CrowdStrike Reports Fourth Quarter and Fiscal Year 2025 Financial Results
- Ending ARR grows 23% year-over-year to reach
$4.24 billion , adding$224 million in net new ARR in Q4 - Achieves full year subscription revenue of
$3.76 billion , growing 31% year-over-year - Delivers record full year operating cash flow of
$1.38 billion and record full year free cash flow of$1.07 billion
“Delivering
Commenting on the company's financial results,
Fourth Quarter Fiscal 2025 Financial Highlights
- Revenue: Total revenue was
$1.06 billion , a 25% increase, compared to$845.3 million in the fourth quarter of fiscal 2024. Subscription revenue was$1.01 billion , a 27% increase, compared to$795.9 million in the fourth quarter of fiscal 2024. - Annual Recurring Revenue (ARR) grew 23% year-over-year to
$4.24 billion as ofJanuary 31, 2025 , of which$224.3 million was net new ARR added in the quarter. - Subscription Gross Margin: GAAP subscription gross margin was 77%, compared to 78% for the fourth quarter of fiscal 2024. Non-GAAP subscription gross margin was 80% for both the fourth quarter of fiscal 2025 and 2024.
- Income/Loss from Operations: GAAP loss from operations was
$85.3 million , compared to income of$29.7 million in the fourth quarter of fiscal 2024. Non-GAAP income from operations was$217.3 million , compared to$213.1 million in the fourth quarter of fiscal 2024. - Net Income/Loss Attributable to
CrowdStrike : GAAP net loss attributable toCrowdStrike was$92.3 million , compared to net income of$53.7 million in the fourth quarter of fiscal 2024. GAAP net loss per share attributable toCrowdStrike , diluted was$0.37 , compared to income of$0.22 in the fourth quarter of fiscal 2024. Non-GAAP net income attributable toCrowdStrike was$260.9 million , compared to$236.2 million in the fourth quarter of fiscal 2024. Non-GAAP net income attributable toCrowdStrike per share, diluted, was$1.03 , compared to$0.95 in the fourth quarter of fiscal 2024. - Cash Flow: Net cash generated from operations was
$345.7 million , compared to$347.0 million in the fourth quarter of fiscal 2024. Free cash flow was$239.8 million , compared to$283.0 million in the fourth quarter of fiscal 2024. - Cash and Cash Equivalents was
$4.32 billion as ofJanuary 31, 2025 .
Full Year Fiscal 2025 Financial Highlights
- Revenue: Total revenue was
$3.95 billion , a 29% increase, compared to$3.06 billion in fiscal 2024. Subscription revenue was$3.76 billion , a 31% increase, compared to$2.87 billion in fiscal 2024. - Subscription Gross Margin: GAAP subscription gross margin was 78% for both fiscal 2025 and 2024. Non-GAAP subscription gross margin was 80% for both fiscal 2025 and 2024.
- Income/Loss from Operations: GAAP loss from operations was
$120.4 million , compared to$2.0 million in fiscal 2024. Non-GAAP income from operations was$837.7 million , compared to$660.3 million in fiscal 2024. - Net Income/Loss Attributable to
CrowdStrike : GAAP net loss attributable toCrowdStrike was$19.3 million , compared to income of$89.3 million in fiscal 2024. GAAP net loss per share attributable toCrowdStrike , diluted, was$0.08 , compared to income of$0.37 in fiscal 2024. Non-GAAP net income attributable toCrowdStrike was$987.6 million , compared to$751.8 million in fiscal 2024. Non-GAAP net income attributable toCrowdStrike per share, diluted, was$3.93 , compared to$3.09 in fiscal 2024. - Cash Flow: Net cash generated from operations was
$1.38 billion , compared to$1.17 billion in fiscal 2024. Free cash flow was$1.07 billion , compared to$938.2 million in fiscal 2024.
Recent Highlights
- CrowdStrike’s module adoption rates grew to 67%, 48%, 32%, and 21% for five or more, six or more, seven or more and eight or more modules, respectively, as of
January 31, 2025 1. - Announced the general availability of Charlotte AI Detection Triage, a major breakthrough in agentic AI-driven security operations.
Launched CrowdStrike Insider Risk Services , a comprehensive set of offerings designed to help organizations detect and prevent insider threats from negligent employees, malicious insiders and sophisticated adversaries.- Expanded leadership in hybrid identity protection with Falcon Identity Protection for Microsoft Entra ID.
- Recognized as a Customers’ Choice in the 2024 Gartner Peer Insights™ ‘Voice of the Customer for Managed Detection and Response' report2.
- Achieved 100% detection, 100% protection and 100% accuracy in the 2024 SE Labs Enterprise Advanced Security (EDR) Ransomware Test3.
- Announced the findings of a Total Economic Impact™ (TEI) study4 conducted by
Forrester Consulting , in which it was found using Falcon Identity Protection achieved a 310% return on investment, with a payback period of under six months and$1.26 million in total benefits over three years. - Named a Leader in The Forrester Wave™: Managed Detection And Response Services, Q1 20255.
