Datadog, Inc. (DDOG) — Agentic Tribune

Item 1. Business

Overview

Datadog is the AI-powered observability and security platform for cloud applications.

Our SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, user experience monitoring, cloud security, service management, and many other capabilities to provide unified, real-time observability and security for our customers’ entire technology stack. Datadog is used by organizations of all sizes and across a wide range of industries to enable digital transformation and cloud migration, drive collaboration among development, operations, security and business teams, accelerate time to market for applications, reduce time to problem resolution, secure applications and infrastructure, understand user behavior, and track key business metrics.

Software applications are transforming how organizations engage with customers and operate their businesses. Companies across all industries are re-platforming their businesses to cloud native or hybrid on-premise and cloud infrastructures to enable this digital transformation. And they are increasingly adopting AI capabilities as part of this transformation. Historically, engineering teams and data have been siloed, making the development of next generation applications in dynamic cloud environments challenging. We started Datadog to break this model and facilitate collaboration among development and operations teams, enabling the adoption of DevOps practices. Since then, we have continuously pushed to unify separate tools into an integrated monitoring and analytics platform, readily available to everyone who cares about applications and their impact on business. And while we continue to broaden our capabilities in observability, we have expanded our platform into use cases beyond observability, including cloud security, software delivery, and service management.

With our founding goal of breaking down silos between Dev and Ops, we set out in 2010 to build a real-time data integration platform to turn the chaos of uncorrelated data from disparate sources into digestible and actionable insights. Since launching our first use case with Infrastructure Monitoring in 2012, we have expanded our platform rapidly, and today, we offer end-to-end monitoring and analytics, powered by a common data model that is extensible for use cases across observability, security, software delivery, and service management. In 2025, we launched OnCall to create on-call schedules and integrate real-time observability data into customers' incident response plans, Product Analytics to improve business outcomes and product development decisions with quantitative insights into user experiences and behavior, and Bits AI SRE Agent to autonomously investigate alerts, surface root causes, and draft summaries about incidents.

Our proprietary platform combines the power of metrics, traces, logs, user sessions, security signals, and other data from a single agent and over 1,000 integrations to provide a unified view of infrastructure, application performance and the real-time events impacting performance. Datadog is designed to be cloud agnostic and easy to deploy, with hundreds of out-of-the-box integrations, a built-in understanding of modern technology stacks, and extensive customizations. Customers can deploy our platform across their entire infrastructure, making it ubiquitous and a daily part of the lives of developers, operations engineers, security professionals, product designers, and business leaders.

Our platform currently addresses the IT Operations Management market. According to Gartner, the IT Operations Management market represents a $82 billion opportunity in 2029. Within the IT Operations Management market, the Gartner Health and Performance Analytics (Observability) market represents a $39 billion opportunity in 2029. Beyond Gartner’s IT Operations Management market, we have also been expanding our platform and product suite into certain segments of Gartner’s Security Software, Application Development, and Analytic Platforms markets. We believe the markets we participate in across Gartner’s IT Operations Management, Security Software, Application Development, and Analytic Platforms market in total represent a $187 billion market opportunity in 2029.

We employ a land-and-expand business model centered around offering products that are easy to adopt and have a very short time to value. Our customers can expand their footprint with us on a self-service basis. Our customers often significantly increase their usage of the products they initially buy from us and expand their usage to other products we offer on our platform. We grow with our customers as they expand their workloads in the public and private cloud.

Our Solution and Key Strengths

Datadog was founded on the premise that the old model of siloed developers and IT operations engineers is broken, and that legacy tools used for monitoring static on-premise architectures do not work in modern cloud or hybrid environments. Datadog’s cloud-native platform enables development and operations teams to collaborate, quickly build and improve applications, and drive business performance. In recent years, as the platform has expanded to more use cases, Datadog has additionally enabled security teams, data engineers, product designers, developers, and business users to collaborate and improve outcomes. Empowered by our out-of-the box functionality and simple, self-service installation, our customers are able to rapidly deploy our platform to provide application- and infrastructure-wide visibility, often within minutes.

•Built for dynamic cloud and hybrid infrastructures. Our innovative platform was born in the cloud and was built to work with ephemeral cloud technologies such as microservices, containers and serverless computing. Our data model was built to work at cloud scale with highly dynamic data sets and processes trillions of events per hour.

