Group 1 - The core viewpoint of the article highlights CrowdStrike's strong Q2 performance, with revenue growth of 21% year-over-year to $1.17 billion, surpassing market expectations of $1.15 billion [1] - Adjusted earnings per share (EPS) for Q2 were reported at $0.93, exceeding the market forecast of $0.83 [1] - Annual recurring revenue (ARR) increased by 20% year-over-year, reaching $4.66 billion [1] Group 2 - CrowdStrike anticipates Q3 revenue to be between $1.21 billion and $1.22 billion, which is below the market expectation of $1.23 billion [1] - The company raised its full-year revenue guidance to a range of $4.75 billion to $4.81 billion, aligning with market expectations [1] - The adjusted EPS forecast for the full year is set between $3.60 and $3.72, better than the market expectation of $3.51 [1] Group 3 - CEO George Kurtz noted that business growth accelerated earlier than expected, contributing to a strong Q2 performance [2] - The company achieved a record $221 million in new ARR for Q2 and surpassed 1,000 Flex customers [2] - CrowdStrike announced the acquisition of Onum, which is expected to enhance its Falcon next-generation SIEM product [2]

[SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements based on current projections that involve risks and uncertainties - The report contains forward-looking statements regarding future operating results, financial position, business strategy, and objectives, identified by words like 'believe,' 'may,' 'will,' 'expect,' etc[13](index=13&type=chunk) - These statements are subject to risks and uncertainties, including future financial performance, market acceptance, competition, security of the cloud platform, customer base expansion, and macroeconomic factors[14](index=14&type=chunk)[15](index=15&type=chunk) - The company uses its investor relations website, SEC filings, press releases, and social media for material information disclosure[16](index=16&type=chunk) [Summary of Risk Factors](index=5&type=section&id=Summary%20of%20Risk%20Factors) This section summarizes key risks that could adversely affect the company's business, including the July 19 Incident, growth management, and competition - Key risks include the **July 19 Incident's adverse effects**, challenges in managing rapid growth, and the inability to achieve or sustain profitability[19](index=19&type=chunk)[20](index=20&type=chunk) - Other significant risks involve market acceptance of cloud-based SaaS solutions, ability to enhance products, customer acquisition and retention, long sales cycles, and intense competition[20](index=20&type=chunk)[21](index=21&type=chunk) - Risks also cover product failures, cyberattacks targeting the company, reliance on third-party data centers, key personnel retention, fluctuating results, brand reputation, intellectual property claims, and compliance with data privacy laws[21](index=21&type=chunk) PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the reported periods [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $4,972,436 | $4,323,295 | | Total current assets | $6,534,354 | $6,113,345 | | Total assets | $9,288,859 | $8,701,578 | | **Liabilities** | | | | Total current liabilities | $3,475,938 | $3,461,050 | | Long-term debt | $744,727 | $743,983 | | Total liabilities | $5,494,168 | $5,382,661 | | **Stockholders' Equity** | | | | Total stockholders' equity | $3,794,691 | $3,318,917 | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $1,168,952 | $963,872 | $2,272,386 | $1,884,908 | | Gross profit | $858,669 | $726,471 | $1,672,960 | $1,422,504 | | Income (loss) from operations | $(112,979) | $13,658 | $(237,635) | $20,594 | | Net income (loss) attributable to CrowdStrike | $(77,675) | $47,013 | $(187,882) | $89,833 | | Basic EPS | $(0.31) | $0.19 | $(0.75) | $0.37 | | Diluted EPS | $(0.31) | $0.19 | $(0.75) | $0.36 | - The company reported a **net loss attributable to CrowdStrike of $(77.7) million** for the three months ended July 31, 2025, a significant decrease from a net income of $47.0 million in the prior year period; for the six months ended July 31, 2025, the net loss was **$(187.9) million**, compared to a net income of $89.8 million in the prior year[26](index=26&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(77,645) | $46,690 | $(188,638) | $92,954 | | Other comprehensive income (loss) | $145 | $1,658 | $15,593 | $(1,439) | | Total comprehensive income (loss) attributable to CrowdStrike | $(77,530) | $48,671 | $(172,289) | $88,394 | [Condensed Consolidated Statements of Stockholders' Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric | July 31, 2025 | April 30, 2025 | July 31, 2024 | April 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $3,794,691 | $3,491,014 | $2,890,590 | $2,568,782 | | Additional Paid-in Capital (July 31, 2025) | $5,016,544 | $4,633,211 | $3,824,897 | $3,556,194 | | Accumulated Deficit (July 31, 2025) | $(1,265,989) | $(1,188,314) | $(969,003) | $(1,016,016) | - Total stockholders' equity increased to **$3.79 billion** as of July 31, 2025, from $3.32 billion as of January 31, 2025, primarily due to stock-based compensation expense and issuance of common stock under employee plans, despite a net loss[31](index=31&type=chunk)[34](index=34&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $716,939 | $709,869 | | Net cash used in investing activities | $(150,609) | $(105,988) | | Net cash provided by financing activities | $76,321 | $59,978 | | Net increase in cash, cash equivalents and restricted cash | $649,246 | $662,819 | | Cash, cash equivalents and restricted cash at end of period | $4,973,912 | $4,040,416 | - Net cash provided by operating activities increased slightly to **$716.9 million** for the six months ended July 31, 2025, from $709.9 million in the prior year, despite a net loss, driven by non-cash adjustments and changes in operating assets and liabilities[36](index=36&type=chunk)[238](index=238&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the unaudited condensed consolidated financial statements [Note 1. Description of Business and Significant Accounting Policies](index=15&type=section&id=Note%201.%20Description%20of%20Business%20and%20Significant%20Accounting%20Policies) CrowdStrike is a global cybersecurity leader providing an AI-native platform via a SaaS subscription model - CrowdStrike is a global cybersecurity leader, providing an AI-native platform for the XDR era, purpose-built to stop breaches, with operations in the U.S. and internationally[38](index=38&type=chunk) - The company's revenue is generated from **SaaS subscription-based cloud platform** and professional services, sold worldwide through direct sales and channel partners[38](index=38&type=chunk)[44](index=44&type=chunk) - No single channel partner or direct customer represented **10% or more** of accounts receivable or total revenue for the periods presented[46](index=46&type=chunk) - The company is evaluating the impact of new FASB ASUs: 2025-05 (Credit Losses for Accounts Receivable), 2024-03 (Expense Disaggregation Disclosures), and 2023-09 (Improvements to Income Tax Disclosures)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) [Note 2. Investments and Fair Value Measurements](index=16&type=section&id=Note%202.