CrowdStrike Holdings, Inc. (CRWD)

CIK: 0001535527. SIC: 7372 Services-Prepackaged Software. Latest 10-K as of: 2026-03-05.

SIC breadcrumb: Services > Business Services > SIC 7372 Services-Prepackaged Software

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1535527. Latest filing source: 0001535527-26-000010.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001535527.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

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Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-03-05. Report date: 2026-01-31.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and related notes thereto included in Item 8 “Financial Statements and Supplementary Data” in this Annual Report on Form 10-K. This section of this Form 10-K generally discusses fiscal 2026 and 2025 items and year-over-year comparisons between fiscal 2026 and 2025. Discussions of fiscal 2024 items and year-over-year comparisons between fiscal 2025 and 2024 are not included in this Form 10-K, and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025. As discussed in Note 1 and Note 16 to the Consolidated Financial Statements included in this report, the Company revised its fiscal 2025 and 2024 financial results to correct for an immaterial error discovered during the fourth quarter of fiscal 2026. The revisions are intended to ensure comparability across all periods reflected herein. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report on Form 10-K, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties, including those described under the heading “Special Note Regarding Forward-Looking Statements.” You should review the disclosure under Part I, Item 1A, “Risk Factors” in this Annual Report on Form 10-K for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Our fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, are referred to herein as fiscal 2026, fiscal 2025, and fiscal 2024, respectively.

Overview

Founded in 2011, we reinvented cybersecurity for the cloud era and transformed the way cybersecurity is delivered and experienced by customers. When we started CrowdStrike, cyberattackers had an asymmetric advantage over legacy cybersecurity products that could not keep pace with the rapid changes in adversary tactics. We took a fundamentally different approach to solve this problem with the AI-native CrowdStrike Falcon platform – the first, true cloud-native unified platform built with artificial intelligence (“AI”) at the core, capable of harnessing vast amounts of security and enterprise data to deliver highly modular solutions through a single lightweight sensor.

We believe our approach has defined a new category called the Security Cloud, which has transformed the cybersecurity industry the same way the cloud has transformed the customer relationship management, human resources, and service management industries. Using cloud-scale AI, our Security Cloud enriches and correlates trillions of cybersecurity events per week with indicators of attack, threat intelligence, and enterprise data (including data from across endpoints, workloads, identities, DevOps, IT assets, and configurations) to create actionable data, identify shifts in adversary tactics, and automatically prevent threats in real-time across our customer base. The more data that is fed into our Falcon platform, the more intelligent our Security Cloud becomes, and the more our customers benefit, creating a powerful network effect that increases the overall value we provide.

Our Go-To-Market Strategy

We sell subscriptions to our Falcon platform and cloud modules to organizations across multiple industries. We primarily sell subscriptions to our Falcon platform and cloud modules through our direct sales team that leverages our network of channel partners. Our direct sales team is comprised of field sales and inside sales professionals who are segmented by a customer’s number of endpoints.

We have a low friction land-and-expand sales strategy. When customers deploy our Falcon platform, they can start with any number of cloud modules and easily add additional cloud modules. Once customers experience the benefits of our Falcon platform, they often expand their adoption over time by adding more endpoints or purchasing additional modules. We also use our sales team to identify current customers who may be interested in free trials of additional cloud modules, which serves as a powerful driver of our land-and-expand model. By segmenting our sales teams, we can deploy a low-touch sales model that efficiently identifies prospective customers.

We began as a solution for large enterprises, but the flexibility and scalability of our Falcon platform has enabled us to seamlessly offer our solution to customers of any size. We have expanded our sales focus to include any sized organization without the need to modify our Falcon platform for small and medium sized businesses.

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A substantial majority of our customers purchase subscriptions with a term over one year. Our subscriptions are generally priced on a per-endpoint and per-module basis. We recognize revenue from our subscriptions ratably over the term of the subscription. We also generate revenue from our incident response and proactive professional services, which are generally priced on a time and materials basis. We view our professional services business primarily as an opportunity to cross-sell subscriptions to our Falcon platform and cloud modules.

Certain Factors Affecting Our Performance

Adoption of Our Solutions. We believe our future success depends in large part on the growth in the market for cloud-based SaaS-delivered endpoint security solutions. Many organizations have not yet abandoned the on-premise legacy products in which they have invested substantial personnel and financial resources to design and maintain. As a result, it is difficult to predict customer adoption rates and demand for our cloud-based solutions.

New Customer Acquisition. Our future growth depends in large part on our ability to acquire new customers. If our efforts to attract new customers are not successful, our revenue and rate of revenue growth may decline. We believe that our go-to-market strategy and the flexibility and scalability of our Falcon platform allow us to rapidly expand our customer base. Our incident response and proactive services also help drive new customer acquisitions, as many of these professional services customers subsequently purchase subscriptions to our Falcon platform. Many organizations have not yet adopted cloud-based security solutions, and since our Falcon platform has offerings for organizations of all sizes, worldwide, and across industries, we believe this presents a significant opportunity for growth.

Maintain Customer Retention and Increase Sales. Our ability to increase revenue depends in large part on our ability to retain our existing customers and increase the size of their subscriptions. We focus on increasing sales to our existing customers by expanding their deployments to more endpoints and selling additional cloud modules for increased functionality. Over time we have transitioned our platform from a single offering into highly-integrated offerings of multiple cloud modules.

Invest in Growth. We believe that our market opportunity is large and requires us to continue to invest significantly in sales and marketing efforts to further grow our customer base, both domestically and internationally. Our open cloud architecture and single data model have allowed us to rapidly build and deploy new cloud modules, and we expect to continue investing in those efforts to further enhance our technology platform and product functionality. In addition to our ongoing investment in research and development, we may also pursue acquisitions of businesses, technologies, and assets that complement and expand the functionality of our Falcon platform, add to our technology or security expertise, or bolster our leadership position by gaining access to new customers or markets. Furthermore, we expect our general and administrative expenses to increase in dollar amount for the foreseeable future given the additional expenses for accounting, compliance, and investor relations as we grow.