•Simple but not simplistic. Our platform is easy-to-use with out-of-the-box integrations, customizable drag-and-drop dashboards, real-time visualization and prioritized alerting. The platform is deployed in a self-service installation process within minutes, allowing new users to quickly derive value without any specialized training or heavy implementation or customization. It is highly extensible across a wide array of use cases to a broad set of developers, operations engineers, security professionals, product managers, product designers, platform engineers, customer support staff, and business users. As a result, our platform is integral to business operations and used every day, and our users find increasing value in the solution over time.

•Integrated data platform. We were the first to combine the “three pillars of observability” - metrics, traces, and logs - into a single end-to-end platform with the introduction of our log management solution in 2018. Today, our platform combines infrastructure monitoring, application performance monitoring, log management, user experience monitoring, security monitoring, service management, and developer-focused monitoring in one integrated data platform. This approach increases efficiency by reducing both the expense and friction of attempting to glean insights from disparate systems. We are able to provide a unified view across the IT stack, including infrastructure and application performance, as well as the real-time events impacting performance. Each of our products is integrated and, taken together, they provide the ability to view metrics, traces, logs, sessions, security signals, and other data side-by-side and to perform correlation analysis.

•Built for collaboration. Our platform was built to break down the silos between developers and operations teams in order to help organizations adopt DevOps practices and improve overall business performance. We provide development and operations teams with a common set of tools to develop a joint understanding of application performance and shared insights into the infrastructure supporting the applications. Additionally, our customizable and interactive dashboards can be shared with business teams to provide them with real-time actionable insights. Over time, as the use cases for our platform have expanded, the types of users that we can serve and help to collaborate have expanded as well, to include security professionals, product managers, product designers, platform engineers, customer support staff, and business users.

•Cloud agnostic. Our platform is designed to be deployable across all environments, including public cloud, private cloud, on-premise, multi-cloud, and hybrid environments, allowing organizations to diversify their infrastructure and reduce single vendor dependence.

•Ubiquitous. Datadog is frequently deployed across a customer’s entire infrastructure, making it ubiquitous. Compared to legacy systems that are often used only by a few users in an organization’s IT operations team, Datadog is a daily part of the lives of developers, operations engineers and business leaders.

•Integrates with our customers’ complex environments. We enable development and operations teams to harness the full spectrum of SaaS and open source tools. We have over 1,000 out-of-the-box integrations with technologies to provide significant value to our customers without the need for professional services. Our integrations provide for comprehensive data point aggregation and consistent, up-to-date, high-quality customer experiences across heterogeneous IT environments as they are fully maintained by Datadog.

•Powered by robust artificial intelligence and machine learning capabilities. Our platform ingests massive amounts of data, which we correlate and analyze for actionable insights. Our platform features an increasingly broad and deep set of artificial intelligence and machine learning capabilities that can cross-correlate metrics, traces, logs, sessions, security signals, and other data to identify outliers and notify users of potential anomalies; discover and help resolve issues quickly with automated root cause analysis; augment the troubleshooting workflow with contextual insights; and recommend and implement incident resolution actions; all with the goal of improving business outcomes.

•Scalable. Our SaaS platform is delivered through the cloud. Our platform is massively scalable, currently monitoring trillions of events per hour and millions of servers and containers at any point in time. We offer secure, easily accessible data retention at full granularity for extensive periods of time, which can provide customers with a complete view of their historical data.

Key Benefits to Our Customers

Organizations of all sizes, in all industries, both private and public, purchase our products for a variety of use cases. As of December 31, 2025, we had approximately 32,700 customers in over 160 countries. Our platform provides the following key benefits to our customers:

•Accelerate digital transformation. We enable customers to take full advantage of the cloud to develop and maintain mission-critical applications with agility and with confidence in the face of increasing business and time pressure and complexity of underlying infrastructure. As a result, our platform helps accelerate innovation cycles, deliver exceptional digital experiences and optimize business performance.

•Reduce time to problem detection and resolution. Using infrastructure, APM, log data, and data from integrations in our unified platform, our customers are able to quickly isolate the root cause of application issues in one place where they otherwise would be required to spend hours trying to investigate using multiple tools. The reduction in mean time to detection and mean time to resolution helps our customers avoid lost revenues and enhance customer experience.

•Improve agility of development, operations, security and business teams. We eliminate the historical silos of development and operations teams and provide a platform that enables efficient and agile development through the adoption of DevOps and DevSecOps. Our platform enables development, operations and security teams to collaborate closely with a shared understanding of data and analytics. This helps them develop a joint understanding of application performance and shared insights into the infrastructure supporting the applications.

