Summary
SentinelOne closed fiscal 2025 with fourth-quarter revenue of $225.5 million, up 29.5% from the prior-year quarter. Full-year revenue reached $821.5 million, up 32.2%. Gross profit followed the same path, at $168.5 million for the quarter, up 33.8%, and $610.4 million for the full year, up 38.1%. GAAP gross margin was 74.7% for the quarter, up 2.4 percentage points, and 74.3% for the full year, up 3.2 percentage points. Non-GAAP gross margin was 79% in the quarter and 79% for the full year.
The demand picture held up. Annualized recurring revenue was $920.1 million as of January 31, 2025, up 27% from a year earlier. Customers spending $100,000 or more in ARR reached 1,411, up 25%. Dollar-based net retention rate was 110%, compared with 114% a year earlier. Deferred revenue was $572.1 million, up 11.2% from the prior-year quarter. Remaining performance obligations were $1.17 billion, up 30.5%. Management tied the ARR growth to new customer additions and to existing accounts adopting adjacent platform modules.
Profitability is still the sticking point on a GAAP basis. The quarter's operating loss was $80.3 million, up 1.2% as the loss narrowed, and the full-year operating loss was $329.4 million, up 13.0% as the loss narrowed. GAAP operating margin was negative 35.6% for the quarter, up 11.0 percentage points, and negative 40.1% for the full year, up 20.8 percentage points. Net loss was $70.8 million in the quarter, up 1.7% as the loss narrowed, and $288.4 million for the full year, up 14.8% as the loss narrowed. Diluted EPS was negative $0.92 for the full year, up 20.0% as the loss narrowed. Non-GAAP results look different. Non-GAAP operating margin was 1% in the quarter, the company's first quarter of positive non-GAAP operating margin, and negative 3% for the full year. Non-GAAP net income was $12.2 million in the quarter versus a loss of $6.6 million a year earlier, and $15.2 million for the full year versus a loss of $81.2 million. Non-GAAP diluted EPS was $0.04 in the quarter and $0.05 for the full year.
Cash generation turned a corner. Operating cash flow was negative $3.4 million in the quarter, up 45.0%, and $33.7 million for the full year, up 149.3%. Capital expenditures were $0.19 million in the quarter, up 3.7%, and $1.86 million for the full year, up 42.6%. Free cash flow was negative $8.9 million in the quarter and positive $6.7 million for the full year, against negative $83.6 million a year earlier.
Guidance covers the next quarter and the full fiscal year. For the first quarter of fiscal 2026, management guided non-GAAP gross margin to 79% and non-GAAP operating margin to negative 2%. For full fiscal 2026, non-GAAP gross margin guidance sat near 79% and non-GAAP operating margin guidance was 3% to 4%. The company also said it expects to surpass $1 billion in ARR and revenue this year.
Risks are familiar but real. The company has a history of losses and faces intense competition, and it flags longer sales cycles plus deal downsizing by larger enterprise customers. Macro items on the list include tariffs and trade restrictions, geopolitical conflicts, inflation, interest rate volatility and a potential recession. Acquisitions bring integration risk. SentinelOne is still negotiating a bilateral Advance Pricing Agreement with the U.S. and Israeli governments, and if it agrees to an APA it may be required to make significant payments to the Israeli government. Purchase obligations stood at roughly $718.4 million as of January 31, 2025. The restructuring plan announced in June 2023 was substantially completed by the end of fiscal 2025, which removes one cost lever even as the push into autonomous agentic AI workflows raises the competitive stakes.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $225.5M | $210.6M | +7.1% | $174.2M | +29.5% |
| Gross profit | $168.5M | $157.4M | +7.1% | $125.9M | +33.8% |
| Gross margin | 74.7% | 74.7% | ±0.0 pp | 72.3% | +2.4 pp |
| Research & development | $74.6M | $70.5M | +5.9% | $56.4M | +32.2% |
| Sales & marketing | $128.1M | $123.7M | +3.5% | $101.5M | +26.2% |
| General & administrative | $46.1M | $52.3M | -12.0% | $46.8M | -1.6% |
| Total operating expenses | $248.8M | $246.5M | +0.9% | $207.1M | +20.1% |
| Operating income (loss) | -$80.3M | -$89.1M | +9.9% | -$81.2M | +1.2% |
| Operating margin | -35.6% | -42.3% | +6.7 pp | -46.6% | +11.0 pp |
| Net income (loss) | -$70.8M | -$78.4M | +9.7% | -$72.0M | +1.7% |
| Net margin | -31.4% | -37.2% | +5.8 pp | -41.3% | +9.9 pp |
| Diluted EPS | -$0.22 | -$0.25 | +$0.03 | -$0.24 | +$0.02 |
| Net retention rate | 110.0% | — | — | 114.0% | -4.0 pp |
Risks
MD&A states current macroeconomic uncertainty has led to 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. The company expects global macroeconomic conditions impacting demand to persist in the near term.
