AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 22/10/2026
Moat63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Broad multi-module adoption, infrastructure integration and strong gross retention jointly support embedded relationships and switching friction. Replacement expense and relative competitive advantage are not quantified.
durability · 2/4 · Several years of net expansion support persistence, but net retention fell from 119% to 112% before recovering to 115%. Incumbent bundling limits confidence in long-term protection.
customer dependency · 3/4 · Reported 97% quarterly gross retention and substantial adoption of six or more modules demonstrate repeat demand and platform breadth. Dependency is inferred from deployment and integration rather than measured migration costs.
erosion resilience · 2/4 · Fiscal 2026 retention and July 2026 expansion sales show resilience despite experienced service interruptions. Those interruptions and sufficient incumbent alternatives prevent a stronger durability assessment; possible competitive consequences are not treated as realized losses.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Growth is attributed primarily to new customers and additional sensors and modules. The passages do not establish realized price increases, cuts or discount outcomes; retention cannot separate price from volume.
retention · 3/4 · Reported gross retention of 97% each fiscal 2026 quarter and quarterly net retention of 112%, 111%, 114% and 115% demonstrate strong repeat demand and expansion. These outcomes do not prove customers accepted higher unit prices.
margin resilience · 3/4 · Total gross margin remained approximately 75% across fiscal 2024–2026, and six-month subscription gross margin improved from 77% to 78% in July 2026. This demonstrates gross-margin resilience, with the latest improvement attributed to hiring efficiencies rather than pricing. Operating losses temper the broader economics.
contractual freedom · 2/4 · Generally one-to-three-year agreements provide committed commercial terms but limit near-term flexibility, while service commitments can require credits or refunds. No material service-level liability is reported. The passages do not establish unilateral repricing rights or renewal restrictions.
Predictability95
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 12.10
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.05
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 0.00
- currentRatioGrade
- 81.85
- Interest coverage (x)
- -10.47
- Current ratio (x)
- 1.77
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 2.43
- 3-year average SBC / revenue (%)
- 21.78
- cashConversionGrade
- 0.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Fiscal 2026 operating cash generation and free cash flow are substantial, but customer prepayments contribute materially. Widening fiscal 2026 operating losses, significant acquisition cash spending, acquisition-related equity issuance and actual buybacks create a mixed record. Acquisition returns and net dilution offset are not established.
incentive alignment · 2/4 · Actual disclosed programs combine performance-based equity, four-year service vesting and a CEO relative-TSR award measured over three years. One-year revenue and non-GAAP EPS measurement and substantial non-GAAP exclusions weaken alignment with durable economic profit. Award design does not establish future vesting or actual executive ownership.
execution · 3/4 · Strong fiscal 2026 retention, continued July 2026 expansion sales and profitability in the first two fiscal 2027 quarters demonstrate commercial execution. This assessment uses operating outcomes, not management reputation. Experienced service interruptions and the prior fiscal year's operating losses qualify the result.
governance · 2/4 · One-share-one-vote following the dual-class sunset, an independent chair and independent key committees support oversight. A classified board and the disclosed compensation-accounting correction make the evidence mixed. Proposed charter changes are not assumed adopted.
Evidence
Business highlights include: • a 22% year-over-year increase in total revenue, reaching $4.81 billion; • a 24% year-over-year increase in ending annual recurring revenue (“ARR”), (1) reaching $5.25 billion as of January 31, 2026; • generating $1.61 billion in net cash provided by operating activities or 34% of revenue, and free cash flow of $1.24 billion to deliver free cash flow margin of 26%; (2) • maintaining a gross retention rate of 97% in each quarter of fiscal 2026; • reaching $1.69 billion in ending ARR from Falcon Flex accounts, up over 120% year-over-year; (1) ARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms.
Fiscal 2026 business highlights: retention, growth and cash generation · Filed 05/05/2026
i TABLE OF CONTENTS • expanding in the endpoint security market as well as success growing ARR from our cloud security, next-gen identity protection and LogScale next-gen SIEM solutions, together surpassing $1.9 billion of ending ARR; and • increasing customer adoption of our modules: 50% of our customer base had adopted six or more modules, 34% of our customer base had adopted seven or more modules and 24% of our customer base had adopted eight or more modules, as of January 31, 2026 (in each case, excluding customers who subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less).