•Enable operational efficiency. Our solution is easy to install, which eliminates the need for heavy implementation costs and professional services. We have hundreds of integrations with key technologies, from which our customers can derive significant value, avoiding internal development costs and professional services required to create those integrations. Our customer-centric pricing model is tailored to customers’ desired usage needs. Our platform empowers customers to better understand the operational needs of their applications and IT environments, enabling greater efficiency in resource allocation and spend on cloud infrastructure.

Our Growth Strategies

We intend to pursue the following growth strategies:

•Expand our customer base by acquiring new customers. We believe there is a substantial opportunity to continue to grow our customer base. We intend to drive new customer additions by expanding our sales and marketing efforts in the markets we serve.

•Expand within our existing customer base through broader deployments, new use cases and new product adoption. Our base of approximately 32,700 customers as of December 31, 2025 represents a significant opportunity for further sales expansion. We plan to continue to increase sales within our existing customer base through increased usage of our platform and the cross selling of additional products.

•Expand our technology leadership through continued investment and new products. We intend to invest in expanding the functionality of our current platform and adding capabilities that address new market opportunities. We have a history of continued innovation. For example, in 2017 we launched APM; in 2018 we launched Log Management; in 2019 we launched Digital Experience Monitoring and Network Performance Monitoring; in 2020 we launched Cloud SIEM, Continuous Profiler and Incident Management; in 2021 we launched Cloud Security Posture Management, Cloud Workload Security, Database Monitoring, and Sensitive Data Scanner; in 2022 we launched Application Security Management, Cloud Security Management, Audit Trail, Observability Pipelines, Cloud Cost Management, and Universal Service Monitoring; in 2023 we launched Application Vulnerability Management, Data Streams Monitoring, and Workflow Automation; in 2024 we launched Event Management and LLM Observability; and in 2025 we launched OnCall, Product Analytics, and Bits AI SRE.

•Expand our customer base internationally. We believe there is a significant opportunity to continue to expand usage of our platform outside of the United States, as international markets have increased the shift of their IT spend to the cloud.

Our Platform

Our proprietary platform provides real-time insights into software applications and IT infrastructure performance to enable better user experiences, faster problem detection and resolution and smarter, more impactful business decisions. Our platform is modular and includes infrastructure monitoring, application performance monitoring, log management, user experience monitoring, network performance monitoring, cloud and application security, developer-focused observability, service management, and product analytics, as well as a range of shared features such as sophisticated dashboards, advanced analytics, collaboration tools, workflow automation, and alerting capabilities. Many of our products are fully capable stand-alone so clients can choose to use different capabilities incrementally or deploy many at once. When deployed together, our products automatically enable cross-correlation, which in turn allows customers to gain greater levels of visibility across their infrastructure and applications to more rapidly troubleshoot problems.

Our platform is supported by more than 1,000 integrations to seamlessly aggregate metrics and events across all of the systems and services that power digital businesses. Our easy-to-use platform is deployed through a self-service installation process. Users can derive value from our platform within minutes without any specialized training or heavy implementation or customization. Customers can easily expand their usage of our platform on a self-serve basis, adding hosts or volumes of data monitored. Our platform is massively scalable currently monitoring trillions of events per hour and millions of servers and containers.

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Financial statements

data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

From 10-Q filed 2026-08-06 (period ending 2026-06-30).

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, or the Annual Report. This discussion, particularly information with respect to our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, includes forward-looking statements that involve risks and uncertainties as described under the heading “Special Note Regarding Forward-Looking Statements” in this Quarterly Report on Form 10-Q. You should review the disclosure under the heading “Risk Factors” in this Quarterly Report on Form 10-Q for a discussion of important factors that could cause our actual results to differ materially from those anticipated in these forward-looking statements.

Overview

Datadog is the AI-powered observability and security platform for cloud applications.

We generate revenue from the sale of subscriptions to customers using our cloud-based platform. The terms of our subscription agreements are primarily monthly or annual. Customers also have the option to purchase additional products, such as additional containers to monitor, custom metrics packages, anomaly detection and app analytics. Professional services are generally not required for the implementation of our products and revenue from such services has been immaterial to date.

