CrowdStrike (CRWD) Q2 2026 Earnings Call August 27, 2025 05:00 PM ET Company ParticipantsMaria Riley - VP - IRGeorge Kurtz - Founder & CEOBurt Podbere - CFOSaket Kalia - Managing DirectorBrian Essex - Executive DirectorGabriela Borges - MD - Software ResearchJoseph Gallo - SVPJeffrey Hopson - Equity Research AssociateJonathan Ruykhaver - Managing DirectorShaul Eyal - Managing Director - Equity ResearchIttai Kidron - Managing DirectorRoger Boyd - Executive DirectorAdam Borg - MD - Enterprise SoftwareAdam Tin ...

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]