01—Abstract
Summary
Summary of the 10-Q filed December 3, 2025. Cited figures are marked; the original filing is the authoritative source.
CrowdStrike Holdings, Inc. reported robust revenue growth in the third quarter of fiscal year 2026, with total revenue reaching $1.23 billiona, a 22% increase year-over-year.
Subscription revenue continues to be the primary driver, growing 21% to $1.17 billionb. Despite top-line growth, the company reported a net loss of $34.0 million for the quarter, widening from a $16.8 million net loss in the prior year period. This widened loss is attributed to a significant increase in operating expenses, particularly in research and development and general and administrative costs, which rose 26% and 32% respectively.
The company also highlighted the ongoing impact of the July 19 Incident, noting increased legal expenses and longer sales cycles, although dollar-based net retention rates improved sequentially. Operationally, CrowdStrike continues to invest heavily in its platform and headcount, evident in the substantial increases in sales and marketing, R&D, and G&A expenses.
The company's cash position remains strong with $4.8 billionc in cash and cash equivalents, and net cash provided by operating activities was $1.1 billion for the nine-month period. The company completed several acquisitions during the nine months, including Pangea Cyber Corporation, Onum Technology Inc., and Adaptive Shield, which are expected to drive future growth and expand its cybersecurity offerings.
02—Key points
Key Highlights
- Total revenue for the three months ended October 31, 2025, was $1.23 billion, a 22% increase year-over-year.
- Subscription revenue grew 21% to $1.17 billion, representing 95% of total revenue.
- Net loss for the quarter widened to $34.0 million from $16.8 million in the prior year, impacted by increased operating expenses.
- Operating expenses increased by 23% to $995.9 million, driven by higher sales and marketing, R&D, and G&A costs.
- Annual Recurring Revenue (ARR) grew 23% to $4.9 billion as of October 31, 2025.
- The company reported $4.8 billion in cash and cash equivalents, indicating a strong liquidity position.
- CrowdStrike completed multiple acquisitions during the nine-month period, including Pangea Cyber Corporation, Onum Technology Inc., and Adaptive Shield, to expand its platform capabilities.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, CrowdStrike Holdings, Inc. lost $0.03.
- Revenue$1.23B100.0%
- Cost of revenue−$307.8M24.9%
- Gross profit$926.4M75.1%
- Operating costs−$995.9M80.7%
- Operating income−$69.4M5.6%
- Interest, other & tax$35.4M2.9%
- Net income−$34.0M2.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed December 3, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.23B$1.01B | +22.2% |
| Cost of Revenue | $307.81M$255.09M | +20.7% |
| Gross Profit | $926.44M$755.09M | +22.7% |
| R&D Expenses | $347.56M$275.60M | +26.1% |
| Operating Expenses | $995.88M$810.81M | +22.8% |
| Operating Income | -$69.44M-$55.72M | −24.6% |
| Net Income | -$34.00M-$16.82M | −102.1% |
| EPS (Basic) | $-0.04$-0.02 | −100.0% |
| EPS (Diluted) | $-0.04$-0.02 | −100.0% |
| Shares Outstanding (Basic) | 1.01B982.14M | +2.4% |
| Shares Outstanding (Diluted) | 1.01B982.14M | +2.4% |
05—Questions
Frequently Asked Questions
What was CrowdStrike's revenue performance for the quarter?
CrowdStrike reported total revenue of $1.23 billion for the three months ended October 31, 2025, an increase of 22% compared to the same period last year. Subscription revenue, the primary revenue driver, grew 21% to $1.17 billion.
How did the company's profitability change this quarter?
The company's net loss widened to $34.0 million for the three months ended October 31, 2025, compared to a net loss of $16.8 million in the prior year period. This increase in loss was primarily due to a significant rise in operating expenses, including sales and marketing, research and development, and general and administrative costs.
What is the company's current liquidity position?
CrowdStrike maintains a strong liquidity position, with cash and cash equivalents totaling $4.8 billion as of October 31, 2025. The company also has a $750 million revolving credit facility.
What impact has the July 19 Incident had on the business?
The July 19 Incident has led to increased legal and professional services expenses. The company noted that it has experienced longer sales cycles and delays in customer purchasing decisions, although dollar-based net retention rates improved sequentially. The company continues to incur significant expenses related to the incident and expects it to continue to adversely affect results of operations in future periods.
What is the company's outlook for Annual Recurring Revenue (ARR)?
CrowdStrike's Annual Recurring Revenue (ARR) grew 23% year-over-year to $4.9 billion as of October 31, 2025, indicating continued strong customer commitment and expansion.
06—Continue