As of June 30, 2026, we had $435.0 million in cash and cash equivalents and $4.6 billion in marketable securities. We generated revenue of $1.1 billion and $826.8 million in the three months ended June 30, 2026 and 2025, respectively, representing year-over-year growth of 36%. For the six months ended June 30, 2026 and 2025, our revenue was $2.1 billion and $1.6 billion, respectively, representing year-over-year growth of 34%. Substantially all of our revenue is from subscription software sales. While we have continued to make significant expenditures and investments, including in personnel-related costs, sales and marketing, infrastructure and operations, we generated net income of $44.6 million and $2.6 million for the three months ended June 30, 2026 and 2025, respectively, and $97.1 million and $27.3 million for the six months ended June 30, 2026 and 2025, respectively. Our operating cash flow was $650.5 million and $471.6 million for the six months ended June 30, 2026 and 2025, respectively. Our free cash flow was $567.8 million and $409.7 million for the six months ended June 30, 2026 and 2025, respectively. See the section titled “—Liquidity and Capital Resources—Non-GAAP Free Cash Flow” below.

Unfavorable conditions in the economy both in the United States and abroad may negatively affect the growth of our business and our results of operations. For example, macroeconomic events including changes in trade policies, such as trade wars, tariffs or other trade restrictions or the threat of such actions, fluctuating inflation and interest rates, and the conflicts in Ukraine and the Middle East have led to economic uncertainty. Historically, during periods of economic uncertainty and downturns, businesses may slow spending on information technology, which may impact our business and our customers’ businesses.

Due to our subscription model, the effect of macroeconomic conditions may not be fully reflected in our results of operations until future periods. However, if economic uncertainty increases or the global economy worsens, our business, financial condition and results of operations may be harmed. For further discussion of the potential impacts of macroeconomic events on our business, financial condition, and operating results, see “Risk Factors” included in Part II, Item 1A of this report.

Factors Affecting Our Performance

Acquiring New Customers

We believe there is substantial opportunity to continue to grow our customer base. We intend to drive new customer acquisition by continuing to invest significantly in sales and marketing to engage our prospective customers, increase brand awareness and drive adoption of our platform and products. We also plan to continue to invest in building brand awareness within the development and operations communities. As of June 30, 2026, we had approximately 33,400 customers spanning organizations of a broad range of sizes and industries, compared to approximately 31,400 as of June 30, 2025. Our ability to attract new customers will depend on a number of factors, including the effectiveness and pricing of our products, offerings of our competitors and the effectiveness of our marketing efforts.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

Expanding Within Our Existing Customer Base

Our base of customers represents a significant opportunity for further sales expansion. As of June 30, 2026, we had approximately 4,720 customers with annual run-rate revenue, or ARR, of $100,000 or more, representing 91% of our ARR, up from 3,850 customers as of June 30, 2025, representing 89% of our ARR. We monitor our number of customers with ARR of $100,000 or more, and believe it is useful to investors, as an indicator of our ability to grow the number of customers that are exceeding this ARR threshold. We define ARR as the annual run-rate revenue of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly run-rate revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.

A further indication of the propensity of our customer relationships to expand over time is our dollar-based net retention rate, which compares our ARR from the same set of customers in one period, relative to the year-ago period. As of June 30, 2026, our trailing 12-month dollar-based net retention rate was in the low-120%'s. As of June 30, 2025, our trailing 12-month dollar-based net retention rate was about 120%. The increase in our trailing 12-month dollar-based net retention rate was attributable to increased usage growth from existing customers. However, we saw a reduction in usage from our largest customer starting in the third quarter of 2026. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers as of the current period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time dollar-based net retention rate. We then calculate the weighted average of the trailing 12-month point-in-time dollar-based net retention rates, to arrive at the trailing 12-month dollar-based net retention rate.

We believe that our land-and-expand business model allows us to efficiently increase revenue from our existing customer base. Our customers often expand the deployment of our platform across large teams and more broadly within the enterprise as they migrate more workloads to the cloud, find new use cases for our platform, and generally realize the benefits of our platform. We intend to continue to invest in enhancing awareness of our brand and developing more products, features and functionality, which we believe are important factors to achieve widespread adoption of our platform. Our ability to increase sales to existing customers will depend on a number of factors, including our customers’ satisfaction with our solution, competition, pricing and overall changes in our customers’ spending levels.

Sustaining Innovation and Technology Leadership

Our success is dependent on our ability to sustain innovation and technology leadership in order to maintain our competitive advantage. We believe that we have built a highly differentiated platform that will position us to further extend the adoption of our platform and products. Datadog is frequently deployed across a customer’s entire infrastructure, making it ubiquitous. Datadog is a daily part of the lives of developers, operations engineers and business leaders. We employ a land-and-expand business model centered around offering products that are easy to adopt and have a very short time to value. Our efficient go-to-market model enables us to prioritize significant investment in innovation. We have demonstrated the success of our platform approach, through expansion beyond our initial infrastructure monitoring solution to include over 20 products. Approximately 85% of our customers were using two or more products as of June 30, 2026, up from approximately 83% a year earlier. Additionally, as of June 30, 2026, approximately 58% of our customers were using four or more products, up from approximately 52% a year earlier, approximately 37% of our customers were using six or more products, up from 29% a year earlier, approximately 22% of our customers were using eight or more products, up from 14% a year earlier; and approximately 13% of our customers were using ten or more products, up from 7% a year earlier. We believe these metrics indicate strong expansion of product adoption across our platform.

