01—Abstract
Summary
Summary of the 10-Q filed August 28, 2025. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported its financial results for the quarter ended July 31, 2025, showing a notable increase in total revenue, up 21% year-over-year to $1.17 billiona.
This growth was primarily driven by a 20% increase in subscription revenue, reflecting continued customer acquisition and expansion. The company also saw a significant increase in professional services revenue, which grew by 45%. Despite revenue growth, CrowdStrike reported a net loss of $77.7 millionb for the quarter, a significant deterioration from the net income of $47.0 million in the prior year's quarter.
This net loss was influenced by a substantial increase in operating expenses, particularly in sales and marketing (up 26%), research and development (up 38%), and general and administrative expenses (up 67%). The substantial rise in G&A expenses was largely attributed to costs related to the July 19 incident. Annual Recurring Revenue (ARR) reached $4.7 billionc, a 20% increase year-over-year, showcasing the company's strong recurring revenue base.
The dollar-based net retention rate remained strong, though the company noted potential impacts on sales cycles and customer purchasing decisions due to the July 19 incident. The company ended the quarter with a healthy cash and cash equivalents balance of nearly $5.0 billiond. The ongoing legal proceedings and inquiries related to the July 19 incident continue to be a significant factor impacting operating expenses and the company's financial outlook.
02—Key points
Key Highlights
- Total revenue increased by 21% to $1.17 billion, driven by subscription revenue growth.
- Net loss widened significantly to $77.7 million from a net income of $47.0 million in the prior year's quarter.
- Operating expenses increased substantially across all categories, with General and Administrative expenses up 67% largely due to costs from the July 19 incident.
- Annual Recurring Revenue (ARR) grew 20% year-over-year to $4.7 billion.
- Cash and cash equivalents stood at $4.97 billion, providing a strong liquidity position.
- The company is incurring significant legal and professional services expenses related to the July 19 incident.
- Professional services revenue showed strong growth of 45%.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, CrowdStrike Holdings, Inc. lost $0.07.
- Revenue$1.17B100.0%
- Cost of revenue−$310.3M26.5%
- Gross profit$858.7M73.5%
- Operating costs−$971.6M83.1%
- Operating income−$113.0M9.7%
- Interest, other & tax$35.3M3.0%
- Net income−$77.7M6.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 28, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.17B$963.87M | +21.3% |
| Cost of Revenue | $310.28M$237.40M | +30.7% |
| Gross Profit | $858.67M$726.47M | +18.2% |
| R&D Expenses | $346.67M$250.91M | +38.2% |
| Operating Expenses | $971.65M$712.81M | +36.3% |
| Operating Income | -$112.98M$13.66M | −927.2% |
| Net Income | -$77.67M$47.01M | −265.2% |
| EPS (Basic) | $-0.08$0.05 | −263.2% |
| EPS (Diluted) | $-0.08$0.05 | −263.2% |
| Shares Outstanding (Basic) | 999.64M976.36M | +2.4% |
| Shares Outstanding (Diluted) | 999.64M1.01B | −0.5% |
05—Questions
Frequently Asked Questions
What is the overall financial performance trend for CrowdStrike in this quarter?
CrowdStrike demonstrated robust revenue growth, up 21% to $1.17 billion, driven by its core subscription business. However, the company experienced a significant swing from profitability to a net loss of $77.7 million, primarily due to a substantial increase in operating expenses, particularly in general and administrative costs related to the July 19 incident. While ARR continues to grow strongly, the net loss indicates ongoing cost pressures and the financial impact of recent operational events.
How did the July 19 incident impact the financial results?
The July 19 incident had a material impact on CrowdStrike's financial results, primarily through increased general and administrative expenses, which rose by 67%. These expenses include significant legal and professional services costs associated with lawsuits, claims, and inquiries stemming from the incident. The company also noted that the incident has led to longer sales cycles and delays in customer purchasing decisions, which could impact future revenue growth.
What is the outlook for CrowdStrike's revenue and growth?
CrowdStrike continues to show strong revenue growth, with subscription revenue up 20% and ARR reaching $4.7 billion, up 20% year-over-year. The company's land-and-expand strategy and broad market appeal suggest continued growth potential. However, management anticipates that sales cycles may remain elongated due to the impacts of the July 19 incident, which could moderate the pace of future revenue growth compared to prior periods.
How is the company managing its liquidity and financial position?
CrowdStrike maintains a strong liquidity position, with cash and cash equivalents totaling nearly $5.0 billion at the end of the quarter. The company also has access to a $750 million revolving credit facility. Despite the current net loss and ongoing expenses related to the July 19 incident, the company believes its liquidity is sufficient to meet its anticipated cash needs for working capital and capital expenditures for at least the next 12 months.
06—Continue