10-K 0001535527-26-000010 (2026-03-05) vs 10-K 0001535527-25-000009 (2025-03-10)
| Section | Compared text | Words now | Changed |
| Risk Factors | Item 1A | 26,397 |
9.9% |
| MD&A | Item 7 | 8,163 |
11.1% |
| Legal Proceedings | Item 3, via Note 10 – Commitments and Contingencies | 2,139 |
26.0% |
| Accounting Policies | Item 8, Note 1 – Description of Business and Significant Accounting Policies | 6,595 |
10.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 395 words changed in this paragraph; it is 55% similar to last year's version.
In addition, the Organization for Economic Cooperation and Development (“OECD”) has published proposals covering a number of issues, including country-by-country reporting, permanent establishment rules, transfer pricing rules, tax treaties and taxation of the digital economy. On October 8, 2021, the OECD/G20 inclusive framework on Base Erosion and Profit Shifting (the “Inclusive Framework”) published a statement updating and finalizing the key components of a two-pillar plan on global tax reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for implementation has since been extended to 2024 and, with respect to certain components of the plan, to 2025. Under Pillar Two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies with revenue above €750 million, calculated on a jurisdictional basis. While substantial work remains The European Union and other countries (including those in which we operate) have enacted or committed to be completed by the OECD enact Pillar Two into their domestic laws, which may adversely impact our provision for income taxes, existing tax incentives, net income and national governments on the implementation of these proposals, future tax reform resulting from these developments may result in changes to long-standing tax principles, which could adversely affect our effective tax rate or result in higher cash tax liabilities. flows. On February 1, 2023, the U.S. Financial Accounting Standards Board ("FASB") (“FASB”) indicated that they believe the minimum tax imposed under Pillar Two is an alternative minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period incurred. On January 20, 2025, the Trump Administration issued an executive order declaring the Inclusive Framework has no force or effect in the U.S. absent congressional action, and directing the U.S. Department of Treasury to: (i) investigate whether any non-U.S. countries are not in compliance with any U.S. tax treaty or have implemented or are likely to implement tax rules that are extraterritorial or disproportionately affect U.S. companies, which may include actions or taxes imposed under Pillar One or Pillar Two, and (ii) develop options for “protective measures” in response to any such noncompliance or tax rules. On June 28, 2025, the United States and the rest of G7 countries announced a Side by Side (“SbS”) agreement that would, in principle, exclude U.S. parented groups from certain taxes under Pillar Two and address certain risks of base erosion and profit shifting, with the OECD publishing Administrative Guidance with respect to this on January 5, 2026. While the Administrative Guidance has approved the U.S. tax system as a “Qualified SbS Jurisdiction” (such that, for fiscal years commencing on or after January 1, 2026, U.S.-headquartered multinational enterprises may elect for the SbS safe harbor, which effectively deems the top-up tax for a jurisdiction to be zero for the purposes of the “income inclusion rules” and “under taxed profits rules”), we cannot predict whether or when such agreement will be brought into force, and whether the United States will adopt any other protective measures, including with respect to any taxes imposed under Pillar One, or whether or how any non-U.S. countries may change their tax laws, including with respect to Pillar One or Pillar Two, in response to the executive order, the agreement in principle (including the Administrative Guidance) described above, or otherwise. In addition, the OECD’s proposed solution Inclusive Framework envisages new international tax rules and the removal of all Digital Services Taxes (“DST”). Notwithstanding this, some countries, in the European Union and beyond, continue to operate existing DST regimes to capture tax revenue on digital services more immediately. Such laws may increase our tax obligations in those countries or change the manner in which we operate our business.
Source: Item 1A, 10-K 0001535527-26-000010 vs Item 1A, 10-K 0001535527-25-000009
Legal Proceedings 240 words changed in this paragraph; it is 52% similar to last year's version.