- Announced CrowdStrike’s leadership across multiple
Frost & Sullivan reports, with Adaptive Shield named the Leader in the 2024 Frost Radar™ for SaaS Security Posture Management (SSPM)6, recognized as a Leader in the 2024 Frost Radar™ for Cloud-Native Application Protection Platforms (CNAPP)7 for the third consecutive year, and awarded Frost & Sullivan’s Best Practice Company of the Year award in the MDR market. - Named a Leader in the 2024 GigaOm Radar Report for Container Security8 and named a Leader and Outperformer in the 2024 GigaOm Radar Report for Ransomware Prevention9.
- Named an Overall Leader in KuppingerCole's 2024 Leadership Compass for MDR10.
- Achieved Federal Risk and Authorization Management Program (FedRAMP) authorization for Falcon Next-Gen SIEM, Falcon for IT, Falcon Data Protection and Falcon Exposure Management.
- Achieved the C5 (Cloud Computing Compliance Criteria Catalogue) certification, established by the
German Federal Office for Information Security (BSI). - Became the first cloud-native cybersecurity ISV to exceed
$1 billion in annualAWS Marketplace sales, named theAmazon Web Services (AWS) 2024 Global Security Partner of the Year and announced an expanded integration with AWS, helping to secure end-to-end AI innovation in the cloud. - Announced partnership with Oracle Cloud Infrastructure.
Changes in Presentation of Non-GAAP Measures
Effective in presenting periods starting on and after
Also effective in presenting periods starting on and after
Please refer to the "Financial Outlook" section of this press release below for the company's Q1 FY26 and full year FY26 guidance.
Financial Outlook
Guidance for non-GAAP financial measures excludes stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets (including purchased patents), amortization of debt issuance costs and discount, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits,
| Q1 FY26 Guidance |
| Full Year FY26 Guidance |
Total revenue |
| ||
Non-GAAP income from operations |
| ||
Non-GAAP net income attributable to |
| ||
Non-GAAP net income per share attributable to |
| ||
Weighted average shares used in computing non-GAAP net income per share attributable to common stockholders, diluted | 254 million |
| 256 million |
Please refer to the "Changes in Presentation of Non-GAAP Measures" section of this press release above for information regarding changes to the methodologies used to calculate Q1 FY26 and full year FY26 guidance.
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements.
Conference Call Information
Date: | |
Time: | |
Webcast link: | crowdstrike-q4-and-fy25-financial-results-conference-call.open-exchange.net/registration |
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding CrowdStrike’s future growth, and future financial and operating performance, including CrowdStrike’s financial outlook for the fiscal first quarter and fiscal year 2026, and beyond. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with the content configuration update
Additional risks and uncertainties that could affect CrowdStrike’s financial results are included in the filings
Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to
Use of Non-GAAP Financial Information
Channels for Disclosure of Information
Definition of Module Adoption Rates
1. Module adoption rates are calculated by taking the total number of customers with five or more, six or more, seven or more, and eight or more modules, respectively, divided by the total number of subscription customers (excluding Falcon Go customers). Falcon Go customers are defined as customers who have subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less.
Reports Referenced and Disclaimers
2. Gartner®, Voice of the Customer for Managed Detection and Response (MDR),
3. SE Labs Enterprise Advanced Security (EDR) Ransomware Test,
4. The Total Economic Impact™ (TEI) study conducted by
5. The Forrester Wave™: Managed Detection And Response Services, Q1 2025
6. Frost Radar™: SaaS Security Posture Management (SSPM), 2024
7. Frost Radar™ for Cloud-Native Application Protection Platforms (CNAPP), 2024
8. GigaOm Radar for Container Security,
9. GigaOm Radar for Ransomware Prevention,
10. KuppingerCole Leadership Compass for Managed Detection & Response (MDR),
Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and should not be construed as statements of fact, nor do they represent the views of Gartner or its affiliates. Gartner does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or implied, with respect to this content, about its accuracy or completeness, including any warranties of merchantability or fitness for a particular purpose.
The Gartner content described herein (the “Gartner Content”) represents research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner Content speaks as of its original publication date (and not as of the date of this earnings release, and the opinions expressed in the Gartner Content are subject to change without notice.
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the
About
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.