%20Investments%20and%20Fair%20Value%20Measurements) This note details the company's financial assets measured at fair value, primarily cash equivalents and strategic investments Fair Value Hierarchy of Financial Assets (in thousands) | Metric | July 31, 2025 (Total) | January 31, 2025 (Total) | | :--- | :--- | :--- | | Money market funds (Level 1) | $845,191 | $1,470,040 | | U.S. Treasury securities (Level 2) | $2,489,080 | $2,490,097 | | Deferred compensation investments (Level 1) | $8,598 | $5,496 | | Total assets at fair value | $3,342,869 | $3,965,633 | Strategic Investments in Privately Held Securities (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Initial total cost | $70,657 | $69,140 | | Cumulative net gains | $1,825 | $3,404 | | Carrying amount, end of period | $72,482 | $72,544 | Gains and Losses on Strategic Investments (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Unrealized losses, net | $— | $— | $(1,579) | $— | | Realized gains (losses), net | $— | $(655) | $— | $6,226 | | Gains (losses) on strategic investments, net | $— | $(655) | $(1,579) | $6,226 | [Note 3. Financing Receivables](index=19&type=section&id=Note%203.%20Financing%20Receivables) The company's financing receivables increased significantly, with a concentrated end-user base Financing Receivables (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Short-term financing receivables, net | $37,827 | $7,164 | | Long-term financing receivables, net | $99,551 | $37,842 | | Amortized cost basis of financing receivables | $138,881 | $45,424 | - Four end users represented **59% of financing receivables** as of July 31, 2025, compared to two end users representing 78% as of January 31, 2025[47](index=47&type=chunk) [Note 4. Balance Sheet Components](index=19&type=section&id=Note%204.%20Balance%20Sheet%20Components) This note details increases in property and equipment and decreases in intangible assets due to amortization Property and Equipment, Net (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Data center and other computer equipment | $896,236 | $755,728 | | Capitalized internal-use software and website development costs | $327,606 | $265,987 | | Construction in progress | $214,608 | $220,088 | | Total property and equipment, net | $869,240 | $788,640 | Intangible Assets, Net (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Developed technology, net | $91,898 | $104,633 | | Customer relationships, net | $14,218 | $16,048 | | Intellectual property and other acquired intangible assets, net | $11,742 | $12,433 | | Total intangible assets, net | $117,858 | $133,114 | - Goodwill increased slightly to **$913.3 million** as of July 31, 2025, from $912.8 million as of January 31, 2025, primarily due to foreign currency translation[69](index=69&type=chunk) [Note 5. Debt](index=21&type=section&id=Note%205.%20Debt) The company maintains a $750 million credit facility and $750 million in Senior Notes, remaining in compliance with all covenants - The company has a **$750.0 million revolving credit facility**, maturing January 2, 2026, with no outstanding amounts as of July 31, 2025[71](index=71&type=chunk)[74](index=74&type=chunk) - Issued **$750.0 million in 3.00% Senior Notes** maturing in February 2029, with interest payable semiannually[75](index=75&type=chunk) - Fair value of Senior Notes was approximately **$702.4 million** as of July 31, 2025, and $688.4 million as of January 31, 2025[81](index=81&type=chunk) [Note 6. Income Taxes](index=22&type=section&id=Note%206.%20Income%20Taxes) The company recognized income tax expense primarily from foreign earnings, with negative effective tax rates due to pre-tax losses Income Tax Expense (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Provision for income taxes | $5,971 | $10,914 | $27,077 | $18,581 | Effective Tax Rates | Period | Effective Tax Rate | | :--- | :--- | | Three Months Ended July 31, 2025 | (8.3)% | | Three Months Ended July 31, 2024 | 18.9% | | Six Months Ended July 31, 2025 | (16.8)% | | Six Months Ended July 31, 2024 | 16.7% | - The One Big Beautiful Bill Act (OBBBA) enacted on July 4, 2025, resulted in an **immaterial favorable effect** on the income tax provision due to the company's valuation allowance[83](index=83&type=chunk) - Total gross unrecognized tax benefits were **$132.3 million** as of July 31, 2025, primarily from R&D credits[85](index=85&type=chunk) [Note 7. Leases](index=24&type=section&id=Note%207.%20Leases) The company holds non-cancellable operating leases with total liabilities of $65.8 million and additional future commitments Maturities of Non-Cancelable Operating Lease Liabilities (in thousands) | Fiscal Year | Total Operating Lease Payments | | :--- | :--- | | Fiscal 2026 (remaining six months) | $6,630 | | Fiscal 2027 | $16,503 | | Fiscal 2028 | $15,849 | | Fiscal 2029 | $11,206 | | Fiscal 2030 | $9,219 | | Thereafter | $16,465 | | Total operating lease payments | $75,872 | | Less: imputed interest | $(10,071) | | Present value of operating lease liabilities | $65,801 | - As of July 31, 2025, the company had non-cancelable operating leases not yet commenced with undiscounted future minimum payments of **$89.7 million**[90](index=90&type=chunk) [Note 8. Stock-Based Compensation](index=24&type=section&id=Note%208.%20Stock-Based%20Compensation) Stock-based compensation expense increased significantly, with substantial unrecognized expenses for unvested awards - Total unrecognized stock-based compensation expense related to unvested RSUs was **$1.9 billion** as of July 31, 2025, expected to be amortized over 2.4 years[101](index=101&type=chunk) - Total unrecognized stock-based compensation expense related to unvested PSUs was **$195.9 million** as of July 31, 2025, expected to be amortized over 1.3 years[103](index=103&type=chunk) Stock-Based Compensation Expense (in thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total stock-based compensation expense | $287,153 | $200,877 | $540,757 | $384,002 | [Note 9. Revenue, Deferred Revenue and Remaining Performance Obligations](index=29&type=section&id=Note%209.%20Revenue%2C%20Deferred%20Revenue%20and%20Remaining%20Performance%20Obligations) This note details revenue by geography, deferred revenue growth, and substantial remaining performance obligations Revenue by Geographic Region (in thousands, except percentages) | Region | Three Months Ended July 31, 2025 (Amount) | Three Months Ended July 31, 2025 (% Revenue) | Six Months Ended July 31, 2025 (Amount) | Six Months Ended July 31, 2025 (% Revenue) | | :--- | :--- | :--- | :--- | :--- | | United States | $784,675 | 67% | $1,526,527 | 67% | | Europe, Middle East, and Africa | $188,423 | 16% | $364,865 | 16% | | Asia Pacific | $117,538 | 10% | $230,365 | 10% | | Other | $78,316 | 7% | $150,629 | 7% | | Total revenue | $1,168,952 | 100% | $2,272,386 | 100% | Deferred Revenue Activity (in thousands) | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | | Beginning balance | $3,728,677 | $3,054,099 | | Additions to deferred revenue | $2,378,566 | $1,924,006 | | Recognition of deferred revenue | $(2,272,386) | $(1,884,908) | | Ending balance | $3,834,857 | $3,093,197 | - As of July 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was **$7.2 billion**, with 52% expected to be recognized in the next 12 months[119](index=119&type=chunk) [Note 10. Commitments and Contingencies](index=30&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) This note details significant legal proceedings and expenses related to the July 19 Incident and other commitments - The July 19 Incident, a content configuration update causing system crashes, led to multiple legal proceedings including **class action lawsuits, derivative lawsuits, and government inquiries**[123](index=123&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk) - The company expects to incur significant legal and professional services expenses related to the July 19 Incident, with **$75.4 million incurred** (net of insurance receivable) for the six months ended July 31, 2025[129](index=129&type=chunk)[130](index=130&type=chunk) Accrued and Incurred Expenses for July 19 Incident (in thousands) | Metric | Amounts | | :--- | :--- | | Balance at January 31, 2025 | $21,145 | | Expenses incurred, net of insurance receivable recorded | $75,383 | | Payments made/ cash received | $(45,917) | | Balance at July 31, 2025 | $50,611 | - Non-cancellable purchase commitments in excess of one year totaled **$2.6 billion** as of July 31, 2025[133](index=133&type=chunk) - Unfunded loan commitments for financing arrangements with end-users totaled approximately **$40.6 million** as of July 31, 2025[134](index=134&type=chunk) [Note 11. Acquisitions](index=34&type=section&id=Note%2011.