Dynatrace, Inc.DT

Dynatrace, Inc. Fair Value Disclosure

10-KFiled May 22, 20252 min read
Investments and Fair Value Measurements
The following table summarizes the amortized cost, unrealized gains and losses, and fair value of the Company’s available-for-sale investments, including those securities classified within “Cash and cash equivalents” in the consolidated balance sheets (in thousands):
March 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. treasury securities$108,045 $223 $(12)$108,256 
Corporate debt securities22,457 71 (14)22,514 
Commercial paper7,778 2 (1)7,779 
U.S. government agency securities12,744 2 (3)12,743 
Total$151,024 $298 $(30)$151,292 
March 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
U.S. treasury securities$149,978 $— $(229)$149,749 
As of March 31, 2025, the fair values of available-for-sale investments, excluding those securities classified within “Cash and cash equivalents” in the consolidated balance sheets, by remaining contractual maturity are as follows (in thousands):
Due within one year$96,189 
Due in one year through five years50,934 
   Total$147,123 
Effective January 1, 2024, the Company offers a non-qualified deferred compensation plan to eligible U.S. employees. The Company held $0.7 million and $0.1 million of mutual funds that are associated with this plan and were classified as restricted trading securities as of March 31, 2025 and 2024, respectively. These securities are not included in the tables above but are included as investments in the consolidated balance sheets.
The following tables present the Company’s financial assets that have been measured at fair value on a recurring basis as of March 31, 2025 and 2024, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands):
March 31, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$679,675 $— $— $679,675 
U.S. treasury securities— 1,577 — 1,577 
Commercial paper— 1,596 — 1,596 
U.S. government agency securities— 996 — 996 
Investments:
Mutual funds714 — — 714 
U.S. treasury securities— 106,679 — 106,679 
Corporate debt securities— 22,514 — 22,514 
Commercial paper— 6,183 — 6,183 
U.S. government agency securities— 11,747 — 11,747 
Total financial assets$680,389 $151,292 $— $831,681 
March 31, 2024
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$477,102 $— $— $477,102 
U.S. treasury securities— 45,610 — 45,610 
Investments:
Mutual funds102 — — 102 
U.S. treasury securities— 104,139 — 104,139 
Total financial assets$477,204 $149,749 $— $626,953 
The Company recorded interest income from its cash, cash equivalents, and investments of $49.3 million, $38.7 million, $11.1 million for the years ended March 31, 2025, 2024, and 2023, respectively.

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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