CrowdStrike Reports Second Quarter Fiscal Year 2027 Financial Results
• Delivers record net new ARR of $333 million, accelerates growth to 51% year- over-year
• Increases FY27 net new ARR growth guidance by 630 basis points to 34% year- over-year growth at the midpoint
• Exceeds $2.29 billion in ending ARR from accounts that have adopted Falcon Flex, accelerates growth to 101% year-over-year
• Generates Q2 record cash flow from operations of $530 million and Q2 record free cash flow of $377 million
-- CrowdStrike Holdings, Inc. (Nasdaq: CRWD), today announced financial results for the second quarter fiscal year 2027, ended July 31, 2026.
"Q2 was the best quarter in CrowdStrike's history," said George Kurtz, CrowdStrike’s Founder and Chief Executive Officer. "Delivering record Falcon Flex results, record net new ARR, and accelerating growth—the Falcon is soaring. We're raising our full year fiscal 2027 net new ARR growth outlook by 630 basis points. The Mythos moment translated into mass-market acceptance that AI adoption needs security, and that's CrowdStrike. Every enterprise will run on AI, and securing it is the largest market opportunity in our history."
Commenting on the company's financial results, Burt Podbere, CrowdStrike's Chief Financial Officer, added, "Q2 was a record-breaking quarter. 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. Given our strong Q2 results and record Q3 pipeline, we are raising our full-year fiscal 2027 net new ARR growth outlook to 34% at the midpoint, positioning us for continued durable, profitable growth."
• Revenue: Total revenue was $1.47 billion, a 26% increase, compared to $1.17 billion in the second quarter of fiscal 2026. Subscription revenue was $1.40 billion, a 27% increase, compared to $1.10 billion in the second quarter of fiscal 2026.
grew 25% year-over-year to $5.84 billion as of July 31, 2026, of which $332.8 million was net new ARR added in the quarter.
• Subscription Gross Margin: GAAP subscription gross margin was 78%, compared to 77% in the second quarter of fiscal 2026. Non-GAAP subscription gross margin was 81%, compared to 80% in the second quarter of fiscal 2026.
• Income/Loss from Operations: GAAP loss from operations was $33.2 million, compared to $105.5 million in the second quarter of fiscal 2026. Non-GAAP income from operations was $371.6 million, compared to $255.0 million in the second quarter of fiscal 2026.
• Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to CrowdStrike was $5.3 million, compared to a loss of $70.2 million in the second quarter of fiscal 2026. GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.01, compared to a loss of $0.07 in the second quarter of fiscal 2026. Non-GAAP net income attributable to CrowdStrike was $322.9 million, compared to $237.4 million in the second quarter of fiscal 2026. Non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, was $0.31, compared to $0.23 in the second quarter of fiscal 2026.
• Cash Flow: Net cash generated from operations was $530.3 million, compared to $332.8 million in the second quarter of fiscal 2026. Free cash flow was $377.4 million, compared to $283.6 million in the second quarter of fiscal 2026.
• CrowdStrike’s module adoption rates for subscription customers grew to 51%, 35%, and 26% for six or more, seven or more, and eight or more modules, respectively, as of July 31, 2026.
• Unveiled Continuous Identity for AI Agents, extending risk-aware authorization across human, non-human, and AI agent identities.
• Introduced new AI, cloud, and Next-Gen SIEM innovations in collaboration with Amazon Web Services (AWS) to help organizations securely build, deploy, and operate AI applications and cloud workloads.
• Released the CrowdStrike 2026 Threat Hunting Report, revealing that AI is now embedded across modern adversary operations.
• Extended CrowdStrike Falcon AI Detection and Response (AIDR) across leading AI gateway partners, including Databricks, Google Cloud, JetStream Security, Kong, LiteLLM, Maxim AI, Microsoft Azure, and TrueFoundry.
• Expanded Project QuiltWorks, extending the coalition with AWS to the cloud infrastructure layer and broadening support for SMBs to help them secure frontier AI risks.
• Announced a strategic collaboration with Cerebras Systems, combining the industry’s leading AI-native security platform with breakneck AI inference for enterprises deploying AI at scale.
• Expanded strategic partnership with Schwarz Digits, launching a multi-year roadmap to bring the AI-native Falcon® platform to European enterprises, and agreeing to acquire the technology assets of XM Cyber, a Schwarz Digits company that provides advanced attack path visualization and offensive simulation technologies.
• Joined the OpenID Foundation as a Sustaining Corporate Member and IDPro, contributing to open standards to accelerate the shift to continuous, risk-aware identity security.
• Recognized as a Leader in The Forrester Wave™: Extended Detection and Response Platforms, Q2 2026 report 1 .
• Named a Leader in the 2026 IDC MarketScape: Worldwide SIEM Vendor Assessment 2 .
• Named a Leader in the 2026 IDC MarketScape: Worldwide MDR/MXDR for the Enterprise Vendor Assessment 3 .
• Announced CrowdStrike’s leadership across multiple Frost & Sullivan reports, with CrowdStrike named Frost & Sullivan’s 2026 Global Enabling Technology Leader in Zero Trust Browser Security 4 and the Growth and Innovation Leader in the 2026 Frost Radar™: Cloud and Application Runtime Security 5 .
CrowdStrike is providing the following guidance for the third quarter of fiscal 2027 (ending October 31, 2026) and increasing its guidance for fiscal year 2027 (ending January 31, 2027).
Guidance for non-GAAP financial measures excludes stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets (including purchased patents), acquisition-related expenses (credits), net, amortization of debt issuance costs and discount, 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, strategic plan related charges (benefits) , net, losses (gains) and other expense (income) from strategic investments, and losses (gains) on deferred compensation assets, and is adjusted for its long-term non- GAAP effective tax rate. The company has not provided the most directly comparable GAAP measures because certain items are out of the company's control or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP income from operations, non-GAAP net income attributable to CrowdStrike, and non-GAAP net income per share attributable to CrowdStrike common stockholders, diluted, is not available without unreasonable effort.
Q3 FY27 Full Year FY27 Guidance Guidance Annual recurring $6,184.4 - $6,188.4 $6,603.0 - $6,611.9 revenue million million Total revenue $1,523.2 - $1,529.2 $5,991.1 - $6,011.1 million million Non-GAAP income from $372.7 - $375.9 million $1,497.2 - $1,508.4 operations million Non-GAAP net income $1,302.7 - $1,311.6 attributable to $325.4 - $327.9 million million CrowdStrike Non-GAAP net income per share attributable to $0.31 $1.25 - $1.26 CrowdStrike common stockholders, diluted Weighted average shares used in computing non-GAAP net income per share 1,048 million 1,044 million attributable to common stockholders, diluted Non-GAAP tax rate 21.0% 21.0%
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause the company's actual results to differ materially from these forward-looking statements.
CrowdStrike will host a conference call for analysts and investors to discuss its earnings results for the second quarter of fiscal 2027 and outlook for its fiscal third quarter and fiscal year 2027 today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). A recorded webcast of the event will also be available for one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding CrowdStrike’s future growth and future financial and operating performance, including CrowdStrike’s financial outlook for the third quarter fiscal 2027, fiscal year 2027, and beyond; product developments; strategic partnerships; and anticipated tax rate. 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.
Additional risks and uncertainties that could affect CrowdStrike’s financial results are included in the filings CrowdStrike makes with the Securities and Exchange Commission (“SEC”) from time to time, particularly under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including CrowdStrike’s most recently filed Annual Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and subsequent filings.
Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to CrowdStrike as of the date hereof, and CrowdStrike does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
CrowdStrike believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to CrowdStrike’s financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the financial tables below, as well as the “Explanation of Non-GAAP Financial Measures” and “Change in Non-GAAP Measures Presentation” sections of this press release.
CrowdStrike intends to announce material information to the public through the CrowdStrike Investor Relations website ir.crowdstrike.com , SEC filings, press releases, public conference calls, and public webcasts. CrowdStrike uses these channels, as well as social media and its blog , to communicate with its investors, customers, and the public about the company, its offerings, and other issues. It is possible that the information CrowdStrike posts on social media and its blog could be deemed to be material information. As such, CrowdStrike encourages investors, the media, and others to follow the channels listed above, including the social media channels listed on CrowdStrike’s investor relations website, and to review the information disclosed through such channels. Any updates to the list of disclosure channels through which CrowdStrike will announce information will be posted on the investor relations page on CrowdStrike’s website.
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity at forrester.com/about-us/objectivity.
2. IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment, (doc #US54126826, June 2026)
3. IDC MarketScape: Worldwide MDR/MXDR for the Enterprise 2026 Vendor Assessment, (doc #US5479242, August 2026)
4. Frost & Sullivan’s 2026 Global Enabling Technology Leader in Zero Trust Browser Security
CrowdStrike (Nasdaq: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity, and data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.
© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.
(1) Includes stock-based compensation expense and related employer payroll taxes as follows (in thousands):
(2) Includes amortization of acquired intangible assets, including purchased patents, as follows (in thousands):
(4) Includes mark-to-market adjustments on deferred compensation liabilities as follows (in thousands):
(5) Includes costs, net, such as legal fees, remediation costs, sensor testing costs, and insurance receivables among others, associated with the July 19 Incident and related matters as follows (in thousands):
(7) Includes amortization of debt issuance costs and discount as follows (in thousands):
(8) Includes gains (losses) and other income (expense) from strategic investments as follows (in thousands):
July 31, 2026 January 31, 2026 ────────────────────────────────────────────────────────────────────────────── Assets Current assets: Cash and cash equivalents $ 5,013,847 $ 5,230,125 Accounts receivable, net of allowance 1,038,575 1,361,844 for credit losses Deferred contract acquisition costs, 389,070 447,455 current Prepaid expenses and other current 513,686 379,695 assets 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 68,389 69,860 assets Deferred contract acquisition costs, 805,537 655,658 noncurrent Goodwill 2,251,426 1,363,294 Intangible assets, net 273,235 136,702 Other long-term assets 427,122 388,888 Total assets $ 12,025,001 $ 11,086,684 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 114,487 $ 105,319 Accrued expenses 220,069 181,089 Accrued payroll and benefits 418,070 389,690 Operating lease liabilities, 22,067 18,232 current Deferred revenue 3,497,144 3,421,051 Other current liabilities 157,851 68,811 Total current liabilities 4,429,688 4,184,192 Long-term debt 746,216 745,471 Deferred revenue, noncurrent 1,345,066 1,332,387 Operating lease liabilities, 51,896 56,374 noncurrent Other liabilities, noncurrent 312,610 295,655 Total liabilities 6,885,476 6,614,079 Commitments and contingencies Stockholders’ Equity Common stock, Class A and Class B 512 507 Additional paid-in capital 6,335,490 5,694,169 Accumulated deficit -1,249,962 -1,283,042 Accumulated other comprehensive 15,684 16,756 income Total CrowdStrike Holdings, Inc. 5,101,724 4,428,390 stockholders’ equity Non-controlling interest 37,801 44,215 Total stockholders’ equity 5,139,525 4,472,605 Total liabilities and stockholders’ $ 12,025,001 $ 11,086,684 equity
Six Months Ended July 31, Operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 51,272 $ -175,173 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and 157,597 116,834 amortization Amortization of 25,690 15,261 intangible assets Amortization of deferred contract 207,052 209,941 acquisition costs Non-cash operating 10,371 8,717 lease cost Stock-based 674,617 527,292 compensation expense Deferred income -7,062 -2,320 taxes Realized gains on strategic -36,362 — investments Non-cash interest 883 2,293 expense Change in fair value of strategic — 1,579 investments Changes in operating assets and liabilities, net of impact of acquisitions Accounts receivable, 324,183 242,008 net Deferred contract -298,436 -251,622 acquisition costs Prepaid expenses and -95,422 -50,411 other assets Accounts payable -7,717 -13,310 Accrued expenses and 11,918 12,716 other liabilities Accrued payroll and 28,394 -24,931 benefits Operating lease -9,087 -8,113 liabilities Deferred revenue 83,314 106,178 Net cash provided by operating 1,121,205 716,939 activities Investing activities Purchases of property and -222,037 -116,248 equipment Capitalized internal-use software and -49,090 -34,726 website development costs Purchases of strategic -3,400 -1,417 investments Proceeds from sales of strategic 17,504 4,388 investments Business acquisitions, net of cash and -881,376 — restricted cash acquired Purchases of -3,000 — intangible assets Purchases of deferred -4,338 -2,770 compensation investments Proceeds from the sale of deferred 130 164 compensation investments Net cash used in -1,145,607 -150,609 investing activities Financing activities Proceeds from issuance of common stock 1,669 2,355 upon exercise of stock options Proceeds from issuance of common stock 86,624 74,622 under the employee stock purchase plan Distributions to non-controlling -24,606 -2,156 interest holders Capital contributions from — 1,500 non-controlling interest holders Repurchases of -175,622 — common stock Net cash provided by (used in) financing -111,935 76,321 activities Effect of foreign exchange rates on cash, cash -1,616 6,595 equivalents and restricted cash Net increase (decrease) in cash, cash -137,953 649,246 equivalents and restricted cash Cash, cash equivalents and restricted 5,314,617 4,324,666 cash, at beginning of period Cash, cash equivalents and restricted $ 5,176,664 $ 4,973,912 cash, at end of period
__________________________ 1. Stock-based compensation expense has been revised to reflect immaterial prior period adjustments.
2. Effective second quarter fiscal year 2026, we adopted a 21.0% long-term projected non-GAAP tax rate, reduced from the previous rate of 22.5%, in connection with the enactment of the One Big Beautiful Bill Act. This rate reflects the anticipated tax benefit from earning income outside the U.S. while retaining intellectual property within the U.S. The change is applied prospectively, and the tax rate for prior periods remains unchanged.
3. Adjustments are related to the difference between the GAAP provision for income taxes and non-GAAP provision for income taxes.
4. For periods in which we had diluted non-GAAP net income per share attributable to CrowdStrike common stockholders, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share attributable to CrowdStrike common stockholders because of rounding differences.
After the close of trading on July 1, 2026, CrowdStrike effected a four-for-one stock split of its common stock in the form of a stock dividend. References made to all share and per share amounts and related stockholders' equity balances related to the company's outstanding common stock have been retroactively adjusted on the applicable disclosures to reflect the effects of the stock split.
In addition to determining results in accordance with U.S. generally accepted accounting principles (“GAAP”), CrowdStrike believes the following non-GAAP measures are useful in evaluating its operating performance. CrowdStrike uses the following non-GAAP financial information to evaluate its ongoing operations and for internal planning and forecasting purposes. CrowdStrike believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and facilitates period-to-period comparisons of operations, as these measures eliminate the effects of certain variables unrelated to CrowdStrike’s overall operating performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
Other companies, including companies in CrowdStrike’s industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of CrowdStrike’s non-GAAP financial measures as tools for comparison.
Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate CrowdStrike’s business.
CrowdStrike defines non-GAAP subscription gross profit and non-GAAP subscription gross margin as GAAP subscription gross profit and GAAP subscription gross margin, respectively, excluding stock-based compensation expense and related employer payroll taxes, amortization of acquired intangible assets, and strategic plan related charges (benefits), net.
CrowdStrike defines non-GAAP income from operations 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.
CrowdStrike defines non-GAAP net income attributable to CrowdStrike as GAAP net income (loss) attributable to CrowdStrike 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 , strategic plan related charges (benefits), net, amortization of debt issuance costs and discount, losses (gains) and other expense (income) from strategic investments, and losses (gains) on deferred compensation assets, and is adjusted for its long-term non- GAAP effective tax rate.
Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders, Diluted
CrowdStrike defines non-GAAP net income per share attributable to CrowdStrike common stockholders, as non-GAAP net income attributable to CrowdStrike divided by the weighted-average shares outstanding, which includes the dilutive effect of potentially dilutive common stock equivalents outstanding during the period.
Free cash flow is a non-GAAP financial measure that CrowdStrike defines as net cash provided by operating activities less purchases of property and equipment, capitalized internal-use software and website development costs, and purchases of and proceeds from deferred compensation investments, net. CrowdStrike monitors free cash flow as one measure of its overall business performance, which enables CrowdStrike to analyze its future performance without the effects of non-cash items and allows CrowdStrike to better understand the cash needs of its business. While CrowdStrike believes that free cash flow is useful in evaluating its business, free cash flow is a non-GAAP financial measure that has limitations as an analytical tool, and free cash flow should not be considered as an alternative to, or substitute for, net cash provided by operating activities in accordance with GAAP. The utility of free cash flow as a measure of CrowdStrike’s liquidity is further limited as it does not represent the total increase or decrease in CrowdStrike’s cash balance for any given period. In addition, other companies, including companies in CrowdStrike's industry, may calculate free cash flow differently or not at all, which reduces the usefulness of free cash flow as a tool for comparison.
ARR is calculated as the annualized value of CrowdStrike’s customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that CrowdStrike is negotiating a renewal with a customer after the expiration of the subscription, CrowdStrike continues to include that revenue in ARR if CrowdStrike is actively in discussion with such an organization for a new subscription or renewal, or until such organization notifies CrowdStrike that it is not renewing its subscription.
CrowdStrike's dollar-based net retention rate compares its ARR from a set of subscription customers against the same metric for those subscription customers from the prior year. CrowdStrike's dollar-based net retention rate reflects customer renewals, expansion, contraction and churn, and excludes revenue from its incident response and proactive services. Dollar-based net retention rate as of period end is calculated by starting with the ARR from all subscription customers as of 12 months prior to such period end, or Prior Period ARR. CrowdStrike then calculates the ARR from these same subscription customers as of the current period end, or Current Period ARR. Current Period ARR includes any expansion and is net of contraction or churn over the trailing 12 months, but excludes revenue from new subscription customers in the current period. CrowdStrike then divides the Current Period ARR by the Prior Period ARR to arrive at its dollar-based net retention rate.
Dollar-based gross retention rate as of the period end is calculated by starting with the ARR from all subscription customers as of 12 months prior to such period, or Prior Period ARR. CrowdStrike then deducts from the Prior Period ARR any ARR from subscription customers who are no longer customers as of the current period end, or Current Period Remaining ARR. CrowdStrike then divides the total Current Period Remaining ARR by the total Prior Period ARR to arrive at its dollar-based gross retention rate, which is the percentage of ARR from all subscription customers as of the year prior that is not lost to customer churn.
Module adoption rates are calculated by taking the total number of customers with six or more, seven or more, and eight or more modules, respectively, divided by the total number of subscription customers (excluding Falcon Go customers). Falcon Go customers are defined as customers who have subscribed with the Falcon Go bundle, a package designed for organizations with 100 endpoints or less.
Full text with the tables
CrowdStrike Reports Second Quarter Fiscal Year 2027 Financial Results
• Delivers record net new ARR of $333 million, accelerates growth to 51% year-
over-year
• Increases FY27 net new ARR growth guidance by 630 basis points to 34% year-
over-year growth at the midpoint
• Exceeds $2.29 billion in ending ARR from accounts that have adopted Falcon
Flex, accelerates growth to 101% year-over-year
• Generates Q2 record cash flow from operations of $530 million and Q2 record
free cash flow of $377 million
AUSTIN, Texas, August 26, 2026
-- CrowdStrike Holdings, Inc. (Nasdaq: CRWD), today announced financial results
for the second quarter fiscal year 2027, ended July 31, 2026.
"Q2 was the best quarter in CrowdStrike's history," said George Kurtz,
CrowdStrike’s Founder and Chief Executive Officer. "Delivering record Falcon
Flex results, record net new ARR, and accelerating growth—the Falcon is soaring.
We're raising our full year fiscal 2027 net new ARR growth outlook by 630 basis
points. The Mythos moment translated into mass-market acceptance that AI
adoption needs security, and that's CrowdStrike. Every enterprise will run on
AI, and securing it is the largest market opportunity in our history."
Commenting on the company's financial results, Burt Podbere, CrowdStrike's Chief
Financial Officer, added, "Q2 was a record-breaking quarter. 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. Given our strong Q2 results and record Q3
pipeline, we are raising our full-year fiscal 2027 net new ARR growth outlook to
34% at the midpoint, positioning us for continued durable, profitable growth."
Second Quarter Fiscal 2027 Financial Highlights
• Revenue: Total revenue was $1.47 billion, a 26% increase, compared to $1.17
billion in the second quarter of fiscal 2026. Subscription revenue was $1.40
billion, a 27% increase, compared to $1.10 billion in the second quarter of
fiscal 2026.
•
Annual Recurring Revenue (ARR)
grew 25% year-over-year to $5.84 billion as of July 31, 2026, of which $332.8
million was net new ARR added in the quarter.
• Subscription Gross Margin: GAAP subscription gross margin was 78%, compared to
77% in the second quarter of fiscal 2026. Non-GAAP subscription gross margin was
81%, compared to 80% in the second quarter of fiscal 2026.
• Income/Loss from Operations: GAAP loss from operations was $33.2 million,
compared to $105.5 million in the second quarter of fiscal 2026. Non-GAAP income
from operations was $371.6 million, compared to $255.0 million in the second
quarter of fiscal 2026.
• Net Income/Loss Attributable to CrowdStrike: GAAP net income attributable to
CrowdStrike was $5.3 million, compared to a loss of $70.2 million in the second
quarter of fiscal 2026. GAAP net income per share attributable to CrowdStrike
common stockholders, diluted, was $0.01, compared to a loss of $0.07 in the
second quarter of fiscal 2026. Non-GAAP net income attributable to CrowdStrike
was $322.9 million, compared to $237.4 million in the second quarter of fiscal
2026. Non-GAAP net income per share attributable to CrowdStrike common
stockholders, diluted, was $0.31, compared to $0.23 in the second quarter of
fiscal 2026.
• Cash Flow: Net cash generated from operations was $530.3 million, compared to
$332.8 million in the second quarter of fiscal 2026. Free cash flow was $377.4
million, compared to $283.6 million in the second quarter of fiscal 2026.
