Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q1'25 → | C+ | B- |
| Q2'25 → | B- | B |
| Q3'25 → | B+ | B+ |
| Q4'25 → | C+ | B- |
| Q1'26 → | B+ | B |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q1'26 | ✅ | Revenue $618-621M for Q1 Delivered $629M vs $619.5M midpoint | exceeded |
| Q1'26 | ✅ | Operating margin ~38% in Q1 Delivered 40.1% vs 38% guide | exceeded |
| Q1'26 | ✅ | Gross margin pressure from Dash scaling Gross margin down 180 bps YoY, continued pressure guided | delivered |
| Q1'26 | ✅ | Scale up rollout to additional Dash customer cohorts Expanded rollout and plan to significantly expand access through 2026 | delivered |
| Q1'26 | ✅ | Focus on engagement and adoption before monetization Still focused on adoption but accelerated monetization timeline to H2 | delivered |
| Q1'26 | ⏳ | Roughly flat paying user trends for remainder of year Updated to 'modestly better than prior year' and 'slightly positive overall' | pending |
| Q1'26 | ✅ | Modestly negative paying user growth in Q1 Guided to decline, delivered +14K sequential growth | exceeded |
| Q4'25 | ✅ | Continue reducing share count over time 14M shares repurchased, plan to exhaust remaining $1.17B authorization | delivered |
| Q4'25 | ✅ | More disciplined hiring and efficiency focus Operating leverage demonstrated, new CFO reinforces efficiency mindset | delivered |
| Q4'25 | ✅ | Revenue $626-629M for Q4 Delivered $636M above high end of range | exceeded |
| Q4'25 | ✅ | Operating margin around 37% for Q4 Delivered 38.2% vs 37% guidance | exceeded |
| Q4'25 | ✅ | Self-serve Dash launch in Q4 Launched at $19/month with 50% discount for existing customers | delivered |
| Q4'25 | ✅ | Q4 launch of Dash integrations into FSS experience Started rolling out native Dash in Dropbox app, though in limited phases | delivered |
| Q3'25 | ✅ | At or above $970M unlevered free cash flow Raised to at or above $1B, crossing milestone threshold | exceeded |
| Q3'25 | ✅ | ~39% operating margin for FY25 Raised to ~40%, 100bps improvement | exceeded |
| Q3'25 | ✅ | $2.490-2.500B revenue guidance for FY25 Raised to $2.511-2.514B, $18M midpoint increase | exceeded |
| Q3'25 | ✅ | FormSwift will represent roughly half of paying user decline Maintained at roughly half of total decline expectation | delivered |
| Q3'25 | ✅ | Continue to anticipate decline of about 1.5% or about 300,000 users for full year Improved to expect roughly 250,000 decline due to retention improvements | exceeded |
| Q3'25 | ✅ | Integrating Dash into the Dropbox FSS experience Native Dash integration started rolling out to FSS teams with waitlist approach | delivered |
| Q3'25 | ✅ | Self-serve version of Dash in the coming months Actually launched in Q3 at $19/month with 50% discount for existing customers | delivered |
| Q2'25 | ✅ | Paying user decline of roughly 300K for full year Maintained guidance despite better Q1/Q2 performance | delivered |
| Q2'25 | ✅ | Raise operating margin guidance by 50 bps Raised guidance to 39% vs prior 38.5% high end | exceeded |
| Q2'25 | ✅ | Flow through FX benefit to as-reported revenue guidance Revenue guidance raised by $12.5M midpoint for FX | delivered |
| Q2'25 | ⏳ | Complement outbound sales with self-serve motion Development continues but monetization expectations lowered | pending |
| Q2'25 | ⏳ | Introduce select Dash functionality into FSS plans Still planned but no timeline given beyond 'coming months' | pending |
| Q2'25 | ⏳ | Self-serve version of Dash for launch later this year Timeline softened to 'coming months' with no specific date | pending |
| Q1'25 | ✅ | FormSwift to be managed for efficiency rather than growth Operating income and FCF improved significantly as promised | delivered |
| Q1'25 | ✅ | Operating margin 37.5% to 38% for full year Raised to 38%-38.5% based on Q1 beat and FX benefits | exceeded |
| Q1'25 | ✅ | Revenue range $2.465B to $2.480B with 150bps FormSwift headwind Raised by $10M due to FX improvement, tracking to plan | delivered |
| Q1'25 | ✅ | Unlevered FCF at or above $940M Raised guidance to $950M+ based on Q1 outperformance | exceeded |
| Q1'25 | ✅ | Expect paying users to decline by roughly 300K with FormSwift driving about half Q1 decline of 60K tracking to full-year guidance | delivered |
| Q1'25 | ⏳ | 2025 will be a big year for Dash with aggressive investment Still investing but admitted sales motion needs streamlining - mixed signals | pending |
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