We intend to continue to invest in building additional products, features and functionality that expand our capabilities and facilitate the extension of our platform to new use cases. We also intend to continue to evaluate strategic acquisitions and investments in businesses and technologies to drive product and market expansion. Our future success is dependent on our ability to successfully develop, market and sell existing and new products to both new and existing customers.

Expanding Internationally

We believe there is a significant opportunity to expand usage of our platform outside of North America. Revenue, as determined based on the billing address of our customers, from regions outside of North America was approximately 27% and 29% of our total revenue for the six months ended June 30, 2026 and 2025, respectively. In addition, we have made and plan to continue to make significant investments to expand geographically, particularly in EMEA and APAC. Although these investments may adversely affect our operating results in the near term, we believe that they will contribute to our long-term growth. Beyond North America, we now have sales presence internationally, primarily in Amsterdam, Dublin, London, Paris, Seoul, Singapore, Sydney, and Tokyo.

Components of Results of Operations

Revenue

We generate revenue from the sale of subscriptions to customers using our cloud-based platform. The terms of our subscription agreements are primarily monthly, annual or multi-year, with the majority of our revenue coming from annual subscriptions. Our customers can enter into a subscription for a committed contractual amount of usage that is apportioned ratably on a monthly basis over the term of the subscription period, a subscription for a committed contractual amount of usage that is delivered as used, or a monthly subscription based on usage. To the extent that our customers’ usage exceeds the committed contracted amounts under their subscriptions, either on a monthly basis in the case of a ratable subscription or once the entire commitment is used in the case of a delivered-as-used subscription, they are charged for their incremental usage. Usage is measured on a per-unit basis, with the unit of measure differing for each product, based on the unit that, in working with customers and design partners, best indicates the value we deliver.

In the case of subscriptions for committed contractual amounts of usage, revenue is recognized ratably over the term of the subscription agreement, generally beginning on the date that our platform is made available to a customer. As a result, much of our revenue is generated from subscriptions entered into during previous periods. Consequently, any decreases in new subscriptions or renewals in any one period may not be immediately reflected as a decrease in revenue for that period, but could negatively affect our revenue in future quarters. This also makes it difficult for us to rapidly increase our revenue through the sale of additional subscriptions in any period, as revenue is recognized over the term of the subscription agreement. In the case of a subscription for a committed contractual amount of usage that is delivered as used, a monthly subscription based on usage, or usage in excess of a ratable subscription, we recognize revenue as the product is used, which may lead to fluctuations in our revenue and results of operations. In addition, historically, we have experienced seasonality in new customer bookings, as we typically enter into a higher percentage of subscription agreements with new customers in the fourth quarter of the year.

Due to ease of implementation of our products, professional services generally are not required and revenue from such services has been immaterial to date.

Cost of Revenue

Cost of revenue primarily consists of expenses related to providing our products to customers, including payments to our third-party cloud infrastructure providers for hosting our software, personnel-related expenses for operations and global support, including salaries, benefits, bonuses and stock-based compensation, payment processing fees, information technology, depreciation and amortization related to the amortization of acquired intangibles and internal-use software and other overhead costs such as allocated facilities.

We intend to continue to invest additional resources in our platform infrastructure and our customer support and success organizations to expand the capability of our platform and ensure that our customers are realizing the full benefit of our platform and products. The level, timing and relative investment in our infrastructure could affect our cost of revenue in the future.

Gross Profit and Gross Margin

Gross profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin may fluctuate from period to period as our revenue fluctuates, and as a result of the timing and amount of investments to expand our products and geographical coverage.

Operating Expenses

Our operating expenses consist of research and development, sales and marketing and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation expense and sales commissions. Operating expenses also include overhead costs for facilities and shared IT-related expenses, including depreciation expense.

Research and Development

Research and development expense consists primarily of personnel costs for our engineering, service and design teams. Additionally, research and development expense includes contractor fees, depreciation and amortization and allocated overhead costs. Research and development costs are expensed as incurred, with the exception of certain software development costs which are eligible for capitalization. We expect that our research and development expense will increase in absolute dollars as our business grows, particularly as we incur additional costs related to continued investments in our platform.