July 19 Incident. On July 19, 2024, we released a content configuration update for our Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”). As a result of the July 19 Incident, we are subject to lawsuits, claims and inquiries as described in Note 10, Commitments and Contingencies, in Part II, Item 8 of this Annual Report on Form 10-K. We have incurred, and expect to continue to incur, significant legal and professional services and other general and administrative expenses associated with the July 19 Incident in future periods. It is not reasonably possible to quantify the precise impact of the July 19 Incident, but the incident has adversely affected our results of operations, and we currently expect a number of factors relating to the incident to adversely affect our key metrics and results of operations in future periods. While we have maintained high dollar-based gross retention rates following the incident, we have experienced delays in creating sales opportunities and longer sales cycles, including delays in customer purchasing decisions. Sales cycles may be elongated in future periods. In addition, because our customers typically sign contracts with terms over one year, customer churn and any corresponding impact to our key metrics and revenue may occur in future periods. Customer commitment packages introduced following the July 19 Incident have included discounting, additional modules, professional services, flexible payment terms or subscription period extensions. Our customer commitment packages have resulted, and are expected to continue to result, in increased contraction, due to elongated subscription terms, and decreased upsell dollar values.

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Key Metrics

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Annual Recurring Revenue (“ARR”)

ARR is calculated as the annualized value of our customer subscription contracts as of the measurement date, assuming any contract that expires during the next 12 months is renewed on its existing terms. To the extent that we are negotiating a renewal with a customer after the expiration of the subscription, we continue to include that revenue in ARR if we are actively in discussion with such organization for a new subscription or renewal, or until such organization notifies us that it is not renewing its subscription.

The following table sets forth our ARR as of the dates presented (dollars in thousands):

As of January 31,

2026

2025

Annual recurring revenue

$

5,252,751

$

4,241,838

Year-over-year growth

24 

%

23 

%

ARR increased 24% year-over-year and grew to $5.3 billion as of January 31, 2026, of which $1.0 billion was net new ARR added during fiscal 2026. ARR increased 23% year-over-year and grew to $4.2 billion as of January 31, 2025, of which $806.7 million was net new ARR added during fiscal 2025.

Dollar-Based Net Retention Rate

Our dollar-based net retention rate compares our ARR from a set of subscription customers against the same metric for those subscription customers from the prior year. Our dollar-based net retention rate reflects customer renewals, expansion, contraction, and churn, and excludes revenue from our incident response and proactive services. We calculate our dollar-based net retention rate as of period end by starting with the ARR from all subscription customers as of 12 months prior to such period end, or Prior Period ARR. We then calculate 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. We then divide the Current Period ARR by the Prior Period ARR to arrive at our dollar-based net retention rate. For the purposes of calculating our dollar-based net retention rate, we define a subscription customer as a separate legal entity that has entered into a distinct subscription agreement for access to our Falcon platform for which the term has not ended or with which we are negotiating a renewal contract. We do not consider our channel partners as customers, and we treat managed service security providers, who may purchase our products on behalf of multiple companies, as a single customer.

Our dollar-based net retention rate can fluctuate from period to period due to large customer contracts in a given period and incentives provided, which may reduce our dollar-based net retention rate in subsequent periods. In addition, if our customers are not able to fully utilize their product subscriptions (including in connection with our flexible subscription offering), we may experience increased contraction as such customers may elect to renew with shorter subscription periods, fewer cloud modules, fewer endpoints or smaller contract values, which may reduce our dollar-based net retention rate.

As of January 31,

2026

2025

Dollar-based net retention rate

115 

%

112 

%

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Components of Our Results of Operations

Revenue

Subscription Revenue. Subscription revenue primarily consists of subscription fees for our Falcon platform and additional cloud modules that are supported by our cloud-based platform. Subscription revenue is driven primarily by the number of subscription customers, the number of endpoints per customer, and the number of cloud modules included in the subscription. We recognize subscription revenue ratably over the term of the agreement, which is generally one to three years. We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Consequently, a substantial portion of the revenue that we report in each period is attributable to the recognition of deferred revenue relating to subscriptions that we entered into during previous periods.

Professional Services Revenue. Professional services revenue includes incident response and proactive services, forensic and malware analysis, attribution analysis, operationalizing the Falcon Platform, residency program, and active defense services. Professional services are generally sold separately from subscriptions to our Falcon platform, although customers frequently enter into a separate arrangement to purchase subscriptions to our Falcon platform at the conclusion of a professional services arrangement. Professional services are available through hourly rate and fixed fee contracts, one-time and ongoing engagements, and retainer-based agreements. For time and materials and retainer-based arrangements, revenue is recognized as services are performed. Fixed fee contracts account for an immaterial portion of our revenue.

Cost of Revenue

Subscription Cost of Revenue. Subscription cost of revenue consists primarily of costs related to hosting our cloud-based Falcon platform in data centers, amortization of our capitalized internal-use software, employee-related costs such as salaries and bonuses, stock-based compensation expense, benefits costs associated with our operations and support personnel, software license fees, property and equipment depreciation, amortization of acquired intangibles, and an allocated portion of facilities and administrative costs.

As new customers subscribe to our platform and existing subscription customers increase the number of endpoints on our Falcon platform, our cost of revenue will increase due to greater cloud hosting costs related to powering new cloud modules and the incremental costs for storing additional data collected for such cloud modules and employee-related costs. We intend to continue to invest additional resources in our cloud platform and our customer support organizations as we grow our business. The level and timing of investment in these areas could affect our cost of revenue in the future.

