Summary
CrowdStrike closed FY2025 Q2 with revenue of $963.9 million, up 31.7% from the prior-year quarter. Gross profit was $726.5 million, up 32.4%, and gross margin reached 75.4%, up 0.4 percentage points. The company swung to an operating profit of $13.7 million from a prior-year operating loss. Operating margin was 1.4%, up 3.5 percentage points. Net income attributable to CrowdStrike was $47.0 million, up 454.9%, and diluted EPS was $0.19, up $0.16. For the first six months of FY2025, revenue was $1.88 billion, up 32.3%, gross profit was $1.42 billion, up 32.7%, and operating income was $20.6 million, compared with a prior-year operating loss. Year-to-date net income attributable to CrowdStrike was $89.8 million, up 902.3%, and year-to-date diluted EPS was $0.36, up $0.32.
Cash generation remained a bright spot. Operating cash flow was $326.6 million in the quarter, up 33.4% from the prior-year quarter, and $709.9 million for the first six months, up 30.1%. Free cash flow, a non-GAAP measure, was $272.2 million in the quarter. Capital expenditures were $39.3 million, down 2.9% in the quarter, and $88.9 million for the first six months, down 13.4%. Deferred revenue was $3.09 billion, up 23.4%, and remaining performance obligations were $4.90 billion, up 36.1%. The company ended the quarter with ARR of $3.86 billion, up 32%, including $217.6 million in net new ARR. Backlog stood at approximately $1.8 billion.
Operational momentum showed up in module adoption and partnerships. Adoption rates were 65% for five or more modules, 45% for six or more modules, and 29% for seven or more modules as of July 31, 2024. CrowdStrike exceeded $1 billion in lifetime sales through its CDW partnership and reached CDW Diamond Level Partner Status. It announced a strategic partnership with Hewlett Packard Enterprise and expanded distribution ties in Latin America. The company also set a threat detection benchmark of four minutes in MITRE Engenuity's ATT&CK Evaluations and was named a Leader in The Forrester Wave Cybersecurity Incident Response Services, Q2 2024. CrowdStrike had 9,219 full-time employees as of July 31, 2024. Management said the market opportunity remains unchanged.
Guidance points to continued growth but with a known drag from the July 19 Channel File 291 Incident. For the fiscal third quarter, management guided non-GAAP net income attributable to CrowdStrike to $201.2 - $205.2 million and non-GAAP diluted EPS to $0.80 - $0.81. For the full fiscal year 2025, non-GAAP diluted EPS guidance is $3.61 - $3.65. The company said its customer commitment package is expected to reduce subscription revenue by an estimated $30 million in each remaining fiscal quarter and to affect professional services revenue by high-single digit millions in the second half of fiscal 2025. Guidance assumes 252 million weighted average shares for non-GAAP EPS.
Risks are concentrated around the Channel File 291 Incident. CrowdStrike faces lawsuits, claims, and inquiries tied to the incident. Management expects significant legal and professional services and other general and administrative expenses in future periods. The company said it is not reasonably possible to quantify the precise impact, but the incident has adversely affected results and is expected to affect key metrics and results in future periods. While customer churn has not been high, CrowdStrike has seen delays in creating sales opportunities and longer sales cycles, including delays in customer purchasing decisions. Sales cycles are expected to remain elongated. Customer commitment packages may include discounting, additional modules, professional services, flexible payment terms, or subscription period extensions. Those packages are expected to increase contraction because of elongated subscription terms and to decrease upsell dollar values. Non-cancellable purchase commitments totaled $2.7 billion as of July 31, 2024, with remaining terms in excess of 12 months. Other risks include rapid growth management, competition, new product execution, acquisition integration, and macroeconomic conditions.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $963.9M | $921.0M | +4.7% | $731.6M | +31.7% |
| Gross profit | $726.5M | $696.0M | +4.4% | $548.7M | +32.4% |
| Gross margin | 75.4% | 75.6% | -0.2 pp | 75.0% | +0.4 pp |
| Research & development | $250.9M | $235.2M | +6.7% | $179.4M | +39.9% |
| Sales & marketing | $355.5M | $350.1M | +1.5% | $282.9M | +25.6% |
| General & administrative | $106.4M | $103.7M | +2.6% | $101.8M | +4.5% |
| Total operating expenses | $712.8M | $689.1M | +3.4% | $564.1M | +26.4% |
| Operating income (loss) | $13.7M | $6.9M | +96.9% | -$15.4M | +188.8% |
| Operating margin | 1.4% | 0.8% | +0.7 pp | -2.1% | +3.5 pp |
| Net income (loss) | $46.7M | $46.3M | +0.9% | $8.5M | +450.8% |
| Net margin | 4.8% | 5.0% | -0.2 pp | 1.2% | +3.7 pp |
| Diluted EPS | $0.19 | $0.17 | +$0.02 | $0.03 | +$0.16 |
Risks
The Channel File 291 Incident on July 19, 2024 caused Windows system crashes and has led to significant remediation, customer and partner relations and reputational costs. MD&A states the incident has already caused delays in creating sales opportunities and longer sales cycles, and the company expects sales cycles to remain elongated in future periods.
CrowdStrike faces lawsuits, including securities litigation, governmental inquiries and possible investigations, penalties, consent decrees or injunctive relief tied to the Channel File 291 Incident. Customers and third parties have communicated intent to seek indemnification or compensation, which could materially increase expenses and divert management attention.
The filing states certain existing or prospective customers have deferred or may defer purchasing decisions, and some have terminated or may not renew agreements after the incident. MD&A notes that while churn has not been high, customer commitment packages may cause increased contraction due to elongated subscription terms and decreased upsell dollar values.
Customer commitment packages introduced after the Channel File 291 Incident may extend subscription periods, lengthening the term over which revenue is recognized. The company expects this to adversely affect future results and says the impact of downturns in new sales or renewals may not be fully reflected in revenue until future periods.
The incident received negative media coverage and harmed the CrowdStrike and Falcon brands. The filing says competitors have aggressively approached current and prospective customers and partners to capitalize on the incident, and failure to regain trust may further harm reputation and results.
The risk factors state that market conditions could change rapidly due to AI, and competitors may more successfully incorporate AI, gain or leverage superior access to AI technologies or achieve higher market acceptance of AI solutions. Competitive pressure could reduce pricing, gross profits, revenue and market share.
The filing states sales cycles can be long and unpredictable, and that CrowdStrike has experienced and expects to continue to experience longer sales cycles in connection with the Channel File 291 Incident. This delays revenue recognition and makes results difficult to predict.
The company depends on key technical, sales and management personnel, including CEO George Kurtz, and faces intense competition for cybersecurity sales and engineering talent. It also states a large percentage of its sales force is new and may be less effective than seasoned personnel.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Net New ARR
Free Cash Flow
Annual Recurring Revenue (ARR)
Non-GAAP Subscription Gross Margin
Backlog
Module Adoption Rate (6+ modules)
Module Adoption Rate (7+ modules)
Module Adoption Rate (5+ modules)
ARR Growth YoY
Summary, forecast, risks and KPIs are extracted from CrowdStrike Holdings, Inc.'s SEC filings for Q2 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.