•On September 4, September 11, and September 20, 2024, three derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas alleging various claims, including breach of fiduciary duty under Delaware law duty, unjust enrichment, and violations of federal securities laws, including that the defendants made false or misleading statements in violation of Sections 10(b) and 14(a) of the Exchange Act and SEC Rules 10b-5 and 14a-9. One of the lawsuits also brings a claim against certain of the defendants for contribution under Sections 10(b) and 21D of the Exchange Act. The complainants seek monetary and non-monetary relief purportedly on behalf of the Company. On November 21, 2024, all three cases were consolidated and stayed pending resolution of the putative securities class action described above. On April 9, 2025, another derivative lawsuit was filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the District of Delaware, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits. On May 22, 2025, this lawsuit was voluntarily dismissed without prejudice. On April 10, 2025, two additional derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits. On May 23, 2025, these lawsuits were consolidated with each other and stayed pending a response by the Company’s board of directors to a litigation demand submitted by one of the plaintiffs and a proposed order governing next steps. On July 18, 2025, these consolidated lawsuits were stayed pending resolution of the putative securities class action described above. On July 3 and July 17, 2025, two additional derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as a nominal defendant, in the Delaware Court of Chancery, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits. On August 18, 2025, these two lawsuits were consolidated and stayed pending resolution of the putative securities class action described above.
Source: Item 3, via Note 10 – Commitments and Contingencies, 10-K 0001535527-26-000010 vs Item 3, via Note 10 – Commitments and Contingencies, 10-K 0001535527-25-000009
Accounting Policies 172 words changed in this paragraph; it is 32% similar to last year's version.
In November 2023, 2024, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard requires disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount for other segment items required to reconcile the difference between segment revenue and segment expenses to segment profit or loss along 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, with a description subsequent clarification of their composition, and its effective date through ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the title and position Effective Date in January 2025, requiring additional disclosure on specific expense categories included in the expense captions presented on the statements of the entity’s CODM. The update also expands interim segment disclosure requirements. operations. The new standard can be applied either prospectively or retrospectively, and is effective for annual periods beginning after December 15, 2023, 2026 and interim reporting periods within fiscal years annual reporting periods beginning after December 15, 2024. 2027. Early adoption is permitted. The Company adopted is currently evaluating the impact of this new guidance during on its disclosures within the year ended January 31, 2025. See Note 14, Segment Information for further details. consolidated financial statements.
Source: Item 8, Note 1 – Description of Business and Significant Accounting Policies, 10-K 0001535527-26-000010 vs Item 8, Note 1 – Description of Business and Significant Accounting Policies, 10-K 0001535527-25-000009
MD&A 162 words changed in this paragraph; it is 43% similar to last year's version.
General and administrative expenses increased by $89.6 $189.1 million, or 23%, 39%, in fiscal 2025, 2026, as compared to fiscal 2024. 2025. The increase in general and administrative expenses was primarily due to $31.9 million of an increase in expenses relating to associated with the July 19 Incident, an increase in employee-related expenses Incident and related matters of $27.2 million driven by a 19% increase in average headcount, an increase in allocated overhead costs of $6.3 million, an increase in consulting expense of $5.0 million, an increase in leased airfare costs of $4.5 $82.4 million, an increase in stock-based compensation expense of $4.0 $52.4 million, an increase in travel expenses consulting expense of $2.3 $16.4 million, charges related to the Strategic Plan of $12.5 million, an increase in company events employee-related expenses of $2.1 $11.2 million driven by a 14% increase in average headcount, an increase in legal expense of $4.5 million unrelated to the July 19 Incident or related matters, an increase in allocated overhead costs of $4.4 million, and an increase in term-based software licenses of $2.1 million, an increase in taxes and licenses expenses of $2.0 million, an increase in employee related programs of $1.8 million, and an increase in other labor expenses of $1.7 million, partially offset by a decrease in legal expense of $7.5 million unrelated to the July 19 Incident. $3.0 million.