Business highlights: module adoption at January 31, 2026 · Filed 05/05/2026
Our Net Retention Rate was 112%, 111%, 114%, and 115% for the first, second, third, and fourth quarter of fiscal 2026, respectively, falling within our target range, and therefore no modifier was applied to the final payout under the CIP.
Executive compensation: actual quarterly fiscal 2026 net retention · Filed 05/05/2026
Subscription revenue increased by $297.3 million, or 27%, for the three months ended July 31, 2026 compared to the three months ended July 31, 2025, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.
Results of operations: July 2026 subscription revenue growth drivers · Filed 27/08/2026
APIs and Integrations. Our Falcon platform and architecture is built around a rich set of APIs that efficiently and effectively complement and expand a customer’s existing security infrastructure, such as security information event management, or SIEMs, intrusion prevention systems and intrusion detection systems.
Business: platform APIs and integration with customer infrastructure · Filed 10/03/2025
The power of our land-and-expand strategy is evidenced by our 119% dollar-based net retention rate as of January 31, 2024.
Business: January 2024 dollar-based net retention · Filed 07/03/2024
The power of our land-and-expand strategy is evidenced by our 112% dollar-based net retention rate as of January 31, 2025.
Business: January 2025 dollar-based net retention · Filed 10/03/2025
Even if there is significant demand for cloud-based security solutions like ours, if our competitors include functionality that is, or is perceived to be, equivalent to or better than ours in legacy products that are already generally accepted as necessary components of an organization’s IT security architecture, we may have difficulty increasing the market penetration of our solutions.
Competition risk: equivalent functionality in incumbent products · Filed 27/08/2026
Furthermore, even if the functionality offered by other security and IT operations providers is more limited than the functionality of our platform, organizations may elect to accept such limited functionality in lieu of adding products from additional vendors like us.
Competition risk: customer acceptance of limited incumbent functionality · Filed 27/08/2026
In addition, if our customers are not able to fully utilize their product subscriptions (including in connection with our flexible subscription offering), we may experience increased contraction as such customers may elect to renew with shorter subscription periods, fewer cloud modules, fewer endpoints or smaller contract values, which may reduce our dollar-based net retention rate.
Retention risk: subscription underutilization and potential contraction · Filed 05/03/2026
We have experienced, and may in the future experience, service interruptions and other performance problems due to a variety of factors.
Reliability risk: experienced service interruptions and performance problems · Filed 27/08/2026
The following shows gross profit and gross margin for subscriptions and professional services for the six months ended July 31, 2026 as compared to the six months ended July 31, 2025 (in thousands, except percentages): Six Months Ended July 31, Change $ Change % 2026 2025 Subscription gross profit $ 2,121,990 $ 1,659,902 $ 462,088 28 % Professional services gross profit 18,257 16,058 2,199 14 % Total gross profit $ 2,140,247 $ 1,675,960 $ 464,287 28 % Six Months Ended July 31, Change % 2026 2025 Subscription gross margin 78 % 77 % 1 % Professional services gross margin 13 % 14 % (1) % Total gross margin 75 % 74 % 1 % Subscription gross margin increased by one percentage point for the six months ended July 31, 2026, compared to the six months ended July 31, 2025.
Results of operations: six-month subscription and total gross margins · Filed 27/08/2026
The increase in subscription gross margin was primarily attributable to hiring efficiencies.
Results of operations: hiring efficiencies explain subscription margin improvement · Filed 27/08/2026
We recognize subscription revenue ratably over the term of the agreement, which is generally one to three years.
Revenue recognition: subscription agreement terms · Filed 05/03/2026
To the extent we are unable to meet our stated service level commitments or to the extent we suffer extended periods of poor performance or unavailability of our Falcon platform, we may be contractually obligated to provide affected customers with service credits for future subscriptions, and, in certain cases, refunds.
Contractual service commitments: credits and potential refunds · Filed 27/08/2026
To date, there has not been a material failure to meet our service level commitments, and we do not currently have any material liabilities accrued on our balance sheets for such commitments.