%20Acquisitions) The company completed two acquisitions, Adaptive Shield and Flow Security, resulting in goodwill from expected synergies - Acquired Adaptive Shield on November 20, 2024, for **$213.7 million cash (net)** and $0.7 million in equity awards, adding SaaS security posture management solutions[137](index=137&type=chunk)[138](index=138&type=chunk) - Acquired Flow Security on March 26, 2024, for **$96.4 million cash (net)** and $0.5 million in equity awards, enhancing data security solutions[142](index=142&type=chunk)[143](index=143&type=chunk) - Goodwill of **$191.0 million from Adaptive Shield** and **$84.0 million from Flow Security** was recognized, primarily for assembled workforce and expected synergies[138](index=138&type=chunk)[143](index=143&type=chunk) [Note 12. Net Income (Loss) Per Share Attributable to Common Stockholders](index=35&type=section&id=Note%2012.%20Net%20Income%20(Loss)%20Per%20Share%20Attributable%20to%20Common%20Stockholders) Diluted EPS equaled basic EPS for the current periods due to the company's net loss position Net Income (Loss) Per Share Attributable to CrowdStrike Common Stockholders | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Basic EPS | $(0.31) | $0.19 | $(0.75) | $0.37 | | Diluted EPS | $(0.31) | $0.19 | $(0.75) | $0.36 | | Weighted-average shares used in computing diluted EPS | 249,909 | 251,265 | 249,182 | 250,724 | - Potential common shares excluded from diluted EPS calculation due to anti-dilutive effect were **10.4 million** for the three and six months ended July 31, 2025[149](index=149&type=chunk) [Note 13. Segment Information](index=36&type=section&id=Note%2013.%20Segment%20Information) The company operates as a single operating and reportable segment, managed at a consolidated level - The company operates as a **single operating and reportable segment**, with the CEO as the Chief Operating Decision Maker[151](index=151&type=chunk) Property and Equipment, Net and Operating Lease Right-of-Use Assets by Geographic Area (in thousands) | Region | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | United States | $773,121 | $688,766 | | Germany | $97,694 | $88,443 | | Other countries | $61,824 | $54,194 | | Total | $932,639 | $831,403 | [Note 14. Strategic Plan](index=37&type=section&id=Note%2014.%20Strategic%20Plan) A strategic plan involving a 5% workforce reduction resulted in significant charges for severance and stock-based compensation - Strategic plan announced May 6, 2025, involved a **5% reduction in global workforce** (approx 500 positions) to yield greater efficiencies[154](index=154&type=chunk) Charges Related to Strategic Plan (in thousands) | Metric | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2025 | | :--- | :--- | :--- | | Severance payments and employee benefits | $20,100 | $20,100 | | Stock-based compensation expense | $17,900 | $17,900 | | Non-employee costs | $400 | $7,000 | | Total charges | $38,400 | $45,000 | [Note 15. Subsequent Events](index=37&type=section&id=Note%2015.%20Subsequent%20Events) The company entered into an agreement to acquire Onum Technology Inc subsequent to the reporting period - On August 25, 2025, the company agreed to acquire Onum Technology Inc for approximately **$290.0 million**, expected to close in Q3 fiscal 2026[157](index=157&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial results, highlighting revenue growth offset by increased expenses and the July 19 Incident impact [Overview](index=38&type=section&id=Overview) CrowdStrike is a cybersecurity leader with an AI-native Falcon platform that leverages cloud-scale AI to stop threats in real-time - CrowdStrike's Falcon platform is an **AI-native, cloud-native unified platform** built with artificial intelligence at its core, designed to stop breaches[160](index=160&type=chunk) - The Security Cloud enriches and correlates **trillions of cybersecurity events per week**, creating actionable data and preventing threats in real-time[161](index=161&type=chunk) [Our Go-To-Market Strategy](index=38&type=section&id=Our%20Go-To-Market%20Strategy) The company employs a low-friction 'land-and-expand' sales strategy through a direct sales team and channel partners - Primary sales channel is a **direct sales team** leveraging a network of channel partners, segmented by customer endpoint numbers[163](index=163&type=chunk) - Employs a **'low friction land-and-expand' sales strategy**, where customers start with some modules and expand over time by adding more endpoints or modules[164](index=164&type=chunk) - Professional services (incident response, proactive services) are viewed as an opportunity to **cross-sell Falcon platform subscriptions**[166](index=166&type=chunk) [Certain Factors Affecting Our Performance](index=39&type=section&id=Certain%20Factors%20Affecting%20Our%20Performance) Performance is affected by market adoption, customer acquisition, and investment, with the July 19 Incident expected to have an adverse impact - Future success depends on the growth of the **cloud-based SaaS-delivered endpoint security solutions market** and the company's ability to attract and retain new customers[168](index=168&type=chunk)[169](index=169&type=chunk) - The company plans to continue **significant investments** in sales and marketing, research and development, and potential acquisitions to manage growth[171](index=171&type=chunk) - The July 19 Incident has caused **delays in sales opportunities**, longer sales cycles, and is expected to result in increased contraction and decreased upsell dollar values due to customer commitment packages[172](index=172&type=chunk) [Key Metrics](index=40&type=section&id=Key%20Metrics) The company monitors Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate to evaluate business performance Annual Recurring Revenue (ARR) (dollars in thousands) | Metric | As of July 31, 2025 | As of July 31, 2024 | | :--- | :--- | :--- | | Annual recurring revenue | $4,656,682 | $3,864,512 | | Year-over-year growth | 20% | 32% | | Net new ARR (3 months ended) | $221,100 | $217,600 | | Net new ARR (6 months ended) | $414,800 | $429,300 | - Dollar-based net retention rate remained strong as of July 31, 2025, but is subject to fluctuations from large customer contracts, incentives, and customer utilization of subscriptions[178](index=178&type=chunk) [Components of Our Results of Operations](index=41&type=section&id=Components%20of%20Our%20Results%20of%20Operations) This section outlines revenue components and operating expenses, which are driven by employee costs and strategic investments - Subscription revenue is recognized **ratably over the agreement term** (generally 1-3 years), driven by customer count, endpoints, and cloud modules[180](index=180&type=chunk) - Professional services revenue includes incident response and proactive services, recognized as services are