For more information, please visit: ir.crowdstrike.com
© 2025
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended |
| Year Ended | ||||||||||||
|
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
Revenue |
|
|
|
|
|
|
| ||||||||
Subscription | $ | 1,008,316 |
|
| $ | 795,947 |
|
| $ | 3,761,480 |
|
| $ | 2,870,557 | |
Professional services |
| 50,222 |
|
|
| 49,388 |
|
|
| 192,144 |
|
|
| 184,998 |
|
Total revenue |
| 1,058,538 |
|
|
| 845,335 |
|
|
| 3,953,624 |
|
|
| 3,055,555 |
|
Cost of revenue |
|
|
|
|
|
|
| ||||||||
Subscription (1)(2) |
| 229,641 |
|
|
| 175,509 |
|
|
| 835,509 |
|
|
| 630,745 |
|
Professional services (1) |
| 44,349 |
|
|
| 33,063 |
|
|
| 155,972 |
|
|
| 124,978 |
|
Total cost of revenue |
| 273,990 |
|
|
| 208,572 |
|
|
| 991,481 |
|
|
| 755,723 |
|
Gross profit |
| 784,548 |
|
|
| 636,763 |
|
|
| 2,962,143 |
|
|
| 2,299,832 |
|
Operating expenses |
|
|
|
|
|
|
| ||||||||
Sales and marketing (1)(2)(4)(6) |
| 409,504 |
|
|
| 290,357 |
|
|
| 1,523,356 |
|
|
| 1,140,566 |
|
Research and development (1)(2)(3)(4)(6) |
| 315,142 |
|
|
| 213,998 |
|
|
| 1,076,901 |
|
|
| 768,497 |
|
General and administrative (1)(2)(3)(4)(5)(6) |
| 145,203 |
|
|
| 102,737 |
|
|
| 482,316 |
|
|
| 392,764 |
|
Total operating expenses |
| 869,849 |
|
|
| 607,092 |
|
|
| 3,082,573 |
|
|
| 2,301,827 |
|
Income (loss) from operations |
| (85,301 | ) |
|
| 29,671 |
|
|
| (120,430 | ) |
|
| (1,995 | ) |
Interest expense(7) |
| (6,664 | ) |
|
| (6,422 | ) |
|
| (26,311 | ) |
|
| (25,756 | ) |
Interest income |
| 46,597 |
|
|
| 41,685 |
|
|
| 196,174 |
|
|
| 148,930 |
|
Other income (expense),net(8)(9) |
| (1,095 | ) |
|
| 3,616 |
|
|
| 5,101 |
|
|
| 1,638 |
|
Income (loss) before provision for income taxes |
| (46,463 | ) |
|
| 68,550 |
|
|
| 54,534 |
|
|
| 122,817 |
|
Provision for income taxes(10) |
| 46,268 |
|
|
| 13,609 |
|
|
| 71,130 |
|
|
| 32,232 |
|
Net income (loss) |
| (92,731 | ) |
|
| 54,941 |
|
|
| (16,596 | ) |
|
| 90,585 |
|
Net income (loss) attributable to non-controlling interest |
| (449 | ) |
|
| 1,242 |
|
|
| 2,675 |
|
|
| 1,258 |
|
Net income (loss) attributable to | $ | (92,282 | ) |
| $ | 53,699 |
|
| $ | (19,271 | ) |
| $ | 89,327 |
|
Net income (loss) per share attributable to |
|
|
|
|
|
|
| ||||||||
Basic | $ | (0.37 | ) |
| $ | 0.22 |
|
| $ | (0.08 | ) |
| $ | 0.37 |
|
Diluted | $ | (0.37 | ) |
| $ | 0.22 |
|
| $ | (0.08 | ) |
| $ | 0.37 |
|
Weighted-average shares used in computing net income (loss) per share attributable to |
|
|
|
|
|
|
| ||||||||
Basic |
| 246,933 |
|
|
| 240,856 |
|
|
| 244,750 |
|
|
| 238,637 |
|
Diluted |
| 246,933 |
|
|
| 247,936 |
|
|
| 244,750 |
|
|
| 243,635 |
|
_____________________________
(1) Includes stock-based compensation expense as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Subscription cost of revenue | $ | 24,331 |
| $ | 13,311 |
| $ | 73,592 |
| $ | 43,886 |
Professional services cost of revenue |
| 10,011 |
|
| 6,282 |
|
| 31,126 |
|
| 22,302 |
Sales and marketing |
| 69,585 |
|
| 46,083 |
|
| 235,499 |
|
| 175,808 |
Research and development |
| 113,153 |
|
| 62,142 |
|
| 337,620 |
|
| 205,896 |
General and administrative |
| 55,451 |
|
| 48,454 |
|
| 187,584 |
|
| 183,627 |
Total stock-based compensation expense | $ | 272,531 |
| $ | 176,272 |
| $ | 865,421 |
| $ | 631,519 |
(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Subscription cost of revenue | $ | 6,153 |
| $ | 4,819 |
| $ | 21,976 |
| $ | 15,560 |
Sales and marketing |
| 846 |
|
| 602 |
|
| 2,654 |
|
| 2,085 |
Research and development |
| — |
|
| — |
|
| — |
|
| 468 |
General and administrative |
| 340 |
|
| 82 |
|
| 1,374 |
|
| 303 |
Total amortization of acquired intangible assets | $ | 7,339 |
| $ | 5,503 |
| $ | 26,004 |
| $ | 18,416 |
(3) Includes acquisition-related expenses, net as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Research and development | $ | — |
| $ | — |
| $ | 477 |
| $ | 750 |
General and administrative |
| 1,475 |
|
| 428 |
|
| 5,550 |
|
| 3,632 |
Total acquisition-related expenses, net | $ | 1,475 |
| $ | 428 |
| $ | 6,027 |
| $ | 4,382 |
(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Sales and marketing | $ | 147 |
| $ | 125 |
| $ | 331 |
| $ | 92 |
Research and development |
| 51 |
|
| 81 |
|
| 253 |
|
| 61 |