Service commitments: no material failure or accrued liabilities reported · Filed 27/08/2026
64 Table of Contents Results of Operations The following tables set forth our consolidated statements of operations for each period presented (in thousands, except percentages): Year Ended January 31, 2026 2025 2024 Revenue Subscription $ 4,564,683 $ 3,761,480 $ 2,870,557 Professional services 247,322 192,144 184,998 Total revenue 4,812,005 3,953,624 3,055,555 Cost of revenue Subscription 1,015,915 834,578 632,743 Professional services 203,014 155,594 126,186 Total cost of revenue 1,218,929 990,172 758,929 Gross profit 3,593,076 2,963,452 2,296,626 Operating expenses Sales and marketing 1,831,254 1,523,001 1,140,275 Research and development 1,384,770 1,075,587 780,319 General and administrative 670,344 481,264 395,173 Total operating expenses 3,886,368 3,079,852 2,315,767 Loss from operations (293,292) (116,400) (19,141) Interest expense (28,021) (26,311) (25,756) Interest income 194,969 196,174 148,930 Other income (expense), net (645) 5,101 1,638 Income (loss) before provision for income taxes (126,989) 58,564 105,671 Provision for income taxes 34,176 71,130 32,232 Net income (loss) (161,165) (12,566) 73,439 Net income attributable to non-controlling interest 1,337 2,675 1,258 Net income (loss) attributable to CrowdStrike $ (162,502) $ (15,241) $ 72,181 65 Table of Contents The following table presents the components of our consolidated statements of operations as a percentage of total revenue for the periods presented: Year Ended January 31, 2026 2025 2024 % % % Revenue Subscription 95 % 95 % 94 % Professional services 5 % 5 % 6 % Total revenue 100 % 100 % 100 % Cost of revenue Subscription 21 % 21 % 21 % Professional services 4 % 4 % 4 % Total cost of revenue 25 % 25 % 25 % Gross profit 75 % 75 % 75 % Operating expenses Sales and marketing 38 % 39 % 37 % Research and development 29 % 27 % 26 % General and administrative 14 % 12 % 13 % Total operating expenses 81 % 78 % 76 % Loss from operations (6) % (3) % (1) % Interest expense (1) % (1) % (1) % Interest income 4 % 5 % 5 % Other income (expense), net — % — % — % Income (loss) before provision for income taxes (3) % 1 % 3 % Provision for income taxes 1 % 2 % 1 % Net income (loss) (3) % — % 2 % Net income attributable to non-controlling interest — % — % — % Net income (loss) attributable to CrowdStrike (3) % — % 2 % Comparison of Fiscal 2026 and Fiscal 2025 Revenue The following shows total revenue from subscriptions and professional services for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages): Year Ended January 31, Change 2026 2025 $ % Subscription $ 4,564,683 $ 3,761,480 $ 803,203 21 % Professional services 247,322 192,144 55,178 29 % Total revenue $ 4,812,005 $ 3,953,624 $ 858,381 22 % Total revenue increased by $858.4 million, or 22%, in fiscal 2026, as compared to fiscal 2025.
Consolidated results of operations: fiscal 2024 through fiscal 2026 · Filed 05/03/2026
We have a history of losses, and while we have achieved profitability in certain periods, including the first and second quarters of fiscal 2027 and fiscal 2024, our accumulated deficit was $1.2 billion as of July 31, 2026.
Liquidity discussion: quarterly profitability and accumulated deficit · Filed 27/08/2026
35 Table of Contents The following table presents shares repurchased and subsequently retired (in thousands): Three Months Ended July 31, 2026 Six Months Ended July 31, 2026 Shares Amount Shares Amount Share repurchases — $ — 1,920 $ 175,622 Total share repurchases — $ — 1,920 $ 175,622 17.
Share repurchases: actual six-month purchases and retirement · Filed 27/08/2026
The total consideration transferred consisted of $627.9 million in cash, net of $9.4 million of cash acquired, and $8.9 million representing the fair value of replacement equity awards attributable to pre-acquisition service, subject to customary net working capital and purchase price adjustments.
Subsequent events: completed SGNL acquisition consideration · Filed 05/03/2026
The total consideration transferred consisted of $327.4 million in cash, net of $1.1 million of cash and restricted cash acquired, and $13.9 million representing the fair value of replacement equity awards attributable to pre-acquisition service, subject to customary net working capital and purchase price adjustments.
Subsequent events: completed Seraphic acquisition consideration · Filed 05/03/2026
In connection with our acquisition of SGNL on February 20, 2026, we issued approximately $82.2 million of shares of our Class A common stock, subject to service-based vesting conditions, to certain stockholders of SGNL.