Professional Services Cost of Revenue. Professional services cost of revenue consists primarily of employee-related costs, such as salaries and bonuses, stock-based compensation expense, consulting expense, and an allocated portion of facilities and administrative costs.

Gross Profit and Gross Margin

Gross profit and gross margin have been and will continue to be affected by various factors, including the timing of our acquisition of new subscription customers, renewals from existing subscription customers, sales of additional modules to existing subscription customers, the data center and bandwidth costs associated with operating our cloud platform, the extent to which we expand our customer support and cloud operations organizations, and the extent to which we can increase the efficiency of our technology, infrastructure, and data centers through technological improvements. We expect our gross profit to increase in dollar amount and our gross margin to increase modestly over the long term as we grow our business, although our gross margin could fluctuate from period to period depending on the interplay of these factors. Demand for our incident response services is driven by the number of breaches experienced by non-customers. Also, we view our professional services solutions in the context of our larger business and as a significant lead generator for new subscriptions. Because of these factors, our services revenue and gross margin may fluctuate over time.

Operating Expenses

Our operating expenses consist of sales and marketing, research and development, and general administrative expenses. For each of these categories of expense, employee-related expenses are the most significant component, which include salaries,

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employee bonuses, sales commissions, and employer payroll tax. Operating expenses also include an allocated portion of overhead costs for facilities and other administrative functions.

Sales and Marketing. Sales and marketing expenses primarily consist of employee-related expenses such as salaries, commissions, and bonuses. Sales and marketing expenses also include stock-based compensation; expenses related to our marketing programs; and an allocated portion of facilities and administrative expenses. Sales and marketing expenses also include the amortization of deferred contract acquisition costs, which includes commissions and any other incremental payments made upon the initial acquisition of a subscription or upsells to existing customers, which are capitalized and amortized over the estimated customer life. We also capitalize and amortize any such expenses paid for the renewal of a subscription over the term of the renewal.

We expect sales and marketing expenses to increase in dollar amount as we continue to make significant investments in our sales and marketing organization to drive additional revenue, further penetrate the market, and expand our global customer base. However, we anticipate sales and marketing expenses to decrease as a percentage of our total revenue over time as we grow our business, although our sales and marketing expenses may fluctuate as a percentage of our total revenue from period to period depending on the timing of these expenses.

Research and Development. Research and development expenses primarily consist of employee-related expenses such as salaries and bonuses; stock-based compensation; cloud hosting and related costs; and an allocated portion of facilities and administrative expenses. Our cloud platform is software-driven, and our research and development teams employ software engineers in the design, and the related development, testing, certification, and support of these solutions.

We expect research and development expenses to increase in dollar amount as we continue to increase investments in our technology architecture and software platform. However, we anticipate research and development expenses to decrease as a percentage of our total revenue over time as we grow our business, although our research and development expenses may fluctuate as a percentage of our total revenue from period to period depending on the timing of these expenses.

General and Administrative. General and administrative expenses consist of employee-related expenses such as salaries and bonuses; stock-based compensation; and related expenses for our executive, finance, human resources, and legal organizations. In addition, general and administrative expenses include outside legal, accounting, and other professional fees; and an allocated portion of facilities and administrative expenses.

We expect general and administrative expenses to increase in dollar amount over time. We expect to incur significant legal and professional services and other expenses associated with the July 19 Incident and related matters in future periods. General and administrative expenses may fluctuate as a percentage of our total revenue from period to period depending on the timing of these expenses.

Interest Expense. Interest expense consists primarily of amortization of debt issuance costs, contractual interest expense for our Senior Notes issued in January 2021, and amortization of debt issuance costs on our revolving facility, which expired in January 2026.

Interest Income. Interest income consists primarily of income earned on our cash and cash equivalents.

Other Income (Expense), Net. Other income (expense), net consists primarily of gains and losses on strategic investments and foreign currency transaction gains and losses.

Provision for Income Taxes. Provision for income taxes consists of state income taxes in the United States, foreign income taxes, and withholding taxes related to customer payments in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our U.S. federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which we have determined are not realizable on a more-likely-than-not basis. We regularly evaluate the need for a valuation allowance.

Net Income Attributable to Non-controlling Interest. Net income attributable to non-controlling interest consists of the Falcon Funds’ non-controlling interest share of gains and losses and interest income from our strategic investments.

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Results of Operations

The following tables set forth our consolidated statements of operations for each period presented (in thousands, except percentages):

Year Ended January 31,

2026

2025

2024

Revenue

Subscription

$

4,564,683 

$

3,761,480 

$

2,870,557 

Professional services

247,322 

192,144 

184,998 

Total revenue

4,812,005 

3,953,624 

3,055,555 

Cost of revenue

Subscription

1,015,915 

834,578 

632,743 

Professional services

203,014 

155,594 

126,186 

Total cost of revenue

1,218,929 

990,172 

758,929 

Gross profit

3,593,076 

2,963,452 

2,296,626 

Operating expenses

Sales and marketing

1,831,254 

1,523,001 

1,140,275 

Research and development

1,384,770 

1,075,587 

780,319 

General and administrative

670,344 

481,264 

395,173 

Total operating expenses

3,886,368 

3,079,852 

2,315,767 

Loss from operations

(293,292)

(116,400)

(19,141)

Interest expense

(28,021)

(26,311)

(25,756)

Interest income

194,969 

196,174 

148,930 

Other income (expense), net

(645)

5,101 

1,638 

Income (loss) before provision for income taxes

(126,989)

58,564 

105,671 

Provision for income taxes

34,176 

71,130 

32,232 

Net income (loss)

(161,165)