General and administrative |
| — |
|
| 31 |
|
| 27 |
|
| 23 |
Total mark-to-market adjustments on deferred compensation liabilities | $ | 198 |
| $ | 237 |
| $ | 611 |
| $ | 176 |
(5) Includes legal reserve and settlement charges as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
General and administrative | $ | — |
| $ | 1,000 |
| $ | — |
| $ | 7,797 |
Total legal reserve and settlement charges | $ | — |
| $ | 1,000 |
| $ | — |
| $ | 7,797 |
(6) Includes
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Sales and marketing | $ | 3,214 |
| $ | — |
| $ | 21,396 |
| $ | — |
Research and development |
| 2,230 |
|
| — |
|
| 6,780 |
|
| — |
General and administrative |
| 15,564 |
|
| — |
|
| 31,886 |
|
| — |
Total | $ | 21,008 |
| $ | — |
| $ | 60,062 |
| $ | — |
(7) Includes amortization of debt issuance costs and discount as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Interest expense | $ | 546 |
| $ | 546 |
| $ | 2,186 |
| $ | 2,186 |
Total amortization of debt issuance costs and discount | $ | 546 |
| $ | 546 |
| $ | 2,186 |
| $ | 2,186 |
(8) Includes gains (losses) and other income (expense) from strategic investments as follows (in thousands):
| Three Months Ended |
| Year Ended | |||||||||
|
| 2025 |
|
|
| 2024 |
|
| 2025 |
|
| 2024 |
Other income (loss), net | $ | (898 | ) |
| $ | 2,485 |
| $ | 5,350 |
| $ | 2,516 |
Total gains (losses) and other income (expense) from strategic investments | $ | (898 | ) |
| $ | 2,485 |
| $ | 5,350 |
| $ | 2,516 |
(9) Includes gains on deferred compensation assets as follows (in thousands):
| Three Months Ended |
| Year Ended | ||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
Other income, net | $ | 198 |
| $ | 237 |
| $ | 611 |
| $ | 176 |
Total gains on deferred compensation assets | $ | 198 |
| $ | 237 |
| $ | 611 |
| $ | 176 |
(10) Includes provision (benefit) for income taxes related to acquisitions as follows (in thousands):
| Three Months Ended |
| Year Ended | |||||||||
|
| 2025 |
|
| 2024 |
|
| 2025 |
|
| 2024 |
|
Provision (benefit) for income taxes | $ | 49,883 |
| $ | — |
| $ | 49,883 |
| $ | (615 | ) |
Total provision (benefit) for income taxes | $ | 49,883 |
| $ | — |
| $ | 49,883 |
| $ | (615 | ) |
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
|
| ||||||
|
| 2025 |
|
|
| 2024 |
|
Assets |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 4,323,295 |
|
| $ | 3,375,069 |
|
Short-term investments |
| — |
|
|
| 99,591 |
|
Accounts receivable, net of allowance for credit losses |
| 1,128,564 |
|
|
| 853,105 |
|
Deferred contract acquisition costs, current |
| 347,042 |
|
|
| 246,370 |
|
Prepaid expenses and other current assets |
| 314,444 |
|
|
| 183,172 |
|
Total current assets |
| 6,113,345 |
|
|
| 4,757,307 |
|
Strategic investments |
| 72,544 |
|
|
| 56,244 |
|
Property and equipment, net |
| 788,640 |
|
|
| 620,172 |
|
Operating lease right-of-use assets |
| 42,763 |
|
|
| 48,211 |
|
Deferred contract acquisition costs, noncurrent |
| 500,908 |
|
|
| 335,933 |
|
| 912,805 |
|
|
| 638,041 |
| |
Intangible assets, net |
| 133,114 |
|
|
| 114,518 |
|
Other long-term assets |
| 137,459 |
|
|
| 76,094 |
|
Total assets | $ | 8,701,578 |
|
| $ | 6,646,520 |
|
Liabilities and Stockholders’ Equity |
|
|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable | $ | 130,887 |
|
| $ | 28,180 |
|
Accrued expenses |
| 191,349 |
|
|
| 125,896 |
|
Accrued payroll and benefits |
| 319,243 |
|
|
| 234,624 |
|
Operating lease liabilities, current |
| 13,811 |
|
|
| 14,150 |
|
Deferred revenue |
| 2,733,005 |
|
|
| 2,270,757 |
|
Other current liabilities |
| 72,755 |
|
|
| 23,672 |
|
Total current liabilities |
| 3,461,050 |
|
|
| 2,697,279 |
|
Long-term debt |
| 743,983 |
|
|
| 742,494 |
|
Deferred revenue, noncurrent |
| 995,672 |
|
|
| 783,342 |
|
Operating lease liabilities, noncurrent |
| 31,107 |
|
|
| 36,230 |
|
Other liabilities, noncurrent |
| 150,849 |
|
|
| 50,086 |
|
Total liabilities |
| 5,382,661 |
|
|
| 4,309,431 |
|
Commitments and contingencies |
|
|
| ||||
Stockholders’ Equity |
|
|
| ||||
Common stock, Class A and Class B |
| 124 |
|
|
| 121 |
|
Additional paid-in capital |
| 4,367,070 |
|
|
| 3,364,328 |
|
Accumulated deficit |
| (1,078,107 | ) |
|
| (1,058,836 | ) |
Accumulated other comprehensive loss |
| (9,593 | ) |