Unregistered equity sales: SGNL acquisition service-based shares · Filed 04/06/2026
Fiscal 2026 Elements / Metrics / Weightings Performance Stock Unit Revenue and Non-GAAP EPS (4) 50% Service-based RSU Four-year graded vesting 50% Performance-Based Stock Units Equity awards with performance-based vesting are a substantial, at-risk component of our NEOs’ compensation that is tied to CrowdStrike’s business performance.
Executive compensation: fiscal 2026 PSU and RSU program design · Filed 05/05/2026
Under the fiscal 2026 PSU plan, the number of PSUs earned depends entirely on CrowdStrike’s actual achievement against two equally weighted metrics — Revenue and non-GAAP EPS (5) measured over a one-year performance period in accordance with the following table.
Executive compensation: one-year revenue and non-GAAP EPS performance measurement · Filed 05/05/2026
The TSR PSUs may be earned based on the Company’s TSR relative to the TSR of the companies comprising the S&P 500 Index over a three-year performance period beginning on December 22, 2025 and ending on December 22, 2028 (the “Performance Period”).
Executive compensation: CEO relative TSR award performance period · Filed 05/05/2026
| Page 11 TABLE OF CONTENTS Information Regarding the Board of Directors and Corporate Governance Corporate Governance Highlights One share, one vote (dual class structure was sunset in fiscal 2025) 100% independent Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee Independent Chair of the Board Board composed of 89% independent directors Regular executive sessions of independent directors Rigorous director selection and evaluation process Annual Board and committee evaluations Annual review of committee charters and governance guidelines Board continuing education program Robust stockholder engagement program Stock ownership guidelines for directors and executive officers Restrictions on hedging and pledging of CrowdStrike securities Clawback policy Active management of director conflicts of interest Independence of the Board of Directors As required under Nasdaq listing standards, a majority of the members of a listed company’s board of directors must qualify as “independent,” as affirmatively determined by the board.
Governance highlights: voting structure, independence and ownership policies · Filed 05/05/2026
Each class consists, as nearly as practicable, of one-third of the total number of directors constituting the entire Board, and each class has a three-year term.
Director elections: classified board and three-year terms · Filed 05/05/2026
EXECUTIVE COMPENSATION 126 Table of Contents As discussed in Note 1 and Note 16 of the Notes to the Consolidated Financial Statements included in this report, the Consolidated Financial Statements were revised for the fiscal years ended January 31, 2025 and January 31, 2024, and the unaudited interim periods within such years, to correct for an immaterial error related to the timing of recognition of stock-based compensation expense in prior periods associated with certain awards granted in the fiscal years ended January 31, 2023 and January 31, 2022.
Executive compensation disclosure: prior financial statements revised for compensation accounting error · Filed 05/03/2026
Non-GAAP Operating Income We define non-GAAP operating income as GAAP income (loss) from operations excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses (credits), net, mark-to-market adjustments on deferred compensation liabilities, legal reserve and settlement charges or benefits, costs (recoveries) associated with the July 19 Incident and related matters, net, and strategic plan related charges (benefits), net.
Non-GAAP definitions: exclusions from operating income · Filed 05/05/2026
Therefore, a substantial source of our cash is from such prepayments, which are included on our condensed consolidated balance sheets as deferred revenue.
Liquidity discussion: customer prepayments as a substantial cash source · Filed 27/08/2026
To the extent that we are negotiating a renewal with a customer after the expiration of the subscription, we continue to include that revenue in ARR if we are actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies us that it is not renewing its subscription.
ARR definition: expired subscriptions under active renewal negotiation · Filed 05/05/2026
Subscription revenue increased by $297.3 million, or 27%, for the three months ended July 31, 2026 compared to the three months ended July 31, 2025, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.
Quarterly subscription revenue growth explanation · Filed 27/08/2026
43 Table of Contents Professional services revenue increased by $4.6 million, or 7%, for the three months ended July 31, 2026, compared to the three months ended July 31, 2025, which was primarily attributable to an increase in the number of professional service hours.
Quarterly professional services revenue growth explanation · Filed 27/08/2026
The increase in subscription gross margin was primarily attributable to hiring efficiencies.
Subscription gross margin improvement explanation · Filed 27/08/2026
These competitive pressures in our market or our failure to compete effectively may result in price reductions, fewer orders, reduced revenue and gross margins, increased net losses and loss of market share.