•
Cash and Cash Equivalents
grew to $5.01 billion as of July 31, 2026.
Recent Highlights
• CrowdStrike’s module adoption rates for subscription customers grew to 51%,
35%, and 26% for six or more, seven or more, and eight or more modules,
respectively, as of July 31, 2026.
• Unveiled Continuous Identity for AI Agents, extending risk-aware authorization
across human, non-human, and AI agent identities.
• Introduced new AI, cloud, and Next-Gen SIEM innovations in collaboration with
Amazon Web Services (AWS) to help organizations securely build, deploy, and
operate AI applications and cloud workloads.
• Released the CrowdStrike 2026 Technology Threat Landscape Report.
• Released the CrowdStrike 2026 Threat Hunting Report, revealing that AI is now
embedded across modern adversary operations.
• Extended CrowdStrike Falcon AI Detection and Response (AIDR) across leading AI
gateway partners, including Databricks, Google Cloud, JetStream Security, Kong,
LiteLLM, Maxim AI, Microsoft Azure, and TrueFoundry.
• Expanded Project QuiltWorks, extending the coalition with AWS to the cloud
infrastructure layer and broadening support for SMBs to help them secure
frontier AI risks.
• Announced a strategic collaboration with Cerebras Systems, combining the
industry’s leading AI-native security platform with breakneck AI inference for
enterprises deploying AI at scale.
• Expanded strategic partnership with Schwarz Digits, launching a multi-year
roadmap to bring the AI-native Falcon® platform to European enterprises, and
agreeing to acquire the technology assets of XM Cyber, a Schwarz Digits company
that provides advanced attack path visualization and offensive simulation
technologies.
• Joined the OpenID Foundation as a Sustaining Corporate Member and IDPro,
contributing to open standards to accelerate the shift to continuous, risk-aware
identity security.
• Recognized as a Leader in The Forrester Wave™: Extended Detection and Response
Platforms, Q2 2026 report 1 .
• Named a Leader in the 2026 IDC MarketScape: Worldwide SIEM Vendor Assessment 2
.
• Named a Leader in the 2026 IDC MarketScape: Worldwide MDR/MXDR for the
Enterprise Vendor Assessment 3 .
• Announced CrowdStrike’s leadership across multiple Frost & Sullivan reports,
with CrowdStrike named Frost & Sullivan’s 2026 Global Enabling Technology Leader
in Zero Trust Browser Security 4 and the Growth and Innovation Leader in the
2026 Frost Radar™: Cloud and Application Runtime Security 5 .
Financial Outlook
CrowdStrike is providing the following guidance for the third quarter of fiscal
2027 (ending October 31, 2026) and increasing its guidance for fiscal year 2027
(ending January 31, 2027).
Guidance for non-GAAP financial measures excludes stock-based compensation
expense and related employer payroll taxes, amortization of acquired intangible
assets (including purchased patents), acquisition-related expenses (credits),
net, amortization of debt issuance costs and discount, 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, strategic plan related charges (benefits) , net, losses
(gains) and other expense (income) from strategic investments, and losses
(gains) on deferred compensation assets, and is adjusted for its long-term non-
GAAP effective tax rate. The company has not provided the most directly
comparable GAAP measures because certain items are out of the company's control
or cannot be reasonably predicted. Accordingly, a reconciliation for non-GAAP
income from operations, non-GAAP net income attributable to CrowdStrike, and
non-GAAP net income per share attributable to CrowdStrike common stockholders,
diluted, is not available without unreasonable effort.
Q3 FY27 Full Year FY27
Guidance Guidance
Annual recurring $6,184.4 - $6,188.4 $6,603.0 - $6,611.9
revenue million million
Total revenue $1,523.2 - $1,529.2 $5,991.1 - $6,011.1
million million
Non-GAAP income from $372.7 - $375.9 million $1,497.2 - $1,508.4
operations million
Non-GAAP net income $1,302.7 - $1,311.6
attributable to $325.4 - $327.9 million million
CrowdStrike
Non-GAAP net income
per share
attributable to $0.31 $1.25 - $1.26
CrowdStrike common
stockholders, diluted
Weighted average
shares used in
computing non-GAAP net
income per share 1,048 million 1,044 million
attributable to common
stockholders,
diluted
Non-GAAP tax rate 21.0% 21.0%
These statements are forward-looking and actual results may differ materially as
a result of many factors. Refer to the Forward-Looking Statements safe harbor
below for information on the factors that could cause the company's actual
results to differ materially from these forward-looking statements.
Conference Call Information
CrowdStrike will host a conference call for analysts and investors to discuss
its earnings results for the second quarter of fiscal 2027 and outlook for its
fiscal third quarter and fiscal year 2027 today at 2:00 p.m. Pacific time (5:00
p.m. Eastern time). A recorded webcast of the event will also be available for
one year on the CrowdStrike Investor Relations website ir.crowdstrike.com.
Date: August 26, 2026
──────────────────────────────────────────────────────────────────────────────
Time: 2:00 p.m. Pacific time / 5:00 p.m. Eastern time
Webcast link: crowdstrike-fiscal-second-quarter-2027-results-conference-…
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and
uncertainties, including statements regarding CrowdStrike’s future growth and
future financial and operating performance, including CrowdStrike’s financial
outlook for the third quarter fiscal 2027, fiscal year 2027, and beyond; product
developments; strategic partnerships; and anticipated tax rate. 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.
Additional risks and uncertainties that could affect CrowdStrike’s financial
results are included in the filings CrowdStrike makes with the Securities and
Exchange Commission (“SEC”) from time to time, particularly under the captions
“Risk Factors” and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations,” including CrowdStrike’s most recently filed Annual
Report on Form 10-K, most recently filed Quarterly Report on Form 10-Q, and
subsequent filings.
Actual outcomes and results may differ materially from those contemplated by
these forward-looking statements as a result of such risks and uncertainties.
All forward-looking statements in this press release are based on information
available to CrowdStrike as of the date hereof, and CrowdStrike does not assume
any obligation to update the forward-looking statements provided to reflect
events that occur or circumstances that exist after the date on which they were
made.
Use of Non-GAAP Financial Information
CrowdStrike believes that the presentation of non-GAAP financial information
provides important supplemental information to management and investors
regarding financial and business trends relating to CrowdStrike’s financial
condition and results of operations. For further information regarding these
non-GAAP measures, including the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures, please refer
to the financial tables below, as well as the “Explanation of Non-GAAP Financial
Measures” and “Change in Non-GAAP Measures Presentation” sections of this press
release.
Channels for Disclosure of Information
CrowdStrike intends to announce material information to the public through the
CrowdStrike Investor Relations website ir.crowdstrike.com , SEC filings, press
releases, public conference calls, and public webcasts. CrowdStrike uses these
channels, as well as social media and its blog , to communicate with its
investors, customers, and the public about the company, its offerings, and other
issues. It is possible that the information CrowdStrike posts on social media
and its blog could be deemed to be material information. As such, CrowdStrike
encourages investors, the media, and others to follow the channels listed above,
including the social media channels listed on CrowdStrike’s investor relations
website, and to review the information disclosed through such channels. Any
updates to the list of disclosure channels through which CrowdStrike will
announce information will be posted on the investor relations page on
CrowdStrike’s website.
