Summary
SentinelOne reported third quarter fiscal 2025 revenue of $210.65 million, up 28.3% from the prior-year quarter. Gross profit was $157.39 million, up 30.7%. The GAAP operating loss widened to $89.12 million, and the GAAP net loss widened to $78.36 million. Diluted EPS was -$0.25, a wider loss than the prior-year quarter. Gross margin was 74.7%, up 1.4 percentage points, and operating margin was -42.3%, up 7.3 percentage points. Operating cash flow was -$7.17 million, an improvement from the prior-year quarter, and capital expenditures were $0.23 million, down 63.6%. Deferred revenue was $498.00 million, up 17.8%, and remaining performance obligations were $969.70 million, up 25.0%. For the nine months ended October 31, 2024, revenue was $595.94 million, up 33.3%, and operating cash flow was $37.13 million, up 159.7%.
Non-GAAP results tell a different story on profitability. Non-GAAP gross margin was 80%, compared with 79%. Non-GAAP operating margin was -5%, compared with -11%. Non-GAAP net income was $75 thousand, the second consecutive quarter of positive non-GAAP net income. ARR grew 29% to $859.7 million as of October 31, 2024. Net new ARR was $54 million, up 4% year over year and more than 20% sequentially. Customers with ARR of $100,000 or more grew 24% to 1,310. International revenue represented 37% of total revenue. Free cash flow was -$12.65 million for the quarter, and trailing-twelve-month free cash flow margin was 1%, compared with -17% in the year-ago quarter.
Management pointed to platform adoption and new business as the drivers. Purple AI remained the fastest growing solution, and its attach rate across eligible endpoints doubled compared with the second quarter. Cloud, Data, and AI solutions continued to outpace overall company growth. The company expanded its Lenovo partnership to bundle the Singularity Platform and Purple AI on enterprise PCs, achieved FedRAMP High for endpoint security and AI SIEM, and deepened its AWS partnership to run Purple AI on Amazon Bedrock. Non-GAAP operating expenses were $178 million, or 85% of revenue, compared with $148 million, or 90% of revenue a year ago. Non-GAAP research and development expenses were $47 million, non-GAAP sales and marketing expenses were $103 million, and non-GAAP general and administrative expenses were $29 million.
Guidance covers the fourth quarter of fiscal 2025 and the full fiscal year 2025. For the fourth quarter, management guided to a non-GAAP gross margin of about 79% and a non-GAAP operating margin of about -3%. For the full fiscal year 2025, it guided to a non-GAAP gross margin of about 79% and a non-GAAP operating margin of about -4%. The company raised its revenue growth outlook for fiscal 2025 to 32% from 31%. It also said it expects positive free cash flow for the full fiscal year 2025 and repeated a long-term target of 20% operating margin over time.
Risks remain substantial. The company cited its limited operating history, its history of losses, intense competition, fluctuations in operating results, actual or perceived network or security incidents, and the challenges of integrating acquisitions and managing rapid growth. It flagged declining global macroeconomic conditions, the change in the U.S. presidential administration, banking sector instability, supply chain disruptions, a potential recession, inflation, interest rate volatility, and geopolitical conflict, including the conflicts in the Middle East and Ukraine and tensions between China and Taiwan. It also noted longer sales cycles and deal downsizing by larger enterprise customers. About 11% of personnel were in Israel as of October 31, 2024, and no single end customer accounted for more than 3% of ARR.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $210.6M | $198.9M | +5.9% | $164.2M | +28.3% |
| Gross profit | $157.4M | $148.2M | +6.2% | $120.4M | +30.7% |
| Gross margin | 74.7% | 74.5% | +0.2 pp | 73.3% | +1.4 pp |
| Research & development | $70.5M | $63.6M | +10.8% | $52.3M | +34.7% |
| Sales & marketing | $123.7M | $119.6M | +3.4% | $98.2M | +25.9% |
| General & administrative | $52.3M | $44.4M | +17.9% | $51.2M | +2.2% |
| Total operating expenses | $246.5M | $227.6M | +8.3% | $201.9M | +22.1% |
| Operating income (loss) | -$89.1M | -$79.4M | -12.3% | -$81.5M | -9.4% |
| Operating margin | -42.3% | -39.9% | -2.4 pp | -49.6% | +7.3 pp |
| Net income (loss) | -$78.4M | -$69.2M | -13.3% | -$70.3M | -11.5% |
| Net margin | -37.2% | -34.8% | -2.4 pp | -42.8% | +5.6 pp |
| Diluted EPS | -$0.25 | -$0.22 | -$0.03 | -$0.24 | -$0.01 |
Risks
MD&A and risk factors state that current macroeconomic conditions have recently caused a decline in usage and consumption patterns from certain customers, especially larger enterprise customers, longer sales cycles, and deal downsizing by new customers and of renewals by existing customers, especially larger enterprises. The company expects these global macroeconomic conditions impacting demand to persist in the near term.
The company has made and expects to continue significant investments in AI, including its Purple AI threat-hunting solution, but generative AI solutions rely on third-party foundation models that may change availability or commercial terms. Competitors may incorporate AI more successfully, and evolving AI regulation, including a 2023 Executive Order and government policies, adds compliance and litigation risk.
Substantially all sales are fulfilled through channel partners, and the company has several large MSSP, OEM, and reseller partnerships with multi-year purchasing commitments. Failure of partners to meet purchasing commitments would adversely affect key financial metrics and could cause churn in forecast metrics.
Risk factors state customers have no obligation to renew after subscription terms of generally one to three years and may renew for shorter lengths or cease using features. MD&A notes dollar-based net retention remained in expansionary territory as of October 31, 2024, but a larger portion of business mix was driven by new customers in 2024.
The company maintains an office in Tel Aviv, Israel and had approximately 11% of its personnel in Israel as of October 31, 2024. MD&A states the armed conflict in the Middle East has not adversely impacted results to date, but if it continues to worsen or intensify, business interruptions or spillover effects could adversely affect operations.
The company is currently subject to securities class action litigation as described in Legal Proceedings, which can result in substantial costs and divert management attention. Related insurance costs and potential future securities litigation following stock price volatility also remain risks.
SaaS KPIs
All quarters →Non-GAAP gross margin
Annualized recurring revenue (ARR)
Customers with ARR of $100,000 or more
Net New ARR
Summary, forecast, risks and KPIs are extracted from SentinelOne, Inc.'s SEC filings for Q3 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 6, 2026.