CrowdStrike Holdings, Inc. is a leading cybersecurity technology company that specializes in providing endpoint security threat intelligence, and cyber-attack response services. Founded in 2011 by George Kurtz and Dmitri Alperovitch, CrowdStrike has quickly established itself as a key player in the cybersecurity industry. Also, the company’s flagship product, the CrowdStrike Falcon platform, leverages artificial intelligence, machine learning, and behavioral analysis to detect and prevent cyber threats in real-time. Moreover, with a commitment to innovation and a strong emphasis on cloud-based solutions, CrowdStrike has been instrumental in helping businesses and organizations protect their digital assets against sophisticated cyber threats. CrowdStrike headquartered in Sunnyvale, California. Hence, the company serves a diverse clientele, including large enterprises, small businesses, and government agencies, ensuring their security posture remains robust and resilient in an ever-evolving threat landscape.
CrowdStrike Fiscal Q3 2025
In Q3 2025, CrowdStrike (CRWD) exceeded market expectations with its financial performance. The company reported a revenue of $1 billion, which surpassed the estimated $983 million. Additionally, CrowdStrike’s adjusted earnings per share (EPS) came in at $0.93, significantly higher than the forecasted $0.81, marking an outperformance by $0.12.
Earnings Highlights:
- Revenue: $1.01 billion, a 29% increase year-over-year.
- Subscription Revenue: $962.7 million, up 31% year-over-year.
- Annual Recurring Revenue (ARR): $4.02 billion, growing 27% year-over-year.
- Free Cash Flow: $230.6 million, representing 23% of revenue.
- Gross Margin: Total gross margin at 78%, subscription gross margin at 80%.
- Non-GAAP Operating Income: $194.9 million, with a 19% operating margin.
- Non-GAAP Net Income: $234.3 million or $0.93 per diluted share.
- Cash and Cash Equivalents: $4.26 billion.
- Gross Retention Rate: Over 97%.
- Net Retention Rate: 115%.
CrowdStrike also highlighted the success of its Falcon Flex subscription model, which drove rapid platform adoption and over 150 deals representing more than $600 million in total deal value. However, the company faced challenges from the July 19 incident, which led to extended sales cycles and increased contraction.
Q4 2025 Guidance:
- Earnings Per Share (EPS): $0.84 – $0.86.
- Revenue: $1.03 billion – $1.04 billion.
Full Year 2025 Guidance:
- Earnings Per Share (EPS): $3.74 – $3.76.
- Revenue: $3.92 billion – $3.93 billion.
CrowdStrike’s guidance indicates steady growth and strong performance expectations for the upcoming quarters. However, the company’s fourth-quarter forecast was weaker than expected, causing a drop in stock price.
Board Statements
George Kurtz, Founder and CEO: “CrowdStrike surpassed $4 billion in ending ARR in the quarter. This was the fastest and only pure play cybersecurity software company to reach this reported milestone. As our single platform approach and trailblazing innovation continue to resonate at-scale, we are confident in CrowdStrike’s bright future as cybersecurity’s AI platform of record.”
Burt Podbere, Chief Financial Officer: “Our third quarter results reflect our focused execution and financial discipline, which drove a strong finish and quarter-over-quarter increase in pipeline, despite expected headwinds from the July 19th incident. We saw incredible success with our customer commitment packages as customers embraced the program and chose to deepen their relationship with CrowdStrike.”
Additionally, these statements highlight the company’s confidence in its growth trajectory and customer commitment despite facing challenges.
Impact on the Stock Market
CrowdStrike’s Q3 2025 earnings report had a mixed impact on the stock market. While the company’s record revenue of $1.01 billion and strong annual recurring revenue (ARR) growth were positive highlights. However, the unexpected loss of $16.82 million and weaker-than-expected Q4 forecast led to a 6% drop in stock price in post-market trading. Additionally, investors were concerned about the rising expenses and the impact of the July 19 incident on sales cycles and customer retention.
