Cybersecurity firm SentinelOne on Thursday forecast fourth-quarter revenue below analysts' expectations and said Chief Financial Officer Barbara Larson will step down. ...

Revenue Growth - Revenue for the three months ended October 31, 2025, was $258.9 million, representing a year-over-year growth of 23% compared to $210.6 million for the same period in 2024[116] - Annualized recurring revenue (ARR) grew 23% year-over-year to $1.1 billion as of October 31, 2025, primarily driven by new customer additions and existing customer adoption of adjacent platform solutions[127] - Revenue for the nine months ended October 31, 2025, increased by $134.2 million to $730.1 million, a 23% increase, attributed to new customer sales and additional licenses[161] Customer Metrics - The number of customers with ARR of $100,000 or more increased by 20% year-over-year to 1,572 as of October 31, 2025, up from 1,310 in 2024[129] - The dollar-based net retention rate remained in expansionary territory as of October 31, 2025, driven by existing customers adopting additional endpoint licenses and adjacent platform solutions[130] Profitability and Loss - Non-GAAP operating income for the three months ended October 31, 2025, was $17.7 million, compared to a loss of $10.7 million for the same period in 2024[124] - The company reported a net loss of $60.3 million for the three months ended October 31, 2025, an improvement from a net loss of $78.4 million for the same period in 2024[116] - The net loss for the three months ended October 31, 2025, was $60.3 million, compared to a net loss of $78.4 million in 2024[149] - The company reported a net loss of $340.5 million for the nine months ended October 31, 2025, which was an increase from a net loss of $217.7 million in the same period of 2024[179][180] Expenses - Cost of revenue increased by 27% to $67.9 million for the three months ended October 31, 2025, compared to $53.3 million in 2024[152] - Gross profit for the three months ended October 31, 2025, was $191.1 million, a 21% increase from $157.4 million in the prior year, resulting in a gross margin of 74%[152][153] - Research and development expenses for the three months ended October 31, 2025, were $83.1 million, up from $70.5 million in 2024[149] - Sales and marketing expenses increased to $126.6 million for the three months ended October 31, 2025, compared to $123.7 million in the same period of 2024[149] - Total operating expenses for the three months ended October 31, 2025, were $264.4 million, an increase from $246.5 million in the prior year[149] - Research and development expenses increased by $12.7 million to $83.1 million, an 18% increase, primarily due to higher personnel-related expenses and cloud hosting costs[154] - Sales and marketing expenses rose by $2.8 million to $126.6 million, a 2% increase, driven by higher personnel-related expenses, partially offset by a decrease in marketing-related expenses[155] - General and administrative expenses decreased by $0.8 million to $51.5 million, a 2% decrease, mainly due to lower litigation expenses[156] - Restructuring charges increased by $3.2 million to $3.2 million, a 100% increase, due to severance payments and employee benefits[157] Cash Flow and Financing - Cash provided by operating activities for the nine months ended October 31, 2025, was $72.2 million, compared to $37.1 million for the same period in 2024[179][180] - Cash used in investing activities during the nine months ended October 31, 2025, was $24.8 million, significantly lower than $85.9 million in the same period of 2024[181][182] - Cash used in financing activities for the nine months ended October 31, 2025, was $76.3 million, primarily due to $101.9 million in common stock repurchases[183] - The company had $873.6 million in cash, cash equivalents, and investments as of October 31, 2025, with an additional $14.3 million in restricted cash[194] - The company may need to seek additional equity or debt financing in the future, depending on various factors including revenue growth and macroeconomic conditions[173] Taxation - The provision for income taxes is expected to increase in fiscal 2026 and beyond due to increased foreign earnings and certain minimum taxes[145] - The provision for income taxes increased by $128.4 million to $133.6 million, a 2452% increase, primarily due to foreign taxes and an unrecognized tax benefit accrual[168] - The company experienced a $136.0 million income tax expense adjustment related to uncertain tax positions during the nine months ended October 31, 2025[188] Market Conditions - The company experienced longer sales cycles and deal downsizing from larger enterprise customers due to current macroeconomic conditions[117] - The company’s go-to-market strategy focuses on acquiring new customers and expanding usage among existing customers through a network of channel partners[114] - The company may enter into arrangements to acquire or invest in complementary businesses, products, and technologies in the future[173] Future Expectations - The company expects research and development expenses to increase in absolute dollars as investments in existing products and services grow[137] - The company anticipates sales and marketing expenses to rise in absolute dollars while decreasing as a percentage of revenue over time[139] - Operating cash flow is influenced by seasonal billing patterns, with the fiscal first quarter being the strongest for collections[177] - A hypothetical 100 basis point change in interest rates would result in a $4.8 million change in the fair market value of the investment portfolio as of October 31, 2025[194]

