Aureus
AExcellent

Datadog, Inc.(DDOG)

A

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin26.7%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$914.7M
Revenue$3.4B
Net Cash-$877.7MNet debt position
Debt / FCF1.4xManageable debt load
Current Ratio3.38Adequate short-term liquidity
YoY FCF Growth+20.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (26.7%, 1.4x)
→
+1Strong YoY FCF growth (20.8% YoY)
→
+1Very low debt-to-FCF ratio (1.4x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (26.7%)
  • Very low debt relative to cash flow (1.4x)
  • Strong liquidity (current ratio: 3.38)
  • Strong YoY FCF growth (+20.8%)
  • Highly consistent quarterly FCF

Concerns

  • Net debt position ($0.9B) — 1.4x FCF, manageable
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin26.7%
Net Margin3.1%
Operating CF Margin30.6%
CapEx Ratio4.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$877.7MNet debt position
Debt / FCF1.4xManageable debt load
Current Ratio3.38Strong liquidity
Debt / Equity0.34Low leverage

Quarterly FCF Trend

+20.8% YoYImproving (+20.8%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameDatadog, Inc.
SectorTechnology
Free Cash Flow$914.7M
Revenue$3.4B
Net Income$107.7M
Operating Cash Flow$1.1B
Capital Expenditure$135.4M
FCF Margin26.7%
Cash Conversion Rate—
Net Margin3.1%
Total Debt$1.3B
Total Cash$401.3M
Net Cash-$877.7M
Current Ratio3.38
Debt / Equity0.34
Debt / FCF1.4x
YoY FCF Growth+20.8%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance