Datadog (DDOG) Q3 2025 10-Q Quarterly Report
Filed: Nov 7, 2025Period ending Sep 30, 2025
Information Technology
Services-Prepackaged SoftwareSEC EDGAR Datadog (DDOG) 10-Q quarterly report for Q3 2025, filed with SEC EDGAR on Nov 7, 2025 for the fiscal period ending Sep 30, 2025. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.
Datadog Q3 2025 10-Q Analysis
Management Discussion & Analysis
- • Revenue $885.7M in Q3 FY25, up 28% YoY from $690.0M in Q3 FY24; 75% growth from existing, 25% from new customers
- • Gross margin flat at ~80% in Q3 FY25 vs Q3 FY24; nine-month gross margin declined from prior year due to higher cloud infrastructure costs
- • Best segment: existing customers driving 75% of Q3 revenue growth; dollar-based net retention rate 120% vs mid-110%s prior year
- • Net income $33.9M in Q3 FY25 vs $51.7M in Q3 FY24; operating loss $(5.8)M in Q3 FY25 vs operating income $20.3M prior year quarter
- • Operating cash flow $723.1M for nine months ended Sept 30, 2025, up from $605.4M; free cash flow $623.7M vs $534.1M prior year
- • 2025 Notes matured June 15, 2025; repaid $634.1M via cash and stock conversion; $540.6M cash and $3.6B marketable securities on hand as of Sept 30, 2025
- • Management flags macroeconomic risks including geopolitical conflicts and inflation may impact future results; positive near-term outlook supported by strong customer expansion
Risk Factors
- • New risk: April 2025 unauthorized access to source code repositories triggered enhanced cybersecurity risk disclosures
- • Most materially updated: Expanded AI regulatory risk discussion, citing EU AI Act effective August 2024 imposing fines, increasing compliance costs
- • Legal/compliance risk: Stringent, evolving global data privacy laws (e.g., EU GDPR, UK GDPR, CCPA/CPRA) risk fines, operational costs, and cross-border transfer challenges
- • Market risk: Dependence on customer renewals; largest AI-native cohort customer accounted for ~8ppt of YoY revenue growth Q3 2025, with optimization risk
- • Financial risk: $263M state NOLs expiring from 2028; federal NOLs limited by Section 382, potentially increasing future tax liabilities
Datadog Q3 2025 Quarterly FinancialsXBRL
Revenue
$886M
▲ +28.4% YoY▲ +7.1% QoQ
Net Income
$34M
▼ -34.5% YoY▲ +1180.1% QoQ
Gross Margin
80.1%
▲ +4bp YoY▲ +15bp QoQ
Operating Margin
-0.7%
▼ -359bp YoY▲ +364bp QoQ
Net Margin
3.8%
▼ -367bp YoY▲ +351bp QoQ
ROE
1.0%
Total Assets
$6.1B
EPS (Diluted)
$0.10
▼ -33.3% YoY▲ +900.0% QoQ
Operating Cash Flow
$251M
▲ +10.0% YoY▲ +25.7% QoQ
Source: XBRL data from Datadog Q3 2025 10-Q filing on SEC EDGAR. All figures in USD.
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