Datadog, Inc. has recently released its 10-K report, shedding light on its financial performance and operations for the fiscal year ended December 31, 2025. The company, founded in 2010 and headquartered in New York, operates an observability and security platform for cloud applications, offering a wide range of products such as infrastructure and application performance monitoring, log management, digital experience monitoring, and cloud security management.
In the fiscal year ended December 31, 2025, Datadog reported revenues of $3,427.2 million, marking a 28% year-over-year growth from the fiscal year ended December 31, 2024, and a 26% growth from the fiscal year ended December 31, 2023. The company's revenue is primarily derived from subscription software sales, with a significant portion coming from annual subscriptions.
Datadog's financial position as of December 31, 2025, shows $401.3 million in cash and cash equivalents and $4,073.5 million in marketable securities. The company has demonstrated rapid growth, with net income of $107.7 million, $183.7 million, and $48.6 million for the fiscal years ended December 31, 2025, 2024, and 2023, respectively. Operating cash flow was $1,050.1 million, $870.6 million, and $660.0 million for the same periods, while free cash flow stood at $914.7 million, $775.1 million, and $597.5 million.
Datadog's business model focuses on acquiring new customers and expanding within its existing customer base. As of December 31, 2025, the company had approximately 32,700 customers, with approximately 90% of its annual run-rate revenue (ARR) coming from approximately 4,310 customers with ARR of $100,000 or more. The company's dollar-based net retention rate as of December 31, 2025, was about 120%, indicating strong expansion of product adoption across its platform.
Furthermore, Datadog emphasizes sustaining innovation and technology leadership to maintain its competitive advantage. Approximately 84% of its customers were using two or more products as of December 31, 2025, with approximately 55% using four or more products. The company intends to continue investing in building additional products, features, and functionality to expand its capabilities and facilitate the extension of its platform to new use cases.
Expanding internationally is also a key focus for Datadog, with approximately 29% of its total revenue for the years ended December 31, 2025, and 2024, coming from regions outside of North America. The company has made significant investments to expand geographically, particularly in EMEA and APAC, to contribute to its long-term growth.
Today the company's shares have moved -1.52% to a price of $119.02. For more information, read the company's full 10-K submission here.
