Expects its third quarter 2026 financial results to be in-line with or above its guidance ranges for revenue, constant currency revenue, and non-GAAP operating margin, previously provided in the investor supplement posted on the Company’s investors.dropbox.com website on August 6, 2026. These results are based on preliminary unaudited financial and other information, and subject to normal quarterly closing processes and accounting review. As previously announced, the Company is scheduled to report its third quarter 2026 financial results on Thursday, November 5, 2026.
On October 28, 2026, Dropbox announced a reduction of its global workforce by approximately 9% to align the Company’s investments and team structure with its top product and growth priorities and support its long-term strategy.
Dropbox estimates that the reduction in force will result in total cash expenditures of approximately $27 million to $33 million, primarily consisting of severance payments, employee benefits and related costs. Severance payments will include the pro rata amount of the fiscal year 2026 annual employee bonus.
The Company has accrued compensation expense through September 30, 2026 for a portion of the annual bonus amounts and expects to recognize $20 million to $25 million of incremental expense related to the aforementioned severance, benefits and related costs.
The Company expects to recognize substantially all of the incremental expense and pay a majority of the cash amounts related to this reduction in force in the fourth quarter of 2026, with the remainder to be recognized and paid in 2027. The estimated cash expenditures and incremental expenses are based on certain assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from such estimates.