Issues Database

Dropbox closed fiscal 2025 with revenue of about $2.52 billion, down roughly 1% year over year, paying users down to 18.07 million, and guidance for 2026 of essentially flat revenue — confirming that the core business has stopped growing even as margins expand.

Dropbox's revised Terms of Service, posted 1 September 2026 and effective 1 January 2027, change the inactivity test for accounts without a Paid Account from 12 consecutive months to 6, raise the minimum age to 18, and say that maintaining an account after the update takes effect means agreeing to the revised Terms. Dropbox's inactive-account help page, updated 31 August 2026, still describes a 12-month test.

A Seventh Circuit decision (No. 25-1536, 171 F.4th 587, 5 May 2026) affirmed a district court's finding that one criminal defendant had consented, by accepting Dropbox's terms of service, to Dropbox's review of his files, writing that "The language of this contract unambiguously permits Dropbox to scan all files at its option". A petition for certiorari (Supreme Court No. 26-460) is pending, with the government's response due 7 December 2026.

A flaw in how Lenovo verified account-holder email addresses let an attacker register a Lenovo ID on a victim's email, and Dropbox's Lenovo ID sign-in link then trusted that identity without ever asking for a Dropbox password — reaching roughly 5,000 accounts.

As of 4 November 2026, Dropbox is rated 1.3 out of 5 on Trustpilot (1,611 reviews) and 2.7 out of 5 on SmartCustomer, where the old SiteJabber address now redirects (210 reviews, 61% of them one-star).

Dropbox repeatedly assures users that AI features do not train on their data and that content is deleted within 30 days — but because these are revocable policy promises layered over server-side access rather than technical guarantees, security commentators remain skeptical that the assurances will hold.

A consumer law firm opened an investigation into Dropbox Plus auto-renewals in 2025, as strengthened automatic-renewal laws in California and New York raised the bar for consent, reminders, and easy cancellation.

Dropbox discontinued the Dropbox Paper mobile and desktop apps on 9 October 2025, leaving the once-flagship collaborative-document product accessible only through a web browser.

A federal judge compelled the users suing over the 2024 Dropbox Sign breach into individual arbitration — finding that by clicking 'I agree' to sign a document they had accepted Dropbox's terms — and then denied reconsideration, effectively shutting the class action out of court.

A June 2025 complaint in the Southern District of New York alleged that Dropbox's website was not accessible to blind and visually impaired users, in violation of Title III of the Americans with Disabilities Act. The plaintiff voluntarily dismissed the case with prejudice in September 2025; the allegations were never tested and there was no finding on the merits.

A pension fund shareholder sued Dropbox and its leadership in the Delaware Court of Chancery in 2025 over the company's plan to reincorporate in Nevada, alleging the move favored controlling stockholder and CEO Andrew Houston — in what was reported as the first court challenge to Delaware's controversial SB 21 corporate-law amendments.

Activist investor Half Moon Capital pressed Dropbox to dismantle the dual-class share structure that gives co-founder Drew Houston majority voting control, arguing that entrenched founder control and slowing growth were holding back value as the stock languished near multi-year lows.