Sales and Marketing

Sales and marketing expense consists primarily of personnel costs for our sales and marketing organization, costs of general marketing and promotional activities, including the free tier and free introductory trials of our products, travel-related expenses, amortization of acquired customer relationships, and allocated overhead costs. Sales commissions earned by our sales force are deferred and amortized on a straight-line basis over the expected period of benefit, which we have determined to be four years. We expect that our sales and marketing expense will increase in absolute dollars as we expand our sales and marketing efforts.

General and Administrative

General and administrative expense consists primarily of personnel costs for finance, legal, human resources, and other administrative functions. In addition, general and administrative expense includes non-personnel costs, such as legal, accounting and other professional fees, hardware and software costs, certain tax, license and insurance-related expenses and allocated overhead costs. We expect that our general and administrative expense will increase in absolute dollars as our business grows.

Other Income, (Loss), Net

Other income, (loss), net consists of interest income, primarily due to income earned on money market funds included in cash and cash equivalents and on marketable securities, partially offset by interest expense on the Notes and amortization of premiums on our marketable securities.

Provision for Income Taxes

Provision for income taxes consists of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. We recorded a full valuation allowance on our federal and state deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized.

Results of Operations

The following table sets forth our consolidated statements of operations data for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Revenue	$	1,121,454	$	826,760	$	2,127,880	$	1,588,313
Cost of revenue (1)(2)(3)	240,113		165,978		449,341		323,606
Gross profit	881,341		660,782		1,678,539		1,264,707
Operating expenses
Research and development (1)(3)	477,968		387,482		913,266		728,543
Sales and marketing (1)(2)(3)	311,519		239,026		591,342		453,317
General and administrative (1)(3)(4)	86,399		69,774		161,149		130,767
Total operating expenses	875,886		696,282		1,665,757		1,312,627
Operating income (loss)	5,455		(35,500)		12,782		(47,920)
Other income:
Interest expense (5)	(3,255)		(3,075)		(6,374)		(6,038)
Interest income and other income, net	49,533		44,663		104,255		91,842
Other income, net	46,278		41,588		97,881		85,804
Income before provision for income taxes	51,733		6,088		110,663		37,884
Provision for income taxes	7,175		3,441		13,531		10,595
Net income	$	44,558	$	2,647	$	97,132	$	27,289

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(1)Includes stock-based compensation expense as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Cost of revenue	$	9,256	$	6,783	$	17,815	$	13,434
Research and development	131,682		112,445		255,353		218,180
Sales and marketing	47,098		37,442		89,396		71,567
General and administrative	32,215		23,792		54,529		41,546
Total	$	220,251	$	180,462	$	417,093	$	344,727

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(2)Includes amortization of acquired intangibles expense as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Cost of revenue	$	1,310	$	1,518	$	2,592	$	2,412
Sales and marketing	362		188		719		391
Total	$	1,672	$	1,706	$	3,311	$	2,803

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(3) Includes employer payroll taxes on employee stock transactions as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Cost of revenue	$	392	$	165	$	580	$	351
Research and development	21,211		11,819		32,487		21,401
Sales and marketing	3,632		1,359		5,527		2,929
General and administrative	2,408		2,724		6,045		4,949
Total	$	27,643	$	16,067	$	44,639	$	29,630

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(4) Includes M&A transaction costs as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
General and administrative	$	2,010	$	1,373	$	2,704	$	1,373

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(5) Includes amortization of issuance costs as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Interest expense	$	1,049	$	1,691	$	2,096	$	3,510

The following table sets forth our consolidated statements of operations data expressed as a percentage of revenue for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(as a percentage of total revenue(1))
Revenue	100	%	100	%	100	%	100	%
Cost of revenue	21		20		21		20
Gross profit	79		80		79		80
Operating expenses
Research and development	43		47		43		46
Sales and marketing	28		29		28		29
General and administrative	8		8		8		8
Total operating expenses	78		84		78		83
Operating income (loss)	0		(4)		1		(3)
Other income:
Interest expense	0		0		0		0
Interest income and other income, net	4		5		5		6
Other income, net	4		5		5		5
Income before provision for income taxes	5		1		5		2
Provision for income taxes	1		0		1		1
Net income	4	%	0	%	5	%	2	%

(1)Certain items may not total due to rounding.

