--- title: "Dropbox pays about US$350m for Tigris while its own revenue grows 0.5%" summary: "Dropbox’s deal filing and results of 5 November: what Tigris’s AI object storage is, why Dropbox wants it, and nine quarters of revenue within 1.5% of a year earlier." url: https://www.thetechbag.com/blog/dropbox-buys-tigris-350m-revenue-flat format: Note desk: "Markets & the AI economy" region: Global published: 2026-11-07 facts_checked: 2026-11-07 author: TechBag (The TechBag Journal) tags: ["Dropbox","Tigris Data","acquisition","object storage","S3-compatible storage","AI infrastructure","DBX Agent Cloud","earnings","ARR","ARPU","share buybacks","term loan","layoffs","guidance"] cover: https://www.thetechbag.com/blog/covers/dropbox-buys-tigris-350m-revenue-flat.png --- # Dropbox pays about US$350m for Tigris while its own revenue grows 0.5% *Dropbox’s deal filing and results of 5 November: what Tigris’s AI object storage is, why Dropbox wants it, and nine quarters of revenue within 1.5% of a year earlier.* Note · Markets & the AI economy · By TechBag · Published 2026-11-07 · Facts checked 2026-11-07 · Canonical: https://www.thetechbag.com/blog/dropbox-buys-tigris-350m-revenue-flat Dropbox agreed on 3 November to buy Tigris Data, a start-up that sells object storage built for AI applications, for about US$350m in cash, before customary adjustments to the price; it expects the deal to close in October–December.[2] It announced the deal on 5 November alongside results that showed its own revenue up 0.5% on a year earlier, at US$637.3m for July–September.[1] Dropbox did not disclose Tigris’s revenue, so the price cannot be set against it. ~US$350m in cash for Tigris, before adjustments 8-K, 5 Nov 31% of Dropbox's US$1.142bn cash and short-term investments TechBag arithmetic +0.5% Dropbox revenue growth, July–September Results release +0.4% ARR growth, constant currency, excluding FormSwift Results release ## What Dropbox is buying, in its own words Tigris describes itself as “a globally distributed, S3-compatible object storage platform purpose-built for AI”, founded by former Uber engineers, that lets developers keep data across clouds “without vendor lock-in or egress fees”.[3] Object storage keeps each file as an object with an address rather than in folders; it is how Amazon S3 stores data, and “S3-compatible” means software written for S3 works with it unchanged. Dropbox says the deal “will help accelerate Dropbox’s entry into the market for AI infrastructure”. The same day it launched DBX Agent Cloud, a storage business for companies building AI applications that starts with standalone S3-compatible object storage.[3] Tigris is “small, but growing rapidly” and “not material to our total revenue in the trailing 12-month period”, with thousands of customers including the developer platform Railway and “a little bit over 20 employees”, the chief financial officer, Ross Tennenbaum, said on the call. He declined to give its size before closing. Dropbox expects storage freed by its own efficiency work to absorb Tigris’s customers and their growth in 2027: “we have capacity just kinda sitting there that we wanna go out and sell.” The guidance leaves Tigris out.[5] ## What a flat Dropbox looks like **Figure: Dropbox's revenue has stayed within 1.5% of a year earlier for nine quarters** *Dropbox revenue by quarter, US$ million, and growth on the same quarter a year earlier, %, July–September 2024 to the October–December 2026 guidance* | | Revenue (US$m) | Change on a year earlier (%) | | --- | --- | --- | | Q3 24 | 638.8 | 0.9 | | Q4 24 | 643.6 | 1.4 | | Q1 25 | 624.7 | -1 | | Q2 25 | 625.7 | -1.4 | | Q3 25 | 634.4 | -0.7 | | Q4 25 | 636.2 | -1.1 | | Q1 26 | 629.5 | 0.8 | | Q2 26 | 631.5 | 0.9 | | Q3 26 | 637.3 | 0.5 | | Q4 26 guide | 631.5 | -0.7 | Source: Dropbox quarterly results releases (8-K Exhibit 99.1), 7 Nov 2024 to 5 Nov 2026; Q4 2026 guidance said on the 5 Nov call · as of 5 November 2026 · Q4 26 is the midpoint of the US$630–633m guidance; its growth is TechBag arithmetic. Growth as reported, including FormSwift Excluding FormSwift, a document business whose wind-down finished at the end of September, revenue grew 1.0%, and 0.2% in constant currency. Annual recurring revenue was US$2.555bn, up 0.8%. Paying users rose to 18.20 million from 18.07 million, while average revenue per paying user slipped to US$138.76 from US$139.07. The business is very profitable: a non-GAAP operating margin of 42.2% (27.5% on GAAP).