Risk Factors note sales cycles can be long and unpredictable, and MD&A says longer sales cycles and deal downsizing by new and existing larger enterprise customers are currently impacting the business.
Dollar-based net retention rate declined to 110% as of January 31, 2025 from 114% as of January 31, 2024, and customers have no obligation to renew subscriptions, which are generally one to three years.
SentinelOne incorporates generative AI into offerings such as Purple AI, but competitors may incorporate AI more successfully, and its AI solutions rely on third-party foundation models whose availability or commercial model may change negatively. The company also warns AI may negatively impact gross margins and competitive position.
Substantially all sales are fulfilled through channel partners, agreements are generally non-exclusive and may be terminated at any time, and failure of partners to meet multi-year purchasing commitments would adversely affect revenue and financial condition.
As a cybersecurity provider, the company faces intense attacks, including from nation-state actors and AI-based tools, and its highly privileged platform access increases the risk that an actual or perceived breach could harm reputation, create liability, and affect customer confidence.
The cybersecurity market is intensely competitive, and many competitors have greater financial, technical, marketing, sales, and other resources, longer operating histories, and larger customer bases, allowing them to offer lower pricing or bundle competing products.
The evolving regulatory landscape for AI includes new U.S. federal, state, and international laws, and the company must monitor these developments to keep products sold to government entities compliant. The current administration's approach to AI regulation is expected to differ from the prior administration.
Risk Factors cite the January 20, 2025 executive order establishing the Department of Government Efficiency and warn that pressures and uncertainty around the U.S. federal government's budget and potential changes in budgetary priorities could adversely affect funding for and purchases of its platform by government organizations.
The platform is primarily hosted on AWS, and AWS has discretion to change or interpret its terms of service, raise pricing, compete with the company, or terminate the relationship, which could cause platform interruptions and costly transition delays.
The February 2024 acquisitions of PingSafe and Stride, plus S Ventures investments, expose the company to integration challenges, diversion of management attention, unanticipated write-offs, and failure to realize expected benefits.
The company maintains a Tel Aviv office and had approximately 11% of personnel in Israel as of January 31, 2025; if the armed conflict in Israel worsens or continuity measures fail, business interruptions could occur.
Since 2022 the company has been negotiating a bilateral Advance Pricing Agreement with the U.S. and Israeli governments, and if it agrees to an APA it may be required to make significant payments to the Israeli government that could adversely affect cash flows over the next several years.
The company reported a net loss of $288.4 million for fiscal 2025, had an accumulated deficit of $1.6 billion as of January 31, 2025, and expects operating expenses to increase in the future, which could prevent achieving or sustaining profitability.
SaaS KPIs
All quarters →Customers with ARR of $100,000 or more
Non-GAAP operating margin
ARR
Dollar-Based Net Retention Rate
Summary, forecast, risks and KPIs are extracted from SentinelOne, 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 6, 2026.