|
| (1,663 | ) |
| 3,279,494 |
|
|
| 2,303,950 |
| |
Non-controlling interest |
| 39,423 |
|
|
| 33,139 |
|
Total stockholders’ equity |
| 3,318,917 |
|
|
| 2,337,089 |
|
Total liabilities and stockholders’ equity | $ | 8,701,578 |
|
| $ | 6,646,520 |
|
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Year Ended | ||||||
|
| 2025 |
|
|
| 2024 |
|
Operating activities |
|
|
| ||||
Net income (loss) | $ | (16,596 | ) |
| $ | 90,585 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| ||||
Depreciation and amortization |
| 187,952 |
|
|
| 126,838 |
|
Amortization of intangible assets |
| 26,004 |
|
|
| 18,416 |
|
Amortization of deferred contract acquisition costs |
| 318,837 |
|
|
| 238,901 |
|
Non-cash operating lease cost |
| 15,283 |
|
|
| 13,398 |
|
Stock-based compensation expense |
| 865,421 |
|
|
| 631,519 |
|
Deferred income taxes |
| (9,903 | ) |
|
| (3,387 | ) |
Realized gains on strategic investments |
| (6,321 | ) |
|
| (3,936 | ) |
Accretion of short-term investments purchased at a discount |
| 2,285 |
|
|
| (2,285 | ) |
Non-cash interest expense |
| 3,763 |
|
|
| 3,173 |
|
Change in fair value of strategic investments |
| 1,000 |
|
|
| 1,459 |
|
Changes in operating assets and liabilities, net of impact of acquisitions |
|
|
| ||||
Accounts receivable, net |
| (274,219 | ) |
|
| (217,699 | ) |
Deferred contract acquisition costs |
| (584,484 | ) |
|
| (371,649 | ) |
Prepaid expenses and other assets |
| (190,232 | ) |
|
| (102,520 | ) |
Accounts payable |
| 84,939 |
|
|
| (18,898 | ) |
Accrued expenses and other liabilities |
| 218,518 |
|
|
| 14,586 |
|
Accrued payroll and benefits |
| 85,873 |
|
|
| 65,102 |
|
Operating lease liabilities |
| (15,657 | ) |
|
| (14,035 | ) |
Deferred revenue |
| 669,264 |
|
|
| 696,639 |
|
Net cash provided by operating activities |
| 1,381,727 |
|
|
| 1,166,207 |
|
Investing activities |
|
|
| ||||
Purchases of property and equipment |
| (254,852 | ) |
|
| (176,529 | ) |
Capitalized internal-use software and website development costs |
| (58,969 | ) |
|
| (49,457 | ) |
Purchases of strategic investments |
| (19,702 | ) |
|
| (17,177 | ) |
Proceeds from sales of strategic investments |
| 12,507 |
|
|
| 2,000 |
|
Business acquisitions, net of cash acquired |
| (310,257 | ) |
|
| (239,030 | ) |
Purchases of intangible assets |
| — |
|
|
| (11,126 | ) |
Purchases of short-term investments |
| — |
|
|
| (195,581 | ) |
Proceeds from maturities and sales of short-term investments |
| 97,300 |
|
|
| 348,281 |
|
Purchases of deferred compensation investments |
| (2,721 | ) |
|
| (2,031 | ) |
Proceeds from the sale of deferred compensation investments |
| 106 |
|
|
| — |
|
Net cash used in investing activities |
| (536,588 | ) |
|
| (340,650 | ) |
Financing activities |
|
|
| ||||
Proceeds from issuance of common stock upon exercise of stock options |
| 3,983 |
|
|
| 8,695 |
|
Proceeds from issuance of common stock under the employee stock purchase plan |
| 99,616 |
|
|
| 76,375 |
|
Distributions to non-controlling interest holders |
| (4,891 | ) |
|
| — |
|
Capital contributions from non-controlling interest holders |
| 8,500 |
|
|
| 8,088 |
|
Net cash provided by financing activities |
| 107,208 |
|
|
| 93,158 |
|
|
|
|
| ||||
Effect of foreign exchange rates on cash, cash equivalents and restricted cash |
| (5,278 | ) |
|
| 1,958 |
|
|
|
|
| ||||
Net increase in cash, cash equivalents and restricted cash |
| 947,069 |
|
|
| 920,673 |
|
|
|
|
| ||||
Cash, cash equivalents and restricted cash, at beginning of period |
| 3,377,597 |
|
|
| 2,456,924 |
|
Cash, cash equivalents and restricted cash, at end of period | $ | 4,324,666 |
|
| $ | 3,377,597 |
|
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
| Three Months Ended |
| Year Ended | ||||||||||||
|
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
GAAP subscription revenue | $ | 1,008,316 |
|
| $ | 795,947 |
|
| $ | 3,761,480 |
|
| $ | 2,870,557 |
|
GAAP professional services revenue |
| 50,222 |
|
|
| 49,388 |
|
|
| 192,144 |
|
|
| 184,998 |
|
GAAP total revenue | $ | 1,058,538 |
|
| $ | 845,335 |
|
| $ | 3,953,624 |
|
| $ | 3,055,555 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP subscription gross profit | $ | 778,675 |
|
| $ | 620,438 |
|
| $ | 2,925,971 |
|
| $ | 2,239,812 |
|
