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.

CRWD 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

Summary

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 billion. 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 million 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 billion, 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 billion. 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.

Financial Highlights

50 data points

Beta

Revenue

$1.17B

0.7% Gross Margin

Net Income

-$77.67M

-0.1% Net Margin

EPS (Diluted)

$-0.31

Total Assets

$9.29B

Cash & Equivalents

$4.97B

Free Cash Flow

$302.33M

Financial Statements

Beta

Revenue	$1.17B
Cost of Revenue	$310.28M
Gross Profit	$858.67M
R&D Expenses	$346.67M
Operating Expenses	$971.65M
Operating Income	-$112.98M
Net Income	-$77.67M
EPS (Basic)	$-0.31
EPS (Diluted)	$-0.31
Shares Outstanding (Basic)	249.91M
Shares Outstanding (Diluted)	249.91M

Key Highlights

1Total revenue increased by 21% to $1.17 billion, driven by subscription revenue growth.
2Net loss widened significantly to $77.7 million from a net income of $47.0 million in the prior year's quarter.
3Operating expenses increased substantially across all categories, with General and Administrative expenses up 67% largely due to costs from the July 19 incident.
4Annual Recurring Revenue (ARR) grew 20% year-over-year to $4.7 billion.
5Cash and cash equivalents stood at $4.97 billion, providing a strong liquidity position.
6The company is incurring significant legal and professional services expenses related to the July 19 incident.
7Professional services revenue showed strong growth of 45%.

CrowdStrike Holdings, Inc. Quarterly Report for Q2 Ended Jul 31, 2025

Summary

Financial Highlights

Key Highlights

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