Datadog, Inc. Annual Report, Year Ended Dec 31, 2025

Datadog, Inc. demonstrated robust financial performance in the fiscal year ended December 31, 2025, with revenue reaching $3.43 billion, a 28% increase year-over-year. This growth was primarily driven by existing customers expanding their usage (75% of the increase) and new customer acquisition (25%). The company achieved a net income of $107.7 million and positive operating cash flow of $1.05 billion, indicating strong operational efficiency and cash generation capabilities. Datadog continues to expand its platform offerings, incorporating AI-driven capabilities and entering new product areas like Product Analytics and LLM Observability, positioning itself for continued growth in the expanding observability and security markets. While the company experienced a slight decrease in gross margin to 80% due to increased cloud infrastructure costs, its overall financial health remains strong. Investments in research and development and sales and marketing continue, supporting product innovation and market penetration. Datadog ended the year with a healthy cash position of $4.1 billion in cash and marketable securities, providing ample resources for future growth initiatives, strategic acquisitions, and operational needs. The company's land-and-expand business model, coupled with strong dollar-based net retention (120% as of December 31, 2025), suggests a sticky customer base with significant potential for future revenue expansion.