performed[181](index=181&type=chunk) - Operating expenses (Sales & Marketing, R&D, G&A) are primarily driven by **employee-related costs and stock-based compensation**[186](index=186&type=chunk) - The company expects general and administrative expenses to increase due to **significant legal and professional services costs** associated with the July 19 Incident[192](index=192&type=chunk) - The OBBBA tax reform, enacted July 4, 2025, permanently reinstates deducting domestic R&D expenditures as incurred and offers **100% accelerated depreciation**, resulting in an immaterial favorable effect on income tax provision[196](index=196&type=chunk) [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Revenue grew but the company shifted to net losses, driven by increased operating expenses from the July 19 Incident and strategic plan charges Total Revenue and Net Income (Loss) Attributable to CrowdStrike (in thousands, except percentages) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $1,168,952 | $963,872 | $2,272,386 | $1,884,908 | | Total revenue YoY growth | 21% | - | 21% | - | | Net income (loss) attributable to CrowdStrike | $(77,675) | $47,013 | $(187,882) | $89,833 | | Net income (loss) YoY change | (265)% | - | (309)% | - | Gross Margin and Operating Expenses as % of Total Revenue | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total gross margin | 73% | 75% | 74% | 75% | | Sales and marketing | 38% | 37% | 39% | 37% | | Research and development | 30% | 26% | 30% | 26% | | General and administrative | 15% | 11% | 15% | 11% | | Total operating expenses | 83% | 74% | 84% | 74% | [Comparison of the Three Months Ended July 31, 2025 and 2024](index=46&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20July%2031%2C%202025%20and%202024) Revenue increased 21% year-over-year, but rising costs and incident-related expenses led to an operating loss Revenue (Three Months Ended July 31, in thousands) | Revenue Type | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Subscription | $1,102,945 | $918,257 | $184,688 | 20% | | Professional services | $66,007 | $45,615 | $20,392 | 45% | | Total revenue | $1,168,952 | $963,872 | $205,080 | 21% | Cost of Revenue and Gross Margin (Three Months Ended July 31, in thousands, except percentages) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total cost of revenue | $310,283 | $237,401 | $72,882 | 31% | | Subscription gross margin | 77% | 78% | - | (1)% | | Professional services gross margin | 14% | 18% | - | (4)% | | Total gross margin | 73% | 75% | - | (2)% | Operating Expenses (Three Months Ended July 31, in thousands, except percentages) | Expense Type | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales and marketing | $447,024 | $355,471 | $91,553 | 26% | | Research and development | $346,668 | $250,908 | $95,760 | 38% | | General and administrative | $177,956 | $106,434 | $71,522 | 67% | - General and administrative expenses increased significantly by **67%** due to **$34.3 million in July 19 Incident-related expenses**, $17.8 million in stock-based compensation, and $6.1 million in strategic plan charges[212](index=212&type=chunk) [Comparison of the Six Months Ended July 31, 2025 and 2024](index=49&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20July%2031%2C%202025%20and%202024) Revenue grew 21% year-over-year, but a surge in operating expenses, particularly G&A, resulted in a substantial operating loss Revenue (Six Months Ended July 31, in thousands) | Revenue Type | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Subscription | $2,153,713 | $1,790,429 | $363,284 | 20% | | Professional services | $118,673 | $94,479 | $24,194 | 26% | | Total revenue | $2,272,386 | $1,884,908 | $387,478 | 21% | Cost of Revenue and Gross Margin (Six Months Ended July 31, in thousands, except percentages) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total cost of revenue | $599,426 | $462,404 | $137,022 | 30% | | Subscription gross margin | 77% | 78% | - | (1)% | | Professional services gross margin | 13% | 23% | - | (10)% | | Total gross margin | 74% | 75% | - | (1)% | Operating Expenses (Six Months Ended July 31, in thousands, except percentages) | Expense Type | 2025 | 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales and marketing | $886,641 | $705,585 | $181,056 | 26% | | Research and development | $680,797 | $486,157 | $194,640 | 40% | | General and administrative | $343,157 | $210,168 | $132,989 | 63% | - General and administrative expenses increased by **63%** due to **$72.9 million in July 19 Incident-related expenses**, $21.2 million in stock-based compensation, and $12.7 million in strategic plan charges[226](index=226&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $5.0 billion in cash, positive operating cash flow, and an undrawn credit facility - Primary liquidity sources: **$5.0 billion in cash and cash equivalents**, cash from operations, and a $750.0 million revolving facility[232](index=232&type=chunk) - Accumulated deficit of **$1.3 billion** as of July 31, 2025, with expected continued investments in sales & marketing and R&D[234](index=234&type=chunk) - Deferred revenue was **$3.8 billion** as of July 31, 2025, with $2.8 billion expected to be recognized as current revenue[235](index=235&type=chunk) Cash Flows (in thousands) | Metric | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $716,939 | $709,869 | | Net cash used in investing activities | $(150,609) | $(105,988) | | Net cash provided by financing activities | $76,321 | $59,978 | [Supplemental Guarantor Financial Information](index=56&type=section&id=Supplemental%20Guarantor%20Financial%20Information) This section provides summarized financial information for the Obligor Group on a combined basis - Senior Notes are guaranteed by CrowdStrike, Inc and CrowdStrike Financial Services, Inc (subsidiary guarantors)[242](index=242&type=chunk) Obligor Group Summarized Statement of Operations (Six Months Ended July 31, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Revenue | $2,270,124 | | Cost of revenue | $637,297 | | Operating expenses | $1,922,898 | | Loss from operations | $(290,071) | | Net loss | $(231,316) | Obligor Group Summarized Balance Sheet (in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Current assets (excl intercompany) | $6,365,805 | $5,922,562 | | Noncurrent assets (excl intercompany) | $2,456,410 | $2,316,545 | | Current liabilities (excl intercompany) | $3,334,261 | $3,331,647 | | Noncurrent liabilities (excl intercompany) | $1,984,734 | $1,897,235 | [Contractual Obligations and Commitments](index=57&type=section&id=Contractual%20Obligations%20and%20Commitments) The company has significant non-cancellable purchase commitments, real estate obligations, and unfunded loan commitments - Non-cancellable purchase commitments totaled **$2.6 billion** as of July 31, 2025, with remaining terms over 12 months[249](index=249&type=chunk) - Obligations under non-cancellable real estate arrangements (undiscounted) include **$15.8 million due in the next 12 months** and $149.8 million thereafter[250](index=250&type=chunk) - Unrecognized tax benefits of **$58.5 million** were classified as long-term liabilities[250](index=250&type=chunk) - Non-cancellable unfunded commitments from financing arrangements totaled approximately **$40.6 million**[251](index=251&type=chunk) [Critical Accounting Policies and Estimates](index=57&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management makes key estimates for revenue recognition, credit losses, and contingencies, with no significant changes in the period - Key estimates and assumptions