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Dropbox DBX

Dropbox scores average on business quality (5.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$34.36Oct 9, 2026
Business qualityAverage
Next earningsOct 29, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Dropbox does

    Dropbox makes money by selling cloud storage subscriptions to individuals and businesses, charging recurring fees for file hosting and collaboration tools. The company is leaning heavily into aggressive share buybacks, returning $1.5B to reduce share count while top-line revenue growth flatlines.

  2. What it does best

    Dropbox excels at cash conversion, generating $953M in free cash flow on $2.5B of revenue. This free cash flow margin of 89% ranks in the top decile of its sector, underpinned by low capital expenditure needs of just $27M.

  3. The main risk

    Revenue contraction of 1.1% highlights a stagnant core product line that fails to attract new users. Without top-line expansion, the heavy reliance on buybacks to artificially boost per-share metrics leaves little room for operational missteps.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margins sit at 26.5% and free cash flow conversion is elite, driven by minimal capital intensity. The business scales efficiently, squeezing strong cash out of a static top line.

MoatStrong

A gross margin of 79.7% sits in the 81st sector percentile, reflecting deep customer lock-in for file storage. Migrating terabytes of enterprise data creates high friction, deterring churn.

GrowthSlow

Growth has stalled entirely, with revenue dropping 1% to $2.5B. Historical summaries show the top line has flattened completely compared to prior years, signaling a faded growth engine.

Financial healthFair

With total debt of $3.2B and cash of $1B, the net debt position sits at $2.1B. Interest coverage of 4.6x provides a modest buffer, but the balance sheet is softening as leverage increases.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 sold $540K outside pre-planned sales.

Our sealed record on DBX

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is DBX a good business?

Dropbox scores average on the Cluenex quality check (5.4 of 10), measured against its own industry. Profitability is fair, moat strong, growth slow and financial health fair.

Are insiders buying DBX?

In the last 90 days of SEC Form 4 filings: 1 sold $540K outside pre-planned sales.

When does DBX report earnings?

Oct 29, 2026, after the close.

For members

See DBX today

  • Today's verdict on DBX, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Dropbox (DBX)”, https://cluenex.com/stocks/dbx/, data as of Oct 10, 2026.