Databricks Expands Financial Firepower

Data analytics software company Databricks has secured $1.8 billion in new debt, according to a person familiar with the matter. This brings the company’s total debt access to over $7 billion, positioning it strongly ahead of a potential initial public offering (IPO) in 2026. The company declined to comment on the funding.

Positioned Among Top Tech IPO Candidates

Databricks is considered one of the highly valued tech companies expected to go public in 2026, alongside names like Anthropic, Canva, OpenAI, and Stripe. Co-founder and CEO Ali Ghodsi stated in December that he would not rule out an IPO this year, signaling strong growth ambitions.

Strong Valuation and Revenue Growth

In December 2025, Databricks raised over $4 billion at a $134 billion valuation. The company reported generating $4.8 billion in annualized revenue, growing more than 55% year-over-year. It also achieved positive free cash flow in the past year, demonstrating a healthy financial position.

High Margins and Operational Efficiency

Databricks’ subscription services remain highly profitable, with a subscription gross margin exceeding 80% in the 2025 fiscal year, according to a June investor briefing. These metrics highlight the company’s ability to scale efficiently while maintaining profitability.

A History of Innovation and Recognition

Founded in 2013, Databricks has quickly become a leader in data analytics. The company earned the third-highest ranking on CNBC’s 2025 Disruptor 50 list of private companies, reflecting its innovation, growth, and market impact.

Looking Ahead

With strong revenue growth, high margins, and access to significant debt capital, Databricks is well-positioned for a successful IPO. Investors and industry watchers are closely monitoring the company as it continues to expand its influence in the data analytics and AI space.