Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Datadog Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	148,791)	107,731)	87,712)	23,474)	25,270)
Accrued compensation and commissions	109,765)	71,746)	61,541)	46,736)	43,050)
Other tax liability and sales tax	52,934)	28,639)	30,775)	25,818)	17,316)
Other accrued expenses	46,896)	26,751)	35,315)	98,604)	50,918)
Accrued expenses and other current liabilities	209,595)	127,136)	127,631)	171,158)	111,284)
Operating lease liabilities, current	39,369)	31,970)	21,974)	22,092)	20,157)
Convertible senior notes, net, current	—)	634,023)	—)	—)	—)
Deferred revenue, current	1,193,646)	961,853)	765,735)	543,024)	371,985)
Current liabilities	1,591,401)	1,862,713)	1,003,052)	759,748)	528,696)
Operating lease liabilities, non-current	256,187)	196,905)	138,128)	76,582)	52,106)
Convertible senior notes, net, non-current	983,449)	979,282)	742,235)	738,847)	735,482)
Deferred revenue, non-current	68,711)	22,693)	21,210)	12,944)	13,896)
Other liabilities	11,890)	9,383)	6,093)	6,226)	9,411)
Non-current liabilities	1,320,237)	1,208,263)	907,666)	834,599)	810,895)
Total liabilities	2,911,638)	3,070,976)	1,910,718)	1,594,347)	1,339,591)
Class A common stock, $0.00001 par value per share	3)	3)	3)	3)	2)
Class B common stock, $0.00001 par value per share	—)	—)	—)	—)	1)
Additional paid-in capital	3,579,010)	2,689,013)	2,181,267)	1,625,190)	1,197,136)
Accumulated other comprehensive income (loss)	15,404)	(4,701)	(2,218)	(12,422)	(3,830)
Retained earnings (accumulated deficit)	137,789)	30,048)	(153,698)	(202,266)	(152,106)
Stockholders’ equity	3,732,206)	2,714,363)	2,025,354)	1,410,505)	1,041,203)
Total liabilities and stockholders’ equity	6,643,844)	5,785,339)	3,936,072)	3,004,852)	2,380,794)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company’s liabilities exhibited a consistent upward trend from 2021 through 2024, peaking at approximately US$3.07 billion before decreasing slightly in 2025 to US$2.91 billion. This growth was primarily driven by increases in current liabilities, particularly deferred revenue and accounts payable. Stockholders’ equity also demonstrated a strong upward trajectory throughout the period, rising from US$1.04 billion in 2021 to US$3.73 billion in 2025. Consequently, total liabilities and stockholders’ equity increased substantially, more than doubling from US$2.38 billion to US$6.64 billion over the five-year period.

Current Liabilities: Current liabilities increased significantly from 2021 to 2024, growing from US$528.7 million to US$1.86 billion. Deferred revenue was the largest component and experienced substantial growth, increasing from US$372.0 million to US$1.19 billion. Accounts payable also showed a marked increase, rising from US$25.3 million to US$148.8 million. A notable surge in convertible senior notes, net, current occurred in 2024, reaching US$634.0 million, before disappearing in 2025. The increase in 2024 was a primary driver of the overall increase in current liabilities. A slight decrease in current liabilities was observed in 2025, primarily due to the absence of the convertible senior notes.
Non-Current Liabilities: Non-current liabilities also increased over the period, though at a more moderate pace than current liabilities, rising from US$810.9 million in 2021 to US$1.32 billion in 2025. Convertible senior notes, net, non-current constituted the largest portion of this category, increasing from US$735.5 million to US$983.4 million. Operating lease liabilities, non-current also showed consistent growth, increasing from US$52.1 million to US$256.2 million. Deferred revenue, non-current experienced a more modest increase, growing from US$13.9 million to US$68.7 million.
Stockholders’ Equity: Stockholders’ equity experienced consistent growth throughout the period. Additional paid-in capital was the primary driver of this growth, increasing from US$1.20 billion to US$3.58 billion. Retained earnings transitioned from an accumulated deficit of US$152.1 million in 2021 to a positive balance of US$137.8 million in 2025, indicating improved profitability. Accumulated other comprehensive income (loss) fluctuated, moving from a loss of US$3.8 million in 2021 to a gain of US$15.4 million in 2025. The par value of both Class A and Class B common stock remained relatively stable.

The increasing liabilities, particularly deferred revenue, suggest growing sales and future obligations. The substantial growth in stockholders’ equity, driven by additional paid-in capital and the shift in retained earnings, indicates successful fundraising and improving financial performance. The company’s overall financial position strengthened considerably over the analyzed period, as evidenced by the growth in total liabilities and stockholders’ equity.

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Datadog Inc. (NASDAQ:DDOG)

Balance Sheet: Liabilities and Stockholders’ Equity