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SAN FRANCISCO - Dropbox, Inc. (NASDAQ:DBX), currently trading at $30.34 and identified as undervalued by InvestingPro analysis, announced Tuesday it has amended its existing Credit and Guaranty Agreement to secure up to an additional $700 million in delayed draw secured term loans.
The amended facility was led by Blackstone Credit & Insurance, which served as lead arranger and lead structuring agent. According to the company’s statement, proceeds from the additional delayed draw term loans will be used exclusively to repay Dropbox’s outstanding convertible senior notes due in 2026.
Simultaneously, the cloud storage provider announced a new share repurchase authorization for an additional $1.5 billion of its Class A common stock.
Dropbox, headquartered in San Francisco and maintaining an impressive 81.45% gross profit margin, reports having more than 700 million registered users across approximately 180 countries. The $8.19 billion market cap company positions itself as a platform for keeping life organized and work moving. According to InvestingPro’s comprehensive analysis, the company maintains a "GREAT" financial health score of 3.16.
The announcement comes as Dropbox navigates its business strategy following a workforce reduction announced in October 2024. The company continues to operate under its Virtual First model with an increasingly distributed workforce.
The financial moves suggest Dropbox is actively managing its capital structure while returning value to shareholders through the expanded stock repurchase program.
This information is based on a press release statement issued by the company.
In other recent news, Dropbox reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.71, exceeding the forecasted $0.62. Revenue also outperformed projections, reaching $626 million compared to the expected $617.83 million. Despite these positive results, investor sentiment was cautious, with shares dipping slightly post-market. Additionally, Jefferies raised its price target for Dropbox to $30.00 from $28.00, maintaining a Hold rating. This adjustment was influenced by Dropbox’s strong operating margins, which were approximately 10% ahead of expectations. The company achieved an operating margin of 41.5%, surpassing its guidance of 37.5%. This improvement was primarily attributed to headcount reductions and reduced marketing expenses.
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