DDOG · 10-Q · 2026Q3 · Full report

Operating Cash Flow and Free Cash Flow Trends

Datadog, Inc. · 2026-11-04 · Importance 62 · Surprise 56 · From source text

Net cash provided by operating activities increased $217.4 million year over year to $940.4 million for the nine months ended September 30, 2026. The increase was supported by $154.3 million more net income, $149.2 million more non-cash charges, $80.4 million more accounts payable, and $23.6 million more deferred revenue, partly offset by $109.8 million more accounts receivable. Free cash flow rose to $818.4 million from $623.7 million, while purchases of property and equipment were $32.1 million and capitalized software development costs were $89.9 million. Cash used in investing activities declined to $510.3 million, mainly reflecting increased marketable-security maturities and sales, while financing activities provided $53.9 million, compared with $602.5 million used in the prior-year period.

Key facts

• Datadog operating cash flow was $940.4 million for the nine months ended September 30, 2026, compared with $723.1 million in 2025. source
• Datadog free cash flow was $818.4 million for the nine months ended September 30, 2026, compared with $623.7 million in 2025. source
• Datadog's net cash provided by operating activities for the nine months ended September 30, 2026 increased $217.4 million from 2025, primarily driven by a $154.3 million increase in net income, a $149.2 million increase in non-cash charges, an $80.4 million increase in accounts payable, and a $23.6 million increase in deferred revenue. source
• Datadog's free cash flow was $818.430 million for the nine months ended September 30, 2026, compared with $623.696 million in 2025. source
• The increase in Datadog's non-cash charges included a $109.0 million increase in stock-based compensation as headcount grew. source
• Datadog's operating cash flow increase was partly offset by a $109.8 million increase in accounts receivable, a $37.7 million increase in deferred contract costs, and a $32.9 million decrease in accrued expenses and other liabilities. source

Impact estimates