[1] Dropbox guides to US$630–633m in October–December and expects 2027 revenue, without Tigris, to be “roughly flat”, it said on the call.[5] On 28 October it said it would cut about 9% of its global workforce, at a cash cost of US$27–33m.[4] ## Where the cash has been going In the nine months to September Dropbox bought back 31.6 million of its shares for US$839.0m, and its term loans rose to US$2.668bn from US$1.488bn at the end of 2025; net interest expense was US$51.2m in the quarter, against US$20.3m a year earlier.[6] Net income fell to US$116.1m from US$123.8m, but with 225.1 million diluted shares against 265.1 million, earnings per share rose to US$0.52 from US$0.47.[1] TechBag countFewer shares, not more profit Net income fell 6% while the diluted share count fell 15%, which is why earnings per share rose. US$350m is 31% of the US$1.142bn of cash and short-term investments Dropbox held on 30 September.[1] Dropbox’s shares closed 3.1% lower at US$34.66 on 6 November, the day after the results.[7] What to watch in February: the first figures for Tigris’s revenue, and guidance that includes it.[5] How we did this Figures as of 7 November 2026, 4pm IST Deal terms are from Dropbox’s 8-K of 5 November and its 10-Q; Tigris’s description from the deal release; the quarter from the results release; buybacks and debt from the 10-Q; the job cuts from the 8-K of 28 October. The revenue series is from each quarter’s results release, growth as reported.[8] Guidance, the 2027 outlook and Tigris’s size were said on the call and are not in the filings. The share of cash, the guidance quarter’s growth and the changes in net income and share count are our arithmetic. Tigris’s revenue is undisclosed, so we give no multiple. Closes are Nasdaq’s. Spotted an error? Write to us; corrections are published at the foot of the piece. Sources 1. [Dropbox, Dropbox Announces Third Quarter 2026 Results (8-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000058/q32026er-exhibit991q2xq4.htm) — 5 November 2026 2. [Dropbox, Form 8-K, Item 8.01: agreement to acquire Tigris Data Inc.](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000056/dbx-20261103.htm) — 5 November 2026 3. [Dropbox, Dropbox Announces Plans to Acquire Tigris Data Inc. and Unveils DBX Agent Cloud (8-K, Exhibit 99.1)](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000056/november2026exhibit991.htm) — 5 November 2026 4. [Dropbox, Form 8-K, Item 2.05: reduction of the global workforce by about 9%](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000052/dbx-20261028.htm) — 28 October 2026 5. [The Motley Fool, Dropbox (DBX) Q3 2026 earnings call transcript (Ashraf Alkarmi, Ross Tennenbaum)](https://www.fool.com/earnings/call-transcripts/2026/11/06/dropbox-dbx-q3-2026-earnings-call-transcript/) — 6 November 2026 6. [Dropbox, quarterly report on Form 10-Q, quarter to 30 September 2026](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000061/dbx-20260930.htm) — 6 November 2026 7. [Nasdaq, DBX historical prices (closes, 5 and 6 November 2026)](https://www.nasdaq.com/market-activity/stocks/dbx/historical) — 6 November 2026 8. [Dropbox, quarterly results releases (8-K, Exhibit 99.1), Q3 2024 to Q2 2026 (Q2 2026 shown)](https://www.sec.gov/Archives/edgar/data/1467623/000146762326000045/q22026er-exhibit991q2xq4.htm) — 7 November 2024 to 6 August 2026 **Disclosure.** TechBag is a software reseller: it earns a margin when a reader buys through it, including from vendors named here. The analysis is TechBag’s own; no vendor paid for or saw this piece before publication. Facts are labelled reported, TechBag count or our view. **Read this next:** [Software shed about US$1tn in a week; seat-priced renewals are next](https://www.thetechbag.com/blog/software-selloff-seat-pricing-renewals) — Why investors blamed AI agents for shrinking seat counts: how far SaaS shares fell in the first half of 2026, and what to ask for at renewal. Go deeper on TechBag - [The Dropbox hub](https://www.thetechbag.com/dropbox) — Dropbox's products, with dated, sourced claims - [Dropbox](https://www.thetechbag.com/dropbox/dropbox-core) — the file storage and sharing business whose revenue is flat - [ARPU hides the U: Dropbox earns US$140 a payer](https://www.thetechbag.com/blog/importance-arpu-saas-companies) — what Dropbox's revenue per paying user tells a customer before renewal