Dynatrace sells software that helps enterprises monitor applications and infrastructure, diagnose problems, and automate operations. Subscriptions dominate revenue; its recently completed Arize acquisition adds AI evaluation and monitoring capabilities.
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3 reports in this collection
| Report period | Filed with SEC | Form | Source |
|---|---|---|---|
| Mar 31, 20240001773383-24-000076 | May 23, 2024 | 10-K | Open 10-Ksec.gov |
| Mar 31, 20250001773383-25-000065 | May 22, 2025 | 10-K | Open 10-Ksec.gov |
| Mar 31, 20260001773383-26-000019 | May 20, 2026 | 10-K | Open 10-Ksec.gov |
Dates describe the filing metadata. Figures and reporting periods should be checked against the original statement. SEC links open in a new tab.
As of October 24, 2026, Dynatrace combines growing subscription revenue and substantial operating cash generation with pressure on margins and GAAP earnings. Arize expands its AI offering but brings a sizeable cash commitment and integration risk. Recent financing adds resources—not profit—and introduces repayment and potential dilution obligations; the supplied disclosures do not establish post-acquisition cash.
Sources: 10-Q · 2026-06-30 · EX-99.1 · 2026-07-31 · official-company-release · 2026-08-13 · official-company-release · 2026-10-01 · 8-K · 2026-08-20
Dynatrace operates as one reporting segment. Under its Dynatrace Platform Subscription (DPS) licensing model, customers make minimum annual spending commitments at the platform level and consume those commitments based on actual usage. Existing customers can alternatively license individual capabilities through subscriptions. Fees are typically billed annually in advance and revenue recognized over the contract term. Subscriptions supplied 96% of revenue in fiscal 2027 Q1, ended June 30, 2026. This creates recurring business, but more usage also raises cloud-hosting costs.
June-quarter revenue was $554.548 million versus $477.349 million a year earlier, up a reported 16%, or 15% in constant currency. ARR reached $2,135.982 million, but this annualized subscription measure excludes monthly agreements and usage overages: it is neither recognized annual revenue nor cash. Management reported 41% organic net-new ARR growth after currency adjustment and excluding $13 million of Bindplane ARR. Meanwhile, same-customer dollar-based net retention slipped from 111% to 110% in constant currency. These indicators do not isolate AI revenue or product profitability.
Sources: 10-K · 2026-03-31 · 10-Q · 2026-06-30 · EX-99.1 · 2026-07-31
The June-quarter results, filed August 5, showed GAAP operating income rising to $71.476 million from $62.338 million, with the rounded operating margin unchanged at 13%. Subscription gross margin fell from 86% to 85% as hosting costs increased, partly offset by personnel efficiencies. R&D expense rose to $135.990 million from $108.172 million. GAAP net income fell to $36.651 million from $47.955 million: lower interest income and currency gains offset operating improvement, while tax expense rose as stock-compensation tax shortfalls replaced prior-year windfalls.
Reported non-GAAP operating income was $161.600 million versus $143.106 million, but its rounded margin declined from 30% to 29%. Exclusions included $73.576 million of stock compensation, an ongoing economic cost. The reconciliation also assigns $7.693 million of acquisition-related, restructuring and other costs to the current quarter, whereas Note 14 assigns approximately that amount to the prior-year quarter. This contradiction remains unresolved. Lower diluted weighted-average shares supported per-share comparisons; they were not operating growth.
Sources: 10-Q · 2026-06-30 · EX-99.1 · 2026-07-31
Quarterly operating cash flow rose to $306.240 million from $269.692 million. It included a $73.576 million noncash stock-compensation add-back and substantial collection and payment-timing effects, so it is not profit or a full-year run rate. Dynatrace introduced adjusted free cash flow this quarter and recast the comparator: $309.177 million versus $262.157 million. The current figure adds back $6.088 million of actual cash costs after capital spending; operating cash flow less capital spending before that add-back was $303.089 million.
Cash and equivalents were $1,057.780 million at June 30, down from $1,097.220 million at March 31, before the later financing and Arize closing. Separate June-quarter uses included $275.478 million of share repurchases and $99.481 million for Bindplane, net of acquired cash. Bindplane closed April 14; purchase accounting remained provisional and its quarterly earnings contribution was immaterial. June-end contractual commitments were $719.8 million, including $178.9 million within twelve months. Hosting, R&D, compensation and leases remain demands on resources; office impairments do not cancel lease payments. The earlier IP transfer also carries continuing tax consequences.
Sources: 10-Q · 2026-06-30 · EX-99.1 · 2026-07-31 · 10-K · 2026-03-31
On August 13, Dynatrace announced an Arize agreement valued at $915 million, subject to customary adjustments, comprising approximately $815 million cash and replacement equity awards for joining employees. It then planned funding from cash on hand and/or its existing credit facility, subject to regulatory review and customary closing conditions. On October 1, it announced completion of that same acquisition—not a second transaction. The releases do not establish final adjusted consideration, actual cash paid, borrowing mix or how replacement awards divide between purchase consideration and subsequent compensation.