Reports Referenced and Disclaimers
1. The Forrester Wave™: Extended Detection and Response Platforms, Q2 2026
Forrester does not endorse any company, product, brand, or service included in
its research publications and does not advise any person to select the products
or services of any company or brand based on the ratings included in such
publications. Information is based on the best available resources. Opinions
reflect judgment at the time and are subject to change. This report is part of a
broader collection of Forrester resources, including interactive models,
frameworks, tools, data, and access to analyst guidance. For more information,
read about Forrester’s objectivity at forrester.com/about-us/objectivity.
2. IDC MarketScape: Worldwide SIEM 2026 Vendor Assessment, (doc #US54126826,
June 2026)
3. IDC MarketScape: Worldwide MDR/MXDR for the Enterprise 2026 Vendor
Assessment, (doc #US5479242, August 2026)
4. Frost & Sullivan’s 2026 Global Enabling Technology Leader in Zero Trust
Browser Security
5. Frost Radar™: Cloud and Application Runtime Security, 2026
About CrowdStrike Holdings
CrowdStrike (Nasdaq: CRWD), a global cybersecurity leader, has redefined modern
security with the world’s most advanced cloud-native platform for protecting
critical areas of enterprise risk – endpoints and cloud workloads, identity, and
data.
Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike
Falcon® platform leverages real-time indicators of attack, threat intelligence,
evolving adversary tradecraft, and enriched telemetry from across the enterprise
to deliver hyper-accurate detections, automated protection and remediation,
elite threat hunting, and prioritized observability of vulnerabilities.
Purpose-built in the cloud with a single lightweight-agent architecture, the
Falcon platform delivers rapid and scalable deployment, superior protection and
performance, reduced complexity, and immediate time-to-value.
CrowdStrike: We stop breaches.
For more information, please visit: ir.crowdstrike.com
© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon
are marks owned by CrowdStrike, Inc. and are registered in the United States and
other countries. CrowdStrike owns other trademarks and service marks and may use
the brands of third parties to identify their products and services.
Investor Relations Contact
CrowdStrike Holdings, Inc.
Andrew Nowinski
investors@crowdstrike.com
Press Contact
CrowdStrike Holdings, Inc.
Jake Schuster
press@crowdstrike.com
###
CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Six
Months Months
Ended Ended
July July
31, 31,
Reve… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Subs… $ 1,400… $ 1,102,… $ 2,721,… $ 2,153…
Prof… 70,606 66,007 135,382 118,6…
serv…
Total 1,470… 1,168,… 2,856,… 2,272…
reve…
Cost
of
reve…
Subs… 310,6… 252,451 599,154 493,8…
Prof… 63,311 56,100 117,125 102,6…
serv…
Total
cost 374,0… 308,551 716,279 596,4…
of
reve…
Gross 1,096… 860,401 2,140,… 1,675…
prof…
Oper…
expe…
Sales
and 509,9… 446,580 998,647 885,7…
mark…
Rese…
and 444,2… 342,533 852,526 673,4…
deve…
Gene…
and 175,9… 176,745 352,906 340,8…
admi…
Total
oper… 1,130… 965,858 2,204,… 1,900…
expe…
Loss
from -33,2… -105,4… -63,832 -224,…
oper…
Inte… -6,047 -6,823 -12,163 -13,5…
expe…
Inte… 43,881 50,850 84,423 96,230
inco…
Other
inco… -669 -2,722 34,568 -6,618
(exp…
net(…
Inco…
(los…
befo…
prov… 3,933 -64,152 42,996 -148,…
for
inco…
taxes
Prov…
(ben…
for -1,373 5,971 -8,276 27,077
inco…
taxes
Net
inco… 5,306 -70,123 51,272 -175,…
(los…
Net
inco…
(los…
attr… — 30 18,192 -756
to
non-…
inte…
Net
inco…
(los… $ 5,306 $ -70,153 $ 33,080 $ -174,…
attr…
to
Crow…
Net
inco…
(los…
per
share
attr…
to
Crow…
comm…
stoc…
Basic $ 0.01 $ -0.07 $ 0.03 $ -0.17
Dilu… $ 0.01 $ -0.07 $ 0.03 $ -0.17
Weig…
shar…
used
in
comp…
net
inco…
(los…
per
share
attr…
to
Crow…
comm…
stoc…
Basic 1,019… 999,634 1,017,… 996,7…
Dilu… 1,044… 999,634 1,038,… 996,7…
____________________________
(1) Includes stock-based compensation expense and related employer payroll taxes
as follows (in thousands):
Six
Three Months
Months Ended
Ended July
2026 July 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Subscr…
cost of $ 34,500 $ 24,296 $ 59,550 $ 49,279
revenue
Profes…
servic… 13,780 9,431 24,012 19,648
cost of
revenue
Sales
and 95,931 72,095 170,009 141,511
market…
Resear…
and 158,697 107,779 293,240 219,994
develo…
General
and 96,093 63,064 169,817 111,861
admini…
Total
stock-…
compen…
expense
and $ 399,001 $ 276,665 $ 716,628 $ 542,293
related
employ…
payroll
taxes(…
(2) Includes amortization of acquired intangible assets, including purchased
patents, as follows (in thousands):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Subscri…
cost of $ 12,032 $ 6,372 $ 23,210 $ 12,749
revenue
Sales
and 860 915 1,720 1,831
marketi…
General
and 393 340 760 681
adminis…
Total
amortiz…
of $ 13,285 $ 7,627 $ 25,690 $ 15,261
acquired
intangi…
assets
(3) Includes acquisition-related expenses, net as follows (in thousands):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Sales
and $ 98 $ — $ 400 $ 77
marketi…
Research
and 641 183 961 257
develop…
General
and 5,934 1,081 12,881 1,473
adminis…
Total
acquisi… $ 6,673 $ 1,264 $ 14,242 $ 1,807
expense…
net
(4) Includes mark-to-market adjustments on deferred compensation liabilities as
follows (in thousands):
Three
Months Six Months
Ended July Ended July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Sales and $ 318 $ 456 $ 625 $ 270
marketing
Research
and 68 356 161 240
developm…
General
and 64 1 205 -14
administ…
Total
mark-to-…
adjustme…
on $ 450 $ 813 $ 991 $ 496
deferred
compensa…
liabilit…
(5) Includes costs, net, such as legal fees, remediation costs, sensor testing
costs, and insurance receivables among others, associated with the July 19
Incident and related matters as follows (in thousands):
Three Six
Months Months
Ended Ended
2026 July 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Sales
and $ -107 $ 88 $ -94 $ 620
market…
Resear…
and — 250 6 787
develo…
General
and -14,421 35,318 3,688 73,976
admini…
Total
costs
(recov…
associ…
with
the $ -14,528 $ 35,656 $ 3,600 $ 75,383
July 19
Incide…
and
related
matter…
net
(6) Includes strategic plan related charges as follows (in thousands):
Three
Months Six Months
Ended July Ended July
31, 31,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Subscrip…
cost of $ — $ 3,563 $ — $ 3,563
revenue
Professi…
services — 3,345 — 3,345
cost of
revenue
Sales and — 8,723 — 8,723
marketing
Research
and — 16,696 — 16,696
developm…
General
and — 6,057 — 12,678
administ…
Total
strategic
plan $ — $ 38,384 $ — $ 45,005
related
charges
(7) Includes amortization of debt issuance costs and discount as follows (in
thousands):
Three Six
Months Months
Ended July Ended
2026 31, 2025 2026 July 31, 2025
──────────────────────────────────────────────────────────────────────────────
Interest $ 372 $ 546 $ 744 $ 1,093
expense
Total
amortiza…
of debt $ 372 $ 546 $ 744 $ 1,093
issuance
costs and
discount
(8) Includes gains (losses) and other income (expense) from strategic
investments as follows (in thousands):
Three
Months Six Months
Ended July Ended July
31, 31,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Other
income $ — $ 60 $ 36,384 $ -1,512
(expense…
net
Total
gains
(losses)
and other
income $ — $ 60 $ 36,384 $ -1,512
(expense)
from
strategic
investme…
(9) Includes gains on deferred compensation assets as follows (in thousands):
Three
Months Six Months
Ended July Ended July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Other
income $ 450 $ 813 $ 991 $ 496
(expense…
net
Total
gains on
deferred $ 450 $ 813 $ 991 $ 496
compensa…
assets
CROWDSTRIKE HOLDINGS, INC.
