DigitalOcean Reports 18% Revenue Growth, Surpasses $1 Billion Run Rate Driven by AI Expansion
DigitalOcean achieved an annualized revenue run rate exceeding $1 billion in December 2025, propelled by AI adoption and growth among digital native enterprises. Q4 2025 revenue reached $242 million, an 18% increase, with a total 2025 revenue of $901 million. The company’s AI-related ARR rose to $120 million, reflecting a 150% year-over-year growth. DigitalOcean plans to add 31 megawatts of data center capacity in 2026 and anticipates revenue growth of 19% to 23% for the year.
Theia Market Signal Identification - AI AssistedDigitalOcean surpassed a $1 billion annualized revenue run rate in December 2025, driven by AI adoption and expansion among digital native enterprises. In Q4 2025, the company reported $242 million in revenue, an 18% increase, contributing to a total of $901 million for the year.
AI-related annual recurring revenue (ARR) reached $120 million, up 150% year-over-year. DigitalOcean will add 31 megawatts of new data center capacity in 2026, with expectations of revenue growth of 19% to 23%. The company also plans to sunset its dedicated bare-metal CPU offering, which will eliminate $13 million in non-core ARR by the end of 2026.
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