(12,566)

73,439 

Net income attributable to non-controlling interest

1,337 

2,675 

1,258 

Net income (loss) attributable to CrowdStrike

$

(162,502)

$

(15,241)

$

72,181 

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The following table presents the components of our consolidated statements of operations as a percentage of total revenue for the periods presented:

Year Ended January 31,

2026

2025

2024

%

%

%

Revenue

Subscription

95 

%

95 

%

94 

%

Professional services

5 

%

5 

%

6 

%

Total revenue

100 

%

100 

%

100 

%

Cost of revenue

Subscription

21 

%

21 

%

21 

%

Professional services

4 

%

4 

%

4 

%

Total cost of revenue

25 

%

25 

%

25 

%

Gross profit

75 

%

75 

%

75 

%

Operating expenses

Sales and marketing

38 

%

39 

%

37 

%

Research and development

29 

%

27 

%

26 

%

General and administrative

14 

%

12 

%

13 

%

Total operating expenses

81 

%

78 

%

76 

%

Loss from operations

(6)

%

(3)

%

(1)

%

Interest expense

(1)

%

(1)

%

(1)

%

Interest income

4 

%

5 

%

5 

%

Other income (expense), net

— 

%

— 

%

— 

%

Income (loss) before provision for income taxes

(3)

%

1 

%

3 

%

Provision for income taxes

1 

%

2 

%

1 

%

Net income (loss)

(3)

%

— 

%

2 

%

Net income attributable to non-controlling interest

— 

%

— 

%

— 

%

Net income (loss) attributable to CrowdStrike

(3)

%

— 

%

2 

%

Comparison of Fiscal 2026 and Fiscal 2025

Revenue

The following shows total revenue from subscriptions and professional services for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Subscription

$

4,564,683 

$

3,761,480 

$

803,203 

21 

%

Professional services

247,322 

192,144 

55,178 

29 

%

Total revenue

$

4,812,005 

$

3,953,624 

$

858,381 

22 

%

Total revenue increased by $858.4 million, or 22%, in fiscal 2026, as compared to fiscal 2025. Subscription revenue accounted for 95% of total revenue for each of fiscal 2026 and fiscal 2025. Professional services revenue accounted for 5% of total revenue for each of fiscal 2026 and fiscal 2025.

Subscription revenue increased by $803.2 million, or 21% in fiscal 2026, as compared to fiscal 2025, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.

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Professional services revenue increased by $55.2 million, or 29%, in fiscal 2026, as compared to fiscal 2025, which was primarily attributable to an increase in the number of professional service hours.

Cost of Revenue, Gross Profit, and Gross Margin

The following shows cost of revenue related to subscriptions and professional services for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended  January 31,

Change

2026

2025

$

%

Subscription

$

1,015,915 

$

834,578 

$

181,337 

22 

%

Professional services

203,014 

155,594 

47,420 

30 

%

Total cost of revenue

$

1,218,929 

$

990,172 

$

228,757 

23 

%

Total cost of revenue increased by $228.8 million, or 23%, in fiscal 2026, as compared to fiscal 2025. Subscription cost of revenue increased by $181.3 million, or 22%, in fiscal 2026, as compared to fiscal 2025. 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 $43.1 million driven by a 16% increase in average headcount, an increase in depreciation of data center equipment of $33.4 million, an increase in amortization of internal-use software of $24.9 million, an increase in stock-based compensation expense of $18.1 million, an increase in allocated overhead costs of $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.

Professional services cost of revenue increased by $47.4 million, or 30%, in fiscal 2026, as compared to fiscal 2025. 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 $15.5 million driven by a 12% increase in average headcount, an increase in stock-based compensation expense of $5.7 million, charges related to the Strategic Plan of $3.3 million, and an increase in allocated overhead costs of $2.6 million.

The following shows gross profit and gross margin for subscriptions and professional services for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Subscription gross profit

$

3,548,768 

$

2,926,902 

$

621,866 

21 

%

Professional services gross profit

44,308 

36,550 

7,758 

21 

%

Total gross profit

$

3,593,076 

$

2,963,452 

$

629,624 

21 

%

Year Ended January 31,

Change

2026

2025

Subscription gross margin

78 

%

78 

%

— 

%

Professional services gross margin

18 

%

19 

%

(1)

%

Total gross margin

75 

%

75 

%

— 

%

Subscription gross margin was flat in fiscal 2026, as compared to fiscal 2025.

Professional services gross margin decreased by 1% in fiscal 2026, as compared to fiscal 2025. The decrease in professional services gross margin was primarily due to an increase in consulting expense and an increase in stock-based compensation expense during fiscal 2026, as compared to fiscal 2025.

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Operating Expenses

Sales and Marketing

The following shows sales and marketing expenses for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Sales and marketing expenses

$

1,831,254 

$

1,523,001 

$

308,253 

20 

%

Sales and marketing expenses increased by $308.3 million, or 20%, in fiscal 2026, as compared to fiscal 2025. The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $168.4 million driven by a 12% increase in average headcount, an increase in stock-based compensation expense of $48.2 million, an increase in marketing programs of $29.2 million, an increase in allocated overhead costs of $20.2 million, an increase in employee benefits of $16.5 million, an increase in travel expenses of $11.2 million, charges related to the Strategic Plan of $9.0 million, an increase in cloud hosting and related costs of $6.2 million, an increase in term-based software licenses of $3.2 million, an increase in other labor expenses of $2.1 million, and an increase in consulting expenses of $1.7 million, partially offset by a decrease in expenses associated with the July 19 Incident and related matters of $20.3 million.