Management aims to connect Arize's AI evaluation with Dynatrace's production monitoring. Phoenix and AX support will continue, with integration into Dynatrace planned over time. At signing, management expected approximately 200 basis points of fiscal 2027 ARR-growth contribution and 175 basis points of non-GAAP operating-margin dilution, followed by incremental margin expansion. It expected no material impact on Q2 guidance or the repurchase program. These were conditional expectations, not realized results or spending guarantees; the completion announcement supplied no updated financial outlook.
The earlier August 5 fiscal 2027 outlook called for revenue of $2,306–$2,320 million and adjusted free cash flow of $610–$615 million. Compared with prior guidance, an approximately $19 million incremental revenue currency headwind was partly offset by improved underlying constant-currency guidance, leaving a net revenue-guidance midpoint reduction of $13 million. Non-GAAP net-income guidance fell while EPS guidance rose because expected shares declined. Those forecasts excluded repurchases after June 30 and should not be mechanically combined with Arize's later expected effects. Forward-looking GAAP reconciliations were unavailable because excluded charges, particularly equity-related costs, were uncertain.
Sources: official-company-release · 2026-08-13 · official-company-release · 2026-10-01 · EX-99.1 · 2026-07-31
On August 20, Dynatrace LLC issued $1,437.5 million of parent-guaranteed, unsecured exchangeable notes, including the fully exercised purchaser option. Approximately $1,411 million of net proceeds included uses of $167.8 million for hedges net of sold-warrant proceeds and $134.7 million for share repurchases. The notes mature September 1, 2031 and carry no regular coupon, but are not costless: special interest, conditional early exchanges, fundamental-change cash repurchases and default acceleration can create earlier obligations. Settlement may involve cash, shares or both; the initial default is combination settlement with a $1,000 specified cash amount per $1,000 principal, subject to the contractual formula. Hedges provide conditional protection, and sold warrants introduce separate dilution risk.
The old revolver was terminated in connection with the notes, and its remaining letters of credit were cash collateralized. A new $500 million secured revolver was executed September 24 and filed September 25. That commitment is not cash, a reported drawing or confirmed unused availability. Access depends on borrowing conditions and covenants; fees apply, collateral principally covers specified equity interests and intellectual property, and defaults can accelerate repayment. The 4.00x leverage covenant starts December 31, 2026, using adjusted contractual EBITDA and capped eligible domestic cash—not GAAP profit and all worldwide cash. A temporary 4.50x acquisition limit requires qualifying conditions and notice; Arize's completion does not establish its election or actual headroom.
The revolver's June 24, 2031 stated maturity moves forward to June 2, 2031 if more than $300 million of the notes remains outstanding at that trigger date. Extensions require lender consent. Neither Arize's signing-stage funding plan nor the financing proceeds establish its actual funding route. Adding later proceeds and subtracting announced acquisition values from June cash would not establish current liquidity.
Sources: 8-K · 2026-08-20 · EX-4.1 · 2026-08-20 · 8-K · 2026-09-24 · EX-10.1 · 2026-09-24 · official-company-release · 2026-08-13 · official-company-release · 2026-10-01
Competition, lengthy enterprise sales cycles and dependence on cloud providers and nonexclusive partners can affect growth and costs. Dynatrace has experienced cyberattacks, service disruptions and public source-code postings, and has faced online-tracking privacy claims. Management reported no cyber incident it believed materially affected, or was reasonably likely to materially affect, the business in its annual assessment; that does not mean no incidents occurred. Unsupervised AI actions and acquisition integration add execution risk. The credit agreement's Sales and Use Taxes exception remains unquantified and unresolved in the supplied disclosures; contractual representations are not independent assurances of no risk.
Following engagement with Starboard, board changes included George Riedel and Dan Streetman joining June 30, reported July 1, and Chandu Thota joining July 27 after July 23 approval, reported July 29. The board expanded from eight to eleven. August 26 elections, filed August 27, gave four Class I directors terms through the 2029 meeting, with markedly differing support but no disclosed voter motives. CFO James Benson gave retirement notice July 31, disclosed August 5, with resignation planned by March 31, 2027; a successor and exact departure date were not established.
Sources: 10-K · 2026-03-31 · 10-Q · 2026-06-30 · EX-10.1 · 2026-09-24 · 8-K · 2026-06-30 · 8-K · 2026-07-23 · 8-K · 2026-08-26 · 8-K · 2026-07-31
USD 2.018387 bn
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 2.018387 bn | 18.8% |
| 2025 | USD 1.698683 bn | 18.7% |
| 2024 | USD 1.43053 bn | — |
Consolidated subscription and service revenue.
Sources: 10-K · 2026-03-31
USD 162.669 m
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 162.669 m | — |
| 2024 | USD 154.632 m | — |
Consolidated GAAP net income after income taxes; not adjusted for tax benefits or other noncash items.
Sources: 10-K · 2026-03-31
USD 483.684 m
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 483.684 m | — |
Consolidated GAAP net income after income taxes; includes the FY2025 IP-transfer tax benefit.
Sources: 10-K · 2026-03-31
USD 561.85 m
FY2026 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2026 | USD 561.85 m | 22.3% |
| 2025 | USD 459.419 m | 21.5% |
| 2024 | USD 378.109 m | — |
GAAP operating cash flow after noncash adjustments and changes in operating assets and liabilities.
Sources: 10-K · 2026-03-31
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