0001582961-26-000045
SEC filingDigitalOcean amended its credit agreement to increase revolving commitments by $112.5M and reported Q1 2026 revenue of $258M, up 22% YoY, while raising full-year 2026 revenue guidance to 25-27% growth.
DigitalOcean's 8-K filing covers two material events: a credit agreement amendment and first quarter 2026 earnings. The amendment, effective May 4, 2026, increases the revolving credit facility by $112.5 million to $412.5 million and the letter of credit sublimit by $50 million to $80 million. The definition of 'Indebtedness' was also modified to treat capitalized leases at 25% of the capitalized amount. Proceeds are available for working capital, capex, acquisitions, and refinancing. This enhanced liquidity supports the company's aggressive growth strategy, including data center capacity expansion.
On the earnings front, Q1 2026 revenue reached $258 million, up 22% year-over-year, driven by strong AI customer adoption. AI Customer ARR surged 221% to $170 million, and Million+ Dollar Customer ARR grew 179% to $183 million. Net income fell 59% to $16 million due to higher operating expenses, but adjusted EBITDA rose 21% to $105 million, maintaining a 41% margin. The company raised its full-year 2026 revenue guidance to $1.130-$1.145 billion (25-27% growth) and provided Q2 2026 revenue guidance of $272-$274 million. Management highlighted the launch of the DigitalOcean AI-Native Cloud and the acquisition of Katanemo Labs as key strategic moves. The combination of increased credit capacity and strong revenue momentum positions DigitalOcean to capitalize on the AI infrastructure opportunity, though margin compression from investment spending remains a watchpoint.