Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Datadog delivered strong FY2025 revenue growth of 27.7% to $3.43B, but swung to an operating loss of $44.4M as R&D spending surged 34.3%, while net income declined 41.4% to $107.7M and operating cash flow remained robust at $1.05B.
Revenue
$3.43B
+27.68% YoY
EPS (Diluted)
$0.31
-40.38% YoY
Gross Margin
80.0%
-0.8 pts YoY
Operating Income
-$44.37M
-181.74% YoY
Source: SEC XBRL
Datadog (DDOG) reported FY2025 revenue of $3.43B, up 27.7% year over year. Operating margin was -1.3%, against 2.0% a year earlier. Operating cash flow was $1.05B, up 20.6% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.65 | 0.60 | Beat +8.0% |
| Mar 2026 | 0.60 | 0.52 | Beat +15.9% |
| Dec 2025This filing | 0.59 | 0.57 | Beat +4.3% |
| Sep 2025 | 0.55 | 0.47 | Beat +15.9% |
Reported EPS of $0.59 versus the $0.57 analyst consensus — a +4.3% beat for Dec 2025.
Compiled by AI from this SEC filing
Datadog grew FY2025 revenue 27.7% year-over-year to $3.43B (from $2.68B), reflecting continued adoption of its cloud monitoring and observability platform as enterprises expand digital infrastructure spending.
Source: 10-K Income Statement, Financial Data
Gross margin dipped modestly from 80.8% to 80.0%, remaining near 80% — a level indicative of Datadog's high-quality SaaS business model — as cost of revenue grew 33.3% to $687.0M, slightly outpacing revenue growth.
Source: 10-K Income Statement & Key Ratios, Financial Data
R&D expense surged 34.3% to $1.55B, representing approximately 45% of revenue, causing operating income to swing from a $54.3M profit in FY2024 to a $44.4M loss in FY2025 — a 181.7% deterioration — reflecting aggressive investment in product innovation.
Source: 10-K Income Statement, Financial Data
Operating cash flow grew 20.6% to $1.05B, demonstrating that Datadog's GAAP losses are heavily influenced by non-cash stock-based compensation and that the underlying business generates substantial cash, with D&A of $49.2M adding back to earnings.
Source: 10-K Cash Flow Statement, Financial Data
Stockholders' equity rose 37.5% to $3.73B while total liabilities declined 5.2% to $2.91B, and the current ratio stands at a healthy 3.38x, indicating strong liquidity; however, cash & equivalents fell sharply 67.8% to $401.3M, likely reflecting significant investing and financing activities.
Source: 10-K Balance Sheet & Key Ratios, Financial Data
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
R&D spending reached $1.55B in FY2025, up 34.3% YoY and representing ~45% of revenue, causing a swing to GAAP operating loss. If Datadog cannot translate this investment into sufficient revenue growth or new product monetization, sustained losses could pressure the stock and financial flexibility.
Source: 10-K Income Statement, Financial Data
Cash and equivalents dropped 67.8% from $1.25B to $401.3M in FY2025, driven by heavy investing outflows of $1.33B and financing outflows of $572.5M. While operating cash flow is strong, the rapid drawdown of liquid reserves warrants monitoring for future capital needs.
Source: 10-K Balance Sheet & Cash Flow Statement, Financial Data
Cost of revenue grew 33.3%, outpacing revenue growth of 27.7%, causing gross margin to compress slightly from 80.8% to 80.0%. Continued scaling of cloud infrastructure and customer support costs could further erode Datadog's industry-leading gross margins over time.
Source: 10-K Income Statement & Key Ratios, Financial Data
Datadog swung from a $54.3M operating profit in FY2024 to a $44.4M operating loss in FY2025, and net income fell 41.4% to $107.7M. The divergence between GAAP results and cash flow metrics may create investor confusion and valuation pressure if losses persist or widen.
Source: 10-K Income Statement, Financial Data
Investing cash outflows nearly doubled to $1.33B in FY2025 from $736.8M in FY2024, a 81.1% increase. This level of capital deployment — whether for acquisitions, marketable securities, or infrastructure — introduces execution risk and could dilute returns if investments underperform.
Source: 10-K Cash Flow Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.43 $B | 2.68 $B | +27.68% |
Cost of Revenue $M | 686.96 $M | 515.53 $M | +33.25% |
Gross Profit $B | 2.74 $B | 2.17 $B | +26.35% |
Operating Income $M | -44.37 $M | 54.28 $M | -181.74% |
Net Income $M | 107.74 $M | 183.75 $M | -41.37% |
EPS (Basic) $ | 0.31 $ | 0.55 $ | -43.64% |
EPS (Diluted) $ | 0.31 $ | 0.52 $ | -40.38% |
R&D Expense $B | 1.55 $B | 1.15 $B | +34.33% |
Answers draw on this SEC filing and the data on this page
Datadog delivered strong 36% revenue growth and a sharp improvement in profitability in Q2 FY2026, but its largest customer reducing usage and rising infrastructure costs pose challenges ahead.
Datadog delivered strong Q1 FY2026 results with revenue surging 32.2% YoY to $1.006B, crossing the $1B quarterly milestone, while swinging to positive operating income of $7.3M and more than doubling net income to $52.6M.
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