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 1,038,575 1,361,844
for credit losses
Deferred contract acquisition
costs, 389,070 447,455
current
Prepaid expenses and other
current 513,686 379,695
assets
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 68,389 69,860
assets
Deferred contract acquisition
costs, 805,537 655,658
noncurrent
Goodwill 2,251,426 1,363,294
Intangible assets, net 273,235 136,702
Other long-term assets 427,122 388,888
Total assets $ 12,025,001 $ 11,086,684
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable $ 114,487 $ 105,319
Accrued expenses 220,069 181,089
Accrued payroll and benefits 418,070 389,690
Operating lease liabilities, 22,067 18,232
current
Deferred revenue 3,497,144 3,421,051
Other current liabilities 157,851 68,811
Total current liabilities 4,429,688 4,184,192
Long-term debt 746,216 745,471
Deferred revenue, noncurrent 1,345,066 1,332,387
Operating lease liabilities, 51,896 56,374
noncurrent
Other liabilities, noncurrent 312,610 295,655
Total liabilities 6,885,476 6,614,079
Commitments and contingencies
Stockholders’ Equity
Common stock, Class A and Class B 512 507
Additional paid-in capital 6,335,490 5,694,169
Accumulated deficit -1,249,962 -1,283,042
Accumulated other comprehensive 15,684 16,756
income
Total CrowdStrike Holdings, Inc. 5,101,724 4,428,390
stockholders’ equity
Non-controlling interest 37,801 44,215
Total stockholders’ equity 5,139,525 4,472,605
Total liabilities and
stockholders’ $ 12,025,001 $ 11,086,684
equity
CROWDSTRIKE HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended July
31,
Operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 51,272 $ -175,173
Adjustments to
reconcile net income
(loss) to net cash
provided by
operating
activities:
Depreciation and 157,597 116,834
amortization
Amortization of 25,690 15,261
intangible assets
Amortization of
deferred contract 207,052 209,941
acquisition costs
Non-cash operating 10,371 8,717
lease cost
Stock-based 674,617 527,292
compensation expense
Deferred income -7,062 -2,320
taxes
Realized gains on
strategic -36,362 —
investments
Non-cash interest 883 2,293
expense
Change in fair value
of strategic — 1,579
investments
Changes in operating
assets and
liabilities, net of
impact of
acquisitions
Accounts receivable, 324,183 242,008
net
Deferred contract -298,436 -251,622
acquisition costs
Prepaid expenses and -95,422 -50,411
other assets
Accounts payable -7,717 -13,310
Accrued expenses and 11,918 12,716
other liabilities
Accrued payroll and 28,394 -24,931
benefits
Operating lease -9,087 -8,113
liabilities
Deferred revenue 83,314 106,178
Net cash provided by
operating 1,121,205 716,939
activities
Investing activities
Purchases of
property and -222,037 -116,248
equipment
Capitalized
internal-use
software and -49,090 -34,726
website development
costs
Purchases of
strategic -3,400 -1,417
investments
Proceeds from sales
of strategic 17,504 4,388
investments
Business
acquisitions, net of
cash and -881,376 —
restricted cash
acquired
Purchases of -3,000 —
intangible assets
Purchases of
deferred -4,338 -2,770
compensation
investments
Proceeds from the
sale of deferred 130 164
compensation
investments
Net cash used in -1,145,607 -150,609
investing activities
Financing activities
Proceeds from
issuance of common
stock 1,669 2,355
upon exercise of
stock options
Proceeds from
issuance of common
stock 86,624 74,622
under the employee
stock purchase plan
Distributions to
non-controlling -24,606 -2,156
interest holders
Capital
contributions from — 1,500
non-controlling
interest holders
Repurchases of -175,622 —
common stock
Net cash provided by
(used in) financing -111,935 76,321
activities
Effect of foreign
exchange rates on
cash, cash -1,616 6,595
equivalents and
restricted
cash
Net increase
(decrease) in cash,
cash -137,953 649,246
equivalents and
restricted cash
Cash, cash
equivalents and
restricted 5,314,617 4,324,666
cash, at beginning
of period
Cash, cash
equivalents and
restricted $ 5,176,664 $ 4,973,912
cash, at end of
period
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations
(in thousands, except percentages)
(unaudited)
Three Six
Mont… Mont…
Ended Ended
July July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
sub… $ 1,40… $ 1,10… $ 2,72… $ 2,15…
rev…
GAAP
pro… 70,6… 66,0… 135,… 118,…
ser…
rev…
GAAP
tot… $ 1,47… $ 1,16… $ 2,85… $ 2,27…
rev…
GAAP
sub… $ 1,08… $ 850,… $ 2,12… $ 1,65…
gro…
pro…
Sto…
com…
exp…
and 34,5… 24,2… 59,5… 49,2…
rel…
emp…
pay…
tax…
Amo…
of
acq… 12,0… 6,372 23,2… 12,7…
int…
ass…
Str…
plan — 3,563 — 3,563
rel…
cha…
Non…
sub… $ 1,13… $ 884,… $ 2,20… $ 1,72…
gro…
pro…
GAAP
sub… 78 % 77 % 78 % 77 %
gro…
mar…
Non…
sub… 81 % 80 % 81 % 80 %
gro…
mar…
GAAP
pro…
ser… $ 7,295 $ 9,907 $ 18,2… $ 16,0…
gro…
pro…
Sto…
com…
exp…
and 13,7… 9,431 24,0… 19,6…
rel…
emp…
pay…
tax…
Str…
plan — 3,345 — 3,345
rel…
cha…
Non…
pro…
ser… $ 21,0… $ 22,6… $ 42,2… $ 39,0…
gro…
pro…
GAAP
pro…
ser… 10 % 15 % 13 % 14 %
gro…
mar…
Non…
pro…
ser… 30 % 34 % 31 % 33 %
gro…
mar…
Tot…
GAAP 75 % 74 % 75 % 74 %
gro…
mar…
Tot…
Non… 79 % 78 % 79 % 78 %
gro…
mar…
GAAP
sal…
and $ 509,… $ 446,… $ 998,… $ 885,…
mar…
ope…
exp…
Sto…
com…
exp…
and -95,… -72,… -170… -141…
rel…
emp…
pay…
tax…
Amo…
of
acq… -860 -915 -1,7… -1,8…
int…
ass…
Acq…
exp… -98 — -400 -77
net
Mar…
adj…
on -318 -456 -625 -270
def…
