in the future.
  • We may increase expenses in the future, and we may not be able to achieve or maintain profitability in future periods.
  • Servicing our indebtedness under our term loan facility, 2026 Notes, and 2028 Notes may require a significant amount of cash, and we may not have sufficient cash flow or the ability to raise the funds necessary to satisfy our obligations under our term loan facility, 2026 Notes, or 2028 Notes.
  • Our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business.
  • Our results of operations may not immediately reflect downturns or upturns in sales because we recognize revenue from our users over the term of their subscriptions with us.
  • Our results of operations, which are reported in U.S. dollars, could be adversely affected if currency exchange rates fluctuate substantially in the future.
  • We are subject to counterparty risk with respect to the convertible note hedge transactions.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • Our operating results may be harmed if we are required to collect or pay incremental sales, value-added, or other related indirect taxes for our services or in jurisdictions where we have not historically done so.
  • Our results of operations and financial condition could be materially affected by the enactment of legislation implementing changes in the U.S. or non-U.S. taxation of international business activities or the adoption of other tax reform policies.
  • We have publicly disclosed market opportunity estimates, growth forecasts, and key metrics, including the key metrics included in this Annual Report on Form 10-K, as well as in our other public statements, which could prove to be inaccurate, and any real or perceived inaccuracies may harm our reputation and negatively affect our business.
  • Risks Related to Legal and Regulatory Compliance
  • We are subject to a variety of U.S. and international laws that could subject us to claims, increase the cost of operations, or otherwise harm our business due to changes in the laws, changes in the interpretations of the laws, greater enforcement of the laws, or investigations into compliance with the laws.
  • We are subject to export and import control laws and regulations that could impair our ability to compete in international markets or subject us to liability if we violate such laws and regulations.
  • Our actual or perceived failure to comply with privacy, data protection, and information security laws, regulations, and obligations could harm our business.
  • Our business could be adversely impacted by changes in internet access for our users or laws specifically governing the internet.
  • We are currently, and may be in the future, party to intellectual property rights claims and other litigation matters and, if resolved adversely, they could have a significant impact on our business, results of operations, or financial condition.
  • Our failure to protect our intellectual property rights and proprietary information could diminish our brand and other intangible assets.
  • Risks Related to Ownership of Our Class A Common Stock
  • The trading price of our Class A common stock may be volatile, and you could lose all or part of your investment.
  • The multi-class structure of our common stock has the effect of concentrating voting control with those stockholders who held our capital stock prior to the completion of our IPO, and it may depress the trading price of our Class A common stock.
  • Substantial future sales could depress the market price of our Class A common stock.
  • Transactions relating to our 2026 Notes and 2028 Notes may dilute the ownership interest of stockholders, or may otherwise depress the price of our common stock.
  • Nevada law and provisions in our articles of incorporation and bylaws, could make a merger, tender offer, or proxy contest difficult, thereby depressing the market price of our Class A common stock.
  • Our bylaws designate the Eighth Judicial District Court of the State of Nevada, Clark County, Nevada as the exclusive forum for substantially all disputes between us and our stockholders, and also provide that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
  • We cannot guarantee that our stock repurchase program will be fully implemented or that it will enhance long-term stockholder value.
  • We do not intend to pay dividends or other distributions for the foreseeable future.
  • General Risk Factors
  • Our business could be disrupted by catastrophic events.
  • We may have exposure to greater than anticipated tax liabilities, which could adversely impact our results of operations.
  • If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.
  • Our reported results of operations may be adversely affected by changes in accounting principles generally accepted in the United States.
  • We may need additional capital, and we cannot be certain that additional financing will be available on favorable terms, or at all.
  • Our Class A common stock market price and trading volume could decline if securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business.

Legal proceedings

Legal Proceedings

We are currently involved in, and may in the future be involved in, legal proceedings, claims, inquiries, and government investigations in the ordinary course of business, including legal proceedings with third parties asserting infringement of their intellectual property rights, regulatory matters and commercial disputes.

On July 19, 2019 and July 23, 2021, Motion Offense, LLC (“Motion Offense”) filed patent infringement suits in the Western District of Texas (Waco Division) asserting infringement of a total of six U.S. patents. These lawsuits were consolidated in September 2021 (“the Consolidated Action”). In April 2023, Motion Offense filed a third patent infringement lawsuit involving one U.S. patent, which was not consolidated into the Consolidated Action.

The Consolidated Action had a jury trial in May 2023, and the jury found in favor of Dropbox on all counts including non-infringement and invalidity of the patents and awarded no damages to Motion Offense. In August 2024, the court entered judgment in line with the May 2023 verdict. A decision on post-trial briefing is currently pending. The final judgment in the district court may be appealed to the Federal Circuit.

The opening of Item 3, Legal Proceedings.6

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