CrowdStrike(CRWD) - 2026 Q2 - Quarterly Results

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]