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.
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.
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.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 3,427 | 2,684 | 2,128 | +27.7% | |
| Cost of revenue | 687 | 516 | 410 | +33.3% | |
| Gross profit | 2,740 | 2,169 | 1,718 | +26.3% | |
| Gross margin | 80.0% | 80.8% | 80.7% | ||
| Research and development | 1,548 | 1,153 | 962 | +34.3% | |
| Operating income | -44.4 | 54.3 | -33.5 | ||
| Operating margin | -1.3% | 2.0% | -1.6% | ||
| Interest expense | 11.1 | 7.1 | 6.3 | +56.5% | |
| Pre-tax income | 127 | 204 | 60.2 | -37.7% | |
| Income tax | 19.3 | 20.2 | 11.7 | -4.5% | |
| Effective tax rate | 15.2% | 9.9% | 19.4% | ||
| Net income | 108 | 184 | 48.6 | -41.4% | |
| Net margin | 3.1% | 6.8% | 2.3% | ||
| Diluted EPS | $0.31 | $0.52 | $0.14 | -40.4% |
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Free 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
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 1,050 | 871 | 660 | +20.6% | |
| Capital expenditure | 49.6 | 34.7 | 27.6 | +42.8% | |
| Free cash flow | 1,001 | 836 | 632 | +19.7% | |
| Free cash flow margin | 29.2% | 31.1% | 29.7% | ||
| Cash from investing | -1,334 | -737 | -731 | ||
| Cash from financing | -572 | 787 | 58.3 | ||
| Depreciation and amortisation | 49.2 | 48.5 | 35.6 | +1.4% | |
| Share-based compensation | 751 | 570 | 482 | +31.6% | |
| Diluted shares, weighted | 363m | 359m | 350m | +1.3% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 3,732 | 2,714 | 2,025 | +37.5% | |
| Debt | 983 | 1,613 | 742 | -39.0% | |
| Operating lease liabilities | 256 | 197 | 138 | +30.1% | |
| Other liabilities | 1,672 | 1,261 | 1,030 | +32.6% | |
| Total liabilities and equity | 6,644 | 5,785 | 3,936 | +14.8% | |
| Fixed assets | 338 | 227 | 172 | +49.0% | |
| Goodwill | 531 | 360 | 353 | +47.2% | |
| Intangible assets | 15.0 | 3.7 | 9.6 | +303.3% | |
| Investments | 4,074 | 2,942 | 2,253 | +38.5% | |
| Cash and equivalents | 401 | 1,247 | 330 | -67.8% | |
| Receivables | 741 | 599 | 509 | +23.8% | |
| Other assets | 544 | 406 | 310 | +33.9% | |
| Total assets | 6,644 | 5,785 | 3,936 | +14.8% |
10-K for the year ended 31 December 2025, filed 18 February 2026: the filing.