Comparison of the Three Months Ended June 30, 2026 and 2025

Revenue

	Three Months Ended June 30,
	2026		2025		Change		% Change
	(dollars in thousands)
Revenue	$	1,121,454	$	826,760	$	294,694	36	%

Revenue increased by $294.7 million, or 36%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Approximately 70% of the increase in revenue was attributable to growth from existing customers, and the remaining 30% was attributable to growth from new customers. We saw a reduction in usage from our largest customer starting in the third quarter of 2026, which may cause a deceleration in revenue growth.

Cost of Revenue and Gross Margin

	Three Months Ended June 30,
	2026			2025			Change		% Change
	(dollars in thousands)
Cost of revenue	$	240,113		$	165,978		$	74,135	45	%
Gross margin	79		%	80		%

Cost of revenue increased by $74.1 million, or 45%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily due to an increase of $64.1 million in third-party cloud infrastructure hosting and software costs and an increase of $5.2 million in personnel costs including allocated overhead costs as a result of increased headcount.

Our gross margin decreased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily as a result of increased spend with our third-party cloud infrastructure provider costs.

Research and Development

	Three Months Ended June 30,
	2026			2025			Change		% Change
	(dollars in thousands)
Research and development	$	477,968		$	387,482		$	90,486	23	%
Percentage of revenue	43		%	47		%

Research and development expense increased by $90.5 million, or 23%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily due to an increase of $62.5 million in personnel costs including allocated overhead costs for our engineering, product and design teams as a result of increased headcount and an increase of $28.2 million in cloud infrastructure and software-related investments.

Sales and Marketing

	Three Months Ended June 30,
	2026			2025			Change		% Change
	(dollars in thousands)
Sales and marketing	$	311,519		$	239,026		$	72,493	30	%
Percentage of revenue	28		%	29		%

Sales and marketing expense increased by $72.5 million, or 30%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily due to an increase of $56.6 million in personnel costs including allocated overhead costs for our sales and marketing organization as a result of increased headcount and increased variable compensation for our sales personnel and an increase of $12.0 million in advertising, sales, marketing and promotional activities.

General and Administrative

	Three Months Ended June 30,
	2026			2025			Change		% Change
	(dollars in thousands)
General and administrative	$	86,399		$	69,774		$	16,625	24	%
Percentage of revenue	8		%	8		%

General and administrative expense increased by $16.6 million, or 24%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. This increase was primarily due to an increase of $12.9 million in personnel costs including allocated overhead costs as a result of increased headcount.

Other Income, Net

	Three Months Ended June 30,
	2026		2025	Change	% Change
	(dollars in thousands)
Other income, net	$	46,278

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Held by

holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

Holder	Type	ETF	MF	Position ($)	% of holder	Δ % of holder	Holder AUM

Recent insider activity

Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 39 transactions across 12 insiders. Net: -1,235,893 shares, -$301,545,953.

