Databricks Gains $1.8B in Debt Financing, Paving the Way for 2026 IPO
Data analytics titan, Databricks, has secured $1.8 billion in new debt financing. This move boosts its total debt capacity to over $7 billion, strategically positioning the company for a highly anticipated initial public offering (IPO) in 2026.
The financing was announced on January 23, 2026. It was facilitated through a combination of a $1.15 billion extension to an existing revolving credit facility and additional delayed-draw term loans. These loans were provided by private credit lenders and broadly syndicated loan investors. This development follows closely on the heels of Databricks raising over $4 billion in a Series L funding round at a $134 billion valuation in December 2025.
The San Francisco-based company, a leading provider of cloud-based data and AI platforms, reported an impressive $4.8 billion in annualized revenue. With year-over-year growth exceeding 55%, Databricks also confirmed positive free cash flow over the past year. The company’s subscription gross margins topped 80% in fiscal 2025, solidifying its position as a critical infrastructure provider for enterprises deploying artificial intelligence and machine learning workloads at scale.
Market observers widely anticipate Databricks to pursue an IPO in 2026. The recent debt financing is viewed as strategic pre-IPO preparation, ensuring ample resources for the company’s expansion plans. Databricks competes directly with Snowflake in the data warehousing space, while also offering AI-native products that have each surpassed $1 billion in annual revenue.
Source: CNBC