include revenue recognition, allowance for credit losses, valuation of common stock, carrying value and useful lives of long-lived assets, loss contingencies, and income tax provisions[253](index=253&type=chunk)[426](index=426&type=chunk) - **No significant changes** in critical accounting policies and estimates during the six months ended July 31, 2025[255](index=255&type=chunk) [Backlog](index=58&type=section&id=Backlog) The company's backlog of uninvoiced contractual amounts was approximately $3.3 billion but is not used as a key internal metric - Backlog was approximately **$3.3 billion** as of July 31, 2025, representing contractual amounts not yet invoiced[257](index=257&type=chunk) - Backlog is not recorded in deferred revenue and is **not used as a key management metric** internally[257](index=257&type=chunk) [Seasonality](index=58&type=section&id=Seasonality) The business experiences seasonality, with higher net new ARR in the second half and lower operating margins in the first half - Net new ARR generation is typically greater in the **second half of the year**, particularly in the fourth quarter, due to annual budget approval processes[259](index=259&type=chunk) - Operating margin is typically lower in the **first half of the fiscal year** due to increased costs for payroll taxes and annual sales and marketing events[259](index=259&type=chunk) [Employees](index=58&type=section&id=Employees) As of July 31, 2025, the company had 10,047 full-time employees and considers employee relations to be good - As of July 31, 2025, CrowdStrike had **10,047 full-time employees**[261](index=261&type=chunk) [Corporate Information](index=58&type=section&id=Corporate%20Information) CrowdStrike Holdings, Inc is a holding company with principal executive offices in Austin, Texas - CrowdStrike Holdings, Inc is a holding company, with all business operations conducted through its subsidiaries[263](index=263&type=chunk) [Recently Issued Accounting Pronouncements](index=58&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) Information on recent accounting pronouncements is available in Note 1 of the financial statements [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the company's market risks during the reported period - **No material changes** to market risks during the three and six months ended July 31, 2025[266](index=266&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Disclosure controls and procedures were evaluated as **effective** at the reasonable assurance level as of July 31, 2025[268](index=268&type=chunk) - **No material changes** in internal control over financial reporting occurred during the period[269](index=269&type=chunk) - Management acknowledges **inherent limitations** in control systems, which can only provide reasonable, not absolute, assurance[270](index=270&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including those related to the July 19 Incident, with unpredictable outcomes - The company is a party to various litigation matters and claims, including those related to the **July 19 Incident**[272](index=272&type=chunk) - For claims deemed probable and reasonably estimable, a liability is recorded; however, the results of legal proceedings are **inherently unpredictable**[273](index=273&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) This section outlines numerous risks that could adversely affect the business, including the July 19 Incident, competition, and regulations [Risks Related to Our Business and Industry](index=60&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) The company faces significant risks from the July 19 Incident, managing growth, competition, and reliance on third-party infrastructure - The July 19 Incident has had, and is expected to continue to have, an **adverse effect on business**, sales, customer and partner relations, reputation, results of operations, and financial condition, including elongated sales cycles and increased contraction[275](index=275&type=chunk)[276](index=276&type=chunk) - The company has a **history of losses** and may not achieve or sustain profitability in the future, despite revenue growth, due to significant investments in growth and increased public company expenses[281](index=281&type=chunk) - **Intense competition** in the security and IT operations market, characterized by rapid technological changes and evolving threats, could lead to loss of market share and reduced financial results[292](index=292&type=chunk)[293](index=293&type=chunk) - Reliance on **third-party data centers (e.g., AWS)** and colocation facilities means any disruption could negatively affect the performance and reliability of the Falcon platform[303](index=303&type=chunk) - International operations expose the company to risks such as greater difficulty in contract negotiation, **compliance with foreign laws**, and foreign currency fluctuations[321](index=321&type=chunk)[322](index=322&type=chunk) [Risks Related to Intellectual Property, Legal, and Regulatory Matters](index=77&type=section&id=Risks%20Related%20to%20Intellectual%20Property%2C%20Legal%2C%20and%20Regulatory%20Matters) The company faces risks related to protecting intellectual property, infringement claims, and compliance with evolving data privacy laws - Inability to protect and enforce **intellectual property rights** (patents, copyrights, trademarks, trade secrets) could harm business and competitive position[337](index=337&type=chunk)[338](index=338&type=chunk) - **Claims of infringement** by third parties could result in substantial costs, diversion of management attention, and requirements to pay damages or obtain licenses[339](index=339&type=chunk)[342](index=342&type=chunk) - Compliance with stringent and evolving **data privacy and security laws** (e.g., GDPR, CCPA) in multiple jurisdictions increases operating costs and risks of non-compliance, fines, and litigation[345](index=345&type=chunk)[350](index=350&type=chunk)[354](index=354&type=chunk) - Incorporation of **AI technologies**, including generative AI, exposes the company to risks of governmental/regulatory scrutiny, litigation, ethical concerns, and potential for flawed or biased output[367](index=367&type=chunk)[368](index=368&type=chunk) - Use of **open source software** could restrict the ability to sell products, create security vulnerabilities, or require public release of proprietary source code[364](index=364&type=chunk)[365](index=365&type=chunk) [Risks Related to Ownership of Our Common Stock](index=90&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Common stock ownership risks include price volatility, potential dilution from future share sales, and a no-dividend policy - The market price of common stock may be **volatile** due to factors unrelated to operating performance, including changes in financial estimates, competitive developments, and litigation (e.g., July 19 Incident-related securities litigation)[379](index=379&type=chunk)[380](index=380&type=chunk) - The **Share Repurchase Program**, authorized for up to $1.0 billion, may not result in benefits to stockholder value and could reduce cash available for other corporate purposes[381](index=381&type=chunk)[382](index=382&type=chunk) - **Sales of substantial amounts of common stock** by insiders or future issuances could dilute existing stockholders' ownership and depress the stock price[384](index=384&type=chunk)[385](index=385&type=chunk) - The company **does not intend to pay dividends** in the foreseeable future, meaning investor returns depend solely on stock price appreciation[387](index=387&type=chunk) [Risks