DDOG · Earnings call · 2026Q2T · Full report
Free Cash Flow and Liquidity
Datadog, Inc. · 2026-08-06 · Importance 50 · Surprise 24 · In source text
Datadog ended Q2 with $5 billion in cash, cash equivalents, and marketable securities. Operating cash flow was $316 million, while free cash flow was $279 million after capital expenditures and capitalized software, equal to a 25% free-cash-flow margin. Management expects fiscal 2026 CapEx and capitalized software combined to represent 4% to 5% of revenue.
Key facts
- Ended the quarter with $5 billion in cash, cash equivalents and marketable securities
- Q2 free cash flow: $279 million with a free cash flow margin of 25%
- Cash flow from operations was $316 million in the quarter
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | realized | — | Ended the quarter with $5 billion in cash, cash equivalents and marketable securities |
| cash | positive | realized | — | Q2 free cash flow: $279 million with a free cash flow margin of 25% |