‘CrowdStrike is now firmly rooted as the organization's cybersecurity data platform of choice.’
— George Kurtz
03Detailed Report
CRWD
CrowdStrike Holdings Inc
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
CrowdStrike Holdings Inc reported significant financial achievements for Q3 2025, surpassing $1 billion in revenue for the first time, driven by strong subscription sales growth and a noteworthy 27% year-over-year increase in Annual Recurring Revenue (ARR) to $4.02 billion. Management emphasized the resilience of customer trust post-incident and highlighted the effectiveness of the Falcon Flex subscription model in driving adoption and retention across its platform. Despite some headwinds from past operational challenges, the company demonstrated robust operational metrics, resulting in a free cash flow margin of 23%. Strategic initiatives, including the recent acquisition of Adaptive Shield, are expected to bolster CrowdStrike's competitive position in the cybersecurity market.
Key Performance Indicators
Revenue
Increasing
1.01B
QoQ: 4.80% | YoY: 28.52%
Gross Profit
Increasing
755.09M
74.70% margin
QoQ: 3.94% | YoY: 27.76%
Operating Income
Decreasing
-55.72M
QoQ: -507.99% | YoY: -1 861.71%
Net Income
Decreasing
-16.82M
QoQ: -135.78% | YoY: -163.09%
EPS
Decreasing
-0.07
QoQ: -136.05% | YoY: -162.27%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue increased by 29% YoY to $1.01 billion, with subscription revenue growing 31% YoY. Gross profit margin was maintained at 78%, reflecting efficient cost management despite rising operational expenses, which grew to $591.7 million. Net loss of approximately $16.8 million was mostly attributed to past incident-related expenses. ARR reached $4.02 billion, indicating strong retention with a gross retention rate of over 97% and net retention at 115%. Management indicated that Falcon Flex customers on average adopted over nine modules, evidencing deepening customer engagement.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.01B
28.52%
4.80%
Gross Profit
755.09M
27.76%
3.94%
Operating Income
-55.72M
-1 861.71%
-507.99%
Net Income
-16.82M
-163.09%
-135.78%
EPS
-0.07
-162.27%
-136.05%
Key Financial Ratios
Gross Profit Margin
Excellent
74.70%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.06%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.02%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.86
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.26
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-1,083.29x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
23.84x
Very high premium suggests asset-light business model or lofty expectations
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