Related to our Indebtedness](index=94&type=section&id=Risks%20Related%20to%20our%20Indebtedness) The company's outstanding debt exposes it to financial risks, including limits on financing, cash flow diversion, and restrictive covenants - Outstanding indebtedness of **$750.0 million (Senior Notes)** and available $750.0 million revolving facility could limit future financing and divert cash flow[393](index=393&type=chunk)[395](index=395&type=chunk) - Inability to generate sufficient cash to service debt could lead to **liquidity problems**, forced asset sales, or restructuring, potentially resulting in default and acceleration of all indebtedness[397](index=397&type=chunk)[398](index=398&type=chunk)[400](index=400&type=chunk) - **Restrictive covenants** in the revolving facility and Senior Notes indenture limit operational flexibility, including incurring additional debt, disposing of assets, and making investments[401](index=401&type=chunk)[403](index=403&type=chunk) [General Risk Factors](index=98&type=section&id=General%20Risk%20Factors) General risks include maintaining internal controls, integrating acquisitions, complex tax laws, and potential catastrophic events - Failure to maintain **effective internal controls** could impair timely and accurate financial statements, lead to restatements, or cause a decline in stock price[410](index=410&type=chunk)[413](index=413&type=chunk) - **Future acquisitions** may be difficult to identify and integrate, divert management attention, disrupt business, and dilute stockholder value[414](index=414&type=chunk)[415](index=415&type=chunk) - Subject to **complex international tax laws** and potential for additional taxes due to transfer pricing disagreements, changes in tax rates, or new legislation like Pillar Two[416](index=416&type=chunk)[421](index=421&type=chunk) - Risks associated with **equity investments** in private companies include partial or complete loss of capital and volatility in financial results due to valuation changes[428](index=428&type=chunk)[429](index=429&type=chunk) - **Catastrophic events** (natural disasters, power disruptions, cyberattacks) could disrupt operations, harm reputation, and lead to significant losses[432](index=432&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=105&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A $1.0 billion share repurchase program was authorized, but no repurchases were made under it during the period - No unregistered sales of equity securities during the period[433](index=433&type=chunk) Issuer Purchases of Equity Securities (Three Months Ended July 31, 2025) | Period | Total number of shares purchased | Average price paid per share | | :--- | :--- | :--- | | June 1, 2025 to June 30, 2025 | 23 | $461.999 | - A **Share Repurchase Program of up to $1.0 billion** was authorized on June 3, 2025; no repurchases were made under this program during the three months ended July 31, 2025[434](index=434&type=chunk) [Item 3. Defaults Upon Senior Securities](index=105&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reported period - Not applicable[435](index=435&type=chunk) [Item 4. Mine Safety Disclosures](index=105&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reported period - Not applicable[436](index=436&type=chunk) [Item 5. Other Information](index=105&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption of Rule 10b5-1 trading arrangements by certain directors and officers Rule 10b5-1 Trading Arrangements Adopted (Three Months Ended July 31, 2025) | Name and Title | Action | Date | Rule 10b5-1 | Shares to be Sold | Expiration | | :--- | :--- | :--- | :--- | :--- | :--- | | Michael Sentonas, President | Adoption | June 24, 2025 | X | Up to 45,000 | Earlier of when all shares under the plan are sold and June 24, 2026 | | Sameer K Gandhi, Director | Adoption | June 27, 2025 | X | Up to 80,000 | Earlier of when all shares under the plan are sold and September 30, 2026 | [Item 6. Exhibits](index=105&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including organizational documents and certifications - The report includes various exhibits such as the Amended and Restated Certificate of Incorporation, Bylaws, Outside Director Compensation Policy, and certifications from executive officers[442](index=442&type=chunk) - XBRL Instance Document, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, and Presentation Linkbase Documents are filed[442](index=442&type=chunk) [Signatures](index=107&type=section&id=Signatures) This section contains the signatures of the registrant's authorized officers certifying the report filing - The report is signed by Burt W Podbere, Chief Financial Officer, and Anurag Saha, Chief Accounting Officer, on August 27, 2025[446](index=446&type=chunk)

Group 1 - The core viewpoint of the article highlights CrowdStrike's strong financial performance in the second quarter, with total revenue of $1.17 billion, representing a 21% year-over-year growth, exceeding analyst expectations of $1.15 billion [1] - The company achieved a record Annual Recurring Revenue (ARR) of $221.1 million for the quarter, bringing total ARR to $4.66 billion [1] - GAAP operating loss was $113 million, compared to an operating profit in the same period last year; however, non-GAAP operating profit reached a record $255 million [1] Group 2 - The GAAP net loss was $77.7 million, while non-GAAP net profit reached a record $237.4 million, translating to earnings per share of $0.93, which was above expectations [1] - For the third quarter, revenue guidance is set between $1.208 billion and $1.218 billion, which is below market expectations of $1.23 billion [1] - The full-year revenue forecast has been raised to between $4.75 billion and $4.806 billion [1]

Core Points - Nvidia's earnings report is highly anticipated and is seen as a bellwether for the broader market, potentially influencing stock trends for the year [3] - Nvidia's stock has a significant weight in the S&P 500, accounting for approximately 8% [4] - Nvidia reported strong Q2 earnings with revenue of $46.7 billion, exceeding market expectations, but its data center revenue was slightly below expectations [7] Company Performance - Nvidia's Q2 revenue was $46.7 billion, up from $30.04 billion year-over-year, and above the market expectation of $46.058 billion [7] - The company's Q2 net profit was $26.422 billion, compared to $16.599 billion in the same quarter last year, and above the expected $23.465 billion [7] - Nvidia announced an additional $60 billion stock buyback plan [5][7] Market Reaction - Following the earnings report, Nvidia's stock initially dropped over 5% in after-hours trading but later narrowed the decline to under 2% [5] - Despite the drop, Nvidia has exceeded earnings expectations in 12 out of the last 13 quarters, although it has seen stock price declines after earnings releases in 5 instances [5] Other Company Updates - CrowdStrike reported Q2 revenue of $1.17 billion, surpassing expectations of $1.15 billion [8] - Snowflake anticipates Q3 product revenue of approximately $1.13 billion, slightly above analyst expectations [9] - GlobalFoundries reported good progress in obtaining subsidies under the CHIPS Act without the need to relinquish equity [10]