Revenue Growth - Total revenue increased 23% year-over-year to $258.9 million, compared to $210.6 million[4] - Annualized recurring revenue (ARR) rose 23% year-over-year to $1,055.3 million as of October 31, 2025[4] - Customers with ARR of $100,000 or more grew 20% to 1,572 as of October 31, 2025[4] - Total revenue for the three months ended October 31, 2025, was $258.9 million, a 22.9% increase from $210.6 million in the same period of 2024[38] Profitability Metrics - GAAP gross margin was 74%, down from 75%, while non-GAAP gross margin was 79%, down from 80%[4] - GAAP operating margin improved to (28)%, compared to (42)%, and non-GAAP operating margin was 7%, compared to (5)%[4] - GAAP net loss margin was (23)%, improved from (37)%, while non-GAAP net income margin was 10%, compared to 0%[4] - Non-GAAP gross profit for the three months ended October 31, 2025, was $203,287,000, up from $167,589,000 in 2024, representing a 21.3% increase[41] - Non-GAAP operating income for the three months ended October 31, 2025, was $17,669,000, compared to a loss of $10,681,000 in the same period of 2024[42] - GAAP net loss for the three months ended October 31, 2025, was $60,291,000, compared to a loss of $78,364,000 in 2024, indicating a 23.1% improvement[42] - Non-GAAP net income for the three months ended October 31, 2025, was $24,791,000, compared to $75,000 in the same period of 2024[42] Cash Flow and Liquidity - Operating cash flow margin was 8%, compared to (3)%, and free cash flow margin was 6%, compared to (6)%[4] - Cash and cash equivalents at the end of the reporting period were $150.2 million, down from $186.6 million at the beginning of the period[36] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $72.2 million, compared to $37.1 million for the same period in 2024[40] - GAAP net cash provided by operating activities for the three months ended October 31, 2025, was $21,014,000, compared to a loss of $7,174,000 in the same period of 2024[46] - Free cash flow for the three months ended October 31, 2025, was $15,904,000, while it was a negative $12,652,000 in the same period of 2024[46] Guidance and Future Outlook - Guidance for Q4 FY2026 revenue is $271 million, and for full FY2026 is $1,001 million[8] - Non-GAAP gross margin guidance for Q4 FY2026 is 77.5% and for full FY2026 is 78.5%[8] - Non-GAAP operating margin guidance for Q4 FY2026 is 5% and for full FY2026 is 3%[8] Balance Sheet Highlights - Total assets increased to $2.43 billion as of October 31, 2025, compared to $2.41 billion as of January 31, 2025[36] - Total liabilities rose to $882.0 million as of October 31, 2025, compared to $737.4 million as of January 31, 2025[36] Cost Structure - The company reported stock-based compensation expense of $75.3 million for the three months ended October 31, 2025, compared to $70.2 million in the same period of 2024[38] - GAAP gross profit for the three months ended October 31, 2025, was $191,062,000, compared to $157,388,000 in 2024, reflecting a 21.4% increase[41] - Total GAAP cost of revenue for the three months ended October 31, 2025, was $67,851,000, compared to $53,260,000 in 2024, marking a 27.4% increase[41] Key Operating Metrics - Annualized Recurring Revenue (ARR) is a key operating metric, reflecting the annualized revenue run rate from subscription and usage-based agreements, indicating the company's ability to acquire and retain customers[32] - The number of customers with ARR of $100,000 or more is a significant indicator of market penetration and strategic demand for the platform[33]

