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Datadog (DDOG) FY2025 results: revenue $3.4 billion, up 27.7% on the year

Datadog, Inc. (DDOG) reported revenue of $3.4 billion for fiscal 2025, the year ended 31 December 2025, up 27.7% on the year before. Net income was $108 million, down 41.4%, and diluted earnings per share $0.31. The figures are the company's own, from the 10-K it filed with the SEC on 18 February 2026.

Revenue
$3.4 billion
+27.7% on the year
FY2018FY2025
Operating margin
-1.3%
2.0% a year earlier
FY2018FY2025
Net income
$108 million
-41.4% on the year
FY2018FY2025
Diluted EPS
$0.31
-40.4% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 6 new.

  • Revenue grew 29% in quarter: Fourth quarter revenue was $953 million, up 29% year over year, with GAAP operating income of $9 million.
  • Full-year revenue reached $3.43 billion: Fiscal 2025 revenue was $3.43 billion, up 28%, with a GAAP operating loss of $44 million.
  • Non-GAAP operating margin was 24%: Non-GAAP operating income was $230 million, with a 24% non-GAAP operating margin; the GAAP operating margin was 1%.
  • Non-GAAP gross margin fell to 81%: Non-GAAP gross margin was 81% against 82% a year earlier; GAAP gross margin was 80%, unchanged from a year earlier.
  • Current deferred revenue rose: Current deferred revenue was $1,193.6 million at December 31, 2025, up from $961.9 million a year earlier.
Read the Q4 FY2025 earnings call summary

From this 10-K

Datadog is an observability and security platform for cloud applications, sold as software as a service. It integrates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security, service management and other capabilities into one real-time view of a customer's technology stack. The company started in 2010 to build a real-time data integration platform, launched its first product, Infrastructure Monitoring, in 2012, and has since extended past observability into cloud security, software delivery and service management.

Datadog, Inc., the 10-K for 2025

Datadog is an observability and security platform for cloud applications, sold as software as a service. It integrates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security, service management and other capabilities into one real-time view of a customer's technology stack. The company started in 2010 to build a real-time data integration platform, launched its first product, Infrastructure Monitoring, in 2012, and has since extended past observability into cloud security, software delivery and service management.

The platform is modular. Many products are fully capable stand-alone, so a customer can take them one at a time or several at once, and when deployed together they cross-correlate automatically. Data is collected client-side by a single agent covering metrics, traces, logs and other data, and more than 1,000 out-of-the-box integrations pull in data from public cloud, private cloud, on-premise hardware, databases and third-party software. Every piece of data ingested is tagged with metadata regardless of type, so a log event and an application trace can be queried together, correlated, alerted on and visualised in one interface. The filing states the platform currently monitors trillions of events per hour and millions of servers and containers.

Observability

Infrastructure Monitoring watches IT infrastructure across public, private and hybrid cloud, containers and serverless, with all infrastructure data in one repository. Application Performance Monitoring gives code-level distributed tracing across microservices, hosts, containers and serverless functions. Log Management ingests, indexes and queries logs; Logging Without Limits separates the cost of ingesting logs from processing them, and Flex Logs separates storage from query so retention and querying capacity move independently. Observability Pipelines collects, transforms and routes logs, metrics and traces from any source to any destination.

Synthetics monitors applications and API endpoints with simulated user requests, while Real User Monitoring analyses browser and mobile application performance as actual users experience it. Product Analytics gives engineering leaders, product owners and product managers a picture of product, user and performance data across applications. Continuous Profiler measures code-level performance with an always-on, low overhead approach. Database Monitoring shows query metrics and explain plans from all of a customer's databases in one place. Data Observability covers Data Streams Monitoring for event-driven applications and Data Jobs Monitoring for Spark and Databricks jobs. LLM Observability traces large language model chains end to end, with visibility into input and output, errors, token usage and latency at each step. Error Tracking groups errors into issues across frontend and backend applications with debug context down to lines of code. Cloud Network Monitoring visualises network traffic flow, and Network Device Monitoring covers routers, firewalls, switches and load balancers.

Service management and automation

Incident Response unifies monitoring, paging and incident management into one workflow. Workflow Automation automates and orchestrates processes across a customer's stack with out-of-the-box actions and customisable blueprints, and App Builder is the low-code way to build custom applications alongside it. Event Management aggregates and consolidates alerts into one view for centralised operations teams. Bits AI SRE is an always-on AI agent for troubleshooting, which the filing says was developed against thousands of real-world incidents. Cloud Cost Management gives granular visibility into cloud costs alongside metrics, traces and logs.

OnCall, Product Analytics and the Bits AI SRE agent were all launched in 2025, OnCall to build on-call schedules and feed real-time observability data into a customer's incident response plan.

Security

Cloud Security scans a customer's infrastructure agentlessly for vulnerabilities, misconfigurations, identity risks and compliance violations. Code Security prioritises vulnerabilities by runtime, covering first-party code and third-party open-source code in development and at runtime. Cloud SIEM detects and investigates threats across cloud-scale environments and stores and analyses operational and security logs in real time. Threat Management splits into Workload Protection, which does in-kernel analysis of workload activity across hosts and containers, and App & API Protection for API visibility, posture management and runtime protection. Sensitive Data Scanner discovers, classifies and redacts sensitive data on ingestion against built-in or user-defined rules, to support compliance with GDPR, HIPAA and CCPA. CI Visibility covers the continuous integration environment, with Pipeline Visibility for slow or failing pipelines, builds and jobs across providers, and Test Visibility for slow, failing and flaky tests.

A Marketplace sits alongside the products, where customers can access products built by partners on top of the Datadog platform.

From Datadog's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 18 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue3,4272,6842,128+27.7%
Cost of revenue687516410+33.3%
Gross profit2,7402,1691,718+26.3%
Gross margin80.0%80.8%80.7%
Research and development1,5481,153962+34.3%
Operating income-44.454.3-33.5
Operating margin-1.3%2.0%-1.6%
Interest expense11.17.16.3+56.5%
Pre-tax income12720460.2-37.7%
Income tax19.320.211.7-4.5%
Effective tax rate15.2%9.9%19.4%
Net income10818448.6-41.4%
Net margin3.1%6.8%2.3%
Diluted EPS$0.31$0.52$0.14-40.4%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow1,050871660+20.6%
Capital expenditure49.634.727.6+42.8%
Free cash flow1,001836632+19.7%
Free cash flow margin29.2%31.1%29.7%
Cash from investing-1,334-737-731
Cash from financing-57278758.3
Depreciation and amortisation49.248.535.6+1.4%
Share-based compensation751570482+31.6%
Diluted shares, weighted363m359m350m+1.3%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity3,7322,7142,025+37.5%
Debt9831,613742-39.0%
Operating lease liabilities256197138+30.1%
Other liabilities1,6721,2611,030+32.6%
Total liabilities and equity6,6445,7853,936+14.8%
Fixed assets338227172+49.0%
Goodwill531360353+47.2%
Intangible assets15.03.79.6+303.3%
Investments4,0742,9422,253+38.5%
Cash and equivalents4011,247330-67.8%
Receivables741599509+23.8%
Other assets544406310+33.9%
Total assets6,6445,7853,936+14.8%

10-K for the year ended 31 December 2025, filed 18 February 2026: the filing.