Source: Item 7, 10-K 0001535527-26-000010 vs Item 7, 10-K 0001535527-25-000009
Every change, by type
Sentences and paragraphs of CRWD's Risk Factors and MD&A, 10-K 2026-03-05 against 10-K 2025-03-10.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
or data of our customers would be especially detrimental to our reputation, customer confidence in our solution, and our business.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
jurisdictions in which we operate, such procedures and controls may not be effective in ensuring compliance or preventing unauthorized transfers of personal data.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
In June 2025, we announced that our board of directors authorized a program under which we are authorized to repurchase up to $1.0 billion of our outstanding shares of common stock (the “Share Repurchase Program”). Such repurchases may be made from time to time using a variety of methods, including open market purchases, privately negotiated transactions and trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. The Share Repurchase Program does not have a fixed expiration date and may be suspended or discontinued at any time. We are not obligated to use the Share Repurchase Program to acquire any specific amount of common stock. We intend to use the Share Repurchase Program opportunistically depending on market prices and other factors.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
The timing and amount of any repurchases will be subject to liquidity, market and economic conditions, any applicable restrictions under future credit facilities, compliance with applicable legal requirements, and other relevant factors. Repurchases of shares of our common stock under the Share Repurchase Program will reduce the amount of cash we have available to fund working capital, repay debt, make capital expenditures and strategic acquisitions or pursue business opportunities, and for other general corporate purposes. The Share Repurchase Program may not enhance long-term stockholder value because the market price of our common stock may decline below the levels at which we repurchased shares and short-term stock price fluctuations could reduce the effectiveness of this program.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
sustained, we could be required to pay additional taxes, interest and penalties, which could result in one-time tax charges, higher effective tax rates, reduced cash flows and lower overall profitability of our operations.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
On July 4, 2025, tax reform legislation included in the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States. The tax effects of the OBBBA have been accounted for in the second quarter of the fiscal year 2026. The OBBBA includes significant corporate tax reforms, including (i) the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years); (ii) the option to claim 100% accelerated depreciation deductions on qualified property; and (iii) international tax provisions modifying global intangible low-taxed income (“GILTI”), foreign-derived intangible income (“FDII”), and base erosion and anti-abuse tax (“BEAT”).
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedRisk Factors
Governmental authorities, certain investors, and other stakeholders continue to focus on, set and revise, expectations relating to corporate responsibility matters, both in the United States and internationally. Such expectations are evolving and may be contradictory. Our actions, undertakings and decisions in connection with corporate responsibility and/or sustainability-related initiatives, goals, or commitments, including whether to pursue them, and/or the extent to which we achieve them, may be challenged and could harm our reputation, adversely impact our ability to attract and retain employees or customers and expose us to increased scrutiny from investors, governmental authorities and others, or subject us to liability. Additionally, compliance with current or future legal requirements or stakeholder expectations regarding corporate responsibility and/or sustainability matters, including disclosure and reporting obligations, may result in increased costs and legal and operational risks. For example, the proliferation of regulations and guidance addressing corporate responsibility topics at various government levels has required and may continue to require significant effort and resources, and our efforts may not ensure compliance with evolving standards. Any such damage to our reputation, adverse impact to our ability to attract and retain employees or customers, increased scrutiny, exposure to liability and increased compliance costs may adversely impact our business, financial condition, or results of operations.