Research and Development

The following shows research and development expenses for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Research and development expenses

$

1,384,770 

$

1,075,587 

$

309,183 

29 

%

Research and development expenses increased by $309.2 million, or 29% in fiscal 2026, as compared to fiscal 2025. This increase was primarily due to an increase in employee-related expenses of $116.8 million driven by a 20% increase in average headcount, an increase in stock-based compensation expense of $94.0 million, an increase in cloud hosting and related costs of $46.4 million, an increase in allocated overhead costs of $27.6 million, charges related to the Strategic Plan of $16.6 million, and an increase in term-based software licenses of $3.5 million, partially offset by an increase in software capitalization of $9.8 million, and a decrease in expenses associated with the July 19 Incident and related matters of $4.4 million.

General and Administrative

The following shows general and administrative expenses for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

General and administrative expenses

$

670,344 

$

481,264 

$

189,080 

39 

%

General and administrative expenses increased by $189.1 million, or 39%, in fiscal 2026, as compared to fiscal 2025. The increase in general and administrative expenses was primarily due to an increase in expenses associated with the July 19 Incident and related matters of $82.4 million, an increase in stock-based compensation expense of $52.4 million, an increase in consulting expense of $16.4 million, charges related to the Strategic Plan of $12.5 million, an increase in employee-related expenses of $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 $3.0 million.

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Interest Expense, Interest Income and Other Income (Expense), Net

The following shows interest expense, interest income, and other income (expense), net, for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Interest expense

$

(28,021)

$

(26,311)

$

(1,710)

6 

%

Interest income

$

194,969 

$

196,174 

$

(1,205)

(1)

%

Other income (expense), net

$

(645)

$

5,101 

$

(5,746)

(113)

%

Interest expense consists primarily of amortization of debt issuance costs, contractual interest expense, accretion of debt discount for our Senior Notes issued in January 2021, and amortization of debt issuance costs on our revolving facility, which expired in January 2026.

The decrease in interest income during fiscal 2026 compared to fiscal 2025 was driven by lower market rates, partially offset by higher cash balances.

The decrease in other income (expense), net during fiscal 2026 compared to fiscal 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 $2.2 million, and an increase in downward adjustments and impairment of $0.6 million of our strategic investments, partially offset by an increase in gains from deferred compensation assets of $0.8 million.

Provision for Income Taxes

The following shows the provision for income taxes for fiscal 2026, as compared to fiscal 2025 (in thousands, except percentages):

Year Ended January 31,

Change

2026

2025

$

%

Provision for income taxes

$

34,176 

$

71,130 

$

(36,954)

(52)

%

The decrease in provision for income taxes during fiscal 2026 compared to fiscal 2025 was primarily attributable to a decrease in tax on intercompany sale of intellectual property from acquired entities, partially offset by an increase in tax on foreign earnings and withholding taxes in certain foreign jurisdictions.

Liquidity and Capital Resources

Our primary sources of liquidity as of January 31, 2026, consisted of: (i) $5.2 billion in cash and cash equivalents, which mainly consists of cash on hand and highly liquid investments in money market funds, U.S. Treasury bills, and time deposits, and (ii) cash we expect to generate from operations. It is not currently possible to reasonably estimate the amount of loss or range of possible loss that might result from adverse judgments, settlements, penalties, or other resolution of proceedings resulting from the July 19 Incident or related matters. However, despite such uncertainties, we expect that the combination of our existing cash and cash equivalents and cash flows from operations will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months.

Our short-term and long-term liquidity requirements primarily arise from: (i) business acquisitions and investments we may make from time to time, (ii) working capital requirements, (iii) interest and principal payments related to our outstanding indebtedness, (iv) research and development and capital expenditure needs, and (v) license and service arrangements integral to our business operations. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business, and other factors, some of which are beyond our control.

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We have a history of losses, and while we have achieved profitability in certain periods, including fiscal 2024, our accumulated deficit is $1.3 billion as of January 31, 2026. We expect to continue to make investments, particularly in sales and marketing and research and development. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Therefore, a substantial source of our cash is from such prepayments, which are included on our consolidated balance sheets as deferred revenue. Deferred revenue primarily consists of billed fees for our subscriptions, prior to satisfying the criteria for revenue recognition, which are subsequently recognized as revenue in accordance with our revenue recognition policy. As of January 31, 2026, we had deferred revenue of $4.8 billion, of which $3.4 billion was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities. We do not have any outstanding derivative financial instruments, off-balance sheet guarantees, interest rate swap transactions, or foreign currency forward contracts.

Cash Flows

The following table summarizes our cash flows for the periods presented (in thousands):

Year Ended January 31,

2026

2025

2024

Net cash provided by operating activities

$

1,612,349 

$

1,381,727 

$

1,166,207 

Net cash used in investing activities

(764,479)

(536,588)

(340,650)

Net cash provided by financing activities

132,452 

107,208 

93,158 

Net increase in cash, cash equivalents, and restricted cash

989,951 

947,069 

920,673 

Operating Activities

Net cash provided by operating activities during fiscal 2026 was $1.6 billion, which resulted from net loss of $161.2 million, adjusted for non-cash charges of $1.8 billion and net cash outflow of $59.3 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $1.1 billion in stock-based compensation expense, $449.4 million of amortization of deferred contract acquisition costs, $250.2 million of depreciation and amortization, $31.2 million of amortization of intangibles assets, $17.2 million of non-cash operating lease costs, $5.4 million of non-cash interest expense, and $1.6 million change in fair value of strategic investments, partially offset by $14.8 million of deferred income taxes and $4.2 million of realized gains on strategic investments. The net cash outflow from changes in operating assets and liabilities was primarily due to an increase of $703.7 million in deferred contract acquisition costs, an increase of $232.5 million in accounts receivable, an increase of $206.2 million in prepaid expenses and other assets, a decrease of $13.7 million in operating lease liabilities, and a decrease of $11.3 million in accounts payable, partially offset by an increase of $1.0 billion in deferred revenue, an increase of $61.6 million in accrued payroll and benefits, and an increase of $22.6 million in accrued expenses and other liabilities.