com…
lia…
Rec…
(co…
ass…
with
the
July 107 -88 94 -620
19
Inc…
and
rel…
mat…
net
Str…
plan — -8,7… — -8,7…
rel…
cha…
Non…
sal…
and $ 412,… $ 364,… $ 825,… $ 732,…
mar…
ope…
exp…
GAAP
sal…
and
mar…
ope… 35 % 38 % 35 % 39 %
exp…
as a
per…
of
rev…
Non…
sal…
and
mar…
ope… 28 % 31 % 29 % 32 %
exp…
as a
per…
of
rev…
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except per share amounts)
(unaudited)
Three Six
Mont… Mont…
Ended Ended
July July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
res…
and $ 444,… $ 342,… $ 852,… $ 673,…
dev…
ope…
exp…
Sto…
com…
exp…
and -158… -107… -293… -219…
rel…
emp…
pay…
tax…
Acq…
exp… -641 -183 -961 -257
net
Mar…
adj…
on -68 -356 -161 -240
def…
com…
lia…
Cos…
ass…
with
the
July
19 — -250 -6 -787
Inc…
and
rel…
mat…
net
Str…
plan — -16,… — -16,…
rel…
cha…
Non…
res…
and $ 284,… $ 217,… $ 558,… $ 435,…
dev…
ope…
exp…
GAAP
res…
and
dev…
ope… 30 % 29 % 30 % 30 %
exp…
as a
per…
of
rev…
Non…
res…
and
dev…
ope… 19 % 19 % 20 % 19 %
exp…
as a
per…
of
rev…
GAAP
gen…
and $ 175,… $ 176,… $ 352,… $ 340,…
adm…
ope…
exp…
Sto…
com…
exp…
and -96,… -63,… -169… -111…
rel…
emp…
pay…
tax…
Amo…
of
acq… -393 -340 -760 -681
int…
ass…
Acq…
exp… -5,9… -1,0… -12,… -1,4…
net
Mar…
adj…
on -64 -1 -205 14
def…
com…
lia…
Rec…
(co…
ass…
with
the
July 14,4… -35,… -3,6… -73,…
19
Inc…
and
rel…
mat…
net
Str…
plan — -6,0… — -12,…
rel…
cha…
Non…
gen…
and $ 87,8… $ 70,8… $ 165,… $ 140,…
adm…
ope…
exp…
GAAP
gen…
and
adm…
ope… 12 % 15 % 12 % 15 %
exp…
as a
per…
of
rev…
Non…
gen…
and
adm…
ope… 6 % 6 % 6 % 6 %
exp…
as a
per…
of
rev…
GAAP
loss $ -33,… $ -105… $ -63,… $ -224…
from
ope…
Sto…
com…
exp…
and 399,… 276,… 716,… 542,…
rel…
emp…
pay…
tax…
Amo…
of
acq… 13,2… 7,627 25,6… 15,2…
int…
ass…
Acq…
exp… 6,673 1,264 14,2… 1,807
net
Mar…
adj…
on 450 813 991 496
def…
com…
lia…
Cos…
(re…
ass…
with
the
July -14,… 35,6… 3,600 75,3…
19
Inc…
and
rel…
mat…
net
Str…
plan — 38,3… — 45,0…
rel…
cha…
Non…
inc… $ 371,… $ 254,… $ 697,… $ 456,…
from
ope…
GAAP
ope… -2 % -9 % -2 % -10 %
mar…
Non…
ope… 25 % 22 % 24 % 20 %
mar…
GAAP
pro…
(be… $ -1,3… $ 5,971 $ -8,2… $ 27,0…
for
inc…
tax…
Inc…
tax 87,2… 52,5… 169,… 85,1…
adj…
Non…
pro…
for $ 85,8… $ 58,5… $ 161,… $ 112,…
inc…
tax…
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except per share amounts)
(unaudited)
Three Six
Months Months
Ended Ended
July July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net
income
(loss) $ 5,306 $ -70,153 $ 33,080 $ -174,417
attri…
to
Crowd…
Stock…
compe…
expen…
and 399,001 276,665 716,628 542,293
relat…
emplo…
payro…
taxes…
Amort…
of
acqui… 13,285 7,627 25,690 15,261
intan…
assets
Acqui…
expen… 6,673 1,264 14,242 1,807
net
Mark-…
adjus…
on 450 813 991 496
defer…
compe…
liabi…
Costs
(reco…
assoc…
with
the
July -14,528 35,656 3,600 75,383
19
Incid…
and
relat…
matte…
net
Strat…
plan — 38,384 — 45,005
relat…
charg…
Amort…
of
debt
issua… 372 546 744 1,093
costs
and
disco…
Losses
(gain…
and
other
expen…
(inco… — -30 -18,192 756
from
strat…
inves…
attri…
to
Crowd…
Gains
on
defer… -450 -813 -991 -496
compe…
assets
Income
tax -87,207 -52,599 -169,4… -85,117
adjus…
Non-G…
net
income $ 322,902 $ 237,360 $ 606,338 $ 422,064
attri…
to
Crowd…
Weigh…
shares
used
in
compu…
GAAP
basic
net
income 1,019,… 999,634 1,017,… 996,730
(loss)
per
share
attri…
to
Crowd…
common
stock…
GAAP
basic
net
income
(loss)
per $ 0.01 $ -0.07 $ 0.03 $ -0.17
share
attri…
to
Crowd…
common
stock…
GAAP
dilut…
net
income
(loss)
per $ 0.01 $ -0.07 $ 0.03 $ -0.17
share
attri…
to
Crowd…
common
stock…
Stock…
compe…
expen…
and 0.38 0.27 0.69 0.53
relat…
emplo…
payro…
taxes…
Amort…
of
acqui… 0.01 0.01 0.02 0.01
intan…
assets
Acqui…
expen… 0.01 — 0.01 —
net
Mark-…
adjus…
on — — — —
defer…
compe…
liabi…
Costs
(reco…
assoc…
with
the
July -0.01 0.03 — 0.07
19
Incid…
and
relat…
matte…
net
Strat…
plan — 0.04 — 0.04
relat…
charg…
Amort…
of
debt
issua… — — — —
costs
and
disco…
Losses
(gain…
and
other
expen…
(inco… — — -0.02 —
from
strat…
inves…
attri…
to
Crowd…
Gains
on
defer… — — — —
compe…
assets
Income
tax -0.08 -0.05 -0.16 -0.08
adjus…
Other… -0.01 — 0.01 0.01
Non-G…
dilut…
net
income
per
share $ 0.31 $ 0.23 $ 0.58 $ 0.41
attri…
to
Crowd…
common
stock…
Weigh…
shares
used
to
calcu…
Non-G…
dilut…
net 1,044,… 1,025,2… 1,038,… 1,021,7…
income
per
share
attri…
to
Crowd…
common
stock…
__________________________
1. Stock-based compensation expense has been revised to reflect immaterial prior
period adjustments.
2. Effective second quarter fiscal year 2026, we adopted a 21.0% long-term
projected non-GAAP tax rate, reduced from the previous rate of 22.5%, in
connection with the enactment of the One Big Beautiful Bill Act. This rate
reflects the anticipated tax benefit from earning income outside the U.S. while
retaining intellectual property within the U.S. The change is applied
prospectively, and the tax rate for prior periods remains unchanged.
3. Adjustments are related to the difference between the GAAP provision for
income taxes and non-GAAP provision for income taxes.
4. For periods in which we had diluted non-GAAP net income per share
attributable to CrowdStrike common stockholders, the sum of the impact of
individual reconciling items may not total to diluted non-GAAP net income per
share attributable to CrowdStrike common stockholders because of rounding
differences.
CROWDSTRIKE HOLDINGS, INC.
