DD
DDOG
Latest · Mar 31, 2026
Quarter ended Mar 31, 2026 · FY2026 Q1

Datadog, Inc. stock research

Datadog (DDOG) Free Cash Flow — Quarter Ended Mar 31, 2026

Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year, while free cash flow margin was slightly lower. The company's cash generation improved in absolute terms but margin weakened.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year, while free cash flow margin was slightly lower. The company's cash generation improved in absolute terms but margin weakened.

  • Revenue growth led to higher operating cash flow and free cash flow. Capital expenditure remained modest, so the conversion of revenue into free cash flow was strong, though the margin narrowed relative to prior periods.
  • Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin was lower. Versus the same quarter last year, the same pattern held: absolute cash flows improved while margin declined.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$1.1B

Trailing twelve-month free cash flow.

Quarter free cash flow

$323.3M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$334.6M

Cash generated by operations before capital spending.

CapEx

$11.4M

Capital spending and related asset purchases.

FCF margin

32.1%

The share of revenue converted into free cash flow.

TTM FCF yield

n/a

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-06-30$826.8M$200.1M$15.2M$184.9M22.4%
2025-09-30$885.7M$251.5M$16.8M$234.7M26.5%
2025-12-31$953.2M$327.1M$8.9M$318.2M33.4%
2026-03-31$1.0B$334.6M$11.4M$323.3M32.1%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income614.9%Shows whether accounting earnings convert into cash.
CapEx / revenue1.1%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Revenue Expansion

Revenue increased sequentially and year-over-year, supporting higher free cash flow. This was the strongest observable driver of the quarter's cash generation.

The rise in revenue was the primary factor behind the increase in free cash flow.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue growth led to higher operating cash flow and free cash flow. Capital expenditure remained modest, so the conversion of revenue into free cash flow was strong, though the margin narrowed relative to prior periods.

Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, but free cash flow margin was lower. Versus the same quarter last year, the same pattern held: absolute cash flows improved while margin declined.

The filing discusses macroeconomic uncertainty and the potential for delayed effects due to the subscription model, which are factors to monitor for future cash flow performance.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalizationn/aUsed as the denominator for FCF yield.
TTM FCF yieldn/aTTM free cash flow divided by market capitalization.
EV / TTM FCFn/aA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

DD
DDOG

Datadog, Inc.

FCF margin

32.1%

FCF yield

n/a

DDOG Free Cash Flow — Quarter Ended Mar 31, 2026