Potential competitive pricing pressures · Filed 27/08/2026
We achieved record net new ARR of $333 million alongside record net new ARR from new logos, increased dollar-based gross and net retention rates, and Q2 record cash flow from operations and free cash flow.
Reported ARR, retention and cash generation achievements · Filed 26/08/2026
The following shows gross profit and gross margin for subscriptions and professional services for the six months ended July 31, 2026 as compared to the six months ended July 31, 2025 (in thousands, except percentages): Six Months Ended July 31, Change $ Change % 2026 2025 Subscription gross profit $ 2,121,990 $ 1,659,902 $ 462,088 28 % Professional services gross profit 18,257 16,058 2,199 14 % Total gross profit $ 2,140,247 $ 1,675,960 $ 464,287 28 % Six Months Ended July 31, Change % 2026 2025 Subscription gross margin 78 % 77 % 1 % Professional services gross margin 13 % 14 % (1) % Total gross margin 75 % 74 % 1 % Subscription gross margin increased by one percentage point for the six months ended July 31, 2026, compared to the six months ended July 31, 2025.
Six months ended July 31, 2026 and 2025 subscription and professional services gross margins · Filed 27/08/2026
Additions to deferred revenue
1,590,914
1,232,414
2,945,298
2,378,566
Recognition of deferred revenue
(1,470,897)
(1,168,952)
(2,856,526)
(2,272,386)
Ending balance
4,842,210
3,834,857
4,842,210
3,834,857
Remaining Performance Obligations
The Company’s subscription contracts with its customers have a typical term of one to three years and most subscription contracts are non-cancelable.
Remaining performance obligations; typical subscription contract duration and cancellation restrictions · Filed 27/08/2026
Customers generally have the right to terminate their contracts for cause as a result of the Company’s failure to perform.
Customer termination rights for cause · Filed 27/08/2026
To the extent we are unable to meet our stated service level commitments or to the extent we suffer extended periods of poor performance or unavailability of our Falcon platform, we may be contractually obligated to provide affected customers with service credits for future subscriptions, and, in certain cases, refunds.
Contractual service credits and refund obligations · Filed 27/08/2026
To date, there has not been a material failure to meet our service level commitments, and we do not currently have any material liabilities accrued on our balance sheets for such commitments.
Actual service level commitment performance and accrued liabilities · Filed 27/08/2026
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
July 31, 2026
January 31, 2026
Assets
Current assets:
Cash and cash equivalents
$
5,013,847
$
5,230,125
Accounts receivable, net of allowance for credit losses
1,038,575
1,361,844
Deferred contract acquisition costs, current
389,070
447,455
Prepaid expenses and other current assets
513,686
379,695
Total current assets
6,955,178
7,419,119
Strategic investments
69,263
76,832
Property and equipment, net
1,174,851
976,331
Operating lease right-of-use assets
68,389
69,860
Consolidated cash balances, in thousands, July 31, 2026 and January 31, 2026 · Filed 26/08/2026
The total consideration transferred consisted of $627.9 million in cash, net of $9.4 million of cash and restricted cash acquired, and $9.2 million representing the fair value of replacement equity awards attributable to pre-acquisition service, subject to customary net working capital and purchase price adjustments.
Acquisition consideration paid in cash and replacement equity awards · Filed 27/08/2026
21 Table of Contents The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands): Total Fiscal 2027 (remaining six months) $ 10,917 Fiscal 2028 23,556 Fiscal 2029 15,884 Fiscal 2030 12,157 Fiscal 2031 8,124 Thereafter 12,036 Total operating lease payments 82,674 Less: imputed interest (8,711) Present value of operating lease liabilities $ 73,963 As of July 31, 2026, the Company has entered into four non-cancelable operating leases, with lease terms greater than 12 months that have not yet commenced, with undiscounted future minimum payments of $117.5 million, which have been excluded from the table above.
Operating lease liabilities and additional uncommenced lease commitments as of July 31, 2026 · Filed 27/08/2026
The 2022 Special PSU Awards vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which are based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition.