Financial Data and Key Metrics Changes - Record Q2 net new ARR of $221 million, exceeding expectations and showcasing accelerating net new ARR growth [7] - Ending ARR reached $4.66 billion, growing more than 20% year over year [7][35] - Total revenue grew 21% year over year, reaching $1.17 billion, exceeding the high end of guidance [8][35] - Record Q2 free cash flow of $284 million, representing 24% of revenue [7][35] - Non-GAAP operating income was a record $255 million, or 22% of revenue [7][35] Business Line Data and Key Metrics Changes - Cloud, next-gen identity, and next-gen SIEM platform solutions exceeded $1.56 billion in ending ARR, growing more than 40% year over year [8] - Next-gen SIEM had year-over-year growth of more than 95%, with ending ARR over $430 million [14][15] - Next-gen identity protection business exceeded $435 million in ending ARR, growing more than 21% year over year [22] - Professional services revenue reached a record $66 million [35] Market Data and Key Metrics Changes - Total cloud ending ARR exceeded $700 million, growing more than 35% year over year [25] - Geographic revenue mix consisted of approximately 67% from the U.S. and 33% from international markets, with both U.S. and EMEA year-over-year growth accelerating compared to Q1 [36] Company Strategy and Development Direction - Focus on AI-driven market demand and customer-driven consolidation, leveraging the Falcon Flex licensing model to drive sustained growth [34] - Intent to acquire ONEM, a leading data pipeline platform, to enhance next-gen SIEM capabilities [16][19] - Emphasis on securing AI at every layer, from model creation to endpoint access, positioning CrowdStrike as a leader in AI security [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued net new ARR acceleration for the back half of FY 2026, with guidance assuming at least 40% year-over-year net new ARR growth [34][40] - The company highlighted the importance of consolidating security operations onto the Falcon platform as customers modernize their security stacks for the AI era [35] - Management noted that the threat landscape is evolving rapidly, with AI driving both opportunities and challenges in cybersecurity [32] Other Important Information - The company achieved a milestone of 800 customers with ending ARR exceeding $1 million [35] - The Falcon Flex model has seen over 1,000 customers, with more than 220 new Flex customers added in Q2 [27] - The company plans to hold its largest customer event, Falcon 2025, with over 100 sponsors and 8,000 attendees [43] Q&A Session Summary Question: Revenue guidance for Q3 and the full year - Management confirmed that the partner rebate program remains in effect and is factored into revenue guidance, with expectations for continued high retention rates and accelerating net new ARR [46][48] Question: Targeting in the identity market - Management discussed their early recognition of identity as a key security element and the success of their next-gen identity solutions, including Falcon Shield and PAM [52][54] Question: Customer care packages and net retention - Management expressed confidence in high renewal rates for modules and the positive impact of Falcon Flex on customer retention and growth [60][62] Question: ONEM acquisition and competition - Management highlighted the disruptive potential of ONEM in real-time data analysis and its complementary role to existing next-gen SIEM solutions [66][68] Question: Competitive environment in cloud security - Management noted that the market is still in early stages, with significant interest in cloud workload protection and the company's leading technology in that area [80][81]

Financial Data and Key Metrics Changes - Record Q2 net new ARR of $221 million, exceeding expectations and showcasing accelerating growth [5][34] - Ending ARR reached $4.66 billion, growing more than 20% year over year [5][34] - Total revenue grew 21% year over year, reaching $1.17 billion, exceeding guidance [6][36] - Record Q2 free cash flow of $284 million, representing 24% of revenue [5][34] - Non-GAAP operating income was a record $255 million, or 22% of revenue [5][38] Business Line Data and Key Metrics Changes - Cloud, next-gen identity, and next-gen SIEM platform solutions exceeded $1.56 billion in ending ARR, growing more than 40% year over year [6][34] - Next-gen SIEM had year-over-year growth of over 95%, with ending ARR exceeding $430 million [13][34] - Next-gen identity protection business exceeded $435 million in ending ARR, growing more than 21% year over year [21][34] Market Data and Key Metrics Changes - Total cloud ending ARR exceeded $700 million, growing more than 35% year over year [23][34] - Geographic revenue mix consisted of approximately 67% from the U.S. and 33% from international markets, with both U.S. and EMEA year-over-year growth accelerating compared to Q1 [36] Company Strategy and Development Direction - Focus on AI-driven market demand and customer-driven consolidation, leveraging the Falcon Flex licensing model for sustained growth [32][34] - Intent to acquire ONEM, a leading data pipeline platform, to enhance next-gen SIEM capabilities [14][19] - Emphasis on securing AI at every layer, from model creation to endpoint access, positioning CrowdStrike as a leader in AI security [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued net new ARR acceleration for the back half of FY 2026, expecting at least 40% year-over-year growth [32][34] - The company highlighted the importance of addressing customer concerns regarding AI security and the evolving threat landscape [9][10] - Management noted that the competitive landscape is shifting, with increased demand for integrated security solutions [80] Other Important Information - The company achieved a milestone of 800 customers with ending ARR exceeding $1 million [34] - The Falcon Flex model has seen over 1,000 customers, with more than 75% utilization across the customer base [25][34] - The company expects to exceed $5 billion in ending ARR by fiscal year-end, on the path to $10 billion by FY 2031 [36][34] Q&A Session Summary Question: About revenue guidance and partner rebate program - Management confirmed that ARR is the best leading indicator and highlighted the impact of partner rebate programs on sustaining high retention rates and accelerating net new ARR [45][47] Question: Insights on identity market targeting - Management emphasized early recognition of identity as a key security element and the success of their next-gen identity solutions [51][53] Question: Sustainability of net new ARR growth - Management expressed confidence in the sustainability of growth due to strong platform performance and customer consolidation [90][91] Question: ONEM acquisition and its competitive positioning - Management highlighted ONEM's capabilities in real-time analysis and its potential to disrupt legacy solutions [66][68] Question: Dynamics of EDR market and customer interest - Management reiterated the importance of EDR in the modern SOC and the company's leadership in that space [70][72] Question: Update on cloud security competitive environment - Management noted that the market is still in early stages, with significant interest in cloud workload protection [78][80] Question: Future of core business growth - Management acknowledged deceleration in core business growth but expressed optimism about potential accelerators [114]

Crowd Strike is down I think about 7% uh on earnings. Steve Kovac, what do the numbers look like. >> The numbers look great, John.I'm trying to figure out why we're seeing the stock down nearly 8% on this. They pretty much beat on every metric here. We got EPS beating by 10 cents at 93 cents adjusted.We have revenues beating slightly 1.17% billion. Street wanted to see 1.15% billion. Subscription revenue right in line with estimates.ARR better than estimates. Guidance looks good. So, I'm really not clear wh ...