Stock based compensation expense |
| 24,331 |
|
|
| 13,311 |
|
|
| 73,592 |
|
|
| 43,886 |
|
Amortization of acquired intangible assets |
| 6,153 |
|
|
| 4,819 |
|
|
| 21,976 |
|
|
| 15,560 |
|
Non-GAAP subscription gross profit | $ | 809,159 |
|
| $ | 638,568 |
|
| $ | 3,021,539 |
|
| $ | 2,299,258 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP subscription gross margin |
| 77 | % |
|
| 78 | % |
|
| 78 | % |
|
| 78 | % |
Non-GAAP subscription gross margin |
| 80 | % |
|
| 80 | % |
|
| 80 | % |
|
| 80 | % |
|
|
|
|
|
|
|
| ||||||||
GAAP professional services gross profit | $ | 5,873 |
|
| $ | 16,325 |
|
| $ | 36,172 |
|
| $ | 60,020 |
|
Stock based compensation expense |
| 10,011 |
|
|
| 6,282 |
|
|
| 31,126 |
|
|
| 22,302 |
|
Non-GAAP professional services gross profit | $ | 15,884 |
|
| $ | 22,607 |
|
| $ | 67,298 |
|
| $ | 82,322 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP professional services gross margin |
| 12 | % |
|
| 33 | % |
|
| 19 | % |
|
| 32 | % |
Non-GAAP professional services gross margin |
| 32 | % |
|
| 46 | % |
|
| 35 | % |
|
| 44 | % |
|
|
|
|
|
|
|
| ||||||||
Total GAAP gross margin |
| 74 | % |
|
| 75 | % |
|
| 75 | % |
|
| 75 | % |
Total Non-GAAP gross margin |
| 78 | % |
|
| 78 | % |
|
| 78 | % |
|
| 78 | % |
|
|
|
|
|
|
|
| ||||||||
GAAP sales and marketing operating expenses | $ | 409,504 |
|
| $ | 290,357 |
|
| $ | 1,523,356 |
|
| $ | 1,140,566 |
|
Stock based compensation expense |
| (69,585 | ) |
|
| (46,083 | ) |
|
| (235,499 | ) |
|
| (175,808 | ) |
Amortization of acquired intangible assets |
| (846 | ) |
|
| (602 | ) |
|
| (2,654 | ) |
|
| (2,085 | ) |
Mark-to-market adjustments on deferred compensation liabilities |
| (147 | ) |
|
| (125 | ) |
|
| (331 | ) |
|
| (92 | ) |
| (3,214 | ) |
|
| — |
|
|
| (21,396 | ) |
|
| — |
| |
Non-GAAP sales and marketing operating expenses | $ | 335,712 |
|
| $ | 243,547 |
|
| $ | 1,263,476 |
|
| $ | 962,581 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP sales and marketing operating expenses as a percentage of revenue |
| 39 | % |
|
| 34 | % |
|
| 39 | % |
|
| 37 | % |
Non-GAAP sales and marketing operating expenses as a percentage of revenue |
| 32 | % |
|
| 29 | % |
|
| 32 | % |
|
| 32 | % |
|
|
|
|
|
|
|
| ||||||||
GAAP research and development operating expenses | $ | 315,142 |
|
| $ | 213,998 |
|
| $ | 1,076,901 |
|
| $ | 768,497 |
|
Stock based compensation expense |
| (113,153 | ) |
|
| (62,142 | ) |
|
| (337,620 | ) |
|
| (205,896 | ) |
Amortization of acquired intangible assets |
| — |
|
|
| — |
|
|
| — |
|
|
| (468 | ) |
Acquisition-related expenses, net |
| — |
|
|
| — |
|
|
| (477 | ) |
|
| (750 | ) |
Mark-to-market adjustments on deferred compensation liabilities |
| (51 | ) |
|
| (81 | ) |
|
| (253 | ) |
|
| (61 | ) |
| (2,230 | ) |
|
| — |
|
|
| (6,780 | ) |
|
| — |
| |
Non-GAAP research and development operating expenses | $ | 199,708 |
|
| $ | 151,775 |
|
| $ | 731,771 |
|
| $ | 561,322 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP research and development operating expenses as a percentage of revenue |
| 30 | % |
|
| 25 | % |
|
| 27 | % |
|
| 25 | % |
Non-GAAP research and development operating expenses as a percentage of revenue |
| 19 | % |
|
| 18 | % |
|
| 19 | % |
|
| 18 | % |
|
|
|
|
|
|
|
| ||||||||
GAAP general and administrative operating expenses | $ | 145,203 |
|
| $ | 102,737 |
|
| $ | 482,316 |
|
| $ | 392,764 |
|
Stock based compensation expense |
| (55,451 | ) |
|
| (48,454 | ) |
|
| (187,584 | ) |
|
| (183,627 | ) |
Acquisition-related expenses, net |
| (1,475 | ) |
|
| (428 | ) |
|
| (5,550 | ) |
|
| (3,632 | ) |
Amortization of acquired intangible assets |
| (340 | ) |
|
| (82 | ) |
|
| (1,374 | ) |
|
| (303 | ) |
Mark-to-market adjustments on deferred compensation liabilities |
| — |
|
|
| (31 | ) |
|
| (27 | ) |
|
| (23 | ) |
Legal reserve and settlement charges |
| — |
|
|
| (1,000 | ) |
|
| — |
|
|
| (7,797 | ) |
| (15,564 | ) |
|
| — |
|
|
| (31,886 | ) |
|
| — |
| |
Non-GAAP general and administrative operating expenses | $ | 72,373 |
|
| $ | 52,742 |
|
| $ | 255,895 |
|
| $ | 197,382 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP general and administrative operating expenses as a percentage of revenue |
| 14 | % |
|
| 12 | % |
|
| 12 | % |
|
| 13 | % |