Date	Insider	Role	Action	Shares	Price	Value
2026-09-08	Pomel Olivier	Chief Executive Officer	Sell	-89,497 ×7	$207.86	-$18,602,602
2026-09-04	Richardson Julie	Director	Sell	-5,625 ×2	$212.25	-$1,193,921
2026-09-03	Blitzer Adam	Chief Operating Officer	Sell	-12,032 ×8	$214.38	-$2,579,375
2026-09-03	Richardson Julie	Director	Sell	-5,625	$220.00	-$1,237,500
2026-09-02	Blitzer Adam	Chief Operating Officer	Sell	-13,812	$212.90	-$2,940,631
2026-09-02	Li Yanbing	Chief Product Officer	Sell	-11,206	$212.90	-$2,385,806
2026-09-02	Acocella Kerry	General Counsel and Secretary	Sell	-7,343	$212.90	-$1,563,353
2026-09-02	Galloreese David	Chief People Officer	Sell	-4,769	$212.90	-$1,015,342
2026-09-02	Walters Sean Michael	Chief Revenue Officer	Sell	-13,575	$212.90	-$2,890,170
2026-09-02	Le-Quoc Alexis	Chief Technology Officer	Sell	-21,772	$212.90	-$4,635,352
2026-09-02	OBSTLER DAVID M	Chief Financial Officer	Sell	-16,524	$212.90	-$3,518,027
2026-09-02	Pomel Olivier	Chief Executive Officer	Sell	-26,331	$212.90	-$5,605,978
2026-09-01	Le-Quoc Alexis	Chief Technology Officer	Sell	-53,912 ×13	$227.02	-$12,238,927
2026-09-01	Galloreese David	Chief People Officer	Sell	-991	$232.81	-$230,714
2026-08-24	Le-Quoc Alexis	Chief Technology Officer	Sell	-43,224 ×8	$228.63	-$9,882,290
2026-08-19	Pomel Olivier	Chief Executive Officer	Sell	-47,054 ×13	$235.49	-$11,080,546
2026-08-13	Agarwal Amit indirect	Director	Sell	-20,000 ×10	$249.32	-$4,986,341
2026-08-14	Jacobson Matthew	Director	Sell	-19,512 ×2	$256.25	-$4,999,985
2026-08-13	Jacobson Matthew	Director	Sell	-39,912 ×3	$250.55	-$9,999,807
2026-08-10	Le-Quoc Alexis	Chief Technology Officer	Sell	-53,912 ×25	$253.36	-$13,659,167
2026-08-06	Agarwal Amit indirect	Director	Sell	-20,000 ×13	$234.85	-$4,696,931
2026-08-05	Pomel Olivier	Chief Executive Officer	Sell	-127,141 ×9	$286.71	-$36,452,136
2026-08-04	Callahan Michael James indirect	Director	Sell	-12,500	$287.47	-$3,593,375
2026-07-30	Agarwal Amit indirect	Director	Sell	-20,000 ×6	$266.82	-$5,336,365
2026-07-23	Agarwal Amit indirect	Director	Sell	-20,000 ×7	$244.87	-$4,897,333
2026-07-23	Pomel Olivier	Chief Executive Officer	Sell	-47,054 ×7	$244.79	-$11,518,401
2026-07-20	Le-Quoc Alexis	Chief Technology Officer	Sell	-43,224 ×8	$265.23	-$11,464,111
2026-07-16	Agarwal Amit indirect	Director	Sell	-20,000 ×10	$261.53	-$5,230,676
2026-07-13	Pomel Olivier	Chief Executive Officer	Sell	-127,141 ×13	$259.00	-$32,929,122
2026-07-09	Agarwal Amit indirect	Director	Sell	-20,000 ×13	$267.41	-$5,348,253
2026-07-08	Le-Quoc Alexis	Chief Technology Officer	Sell	-53,912 ×11	$257.24	-$13,868,384
2026-07-02	Agarwal Amit indirect	Director	Sell	-20,000 ×8	$261.22	-$5,224,413
2026-07-01	Callahan Michael James indirect	Director	Sell	-12,500	$267.47	-$3,343,375
2026-06-29	Callahan Michael James indirect	Director	Sell	-12,500	$247.47	-$3,093,375
2026-06-25	Agarwal Amit indirect	Director	Sell	-20,000 ×9	$220.12	-$4,402,377
2026-06-22	Le-Quoc Alexis	Chief Technology Officer	Sell	-43,224 ×11	$220.97	-$9,551,316
2026-06-18	Agarwal Amit indirect	Director	Sell	-20,000 ×9	$220.92	-$4,418,365
2026-06-16	Pomel Olivier	Chief Executive Officer	Sell	-84,698 ×10	$232.30	-$19,675,500
2026-06-15	Acocella Kerry	General Counsel and Secretary	Sell	-5,371 ×8	$233.91	-$1,256,311

Source: SEC Form 4 filings.

Next expected filings

~2026-11-07 10-Q expected by 2026-11-09 (in 55 days)
~2027-02-16 10-K expected by 2027-02-21 (in 156 days)
~2027-05-07 10-Q expected by 2027-05-09 (in 236 days)
~2027-08-06 10-Q expected by 2027-08-08 (in 327 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-08-06 8-K Earnings Release; Financial Statements and Exhibits
2026-08-06 10-Q Quarterly Report
2026-05-07 8-K Earnings Release; Financial Statements and Exhibits
2026-05-07 10-Q Quarterly Report
2026-04-29 DEF 14A Proxy Statement
2026-04-22 8-K Material Modification to Rights; Bylaws/Articles Amended; Shareholder Vote Results; Other Events; Financial Statements and Exhibits
2026-03-02 8-K Officer/Director Change
2026-02-18 10-K Annual Report
2026-02-10 8-K Earnings Release
2025-11-07 10-Q Quarterly Report
2025-11-06 8-K Earnings Release; Financial Statements and Exhibits
2025-09-11 8-K Officer/Director Change
2025-08-08 10-Q Quarterly Report
2025-08-07 8-K Earnings Release; Financial Statements and Exhibits
2025-06-05 8-K Material Modification to Rights; Bylaws/Articles Amended; Shareholder Vote Results; Financial Statements and Exhibits

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