Summary
CrowdStrike closed fiscal 2025 with fourth quarter total revenue of $1.06 billion, up 25.2% from the prior-year quarter, and full year revenue of $3.95 billion, up 29.4%. Subscription revenue was $1.01 billion in the quarter, a 27% increase, and $3.76 billion for the full year, up 31%. Ending ARR reached $4.24 billion, up 23% year over year, with $224.3 million of net new ARR added in the quarter. Full year net new ARR was $806.7 million, below the $875.5 million added in fiscal 2024. Management pointed to Next-Gen SIEM, Cloud Security and Identity Protection, which together surpassed $1.3 billion in ending ARR, and to Falcon Flex, which added over $1 billion of in-quarter deal value.
Module adoption kept climbing. As of January 31, 2025, 67% of subscription customers ran five or more modules, 48% ran six or more, 32% ran seven or more and 21% ran eight or more. Gross retention was 97%. The product pipeline stayed busy as well, with Charlotte AI Detection Triage, Insider Risk Services and Falcon Identity Protection for Microsoft Entra ID all moving to market, and FedRAMP authorization landing for several Falcon modules.
Profitability moved the other way. Gross profit was $784.55 million in the quarter, up 23.2%, but gross margin slipped to 74.1%, down 1.2 percentage points. The GAAP operating result swung to a loss of $85.30 million from income in the prior-year quarter, and the operating margin fell to -8.1%. Net loss attributable to CrowdStrike was $92.28 million, a swing from profit a year earlier. For the full year, net loss attributable to CrowdStrike was $19.27 million, also a swing from profit, and diluted EPS was -$0.08. Non-GAAP results look very different: non-GAAP income from operations was $217.3 million, up from $213.1 million, and non-GAAP net income was $260.9 million, or $1.03 per diluted share, versus $236.2 million and $0.95. Costs tied to the July 19 Incident were $21.0 million in the quarter and $60.1 million for the year.
Cash generation held up. Operating cash flow was $345.72 million in the quarter, essentially flat against the prior-year quarter, and $1.38 billion for the full year, up 18.5%. Free cash flow, a non-GAAP measure, was $239.8 million in the quarter versus $283.0 million, and $1.07 billion for the year versus $938.2 million. Capital expenditures rose to $87.21 million in the quarter, up 65.9%, and $254.85 million for the year, up 44.4%. Deferred revenue ended at $3.73 billion, up 22.1%, and remaining performance obligations were $6.50 billion, up 41.3%.
Guidance for the first quarter of fiscal 2026 calls for non-GAAP net income per diluted share of $0.64 to $0.66, and for the full fiscal year 2026 the company guides to non-GAAP EPS of $3.33 to $3.45. A new 22.5% long-term non-GAAP tax rate trims that outlook by $0.19 in the first quarter and $0.98 for the full year at the midpoint. The company has not provided the most directly comparable GAAP measures for its non-GAAP outlook because certain items sit outside its control. The July 19 Incident still casts a shadow. Management says sales cycles remain elongated, and customer commitment packages have produced increased contraction and lower upsell dollar values. Dollar-based net retention was 112%, down from 119%. Competition, execution risk around rapid growth and macroeconomic uncertainty round out the list of factors that could move results.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.06B | $1.01B | +4.8% | $845.3M | +25.2% |
| Gross profit | $784.5M | $755.1M | +3.9% | $636.8M | +23.2% |
| Gross margin | 74.1% | 74.8% | -0.6 pp | 75.3% | -1.2 pp |
| Research & development | $315.1M | $275.6M | +14.3% | $214.0M | +47.3% |
| Sales & marketing | $409.5M | $408.3M | +0.3% | $290.4M | +41.0% |
| General & administrative | $145.2M | $126.9M | +14.4% | $102.7M | +41.3% |
| Total operating expenses | $869.8M | $810.8M | +7.3% | $607.1M | +43.3% |
| Operating income (loss) | -$85.3M | -$55.7M | -53.1% | $29.7M | -387.5% |
| Operating margin | -8.1% | -5.5% | -2.5 pp | 3.5% | -11.6 pp |
| Net income (loss) | -$92.7M | -$16.8M | -451.3% | $54.9M | -268.8% |
| Net margin | -8.8% | -1.7% | -7.1 pp | 6.5% | -15.3 pp |
| Diluted EPS | -$0.38 | -$0.07 | -$0.31 | $0.23 | -$0.61 |
| Net retention rate | 112.0% | 115.0% | -3.0 pp | 119.0% | -7.0 pp |
Risks
The July 19 Incident, a Falcon sensor content configuration update on July 19, 2024 that caused system crashes for certain Windows systems, has had and is expected to continue to have an adverse effect on business, sales, customer and partner relations, reputation, results of operations, and financial condition. The company incurred significant costs, agreed to customer incentives such as subscription period extensions, discounts, or promotional modules, and MD&A states delays in creating sales opportunities and longer sales cycles.
The July 19 Incident has resulted in securities litigation, derivative litigation, putative consumer class actions, and government inquiries; authorities may seek undertakings, injunctive relief, consent decrees, or penalties. The filing states insurance may not cover all costs, claims, and liabilities, and additional claims may be asserted.
Fiscal 2025 year-to-date net income attributable to CrowdStrike was a loss of $19.3 million, down and swung to a loss from net income of $89.3 million in fiscal 2024; operating income for fiscal 2025 was a loss of $120.4 million, a widened loss from $2.0 million in fiscal 2024. In Q4, operating income swung to a loss of $85.3 million from income of $29.7 million in the prior-year quarter, and net income swung to a loss of $92.3 million from income of $53.7 million.
Risk factors state sales cycles can be long and unpredictable, and MD&A states the July 19 Incident caused delays in creating sales opportunities and longer sales cycles, including delays in customer purchasing decisions, and expects sales cycles to continue to be elongated. Large enterprise and government evaluations add further uncertainty.
Customer commitment packages introduced after the July 19 Incident included discounting, additional modules, professional services, flexible payment terms, or subscription period extensions, and have resulted and are expected to continue to result in increased contraction due to elongated subscription terms and decreased upsell dollar values. Dollar-based net retention rate was 112% as of January 31, 2025 compared with 119% as of January 31, 2024.
ARR grew 23% year over year to $4.2 billion as of January 31, 2025, compared with 34% year over year growth to $3.4 billion as of January 31, 2024, and net new ARR added was $806.7 million in fiscal 2025 compared with $875.5 million in fiscal 2024.
Risk factors state market conditions could change rapidly due to technological advancements, including AI, and competitors may more successfully incorporate AI into their products, gain or leverage superior access to certain AI technologies, and achieve higher market acceptance of their AI solutions. Competitive pressures may result in price reductions, reduced revenue, and reduced gross margins.
The filing discloses a transport layer security issue that impacted certain Falcon Linux sensors in February 2025, leading to a security fix and a security advisory, following the July 19 Incident. If defects or errors are not timely detected before deployment, the company states brand and reputation, business, and results of operations will suffer further.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Net New ARR
Free Cash Flow
Non-GAAP Subscription Gross Margin
Dollar-Based Net Retention Rate
Module Adoption Rate (6+ modules)
Module Adoption Rate (7+ modules)
ARR
Module Adoption Rate (5+ modules)
Module Adoption Rate (8+ modules)
Non-GAAP Income from Operations
Summary, forecast, risks and KPIs are extracted from CrowdStrike Holdings, Inc.'s SEC filings for Q4 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 1, 2026.