Non-GAAP general and administrative operating expenses as a percentage of revenue |
| 7 | % |
|
| 6 | % |
|
| 6 | % |
|
| 6 | % |
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended |
| Year Ended | ||||||||||||
|
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
GAAP income (loss) from operations | $ | (85,301 | ) |
| $ | 29,671 |
|
| $ | (120,430 | ) |
| $ | (1,995 | ) |
Stock based compensation expense |
| 272,531 |
|
|
| 176,272 |
|
|
| 865,421 |
|
|
| 631,519 |
|
Amortization of acquired intangible assets |
| 7,339 |
|
|
| 5,503 |
|
|
| 26,004 |
|
|
| 18,416 |
|
Acquisition-related expenses, net |
| 1,475 |
|
|
| 428 |
|
|
| 6,027 |
|
|
| 4,382 |
|
Mark-to-market adjustments on deferred compensation liabilities |
| 198 |
|
|
| 237 |
|
|
| 611 |
|
|
| 176 |
|
Legal reserve and settlement charges |
| — |
|
|
| 1,000 |
|
|
| — |
|
|
| 7,797 |
|
| 21,008 |
|
|
| — |
|
|
| 60,062 |
|
|
| — |
| |
Non-GAAP income from operations | $ | 217,250 |
|
| $ | 213,111 |
|
| $ | 837,695 |
|
| $ | 660,295 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP operating margin |
| (8 | )% |
|
| 4 | % |
|
| (3 | )% |
|
| — | % |
Non-GAAP operating margin |
| 21 | % |
|
| 25 | % |
|
| 21 | % |
|
| 22 | % |
|
|
|
|
|
|
|
| ||||||||
GAAP net income (loss) attributable to | $ | (92,282 | ) |
| $ | 53,699 |
|
| $ | (19,271 | ) |
| $ | 89,327 |
|
Stock based compensation expense |
| 272,531 |
|
|
| 176,272 |
|
|
| 865,421 |
|
|
| 631,519 |
|
Amortization of acquired intangible assets |
| 7,339 |
|
|
| 5,503 |
|
|
| 26,004 |
|
|
| 18,416 |
|
Acquisition-related expenses, net |
| 1,475 |
|
|
| 428 |
|
|
| 6,027 |
|
|
| 4,382 |
|
Amortization of debt issuance costs and discount |
| 546 |
|
|
| 546 |
|
|
| 2,186 |
|
|
| 2,186 |
|
Mark-to-market adjustments on deferred compensation liabilities |
| 198 |
|
|
| 237 |
|
|
| 611 |
|
|
| 176 |
|
Legal reserve and settlement charges |
| — |
|
|
| 1,000 |
|
|
| — |
|
|
| 7,797 |
|
| 21,008 |
|
|
| — |
|
|
| 60,062 |
|
|
| — |
| |
Provision (benefit) for income taxes1 |
| 49,883 |
|
|
| — |
|
|
| 49,883 |
|
|
| (615 | ) |
Losses (gains) and other income from strategic investments attributable to |
| 449 |
|
|
| (1,242 | ) |
|
| (2,675 | ) |
|
| (1,258 | ) |
Gains on deferred compensation assets |
| (198 | ) |
|
| (237 | ) |
|
| (611 | ) |
|
| (176 | ) |
Non-GAAP net income attributable to | $ | 260,949 |
|
| $ | 236,206 |
|
| $ | 987,637 |
|
| $ | 751,754 |
|
Weighted-average shares used in computing GAAP basic net income (loss) per share attributable to |
| 246,933 |
|
|
| 240,856 |
|
|
| 244,750 |
|
|
| 238,637 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP basic net income (loss) per share attributable to | $ | (0.37 | ) |
| $ | 0.22 |
|
| $ | (0.08 | ) |
| $ | 0.37 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP diluted net income (loss) per share attributable to | $ | (0.37 | ) |
| $ | 0.22 |
|
| $ | (0.08 | ) |
| $ | 0.37 |
|
Stock-based compensation |
| 1.08 |
|
|
| 0.71 |
|
|
| 3.44 |
|
|
| 2.59 |
|
Amortization of acquired intangible assets |
| 0.03 |
|
|
| 0.02 |
|
|
| 0.10 |
|
|
| 0.08 |
|
Acquisition-related expenses, net |
| 0.01 |
|
|
| — |
|
|
| 0.02 |
|
|
| 0.02 |
|
Amortization of debt issuance costs and discount |
| — |
|
|
| — |
|
|
| 0.01 |
|
|
| 0.01 |
|
Mark-to-market adjustments on deferred compensation liabilities |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Legal reserve and settlement charges |
| — |
|
|
| — |
|
|
| — |
|
|
| 0.03 |
|
| 0.08 |
|
|
| — |
|
|
| 0.24 |
|
|
| — |
| |
Provision (benefit) for income taxes1 |
| 0.20 |
|
|
| — |
|
|
| 0.20 |
|
|
| — |
|
Losses (gains) and other income from strategic investments attributable to |
| — |
|
|
| (0.01 | ) |
|
| (0.01 | ) |
|
| (0.01 | ) |
Gains on deferred compensation assets |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Other (2) |
| — |
|
|
| 0.01 |
|
|
| 0.01 |
|
|
| — |
|
Non-GAAP diluted net income per share attributable to | $ | 1.03 |
|
| $ | 0.95 |
|
| $ | 3.93 |
|
| $ | 3.09 |
|
Weighted-average shares used to calculate Non-GAAP diluted net income per share attributable to |
| 253,281 |
|
|
| 247,936 |
|
|
| 251,385 |
|
|
| 243,635 |
|
____________________________
(1) | ||
(2) | For periods in which |
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except percentages)
