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DDOGDatadog, Inc.·2026Q2 10-QPaidFiling score 56 · Moderate

Datadog earned $5.5m from operations and collected $315.9m — a gap of 58 times

2026 Q2 10-Q: on $1,121.5m of revenue, operating income was $5.5m, a margin of 0.49%. Cash reaching the bank that quarter was 58 times that, and what fills the gap is $220.3m of share-based compensation, which costs no cash

aiSwingX™ Editorial · Reviewed
Published
Datadog, Inc. Form 10-Q (2026 second quarter, accession 0001628280-26-054458): consolidated statements of operations, cash flows and balance sheet; share-based compensation note. Quarterly figures cross-checked against SEC XBRL Company Facts.
Datadog earned $5.5m from operations and collected $315.9m — a gap of 58 times
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Datadog (DDOG) recorded revenue of $1,121.5m in the second quarter of 2026. Operating income for the same quarter was $5.5m — 0.49% of revenue. Cash from operations on the cash flow statement was $315.9m, 58 times the operating income.

In plain terms

Datadog makes software that watches whether a company's servers and applications are working. Revenue this quarter was over $1.1bn while reported operating income was $5.5m. Yet more than $300m reached the bank. The difference is what staff were paid in stock: it is deducted as a cost but no cash leaves.

What happened

Datadog (DDOG) makes the software companies use to watch whether their servers, applications and cloud services are running properly.

Its second-quarter 2026 income statement and cash flow statement are different sizes.

Line 2026 Q2
Revenue $1,121.5m
Gross profit $881.3m (78.6% margin)
Operating income $5.5m
Pre-tax income $51.7m
Net income $44.6m
Cash from operations $315.9m

The operating margin is 0.49% — under fifty cents on every hundred dollars of sales. Cash reaching the bank in the same quarter was $315.9m, 58 times operating income.

What the 58 times isSubscribers
Why pre-tax exceeds operating incomeSubscribers
What is owed, and what was collected earlySubscribers
ContextSubscribers
Arithmetic table · quarterly metricsSubscribers
End of the free preview

56 Filing score · Moderate

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FAQ

Why is cash so much larger than operating income?

Because share-based compensation is deducted as a cost but no cash leaves; the cash flow statement adds it back.

So is the business making money?

Cash does come in. What was paid in stock has not vanished, though — the share count rises. Both numbers belong together.

How large is the compensation?

The quarterly amount and its share of revenue are tabled in the subscriber section.

Why is pre-tax income larger than operating income?

Items outside operations contributed. The amount is in the subscriber section.

Where can I check this myself?

On SEC EDGAR, open Datadog, Inc.'s 2026 second-quarter 10-Q (accession 0001628280-26-054458) and read the statements of operations and cash flows.

How aiSwingX™ wrote this

  1. We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
  2. Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
  3. An editor reviews before publication; any later change is recorded in the revision history.
© 2026 aiSwingX™. All rights reserved. Quote with attribution. Republication, redistribution and data use are governed by the Terms of Service and License. Not investment advice.
Datadog, Inc. Form 10-Q (2026 second quarter, accession 0001628280-26-054458): consolidated statements of operations, cash flows and balance sheet; share-based compensation note. Quarterly figures cross-checked against SEC XBRL Company Facts. · SEC EDGAR · This article is not investment advice. Disclaimer

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aiSwingX™ analyzes US filings and reports them as news investors can read.
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