Net cash provided by operating activities during fiscal 2025 was $1.4 billion, which resulted from net loss of $12.6 million, adjusted for non-cash charges of $1.4 billion and net cash outflow of $6.0 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $861.4 million in stock-based compensation expense, $318.8 million of amortization of deferred contract acquisition costs, $188.0 million of depreciation and amortization, $26.0 million of amortization of intangibles assets, $15.3 million of non-cash operating lease costs, $3.8 million of non-cash interest expense, and $2.3 million of accretion of short-term investments purchased at a discount, partially offset by $9.9 million of deferred income taxes and $6.3 million of realized gains on strategic investments. The net cash outflow from changes in operating assets and liabilities was primarily due to a $584.5 million increase in deferred contract acquisition costs, a $274.2 million increase in accounts receivable, net, a $190.2 million increase in prepaid expenses and other assets, and a $15.7 million decrease in operating lease liabilities, partially offset by a $669.3 million increase in deferred revenue, a $218.5 million increase in accrued expenses and other liabilities, an $85.9 million increase in accrued payroll and benefits, and an $84.9 million increase in accounts payable.

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Investing Activities

Net cash used in investing activities during fiscal 2026 of $764.5 million was primarily due to business acquisitions, net of cash acquired, of $382.3 million, which was related to the Onum Technology Inc. and Pangea Cyber Corporation acquisitions, purchases of property and equipment of $302.1 million, capitalized internal-use software and website development costs of $68.8 million, purchases of strategic investments of $10.8 million, and purchases of deferred compensation investments of $6.0 million, partially offset by proceeds from sales of strategic investments of $5.2 million.

Net cash used in investing activities during fiscal 2025 of $536.6 million was primarily due to business acquisitions, net of cash acquired, of $310.3 million, which was related to the Flow Security and Adaptive Shield acquisitions, purchases of property and equipment of $254.9 million, capitalized internal-use software and website development costs of $59.0 million, purchases of strategic investments of $19.7 million, and purchases of deferred compensation investments of $2.7 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 million.

Financing Activities

Net cash provided by financing activities of $132.5 million during fiscal 2026 was primarily due to proceeds from our employee stock purchase plan of $125.8 million, capital contributions from non-controlling interests of $6.0 million, and proceeds from the exercise of stock options of $3.2 million, partially offset by distributions to non-controlling interest holders of $2.5 million.

Net cash provided by financing activities of $107.2 million during fiscal 2025 was primarily due to proceeds from our employee stock purchase plan of $99.6 million, capital contributions from non-controlling interest holders of $8.5 million, and proceeds from the exercise of stock options of $4.0 million, partially offset by distributions to non-controlling interest holders of $4.9 million.

Supplemental Guarantor Financial Information

Our Senior Notes are guaranteed on a senior, unsecured basis by CrowdStrike, Inc. and CrowdStrike Financial Services, Inc., wholly owned subsidiaries of CrowdStrike Holdings, Inc. (the “subsidiary guarantors,” and together with CrowdStrike Holdings, Inc., the “Obligor Group”). The guarantee is full and unconditional and is subject to certain conditions for release. See Note 5, Debt, in Part II, Item 8 of this Annual Report on Form 10-K, for a brief description of the Senior Notes.

We conduct our operations almost entirely through our subsidiaries. Accordingly, the Obligor Group’s cash flows and ability to service the Senior Notes will depend on the earnings of our subsidiaries and the distribution of those earnings to the Obligor Group, whether by dividends, loans, or otherwise. Holders of the guaranteed registered debt securities will have a direct claim only against the Obligor Group.

Summarized financial information is presented below for the Obligor Group on a combined basis after elimination of intercompany transactions and balances within the Obligor Group and equity in the earnings from and investments in any non-guarantor subsidiary. The revenue amounts presented in the summarized financial information include substantially all of our consolidated revenue, and there is no intercompany revenue from the non-guarantor subsidiaries. This summarized financial information has been prepared and presented pursuant to Regulation S-X Rule 13-01, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” and is not intended to present the financial position or results of operations of the Obligor Group in accordance with U.S. GAAP.

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Statement of Operations

Year Ended

January 31, 2026

(in thousands)

Revenue

$

4,809,994 

Cost of revenue

1,298,709 

Operating expenses

3,924,576 

Loss from operations

(413,291)

Net loss

(309,263)

Net loss attributable to CrowdStrike

(309,263)

Balance Sheet

January 31, 2026

(in thousands)

Current assets (excluding current intercompany receivables from non-Guarantors)

$

7,235,157 

Current intercompany receivables from non-Guarantors

— 

Noncurrent assets (excluding noncurrent intercompany receivables from non-Guarantors)

3,354,831 

Noncurrent intercompany receivables from non-Guarantors

625,943 

Current liabilities (excluding current intercompany payables to non-Guarantors)

4,017,456 

Current intercompany payables to non-Guarantors

97,000 

Noncurrent liabilities (excluding noncurrent intercompany payables to non-Guarantors)

2,359,552 

Noncurrent intercompany payables to non-Guarantors

198,223 

Strategic Investments

In July 2019, we agreed to commit up to $10.0 million to a newly formed entity, CrowdStrike Falcon Fund LLC (the “Original Falcon Fund”) in exchange for 50% of the sharing percentage of any distribution by the Original Falcon Fund. In December 2021, we agreed to commit an additional $50.0 million to a newly formed entity, CrowdStrike Falcon Fund II LLC (“Falcon Fund II”) in exchange for 50% of the sharing percentage of any distribution by Falcon Fund II. Further, entities associated with Accel also agreed to commit up to $10.0 million and $50.0 million, respectively, to the Original Falcon Fund and Falcon Fund II (collectively, the “Falcon Funds”), and collectively own the remaining 50% of the sharing percentage of the Falcon Funds. Both Falcon Funds are in the business of purchasing, selling, and investing in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to us and our platform. We are the manager of the Falcon Funds and control their investment decisions and day-to-day operations and accordingly have consolidated each of the Falcon Funds. Each Falcon Fund has a duration of ten years and may be extended for three additional years. At dissolution, the Falcon Funds will be liquidated, and the remaining assets will be distributed to the investors based on their respective sharing percentage.