GAAP to Non-GAAP Reconciliations (continued)
(in thousands, except percentages)
(unaudited)
Three Six
Mont… Mont…
Ended Ended
July July
2026 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net
cash
pro… $ 530,… $ 332,… $ 1,12… $ 716,…
by
ope…
act…
Pur…
of
pro… -124… -30,… -222… -116…
and
equ…
Cap…
int…
sof…
and -26,… -17,… -49,… -34,…
web…
dev…
cos…
Pur…
of
and
pro…
from -1,9… -1,4… -4,2… -2,9…
def…
com…
inv…
net
Free
cash $ 377,… $ 283,… $ 845,… $ 563,…
flow
GAAP
net
cash
used $ -151… $ -48,… $ -1,1… $ -150…
in
inv…
act…
GAAP
net
cash
pro…
by $ 83,9… $ 74,1… $ -111… $ 76,3…
(us…
in)
fin…
act…
GAAP
net
cash
pro…
by
ope… 36 % 28 % 39 % 32 %
act…
as a
per…
of
rev…
Pur…
of
pro…
and
equ… -8 % -3 % -8 % -5 %
as a
per…
of
rev…
Cap…
int…
sof…
and
web…
dev… -2 % -1 % -2 % -2 %
cos…
as a
per…
of
rev…
Pur…
of
and
pro…
from
def…
com… — % — % — % — %
inv…
net
as a
per…
of
rev…
Free
cash 26 % 24 % 30 % 25 %
flow
mar…
###
Stock Split
After the close of trading on July 1, 2026, CrowdStrike effected a four-for-one
stock split of its common stock in the form of a stock dividend. References made
to all share and per share amounts and related stockholders' equity balances
related to the company's outstanding common stock have been retroactively
adjusted on the applicable disclosures to reflect the effects of the stock
split.
Explanation of Non-GAAP Financial Measures
In addition to determining results in accordance with U.S. generally accepted
accounting principles (“GAAP”), CrowdStrike believes the following non-GAAP
measures are useful in evaluating its operating performance. CrowdStrike uses
the following non-GAAP financial information to evaluate its ongoing operations
and for internal planning and forecasting purposes. CrowdStrike believes that
non-GAAP financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability with past financial
performance and facilitates period-to-period comparisons of operations, as these
measures eliminate the effects of certain variables unrelated to CrowdStrike’s
overall operating performance. However, non-GAAP financial information is
presented for supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a substitute
for financial information presented in accordance with GAAP.
Other companies, including companies in CrowdStrike’s industry, may calculate
similarly titled non-GAAP measures differently or may use other measures to
evaluate their performance, all of which could reduce the usefulness of
CrowdStrike’s non-GAAP financial measures as tools for comparison.
Investors are encouraged to review the related GAAP financial measures and the
reconciliation of these non-GAAP financial measures to their most directly
comparable GAAP financial measures and not rely on any single financial measure
to evaluate CrowdStrike’s business.
Non-GAAP Subscription Gross Profit and Non-GAAP Subscription Gross Margin
CrowdStrike defines non-GAAP subscription gross profit and non-GAAP subscription
gross margin as GAAP subscription gross profit and GAAP subscription gross
margin, respectively, excluding stock-based compensation expense and related
employer payroll taxes, amortization of acquired intangible assets, and
strategic plan related charges (benefits), net.
Non-GAAP Income from Operations
CrowdStrike defines non-GAAP income from operations 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 Net Income Attributable to CrowdStrike
CrowdStrike defines non-GAAP net income attributable to CrowdStrike as GAAP net
income (loss) attributable to CrowdStrike 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 , strategic plan related charges
(benefits), net, amortization of debt issuance costs and discount, losses
(gains) and other expense (income) from strategic investments, and losses
(gains) on deferred compensation assets, and is adjusted for its long-term non-
GAAP effective tax rate.
Non-GAAP Net Income per Share Attributable to CrowdStrike Common Stockholders,
Diluted
CrowdStrike defines non-GAAP net income per share attributable to CrowdStrike
common stockholders, as non-GAAP net income attributable to CrowdStrike divided
by the weighted-average shares outstanding, which includes the dilutive effect
of potentially dilutive common stock equivalents outstanding during the period.
Free Cash Flow
Free cash flow is a non-GAAP financial measure that CrowdStrike defines as net
cash provided by operating activities less purchases of property and equipment,
capitalized internal-use software and website development costs, and purchases
of and proceeds from deferred compensation investments, net. CrowdStrike
monitors free cash flow as one measure of its overall business performance,
which enables CrowdStrike to analyze its future performance without the effects
of non-cash items and allows CrowdStrike to better understand the cash needs of
its business. While CrowdStrike believes that free cash flow is useful in
evaluating its business, free cash flow is a non-GAAP financial measure that has
limitations as an analytical tool, and free cash flow should not be considered
as an alternative to, or substitute for, net cash provided by operating
activities in accordance with GAAP. The utility of free cash flow as a measure
of CrowdStrike’s liquidity is further limited as it does not represent the total
increase or decrease in CrowdStrike’s cash balance for any given period. In
addition, other companies, including companies in CrowdStrike's industry, may
calculate free cash flow differently or not at all, which reduces the usefulness
of free cash flow as a tool for comparison.
Explanation of Operational Measures
Annual Recurring Revenue
ARR is calculated as the annualized value of CrowdStrike’s customer subscription
contracts as of the measurement date, assuming any contract that expires during
the next 12 months is renewed on its existing terms. To the extent that
CrowdStrike is negotiating a renewal with a customer after the expiration of the
subscription, CrowdStrike continues to include that revenue in ARR if
CrowdStrike is actively in discussion with such an organization for a new
subscription or renewal, or until such organization notifies CrowdStrike that it
is not renewing its subscription.
Dollar-Based Net Retention Rate
CrowdStrike's dollar-based net retention rate compares its ARR from a set of
subscription customers against the same metric for those subscription customers
from the prior year. CrowdStrike's dollar-based net retention rate reflects
customer renewals, expansion, contraction and churn, and excludes revenue from
its incident response and proactive services. Dollar-based net retention rate as
of period end is calculated by starting with the ARR from all subscription
customers as of 12 months prior to such period end, or Prior Period ARR.
CrowdStrike then calculates the ARR from these same subscription customers as of
the current period end, or Current Period ARR. Current Period ARR includes any
expansion and is net of contraction or churn over the trailing 12 months, but
excludes revenue from new subscription customers in the current period.
CrowdStrike then divides the Current Period ARR by the Prior Period ARR to
arrive at its dollar-based net retention rate.
Dollar-Based Gross Retention Rate
Dollar-based gross retention rate as of the period end is calculated by starting
with the ARR from all subscription customers as of 12 months prior to such
period, or Prior Period ARR. CrowdStrike then deducts from the Prior Period ARR
any ARR from subscription customers who are no longer customers as of the
current period end, or Current Period Remaining ARR. CrowdStrike then divides
the total Current Period Remaining ARR by the total Prior Period ARR to arrive
at its dollar-based gross retention rate, which is the percentage of ARR from
all subscription customers as of the year prior that is not lost to customer
churn.
Definition of Module Adoption Rates
Module adoption rates are calculated by taking the total number of customers
with six or more, seven or more, and eight or more modules, respectively,
divided by the total number of subscription customers (excluding Falcon Go
customers). Falcon Go customers are defined as customers who have subscribed
with the Falcon Go bundle, a package designed for organizations with 100
endpoints or less.