Read it in 10-K 2026-03-05 at sec.gov ↗
RemovedRisk Factors
customers, including subscription period extensions, discounts or promotional modules. The July 19 Incident has received negative media coverage and harmed our reputation and brand. If we are unable to regain the trust of our current and prospective customers and partners, or if negative media coverage and publicity continues, our reputation and brand may suffer further, exacerbating the effects discussed herein. These factors may result in harm to our business, results of operations and financial condition.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
may also experience longer sales cycles as customers seek to consolidate on our Falcon platform and negotiate larger deals, including in connection with our flexible subscription offering.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
until after some of our customers are affected. Additionally, our Falcon platform may falsely indicate a cyberattack or threat that does not actually exist, which may lessen customers’ trust in our solutions.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
•exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under our revolving facility, are at variable rates of interest; and increasing our cost of borrowing.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
Further, our credit agreement contains provisions that restrict our ability to dispose of assets and use the proceeds from any such disposition. We may not be able to consummate those dispositions or to obtain the proceeds that we could realize from them and these proceeds may not be adequate to meet any debt service obligations then due. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
In addition, the restrictive covenants in the credit agreement governing our revolving facility require us to maintain specified financial ratios and satisfy other financial condition tests. Our ability to meet those financial ratios and tests can be affected by events beyond our control, and we may not be able to meet them. These restrictive covenants could adversely affect our ability to:
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
•withstand a future downturn in our business, the industry or the economy in general;
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
•engage in business activities, including future opportunities, that may be in our best interest; and
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
•plan for or react to market conditions or otherwise execute our business strategies.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
Our revolving facility and the indenture that governs our Senior Notes contain cross-default provisions that could result in the acceleration of all of our indebtedness.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
A breach of the covenants under our revolving facility or the indenture that governs our Senior Notes could result in an event of default under the applicable indebtedness. Such a default may allow the creditors to accelerate the related indebtedness and may result in the acceleration of any other indebtedness to which a cross-acceleration or cross-default provision applies. In addition, an event of default under the credit agreement governing our revolving facility would permit the lenders under our revolving facility to terminate all commitments to extend further credit under that facility. Furthermore, if we were unable to repay amounts due and payable under our revolving facility, those lenders could proceed against the collateral granted to them to secure that indebtedness. In the event our lenders or noteholders accelerate the repayment of our borrowings, we and our guarantors may not have sufficient assets to repay that indebtedness. Additionally, we may not be able to borrow money from other lenders to enable us to refinance our indebtedness.
Read it in 10-K 2025-03-10 at sec.gov ↗
RemovedRisk Factors
such acquisitions could result in dilution to our stockholders. The incurrence of indebtedness would result in increased fixed obligations and could also include covenants or other restrictions that would impede our ability to manage our operations.
Read it in 10-K 2025-03-10 at sec.gov ↗
RewordedRisk Factors
For example, any deterioration in general economic conditions, including as a result of the geopolitical environment, environment or changes and uncertainty regarding trade policies or tariffs, the outbreak of diseases or other public health crises, volatility in the banking and financial services sector, or inflation (as well as government policies such as raising interest rates in response to inflation), have in the past and may in the future cause our current and prospective customers to delay or cut their overall security and IT operations spending, and such delays or cuts may fall disproportionately on cloud-based security solutions like ours.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
If we cannot make scheduled payments on our indebtedness, we will be in default and holders of our Senior Notes could declare all outstanding principal and interest to be due and payable, the lenders under our revolving facility could terminate their commitments to loan money, our secured lenders could foreclose against the assets securing their borrowings and we could be forced into bankruptcy or liquidation. payable.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
In addition, our tax obligations and effective tax rates could be adversely affected, among other things, by (i) changes in the relevant tax, accounting and other laws, regulations, principles and interpretations, including increases in corporate tax rates and greater taxation of international income and changes relating to income tax nexus, (ii) recognizing tax losses or lower than anticipated earnings in jurisdictions where we have lower statutory rates and higher than anticipated earnings in jurisdictions where we have higher statutory rates, (iii) changes in foreign currency exchange rates, or (iv) changes in the valuation of our deferred tax assets and liabilities.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
As of January 31, 2025, 2026, we had $750.0 million principal amount of indebtedness outstanding (excluding intercompany indebtedness), and there is additional availability under our revolving facility of up to $750.0 million (excluding issued but undrawn letters of credit). indebtedness).