Financial Results Q2 FY 2026 As of August 27, 2025 ® CrowdStrike, Inc. All rights reserved. Please see the appendix included at the end of this presentation for a discussion of non-GAAP financial measures and a reconciliation of historical non-GAAP measures to historical GAAP measures. Safe Harbor This presentation includes express and implied "forward-looking statements", including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking stateme ...

CrowdStrike projected sales for the current quarter that narrowly missed analysts’ estimates https://t.co/oJqtnKWoWs ...

Financial Performance - Record Q2 net new ARR of $221 million, exceeding expectations[5] - Ending ARR grew 20% year-over-year to $4.66 billion[6] - Total revenue reached $1.17 billion, a 21% increase from $963.9 million in Q2 FY25[6] - Subscription revenue was $1.10 billion, a 20% increase from $918.3 million in Q2 FY25[6] - Record Q2 cash flow from operations of $333 million and free cash flow of $284 million[5] - GAAP net loss attributable to CrowdStrike was $77.7 million, compared to a net income of $47.0 million in Q2 FY25[6] - Non-GAAP net income attributable to CrowdStrike was a record $237.4 million, compared to $221.6 million in Q2 FY25[6] - Guidance for Q3 FY26 total revenue is projected between $1,208.0 million and $1,218.0 million[10] Revenue and Growth Metrics - Total revenue for the three months ended July 31, 2025, was $1,168,952, a 21.3% increase from $963,872 in the same period of 2024[32] - Subscription revenue reached $1,102,945 for the three months ended July 31, 2025, up from $918,257 in 2024, reflecting a growth of 20%[32] - GAAP total revenue for the six months ended July 31, 2025, was $2,272,386 thousand, a 20.6% increase from $1,884,908 thousand in the same period of 2024[40] - GAAP subscription revenue for the three months ended July 31, 2025, reached $1,102,945 thousand, compared to $918,257 thousand in the same period of 2024, marking a 20% increase[40] Expenses and Losses - Operating expenses for the three months ended July 31, 2025, totaled $971,648, a significant increase from $712,813 in the same period of 2024[32] - Research and development expenses for the six months ended July 31, 2025, were $680,797, up from $486,157 in 2024, representing a 40% increase[32] - The company reported a total cost of revenue of $310,283 for the three months ended July 31, 2025, compared to $237,401 in 2024, marking a 30.6% increase[32] - Basic net income (loss) per share attributable to CrowdStrike common stockholders for the three months ended July 31, 2025, was $(0.31), down from $0.19 in 2024[32] - Total stock-based compensation expense for the six months ended July 31, 2025, was $555,759, compared to $412,819 in 2024, reflecting a 34.6% increase[33] - Costs associated with the July 19 Incident for the three months ended July 31, 2025, amounted to $35,656, compared to $5,132 in 2024[34] Cash Flow and Assets - Net cash provided by operating activities for the six months ended July 31, 2025, was $716,939 thousand, slightly up from $709,869 thousand in 2024[38] - Cash and cash equivalents at the end of the period were $4,973,912 thousand, an increase from $4,040,416 thousand at the end of July 31, 2024[38] - Total assets increased to $9,288,859 thousand as of July 31, 2025, up from $8,701,578 thousand on January 31, 2025, representing a growth of 6.7%[36] - Total liabilities increased to $5,494,168 thousand as of July 31, 2025, from $5,382,661 thousand on January 31, 2025, indicating a rise of 2.1%[36] - Total stockholders' equity rose to $3,794,691 thousand as of July 31, 2025, from $3,318,917 thousand on January 31, 2025, reflecting a growth of 14.3%[36] Operational Efficiency - GAAP operating margin for Q2 2025 was -10%, compared to 1% in Q2 2024, indicating a decline in profitability[42] - Non-GAAP operating margin for Q2 2025 was 22%, down from 25% in Q2 2024, indicating a decrease in operational efficiency[42] - GAAP general and administrative operating expenses for Q2 2025 were $178.0 million, up from $106.4 million in Q2 2024, a 67% increase[42] - GAAP research and development operating expenses for Q2 2025 were $346.7 million, up from $250.9 million in Q2 2024, representing a 38% increase[42] Tax and Accounting Changes - The company adopted a long-term projected non-GAAP tax rate of 21.0% effective Q2 2026, down from 22.5%[43] - Effective February 1, 2025, CrowdStrike will present employer payroll taxes related to employee stock-based awards as part of stock-based compensation expense in the GAAP to Non-GAAP reconciliation[51] - Non-GAAP subscription gross profit and gross margin exclude stock-based compensation expense, related employer payroll taxes, amortization of acquired intangible assets, and strategic plan-related charges[52] - Non-GAAP income from operations excludes stock-based compensation expense, related employer payroll taxes, and various other charges, providing a clearer view of operational performance[53] - Non-GAAP net income attributable to CrowdStrike excludes stock-based compensation, amortization of intangible assets, and other specific charges, adjusted for the long-term non-GAAP effective tax rate[54] Customer Metrics - Annual Recurring Revenue (ARR) is calculated based on the annualized value of customer subscription contracts, assuming renewals on existing terms[57] - Dollar-based net retention rate measures ARR from a set of subscription customers against the same metric from the prior year, reflecting renewals, expansions, and churn[58] - Dollar-based gross retention rate indicates the percentage of ARR retained from subscription customers over the past year, excluding losses from churn[59] Strategic Developments - CrowdStrike announced the acquisition of Onum Technology Inc. for real-time telemetry pipeline management[6] - Module adoption rates were 48%, 33%, and 23% for six or more, seven or more, and eight or more modules, respectively[6]