Short answer
Datadog (DDOG) filed its Q3 2025 10-Q quarterly report on Nov 7, 2025 for the quarter ended Sep 30, 2025. Quarterly revenue was $886M (up 28.4% year over year) with net income of $34M.
Q3 2025 key financials · XBRL
- Revenue
- $886M
- +28.4% YoY · +7.1% QoQ
- Net income
- $34M
- −34.5% YoY · +1180.1% QoQ
- Operating margin
- -0.7%
- Gross margin
- 80.1%
- EPS (diluted)
- $0.10
- −33.3% YoY · +900.0% QoQ
Source: XBRL data from the Datadog (DDOG) Q3 2025 10-Q on SEC EDGAR. USD.
Datadog Q3 2025 10-Q analysis
AI summary of MD&A and risk factor updates
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
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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