Datadog (DDOG) FY2025 10-K Annual Report

Filed: Feb 18, 2026
Information Technology
Services-Prepackaged SoftwareSEC EDGAR

Datadog (DDOG) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 18, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Datadog FY2025 10-K Analysis

Business Overview

  • Core business: Cloud-based monitoring and analytics platform for IT infrastructure and applications
  • New emphasis on AI-native customer cohort driving ~7 percentage points of year-over-year revenue growth in Q4 2025
  • Strategic focus on expanding sales/marketing teams domestically and internationally to increase customer base and market acceptance
  • Security breach incident in April 2025 involving unauthorized access to source code repositories, leading to increased cybersecurity risk
  • History of operating losses with prior fiscal year 2022 net loss of $50.2 million despite recent periods of profitability and growth initiatives

Management Discussion & Analysis

  • Revenue $3,427.2M in FY2025, up 28% YoY from $2,684.3M in FY2024
  • Net income $107.7M in FY2025 vs $183.7M in FY2024; operating margin not explicitly stated
  • Operating cash flow $1,050.1M and free cash flow $914.7M in FY2025, both increased from prior year
  • Best segment overall: subscription software sales driving majority of revenue; no breakdown given for worst segment
  • Management notes economic uncertainty risks including inflation, interest rates, trade policies, Ukraine and Middle East conflicts impacting future growth

Risk Factors

  • Regulatory risk: Full valuation allowance on U.S. federal and state deferred tax assets, signaling uncertainty in tax asset realization under current tax laws
  • Macroeconomic risk: 29% of revenue from outside North America, with ongoing investments in EMEA and APAC that may impact near-term operating results
  • Operational risk: Cost of third-party cloud infrastructure increased $149.8 million in 2025, reducing gross margin by 1% versus 2024
  • Competitive risk: Expansion of product adoption critical amid competition, with 55% of customers using 4+ products as of 2025, up from 50% in 2024
  • Financial risk: $1.0 billion principal 2029 Notes with $979.1 million net proceeds issued in Dec 2024, creating significant fixed obligations and repayment risk

Datadog FY2025 Key Financial Metrics
XBRL

Revenue

$3.4B

+27.7% YoY

Net Income

$108M

-41.4% YoY

Gross Margin

80.0%

-84bp YoY

Operating Margin

-1.3%

-332bp YoY

Net Margin

3.1%

-370bp YoY

ROE

2.9%

-388bp YoY

Total Assets

$6.6B

+14.8% YoY

EPS (Diluted)

$0.31

-40.4% YoY

Operating Cash Flow

$1.1B

+20.6% YoY

Source: XBRL data from Datadog FY2025 10-K filing on SEC EDGAR. All figures in USD.

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