Contractual Obligations and Commitments

Our commitments consist of obligations under non-cancelable real estate arrangements on an undiscounted basis, of which $16.9 million is due in the next 12 months and $65.8 million is due thereafter. In addition, we have debt obligations related to $750.0 million aggregate principal amount of the Senior Notes due in fiscal 2030 and the interest payments associated with the Senior Notes of $22.5 million due in the next 12 months and $56.3 million due thereafter. We have non-cancelable purchase commitments with various parties to purchase products and services entered in the normal course of business totaling $2.8 billion as of January 31, 2026, with remaining terms in excess of 12 months. We expect to fund these obligations with cash flows from operations and cash on our balance sheet.

As of January 31, 2026, our unrecognized tax benefits included $47.3 million, which were classified as long-term liabilities due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits.

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As of January 31, 2026, we had non-cancelable unfunded commitments from our financing arrangements totaling approximately $89.9 million.

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.

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.

Critical Accounting Policies and Estimates

Our management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements and notes to our consolidated financial statements, which were prepared in accordance with U.S. GAAP. The preparation of the consolidated financial statements requires our management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. See Note 1, Description of Business and Significant Accounting Policies to our consolidated financial statements included in Item 8, Financial Statements and Supplementary Data of this Annual Report on Form 10-K. We base our estimates and judgments on our historical experience, knowledge of factors affecting our business, and our belief as to what could occur in the future considering available information and assumptions that are believed to be reasonable under the circumstances.

The accounting estimates we use in the preparation of our consolidated financial statements will change as new events occur, more experience is acquired, additional information is obtained, and our operating environment changes. Changes in estimates are made when circumstances warrant. Such changes in estimates and refinements in estimation methodologies are reflected in our reported results of operations and, if material, the effects of changes in estimates are disclosed in the notes to our consolidated financial statements. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty and actual results could differ materially from the amounts reported based on these estimates.

The critical accounting estimates, assumptions, and judgments that we believe have the most significant impact on our consolidated financial statements are described below.

Revenue Recognition

We derive our revenue predominately from subscription revenue, which is primarily based on the solutions subscribed to by the customer. We recognize subscription revenue ratably over the contract term. Our professional services are available through time and material and fixed fee agreements. Revenue from professional services is recognized as services are performed.

We enter into revenue contracts with multiple performance obligations in which a customer may purchase combinations of subscriptions, support, training, and consulting service. Judgment is required when considering the terms and conditions of these contracts. The transaction price for these contracts is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. The SSP is the price at which we would sell promised subscription or professional services separately to a customer.

Business Combinations

We allocate the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets. Although we believe the

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assumptions and estimates we have made are reasonable, they are based in part on historical experience, market conditions, and information obtained from management of the acquired companies and are inherently uncertain. Examples of judgments used to estimate the fair value of intangibles assets include, but are not limited to, future expected cash flows, expected customer attrition rates, estimated obsolescence rates, and discount rates. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

Income Taxes

We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.

We account for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. We establish a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. Our assumptions, judgments, and estimates relative to the current provision for income taxes take into account current tax laws, our interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We have established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. In addition, we are subject to the continual examination of our income tax returns by the U.S. Internal Revenue Service (“IRS”) and other domestic and foreign tax authorities. We regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from such examinations. We believe such estimates to be reasonable; however, the final determination of any of these examinations could significantly impact the amounts provided for income taxes in our consolidated financial statements.

Change in Accounting Estimate

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.

Quarterly Financial Information

Three Months Ended

January 31, 2026

October 31, 2025

July 31, 2025

April 30, 2025

Revenue

$

1,305,375 

$

1,234,244 

$

1,168,952 

$

1,103,434 

Gross profit

989,462 

927,654 

860,401 

815,559 

Loss from operations

(6,900)

(62,222)

(105,457)

(118,713)

Net income (loss)

40,775 

(26,767)

(70,123)

(105,050)

Net income (loss) attributable to CrowdStrike

$

38,691 

$

(26,776)

$

(70,153)

$

(104,264)

Net income (loss) per share attributable to CrowdStrike common stockholders:

Basic

$

0.15 

$

(0.11)

$

(0.28)

$

(0.42)

Diluted

$

0.15 

$

(0.11)

$

(0.28)

$

(0.42)

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Table of Contents

Three Months Ended

January 31, 2025

October 31, 2024

July 31, 2024

April 30, 2024

Revenue

$

1,058,538 

$

1,010,178 

$

963,872 

$

921,036 

Gross profit

786,157 

755,424 

726,161 

695,710 

Income (loss) from operations

(79,305)

(54,365)

12,525 

4,745 

Net income (loss)

(86,735)

(15,461)

45,557 

44,073 

Net income (loss) attributable to CrowdStrike

$

(86,286)

$

(15,464)

$

45,880 

$

40,629 

Net income (loss) per share attributable to CrowdStrike common stockholders:

Basic

$

(0.35)

$

(0.06)

$

0.19 

$

0.17 

Diluted

$

(0.35)

$

(0.06)

$

0.18 

$

0.16 

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.

