Dropbox Completes FormSwift Wind-Down, Launches Agent Cloud

The Tip Desk · November 7, 2026 · 3 min read

Revenue was $637.3 million in the third quarter as the company closed the FormSwift wind-down and agreed to buy Tigris Data for about $350.0 million.

Dropbox, Inc. (DBX) reported third-quarter revenue of $637.3 million, up 0.5% from a year earlier, and said it completed the wind-down of FormSwift as of the end of the period. Excluding FormSwift, revenue grew 1.0% year-over-year and 0.2% on a constant-currency basis.

That ex-FormSwift growth rate slowed from 1.7% in the second quarter and 2.0% in the first quarter. Co-Chief Executive Officer Ashraf Alkarmi said the quarter was a fifth consecutive period of year-over-year revenue growth excluding FormSwift, with both that growth rate and non-GAAP operating margin ahead of the company’s guidance.

Total annual recurring revenue was $2.555 billion, up 0.8%. Excluding FormSwift, Total ARR grew 1.9% and 0.4% on a constant-currency basis. Constant-currency Total ARR decreased $10.4 million quarter-over-quarter because of the FormSwift wind-down; excluding FormSwift, it increased $4.7 million.

Paying users totaled 18.20 million, up 20,000 from the prior quarter, which the company said was largely due to growth in the Simple plan and slight growth in Teams, offset by the FormSwift wind-down. Average revenue per paying user was $138.76.

GAAP operating margin was 27.5%. Non-GAAP operating margin was 42.2%, versus 41.1% a year earlier. GAAP gross margin was 80.6% and non-GAAP gross margin was 81.8%. GAAP net income was $116.1 million, or $0.52 a share. Non-GAAP net income was $197.8 million, or $0.88 a share.

Interest expense, net, was $51.2 million in the three months ended September 30, 2026, versus $20.3 million a year earlier. Sales and marketing expense was $86.6 million and general and administrative expense was $66.5 million.

Net cash provided by operating activities was $259.2 million. Unlevered free cash flow was $303.9 million. Cash, cash equivalents and short-term investments ended at $1.142 billion.

On November 5, 2026, Dropbox introduced DBX Agent Cloud, which it described as a new infrastructure business for companies and developers building AI applications, starting with standalone, S3-compatible object storage and expanding over time to include filesystem and content-processing capabilities. The same day it announced an agreement to acquire Tigris Data Inc., a globally distributed object storage platform, for approximately $350.0 million in cash, subject to customary purchase-price adjustments, with the deal expected to close in the fourth quarter of 2026. Dropbox also launched a new Dropbox experience that lets customers find, understand, create, and edit content directly in the product.

Alkarmi said the company is executing on a strategy to become the trusted, independent content foundation for the AI era, and that DBX Agent Cloud and the Tigris agreement are putting infrastructure built over nearly two decades to work for companies building AI applications.

Dropbox said it will provide forward-looking guidance in connection with the quarterly earnings announcement on its conference call, webcast, and investor-relations website.