2022 Special PSU Awards; stock price hurdles and service vesting conditions · Filed 27/08/2026
The following tables reflect the impacts of the revision to the previously filed financial statements for the three and six months ended July 31, 2025 (in thousands, except per share data): Consolidated Statements of Stockholders’ Equity As of July 31, 2025 As previously reported, adjusted for the Stock Split Adjustments As revised Additional paid-in capital $ 5,016,167 $ 28,968 $ 5,045,135 Accumulated deficit $ (1,265,989) $ (28,968) $ (1,294,957) Consolidated Statements of Operations Three Months Ended July 31, 2025 Six Months Ended July 31, 2025 As previously reported Adjustments As revised As previously reported Adjustments As revised Subscription cost of revenue $ 253,640 $ (1,189) $ 252,451 $ 496,014 $ (2,203) $ 493,811 Professional services cost of services 56,643 (543) 56,100 103,412 (797) 102,615 Total cost of revenue 310,283 (1,732) 308,551 599,426 (3,000) 596,426 Gross profit 858,669 1,732 860,401 1,672,960 3,000 1,675,960 Sales and marketing 447,024 (444) 446,580 886,641 (850) 885,791 Research and development 346,668 (4,135) 342,533 680,797 (7,338) 673,459 General and administrative 177,956 (1,211) 176,745 343,157 (2,277) 340,880 Total operating expenses 971,648 (5,790) 965,858 1,910,595 (10,465) 1,900,130 Loss from operations (112,979) 7,522 (105,457) (237,635) 13,465 (224,170) Loss before provision for income taxes (71,674) 7,522 (64,152) (161,561) 13,465 (148,096) Net loss (77,645) 7,522 (70,123) (188,638) 13,465 (175,173) Net loss attributable to CrowdStrike $ (77,675) $ 7,522 $ (70,153) $ (187,882) $ 13,465 $ (174,417) Net loss per share attributable to CrowdStrike common stockholders, adjusted for the Stock Split: Basic $ (0.08) $ 0.01 $ (0.07) $ (0.19) $ 0.02 $ (0.17) Diluted $ (0.08) $ 0.01 $ (0.07) $ (0.19) $ 0.02 $ (0.17) There was no impact to the consolidated statements of cash flows from operating activities, investing activities, or financing activities for any period.
Revisions to previously filed 2025 consolidated financial statements · Filed 27/08/2026
There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: risks associated with the content configuration update CrowdStrike released on July 19, 2024 for its Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”); risks associated with managing CrowdStrike’s rapid growth; CrowdStrike’s ability to identify and effectively implement necessary changes to address execution challenges; risks associated with new or existing products and services, including the risk of defects, errors, or vulnerabilities; CrowdStrike's ability to respond to an intensely competitive and rapidly evolving market; length and unpredictability of sales cycles; CrowdStrike’s ability to attract new and retain existing customers; CrowdStrike’s ability to complete and successfully integrate acquisitions; the failure to timely develop and achieve market acceptance of new or existing products and services; CrowdStrike’s ability to collaborate and integrate its products with offerings from other parties to deliver benefits to customers; industry trends; rapidly evolving technological developments in the market for security products and services; and general market, political, economic, and business conditions, including those related to a deterioration in macroeconomic conditions, inflation, geopolitical uncertainty and conflicts, public health crises and volatility in the banking and financial services sector.
Description of realized July 19, 2024 system crashes and associated forward-looking risks · Filed 26/08/2026
Certain provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove members of our board of directors or current management, and may adversely affect the market price of our common stock.
Disclosed charter and Delaware law restrictions affecting stockholder removal and acquisition attempts · Filed 27/08/2026
•the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;
Board authority to issue preferred stock without stockholder approval · Filed 27/08/2026
Subscription revenue increased by $297.3 million, or 27%, for the three months ended July 31, 2026 compared to the three months ended July 31, 2025, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.
MD&A: subscription revenue growth, three months ended July 31, 2026 · Filed 27/08/2026
The increase in subscription gross margin was primarily attributable to hiring efficiencies.
MD&A: explanation of subscription gross margin improvement · Filed 27/08/2026
Our dollar-based net retention rate reflects customer renewals, expansion, contraction, and churn, and excludes revenue from our incident response and proactive services.
Dollar-Based Net Retention Rate: components · Filed 27/08/2026
These competitive pressures in our market or our failure to compete effectively may result in price reductions, fewer orders, reduced revenue and gross margins, increased net losses and loss of market share.
Risk factors: potential effects of competitive pressures · Filed 27/08/2026