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.

Consolidated Balance Sheets

As of April 30, 2025

As previously reported

Adjustments

As revised

Additional paid-in-capital

$

4,633,211 

$

36,490 

$

4,669,701 

Accumulated deficit

$

(1,188,314)

$

(36,490)

$

(1,224,804)

As of July 31, 2025

As previously reported

Adjustments

As revised

Additional paid-in-capital

$

5,016,544 

$

28,968 

$

5,045,512 

Accumulated deficit

$

(1,265,989)

$

(28,968)

$

(1,294,957)

As of October 31, 2025

As previously reported

Adjustments

As revised

Additional paid-in-capital

$

5,314,820 

$

21,747 

$

5,336,567 

Accumulated deficit

$

(1,299,986)

$

(21,747)

$

(1,321,733)

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Table of Contents

Consolidated Statements of Operations

Three Months Ended April 30, 2025

As previously reported

Adjustments

As revised

Subscription cost of revenue

$

242,374 

$

(1,014)

$

241,360 

Professional services cost of services

46,769 

(254)

46,515 

Total cost of revenue

289,143 

(1,268)

287,875 

Gross profit

814,291 

1,268 

815,559 

Sales and marketing

439,617 

(406)

439,211 

Research and development

334,129 

(3,203)

330,926 

General and administrative

165,201 

(1,066)

164,135 

Total operating expenses

938,947 

(4,675)

934,272 

Loss from operations

(124,656)

5,943 

(118,713)

Loss before provision for income taxes

(89,887)

5,943 

(83,944)

Net loss

(110,993)

5,943 

(105,050)

Net loss attributable to CrowdStrike

$

(110,207)

$

5,943 

$

(104,264)

Net loss per share attributable to CrowdStrike common stockholders:

Basic

$

(0.44)

$

0.02 

$

(0.42)

Diluted

$

(0.44)

$

0.02 

$

(0.42)

Three Months Ended July 31, 2025

Six Months Ended July 31, 2025

As previously reported

Adjustments

As revised

As previously reported

Adjustments

As revised

Subscription cost of revenue

$

253,640 

$

(1,189)

$

252,451 

$

496,014 

$

(2,203)

$

493,811 

Professional services cost of services

56,643 

(543)

56,100 

103,412 

(797)

102,615 

Total cost of revenue

310,283 

(1,732)

308,551 

599,426 

(3,000)

596,426 

Gross profit

858,669 

1,732 

860,401 

1,672,960 

3,000 

1,675,960 

Sales and marketing

447,024 

(444)

446,580 

886,641 

(850)

885,791 

Research and development

346,668 

(4,135)

342,533 

680,797 

(7,338)

673,459 

General and administrative

177,956 

(1,211)

176,745 

343,157 

(2,277)

340,880 

Total operating expenses

971,648 

(5,790)

965,858 

1,910,595 

(10,465)

1,900,130 

Loss from operations

(112,979)

7,522 

(105,457)

(237,635)

13,465 

(224,170)

Loss before provision for income taxes

(71,674)

7,522 

(64,152)

(161,561)

13,465 

(148,096)

Net loss

(77,645)

7,522 

(70,123)

(188,638)

13,465 

(175,173)

Net loss attributable to CrowdStrike

$

(77,675)

$

7,522 

$

(70,153)

$

(187,882)

$

13,465 

$

(174,417)

Net loss per share attributable to CrowdStrike common stockholders:

Basic

$

(0.31)

$

0.03 

$

(0.28)

$

(0.75)

$

0.05 

$

(0.70)

Diluted

$

(0.31)

$

0.03 

$

(0.28)

$

(0.75)

$

0.05 

$

(0.70)

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Three Months Ended October 31, 2025

Nine Months Ended October 31, 2025

As previously reported

Adjustments

As revised

As previously reported

Adjustments

As revised

Subscription cost of revenue

$

257,915 

$

(920)

$

256,995 

$

753,929 

$

(3,123)

$

750,806 

Professional services cost of services

49,890 

(295)

49,595 

153,302 

(1,092)

152,210 

Total cost of revenue

307,805 

(1,215)

306,590 

907,231 

(4,215)

903,016 

Gross profit

926,439 

1,215 

927,654 

2,599,399 

4,215 

2,603,614 

Sales and marketing

481,032 

(364)

480,668 

1,367,673 

(1,214)

1,366,459 

Research and development

347,564 

(3,980)

343,584 

1,028,361 

(11,318)

1,017,043 

General and administrative

167,286 

(1,662)

165,624 

510,443 

(3,939)

506,504 

Total operating expenses

995,882 

(6,006)

989,876 

2,906,477 

(16,471)

2,890,006 

Loss from operations

(69,443)

7,221 

(62,222)

(307,078)

20,686 

(286,392)

Loss before provision for income taxes

(23,268)

7,221 

(16,047)

(184,829)

20,686 

(164,143)

Net loss

(33,988)

7,221 

(26,767)

(222,626)

20,686 

(201,940)

Net loss attributable to CrowdStrike

$

(33,997)

$

7,221 

$

(26,776)

$

(221,879)

$

20,686 

$

(201,193)

Net loss per share attributable to CrowdStrike common stockholders:

Basic

$

(0.14)

$

0.03 

$

(0.11)

$

(0.89)

$

0.08 

$

(0.81)

Diluted

$

(0.14)

$

0.03 

$

(0.11)

$

(0.89)

$

0.08 

$

(0.81)

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.

Recently Issued Accounting Pronouncements

See Note 1, Description of Business and Significant Accounting Policies, included in Part II, Item 8 of this Annual Report on Form 10-K for more information about the impact of certain recent accounting pronouncements on our consolidated financial statements.

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