Databricks: Big Moves Before Big Market Debut

Databricks, a major player in the data analytics field, has just secured a massive $1.8 billion in new debt. This brings their total debt to a staggering $7 billion. The company isn't talking about it, but the numbers speak for themselves.

IPO Speculations and Growth

Databricks is one of the top tech companies expected to go public in 2026, alongside big names like Anthropic, Canva, OpenAI, and Stripe. The CEO, Ali Ghodsi, hasn't ruled out an IPO this year, keeping everyone guessing.

Back in December, Databricks announced they were raising over $4 billion, valuing the company at $134 billion. They're pulling in $4.8 billion in annual revenue, with growth rates over 55% year over year. Their subscription services are also doing well, with gross margins over 80% in the 2025 fiscal year.

Rapid Rise and Industry Recognition

Founded in 2013, Databricks has quickly climbed the ranks. They recently secured the third spot on CNBC's 2025 Disruptor 50 list of private companies. This recognition highlights their significant impact and potential in the tech industry.

Why the Debt?

But why all this debt? It's a common strategy for companies preparing for an IPO. Debt can fuel growth, but it also comes with risks. Investors will be watching closely to see how Databricks manages this financial strategy.