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Since our business is focused on providing reliable security services to our customers, we believe that an actual or perceived security incident affecting our internal systems or data or data of our customers would be especially detrimental to our reputation, customer confidence in our solution, and our business.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
If we are otherwise unable to transfer data, including personal data, between and among countries and regions in which we operate, or are otherwise required to modify our practices, including our data privacy and security controls and procedures, it could affect the manner in which we provide our services, the geographical location or segregation of our relevant systems and operations, and could adversely affect our financial results.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Further, the use of AI presents emerging ethical ethical, social, legal and social other issues, and if we enable or offer solutions that draw scrutiny or controversy due to their perceived or actual impact risks or impacts on customers or on society as a whole, we may experience brand or reputational harm, competitive harm, delays in customer purchasing decisions and/or legal liability.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Expectations of regarding our efforts and performance relating to environmental, social corporate responsibility factors have imposed and governance factors may impose additional costs on us and expose us to new risks.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Because we host customer data on our cloud platform, which in some cases may contain personally-identifiable information or potentially confidential information, a security compromise, or an accidental or intentional misconfiguration or malfunction of our platform or third-party platforms, could result in personally-identifiable information and other customer data being accessible such as to attackers or to other customers.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
In addition, uncertain economic conditions or geopolitical conditions, including in connection with changes in trade policies and tariffs, may lead to additional scrutiny of budgets by current and prospective customers, which has resulted in, for example, longer sales cycles for products and services, and may result in shifting demand for IT products and services, and slower adoption of new technologies.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Our revolving facility and the The indenture that governs our Senior Notes contain contains, and future credit agreements may contain, terms which restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedRisk Factors
Our competitors may more successfully incorporate AI into their products, gain or leverage superior access to certain AI technologies, and achieve higher market acceptance of their AI solutions.
Read it in 10-K 2026-03-05 at sec.gov ↗
Quiet changesRisk Factors
We also expect our operating expenses to increase in the future as we continue to invest for our future growth, which will negatively affect our results of operations if our total revenue does not increase.
Read it in 10-K 2026-03-05 at sec.gov ↗
Quiet changesRisk Factors
We have also experienced, and expect to may continue to experience, longer sales cycles in connection with the July 19 Incident.
Read it in 10-K 2026-03-05 at sec.gov ↗
Quiet changesRisk Factors
Conditions in our market could change are changing rapidly and significantly as a result of technological advancements, including with respect to AI.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
On January 7, 2026, we entered into a definitive agreement to acquire 100% of the equity interest of SGNL.AI, Inc., a leader in continuous identity. The acquisition closed on February 20, 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. The cash consideration included cash held back in an escrow fund for a partial security for post-closing indemnification claims. We are currently finalizing the intangible assets valuation and purchase price allocation.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
On January 12, 2026, we entered into a definitive agreement to acquire 100%of the equity interest of Seraphic Algorithms Ltd. (“Seraphic”), a leader in browser runtime security. The acquisition closed on February 3, 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.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
In February 2026, we completed an assessment of the estimated period of benefit of commissions earned upon the initial acquisition of a contract, or subsequent upsell, and determined that it should increase from four to five years. This change in estimate will be effective beginning in fiscal year 2027. It is estimated this change will improve our fiscal year 2027 income (loss) from operations by $85.0 million to $95.0 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
As discussed in Note 1 and Note 16 of the Notes to the Consolidated Financial Statements, we identified an immaterial error related to the recognition of stock-based compensation expense in prior periods. We will revise our previously reported quarterly financial information based on the summary presented below in our future filings with the SEC, as applicable, to correct for this error.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
A summary of the impacts of the revision to the affected financial statement line items in our Condensed Consolidated Financial Statements is presented below for each quarterly period in the fiscal year ended January 31, 2026 (in thousands, except per share data). As the impact of the error for the fiscal year ended January 31, 2025 was only $4.0 million, the impacts of the revision on the associated quarterly periods have not been presented as they are not individually material to any quarterly period.