Core Insights - SentinelOne (S) is expected to report third-quarter fiscal 2026 results on December 4, 2025, with projected revenues of approximately $256 million, indicating a 22% year-over-year growth [1][10] - The Zacks Consensus Estimate for revenues stands at $255.99 million, reflecting a growth of 21.52% compared to the same quarter last year [1] Revenue and Earnings Expectations - The consensus estimate for earnings remains at 5 cents per share, with the company having reported break-even earnings in the same quarter last year [2] - SentinelOne has had mixed earnings results in previous quarters, with an average earnings surprise of 58.33% [2] Factors Influencing Q3 Results - Annualized recurring revenues (ARR) increased by 24% year-over-year to $1 billion in Q2 of fiscal 2026, with customers generating $100,000 or more in ARR rising by 23% to 1,513 as of July 31, 2025 [3] - Continued adoption of AI-driven solutions, such as Purple AI and the Singularity platform, is expected to drive higher ARR per customer and larger deal sizes [4] - The expansion of the partner base, including collaborations with Amazon, CyberArk, Mimecast, and Lenovo, is likely to contribute to growth in the fiscal third quarter [5] Product and Service Enhancements - The availability of Singularity Cloud Security and Singularity AI SIEM on Amazon Web Services (AWS) Marketplace is facilitating faster deployment of AI-powered security solutions [6] - The launch of SentinelOne Flex is aimed at assisting clients in adopting the Singularity platform, thereby expanding the company's client base [7] - The acquisition of Prompt Security is expected to enhance SentinelOne's offerings in securing generative AI and preventing data leakage [7] Earnings Model Insights - According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) typically increases the likelihood of an earnings beat; however, SentinelOne currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 [8]

MOUNTAIN VIEW, Calif. & LAS VEGAS--(BUSINESS WIRE)--AWS re:Invent 2025—SentinelOne® (NYSE: S), today announced a series of new innovations and integrations with Amazon Web Services (AWS) to accelerate AI initiatives and fuel AI-powered security outcomes through the intelligent use of data. Unveiled at AWS re:Invent 2025, these announcements include a series of new advance integrations between SentinelOne's AI-native Singularity cybersecurity platform and AWS Security Hub and with Amazon CloudWa. ...

Market Overview - The market is currently 0.6% away from all-time highs as December begins, with investor sentiment remaining in Extreme Fear according to the Blossom Fear and Greed Index, indicating a divergence between price strength and investor psychology [2][4]. Software Earnings - The software earnings season is underway, with major companies like CrowdStrike, SentinelOne, MongoDB, Snowflake, and UiPath set to report this week [5]. - Estimates suggest mid-to-high double-digit revenue growth for CrowdStrike and SentinelOne, while Snowflake is expected to show decelerating but still strong cloud data growth. MongoDB is anticipated to maintain momentum driven by its Atlas platform [6]. Cryptocurrency Market - The cryptocurrency market is showing signs of recovery, with Bitcoin bouncing back from lows around 80k and Ethereum holding near 2600. However, the overall trend remains fragile [7]. - A significant rally in the market would be incomplete without a strong performance from cryptocurrencies, which would need to reclaim major moving averages for Bitcoin and break its downtrend for Ethereum to confirm a bullish setup [10].

