Does DigitalOcean Holdings, Inc. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores DigitalOcean Holdings, Inc. (DOCN) 45.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 96, returns on capital 12, balance-sheet safety 23, capital discipline 44.

Is DOCN stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $2.35 per share versus a recent price of $118.91 — 4970% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has DOCN's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 45.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

DigitalOcean Holdings, Inc.

DOCN · Technology · $10.9B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power96

Median gross margin 59.7% over 7y, very stable.

Returns on capital12

Median ROIC -0.2%, above the 9% hurdle in 33% of years.

Balance-sheet safety23

Net debt/EBITDA 3.5x, interest coverage 9x.

Capital discipline44

Owner earnings trend unclear, share count n/a.

Margin of safety

Above valueOn sale

4970% above value

Owner earnings (normalized): $19.4M
Est. intrinsic value / share: $2.35
Recent price: $118.91
Discount to value: 4970% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

8 years of fundamentals

The business, in plain English

DigitalOcean Holdings, Inc. booked $901.4M of revenue in FY2025 in the Technology sector and kept 59.9% of it as gross profit — a high-margin business by that measure. After every other cost, 28.8% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $254.8M (FY2019) to $901.4M (FY2025) — about 23.4% a year compounded over 6 years.

It earned 15.5% on invested capital in FY2025, with a median of −0.2% across 6 filed years. The Returns on Capital filter above scores it 12/100.

The balance sheet carried $1.3B of total debt in FY2025 against $267.6M of owner earnings — roughly 4.8 years of owner earnings to retire it all. Balance-Sheet Safety scores it 23/100.

The share count rose 112.2% between FY2020 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 44/100.

Put together: Pricing Power is the strongest of the four filters (96/100) and Returns on Capital the weakest (12/100), which is how DOCN lands at 46/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$901.4M FY2025

Gross marginRevenue kept after cost of goods59.9% FY2025

Return on invested capitalOperating profit on the capital employed15.5% FY2025

Owner earningsCash an owner could take out$267.6M FY2025

Gaps in a line mean that item isn’t in DOCN’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale45.6 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — DOCN has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#235 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#233SPT SPROUT SOCIAL, INC.45.8 out of 100, Shallow moatShallow moat
#234ESTC Elastic N.V.45.8 out of 100, Shallow moatShallow moat
#236SABR Sabre Corporation45.5 out of 100, Shallow moatShallow moat
#237INTZ Intrusion Inc.45.4 out of 100, Shallow moatShallow moat

Compare DOCN with its nearest peers →All Technology companies on the Index →

Common questions about DOCN

Does DigitalOcean Holdings, Inc. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores DigitalOcean Holdings, Inc. (DOCN) 45.6 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 96, returns on capital 12, balance-sheet safety 23, capital discipline 44.
Is DOCN stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $2.35 per share versus a recent price of $118.91 — 4970% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has DOCN's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 45.6 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell DOCN. See the disclaimer.