Read it in 10-K 2026-03-05 at sec.gov ↗
AddedMD&A
There was no impact to the consolidated statements of cash flows from operating activities, investing activities, or financing activities for any period. The impact to the consolidated statements of comprehensive income (loss) is limited to the impact to Net income (loss) as detailed above. The impact to the consolidated statements of stockholders' equity is to Additional paid-in capital and Accumulated deficit for the same amounts as detailed above, with no resulting impact on Total stockholders’ equity as previously reported.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The increase in subscription cost of revenue was primarily due to an increase in cloud hosting and related services costs of $46.4 million, an increase in employee-related expenses of $55.6 $43.1 million driven by a 28% 16% increase in average headcount, an increase in depreciation of data center equipment of $38.4 million, an increase in stock-based compensation expense of $29.7 million, an increase in cloud hosting and related services costs of $28.5 million, an increase in allocated overhead costs of $20.3 $33.4 million, an increase in amortization of internal-use software of $17.6 $24.9 million, an increase in hardware maintenance costs stock-based compensation expense of $5.4 $18.1 million, and an increase in employee benefits allocated overhead costs of $4.2 $16.8 million, and charges related to the Strategic Plan of $3.4 million, partially offset by a decrease in other labor expenses of $2.8 million and a decrease in company events expenses of $1.2 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $159.0 $168.4 million driven by a 14% 12% increase in average headcount, an increase in stock-based compensation expense of $59.7 $48.2 million, an increase in marketing programs of $55.5 $29.2 million, an increase in allocated overhead costs of $28.4 million, $21.4 million of expenses relating to the July 19 Incident, an increase in travel expenses of $13.1 million, an increase in company events expenses of $8.6 $20.2 million, an increase in employee benefits of $6.3 $16.5 million, an increase in term-based software licenses travel expenses of $5.4 $11.2 million, charges related to the Strategic Plan of $9.0 million, an increase in cloud hosting and related costs of $4.2 $6.2 million, an increase in term-based software licenses of $3.2 million, an increase in other labor expenses of $2.8 $2.1 million, and an increase in consulting expense expenses of $2.5 $1.7 million, partially offset by a decrease in expenses associated with the July 19 Incident and related matters of $20.3 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The increase decrease in other income, income (expense), net during fiscal 2025 2026 compared to fiscal 2024 2025 was primarily due to an increase in net foreign currency transaction losses of $3.5 million, a decrease in net realized gains on our strategic investments of $2.4 $2.2 million, a decrease and an increase in downward mark to market adjustments and impairment of $0.5 $0.6 million on of our strategic investments, and partially offset by an increase in gains on from deferred compensation assets of $0.4 $0.8 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
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 2023 % % % Revenue Subscription 95% 94% 95% 94% Professional services 5% 6% 5% 6% Total revenue 100% 100% 100% Cost of revenue Subscription 21% 21% 23% 21% Professional services 4% 4% 4% Total cost of revenue 25% 25% 27% 25% Gross profit 75% 75% 73% 75% Operating expenses Sales and marketing 38% 39% 37% 40% Research and development 29% 27% 25% 27% 26% General and administrative 14% 12% 13% 14% Total operating expenses 81% 78% 75% 82% 76% Loss from operations (6)% (3)% —% (8)% (1)% Interest expense (1)% (1)% (1)% Interest income 4% 5% 5% 2% Other income, income (expense), net —% —% —% Income (loss) before provision for income taxes (3)% 1% 4% (7)% 3% Provision for income taxes 1% 2% 1% 1% Net income (loss) (3)% —% 3% (8)% 2% Net income attributable to non-controlling interest —% —% —% Net income (loss) attributable to CrowdStrike (3)% —% 3% (8)% 2%
