CrowdStrike Holdings is a top cybersecurity company that provides endpoint security, threat intelligence, and cyber attack response services. Founded in 2011 by George Kurtz and Dmitri Alperovitch, CrowdStrike is known for its flagship product, the CrowdStrike Falcon platform. This platform uses artificial intelligence, machine learning, and behavioral analysis to detect and stop cyber threats in real-time.
With a focus on innovation and cloud-based solutions, CrowdStrike helps businesses and organizations protect their digital assets from advanced cyber threats. Based in Sunnyvale, California, the company serves a wide range of clients, including large enterprises, small businesses, and government agencies, ensuring they stay secure in a constantly changing threat environment.
CrowdStrike Fiscal Q4 2025
CrowdStrike (CRWD) announced its financial results for the fourth quarter and fiscal year 2025.
The company saw a 23% increase in annual recurring revenue (ARR), reaching $4.24 billion, with $224 million added in net new ARR in Q4. Full-year subscription revenue grew 31% year-over-year, totaling $3.76 billion.
CrowdStrike also achieved a record full-year operating cash flow of $1.38 billion and a record full-year free cash flow of $1.07 billion.
Fourth Quarter 2025 Financial Highlights:
- Total Revenue: $1.06 billion, up 25% from the previous year.
- Subscription Revenue: $1.01 billion, a 27% increase.
- GAAP Loss from Operations: $85.3 million, compared to $29.7 million in income last year.
- Non-GAAP Income from Operations: $217.3 million, up from $213.1 million last year.
- GAAP Net Loss: $92.3 million, compared to $53.7 million in net income last year.
- Non-GAAP Net Income: $260.9 million, up from $236.2 million last year.
- Free Cash Flow: $239.8 million, slightly down from $283.0 million last year.
- Cash and Cash Equivalents: $4.32 billion as of January 31, 2025.
Full Year 2025 Financial Highlights:
- Total Revenue: $3.95 billion, a 29% increase from the previous year.
- GAAP Loss from Operations: $120.4 million, compared to $2.0 million in income last year.
- Non-GAAP Income from Operations: $837.7 million, up from $660.3 million last year.
- GAAP Net Loss: $19.3 million, compared to $89.3 million in net income last year.
- Non-GAAP Net Income: $987.6 million, up from $751.8 million last year.
- Free Cash Flow: $1.07 billion, up from $938.2 million last year.
Board Statements
George Kurtz, CrowdStrike’s Founder and CEO, stated: “By adding $224 million in new ARR, the company’s total ARR reached $4.24 billion, bringing CrowdStrike closer to its $10 billion goal. With the rapid adoption of AI, cybersecurity’s AI-native platform becomes essential. There is strong growth in the Next-Gen SIEM, Cloud Security, and Identity Protection businesses, with combined ARR exceeding $1.3 billion. The company’s 97% customer retention rate and over $1 billion in Falcon Flex deals show that customers are increasingly relying on the Falcon platform for their security needs.”
Burt Podbere, CrowdStrike’s CFO, added: “The Q4 results exceeded all expectations. Strong customer retention, increasing module adoption, and multiple large growth opportunities give the company confidence in reaching its target by fiscal year 2029 and achieving long-term profitable growth.”
Impact on the Stock Market
CrowdStrike’s stock dropped by over 11% following the earnings report. Despite strong performance, net new ARR was down about 1% year-over-year, showing growth challenges. The company faced a GAAP net loss of $92.3 million in Q4 due to tax expenses and incident-related costs. Growth from existing customers declined, with upselling decreasing from 21% in Q1 to 15% by year-end.
Also, the company expects $73 million in outage-related costs in Q1 of FY26, affecting short-term financial performance. FY26 operating margin guidance reflects investments and costs from the Customer Commitment Program, putting pressure on margins in the near term.
