01—Abstract
Summary
Summary of the 10-Q filed June 4, 2025. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported a net loss of $110.2 milliona for the three months ended April 30, 2025, a significant shift from the net income of $42.8 million in the same period last year.
This loss was primarily driven by a substantial increase in operating expenses, particularly in sales and marketing (up 26%), research and development (up 42%), and general and administrative expenses (up 59%). The latter was heavily impacted by $38.7 millionb in expenses related to the July 19 Incident and associated legal matters. Despite the net loss, total revenue saw a healthy 20% increase year-over-year, reaching $1.1 billion, driven by strong subscription revenue growth.
Annual Recurring Revenue (ARR) also grew by 22% to $4.4 billionc. However, the company noted that the July 19 Incident has led to longer sales cycles and a strategic plan aimed at improving operational efficiencies, suggesting potential impacts on future growth rates and profitability. The company ended the quarter with a strong cash position of $4.6 billion, providing ample liquidity.
02—Key points
Key Highlights
- Total revenue increased by 20% to $1.1 billion for the three months ended April 30, 2025.
- Net loss attributable to CrowdStrike was $110.2 million, compared to a net income of $42.8 million in the prior year period.
- Operating expenses increased significantly across all categories: Sales & Marketing (26%), R&D (42%), and G&A (59%).
- General & Administrative expenses were heavily impacted by $38.7 million in costs related to the July 19 Incident and related matters.
- ARR grew 22% year-over-year to $4.4 billion.
- The company maintained a strong liquidity position with $4.6 billion in cash and cash equivalents as of April 30, 2025.
- The July 19 Incident has led to elongated sales cycles and increased customer commitment packages, impacting future revenue recognition and potential upsells.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, CrowdStrike Holdings, Inc. lost $0.09.
- Revenue$1.10B100.0%
- Cost of revenue−$287.9M26.1%
- Gross profit$815.6M73.9%
- Operating costs−$934.3M84.7%
- Operating income−$118.7M10.8%
- Interest, other & tax$14.4M1.3%
- Net income−$104.3M9.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed June 4, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.10B$921.04M | +19.8% |
| Cost of Revenue | $287.88M$225.00M | +27.9% |
| Gross Profit | $815.56M$696.03M | +17.2% |
| R&D Expenses | $330.93M$235.25M | +40.7% |
| Operating Expenses | $934.27M$689.10M | +35.6% |
| Operating Income | -$118.71M$6.94M | −1811.5% |
| Net Income | -$104.26M$42.82M | −343.5% |
| EPS (Basic) | $-0.10$0.04 | −333.3% |
| EPS (Diluted) | $-0.10$0.04 | −347.1% |
| Shares Outstanding (Basic) | 993.73M969.56M | +2.5% |
| Shares Outstanding (Diluted) | 993.73M1.00B | −0.7% |
05—Questions
Frequently Asked Questions
What is the financial performance of CrowdStrike for the quarter ended April 30, 2025?
CrowdStrike reported a net loss of $110.2 million for the quarter ended April 30, 2025, a significant decrease from a net income of $42.8 million in the same period last year. Total revenue increased by 20% to $1.1 billion, driven by subscription revenue growth. However, operating expenses increased substantially, particularly in general and administrative costs due to expenses related to the July 19 Incident.
How has the July 19 Incident impacted the company's financials?
The July 19 Incident has had a material impact, primarily reflected in a $38.7 million increase in general and administrative expenses for the quarter. The company also noted that the incident has led to longer sales cycles, delays in customer purchasing decisions, and the introduction of customer commitment packages which may affect future revenue recognition and upsells. Significant legal and professional services expenses are expected to continue.
What is the company's revenue growth and ARR performance?
CrowdStrike demonstrated strong top-line growth, with total revenue increasing by 20% to $1.1 billion for the quarter. Annual Recurring Revenue (ARR) also saw a healthy increase of 22% year-over-year, reaching $4.4 billion as of April 30, 2025. This indicates continued demand for its cybersecurity solutions.
What is the company's cash position and liquidity?
The company ended the quarter with a robust cash and cash equivalents balance of $4.6 billion. This strong liquidity, combined with cash expected from operations and its revolving credit facility, provides sufficient resources to meet its anticipated cash needs for working capital and capital expenditures for at least the next 12 months.
06—Continue