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The increase in professional services cost of revenue was primarily due to an increase in consulting expenses of $18.7 million, an increase in employee-related expenses of $13.1 $15.5 million driven by an 20% a 12% increase in average headcount, an increase in stock-based compensation expense of $8.8 $5.7 million, charges related to the Strategic Plan of $3.3 million, and an increase in allocated overhead costs of $5.0 million, an increase in consulting expense of $2.2 million, and an increase in employee benefits of $1.0 $2.6 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
Non-cash charges primarily consisted of $631.5 million $1.1 billion in stock-based compensation expense, $238.9 $449.4 million of amortization of deferred contract acquisition costs, $126.8 $250.2 million of depreciation and amortization, $18.4 $31.2 million of amortization of intangibles assets, $13.4 $17.2 million of non-cash operating lease costs, and $3.2 $5.4 million of non-cash interest expense, and $1.6 million change in fair value of strategic investments, partially offset by $3.9 $14.8 million of deferred income taxes and $4.2 million of realized gains on strategic investments and a $3.4 million change in deferred income taxes. investments.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The increase decrease in provision for income taxes during fiscal 2025 2026 compared to fiscal 2024 2025 was primarily attributable to a decrease in tax on intercompany sales sale of intellectual property from acquired entities, pre-tax partially offset by an increase in tax on foreign earnings, earnings and withholding taxes related to customer payments in certain foreign jurisdictions, and change in the realizability of deferred tax assets in certain foreign jurisdictions.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The following shows interest expense, interest income, and other income, income (expense), net, for fiscal 2025, 2026, as compared to fiscal 2024 2025 (in thousands, except percentages):Change percentages):Year Ended January 31, Change 2026 2025 2024 $ % Interest expense $ (28,021) $(26,311) $(25,756) $ (555) 2% (1,710) 6% Interest income $ 194,969 $196,174 $148,930 $ 47,244 32% (1,205) (1)% Other income, income (expense), net $ (645) $5,101 $1,638 $ 3,463 211% (5,746) (113)%
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The following shows cost of revenue related to subscriptions and professional services for fiscal 2025, 2026, as compared to fiscal 2024 2025 (in thousands, except percentages):Change percentages):Year Ended January 31, Change 2026 2025 2024 $ % Subscription $835,509 $630,745 $ 204,764 32% 1,015,915 $834,578 $ 181,337 22% Professional services 155,972 124,978 30,994 25% 203,014 155,594 47,420 30% Total cost of revenue $991,481 $755,723 $ 235,758 31% 1,218,929 $990,172 $ 228,757 23%
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The following shows gross profit and gross margin for subscriptions and professional services for fiscal 2025, 2026, as compared to fiscal 2024 2025 (in thousands, except percentages):Change percentages):Year Ended January 31, Change 2026 2025 2024 $ % Subscription gross profit $2,925,971 $2,239,812 $ 686,159 31% 3,548,768 $2,926,902 $ 621,866 21% Professional services gross profit 36,172 60,020 (23,848) (40)% 44,308 36,550 7,758 21% Total gross profit $2,962,143 $2,299,832 $ 662,311 29% 3,593,076 $2,963,452 $ 629,624 21%
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
Net cash used in investing activities during fiscal 2025 2026 of $536.6 $764.5 million was primarily due to business acquisitions, net of cash acquired, of $310.3 $382.3 million, which was related to the Flow Security Onum Technology Inc. and Adaptive Shield Pangea Cyber Corporation acquisitions, purchases of property and equipment of $254.9 $302.1 million, capitalized internal-use software and website development costs of $59.0 $68.8 million, purchases of strategic investments of $19.7 $10.8 million, and purchases of deferred compensation investments of $2.7 $6.0 million, partially offset by proceeds from maturities of short-term investments of $97.3 million and proceeds from sales of strategic investments of $12.5 $5.2 million.
Read it in 10-K 2026-03-05 at sec.gov ↗
RewordedMD&A
The following shows total revenue from subscriptions and professional services for fiscal 2025, 2026, as compared to fiscal 2024 2025 (in thousands, except percentages):Change percentages):Year Ended January 31, Change 2026 2025 2024 $ % Subscription $ 4,564,683 $3,761,480 $2,870,557 $ 890,923 31% 803,203 21% Professional services 247,322 192,144 184,998 7,146 4% 55,178 29% Total revenue $ 4,812,005 $3,953,624 $3,055,555 $ 898,069 29% 858,381 22%
Read it in 10-K 2026-03-05 at sec.gov ↗