Core Viewpoint - Pala Assets Holdings Limited is calling for the replacement of CEO Leon Binedell and former Lead Independent Director Shelley Brown due to persistent underperformance and destruction of shareholder value at Sherritt International Corporation [1][4][6] Governance and Leadership Concerns - Pala emphasizes the need for substantial changes in governance and management, arguing that mere cosmetic changes will not address the core issues affecting Sherritt's performance [2][4][6] - The Board's recent actions, including appointing a new Chair without removing Binedell, are seen as inadequate and merely an attempt to maintain the status quo [2][6][14] Operational Performance Issues - Sherritt has faced significant operational challenges, including record-low nickel and cobalt production and deteriorating liquidity, which have not been adequately addressed by the current management [9][22] - The company's production guidance for 2025 has been cut twice, with expectations of producing 20% less than originally planned [22] Shareholder Sentiment - There is substantial support among shareholders for a new CEO and a credible operational turnaround plan, with many expressing frustration over management's performance [10][11] - Pala has engaged with other significant shareholders, representing over 30% of Sherritt's outstanding shares, who share concerns about the company's direction [10][11] Financial Performance - Since Binedell's appointment as CEO on June 1, 2021, Sherritt's share price has declined by approximately 75%, while peer companies have seen an average increase of 136% [16][17] - Total executive compensation rose by 15% from 2023 to 2024, including a 24% increase in Binedell's compensation to C$2.9 million, despite the company's ongoing underperformance [24] Proposed Changes - Pala has requisitioned a special meeting of shareholders to nominate James Scarlett and Brett Richards for the Board, advocating for a leadership change to drive operational improvements [1][26] - The proposed new leadership is expected to bring operational mining expertise and a focus on shareholder interests [3][26] Call to Action - Pala urges the remaining Board members to act as independent fiduciaries and work towards an orderly transition that includes Binedell's resignation and the appointment of a qualified turnaround CEO [28]

Core Viewpoint - Cantor Fitzgerald has lowered its price target on SentinelOne Inc. to $22 from $24 while maintaining an Overweight rating ahead of the company's fiscal third-quarter results [1] Group 1: Company Performance - The firm is encouraged by strong large-deal momentum and the rollout of the Flex offering [2] - The expansion of the CNAPP platform, supported by the Prompt acquisition, is noted as a positive development [2] - Continued product traction is highlighted as a key factor in the company's performance [2] Group 2: Market Observations - Analysts are monitoring for signs of improved go-to-market execution [2] - Incremental contributions from the Lenovo partnership are being watched closely [2] - Potential headwinds within the broader endpoint security market are acknowledged [2]

Core Viewpoint - Sherritt International Corporation has appointed Brian Imrie as an independent director and Chair of the Board, effective immediately, bringing significant experience in leadership, capital markets, and the mining sector [1] Company Summary - Brian Imrie's appointment is expected to enhance the governance and strategic direction of Sherritt International Corporation [1] - Imrie currently serves as Executive Chair at PPX Mining Corp, indicating his active involvement in the mining industry [1]

Group 1: DraftKings and Flutter Entertainment - Wells Fargo initiated coverage of DraftKings (DKNG) with an Equal Weight rating and a price target of $31, expressing a bullish outlook on domestic online sports betting growth but indicating a wait for a better entry point due to near-term pressures and competition [1] - Flutter Entertainment (FLUT) was also initiated with an Overweight rating by Wells Fargo [1] Group 2: Carnival and Cruise Line Industry - Carnival (CCL) received an Overweight rating and a price target of $37 from Wells Fargo, which views the cruise sector as the most compelling within its gaming, leisure, and lodging coverage [1] - Norwegian Cruise Line (NCLH) and Royal Caribbean (RCL) were similarly initiated with Overweight ratings by Wells Fargo [1] Group 3: Cybersecurity Companies - Berenberg initiated coverage of Okta (OKTA) with a Buy rating and a price target of $145, considering both Okta and SentinelOne (S) as misunderstood stories with potential for re-rating [1] - CrowdStrike (CRWD) was initiated with a Hold rating and a price target of $600, with Berenberg noting that the market has already priced in its position at the top of the revenue duration curve [1] - Berenberg also started coverage of Rapid7 (RPD) and Qualys (QLYS) with Hold ratings [1] Group 4: Optical Communications - Mizuho initiated coverage of Lumentum (LITE) with an Outperform rating and a price target of $290, highlighting its role as a leading supplier in optical communications and lasers, benefiting from surging demand in artificial intelligence [1]