(unaudited)
| Three Months Ended |
| Year Ended | ||||||||||||
|
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
GAAP net cash provided by operating activities | $ | 345,722 |
|
| $ | 347,016 |
|
| $ | 1,381,727 |
|
| $ | 1,166,207 |
|
Purchases of property and equipment |
| (87,211 | ) |
|
| (52,584 | ) |
|
| (254,852 | ) |
|
| (176,529 | ) |
Capitalized internal-use software and website development costs |
| (17,703 | ) |
|
| (10,852 | ) |
|
| (58,969 | ) |
|
| (49,457 | ) |
Purchases of deferred compensation investments |
| (906 | ) |
|
| (569 | ) |
|
| (2,721 | ) |
|
| (2,031 | ) |
Proceeds from the sales of deferred compensation investments |
| (65 | ) |
|
| — |
|
|
| (106 | ) |
|
| — |
|
Free cash flow | $ | 239,837 |
|
| $ | 283,011 |
|
| $ | 1,065,079 |
|
| $ | 938,190 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP net cash provided by (used in) investing activities | $ | (325,019 | ) |
| $ | 20,395 |
|
| $ | (536,588 | ) |
| $ | (340,650 | ) |
GAAP net cash provided by financing activities | $ | 46,386 |
|
| $ | 33,460 |
|
| $ | 107,208 |
|
| $ | 93,158 |
|
|
|
|
|
|
|
|
| ||||||||
GAAP net cash provided by operating activities as a percentage of revenue |
| 33 | % |
|
| 41 | % |
|
| 35 | % |
|
| 38 | % |
Purchases of property and equipment as a percentage of revenue |
| (8 | )% |
|
| (6 | )% |
|
| (6 | )% |
|
| (6 | )% |
Capitalized internal-use software and website development costs as a percentage of revenue |
| (2 | )% |
|
| (1 | )% |
|
| (1 | )% |
|
| (2 | )% |
Purchases of deferred compensation investments as a percentage of revenue |
| — | % |
|
| — | % |
|
| — | % |
|
| — | % |
Proceeds from the sale of deferred compensation investments |
| — | % |
|
| — | % |
|
| — | % |
|
| — | % |
Free cash flow margin |
| 23 | % |
|
| 33 | % |
|
| 27 | % |
|
| 31 | % |
Explanation of Non-GAAP Financial Measures
In addition to determining results in accordance with
Other companies, including companies in CrowdStrike’s industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of CrowdStrike’s non-GAAP financial measures as tools for comparison.
Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate CrowdStrike’s business.
Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin
Non-GAAP Income from Operations
Non-GAAP Net Income Attributable to
The company defines non-GAAP net income attributable to
Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Diluted
Free Cash Flow
Free cash flow is a non-GAAP financial measure that
Explanation of Operational Measures
Annual Recurring Revenue
ARR is calculated as the annualized value of CrowdStrike’s customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that
Magic Number
Magic Number is calculated by performing the following calculation for the most recent four quarters and taking the average: annualizing the difference between a quarter’s Subscription Revenue and the prior quarter’s Subscription Revenue, and then dividing the resulting number by the previous quarter’s Non-GAAP Sales & Marketing Expense. Magic Number = Average of previous four quarters: ((Quarter GAAP Subscription Revenue – Prior Quarter GAAP Subscription Revenue) x 4) / Prior Quarter Non-GAAP Sales & Marketing Expense.
Free Cash Flow Rule of 40
Free cash flow rule of 40 is calculated by taking the current quarter total revenue year over year growth rate percentage and summing it with the current quarter free cash flow margin percentage.
Dollar-Based Gross Retention Rate
Dollar-based gross retention rate as of the period end is calculated by starting with the ARR from all subscription customers as of 12 months prior to such period, or Prior Period ARR. Then deduct from the Prior Period ARR any ARR from subscription customers who are no longer customers as of the current period end, or Current Period Remaining ARR. Then divide the total Current Period Remaining ARR by the total Prior Period ARR to arrive at our dollar-based gross retention rate, which is the percentage of ARR from all subscription customers as of the year prior that is not lost to customer churn.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250304922628/en/
Investor Relations Contact
investors@crowdstrike.com
669-721-0742
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