CrowdStrike reported strong Q4 2025 earnings, setting new records in net new ARR and free cash flow.

From Nasdaq: 2025-03-04 22:30:13

CrowdStrike (NASDAQ: CRWD) held its Q4 2025 Earnings Call on March 4, 2025, reporting strong results. Highlights include Q4 net new ARR of $224 million, ending FY 2025 at $4.24 billion in ARR. The company also saw a gross dollar retention of 97% and Q4 free cash flow of $240 million. CrowdStrike set a new record by delivering $1.07 billion in free cash flow for the full year, exceeding $1 billion for the first time. They also became the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year.

CrowdStrike showcased its strength and growth in the cybersecurity market in Q4 2025. With net new ARR, free cash flow, and total contract value reaching record highs, the company is setting new standards in the industry. As the cybersecurity landscape evolves, CrowdStrike is at the forefront of innovation and customer satisfaction. The company is well-positioned to meet the demands of businesses and governments worldwide, providing AI-driven solutions to combat cybersecurity threats. CrowdStrike is investing in AI to reach $10 billion in ARR, with AI playing a key role in cybersecurity. Charlotte, the AI security analyst, is helping customers improve threat response times. The geopolitical AI arms race is escalating, with China Nexus adversaries increasing cyber attacks. CrowdStrike remains a leader in threat intelligence, uniting cyber defenders to stop adversaries. Falcon Flex subscription model is driving customer commitment, with over $2.5 billion in total deal value. This commitment is accelerating module adoption and platform consolidation, positioning CrowdStrike as a market leader in cybersecurity. In Q4, CrowdStrike’s cloud security business grew over 45%, reaching an ending ARR of more than $600 million. The company is positioned to provide the best runtime protection for cloud workloads. Their Next-Gen SIEM business grew 115% year-over-year, finishing the year at over $330 million in ending ARR. CrowdStrike’s exposure management business has quickly become a market disruptor, offering integrated attack surface management and vulnerability prioritization. The company’s ecosystem and partner-first strategy have been key to their success, with partners sourcing 60% of new business in the fiscal year. CrowdStrike has also seen significant growth in their MSSP go-to-market, with nearly 15% of new business coming from this channel in FY ’25. The company achieved over $1 billion in sales on the AWS marketplace in one calendar year and over $150 million in deal value in their first year of partnership with Google Marketplace. CrowdStrike’s partner ecosystem is thriving with larger deal sizes and faster cycles, positioning them as a leading cybersecurity platform. With over 74,000 organizations trusting CrowdStrike, their record-breaking Q4 results show unprecedented growth. The company’s innovative Falcon platform continues to drive adoption and secure AI transformation. CrowdStrike’s CFO, Burt Podbere, highlights the company’s strong performance, surpassing expectations and achieving $6 billion in total contract value in FY ’25. Their customer commitment program has deepened relationships, leading to $1 billion in Q4 account value. Falcon Flex drives platform adoption, setting the stage for future growth in FY ’26 and beyond. In Q4, CrowdStrike’s total revenue grew 25% over the previous year to $1.06 billion, surpassing expectations. Subscription revenue hit $1.01 billion, with professional services revenue at $50.2 million. Gross margin was 78%, with subscription gross margin over 80%. Non-GAAP operating income reached $217.3 million, with an operating margin of 21%. AI investments led to increased efficiencies, saving over 24,000 work weeks in Q4. In FY ’26, FY ’27, and beyond, CrowdStrike plans to scale up, hitting a $10 billion ending ARR by FY ’31, with non-GAAP operating margin targets and returning to GAAP profitability in Q4. CrowdStrike expects non-GAAP net income per share to be between $3.33 and $3.45, utilizing 256 million weighted average shares on a diluted basis. Falcon Flex is driving value for customers by consolidating modules and increasing ARR, as seen with a 67% increase for a transportation company. The company’s threat report highlighted the importance of identity in cybersecurity, with 79% of attacks being nonmalware-based. The back half of the year shows promise for reacceleration, with CCP contracts renewing and customers ahead of schedule in consuming Flex pools. CrowdStrike discusses the success of their products, aiming to upsell and show value to customers. Analyst Tal Liani questions the decline in growth from existing customers and asks about the strategy to increase it. CFO Burt W. Podbere explains the impact of different dynamics on dollar-based retention and the benefits of larger, longer deals. George Kurtz highlights the success of Charlotte AI in saving time and effort for customers. Exposure management and vulnerability management are key elements in CrowdStrike’s platform, allowing for full network endpoint replacements. The company remains excited about the potential of these capabilities. CrowdStrike had a strong recovery quarter, with net new ARR down 1% year over year despite no increase in churn. The acquisition of Adaptive Shield had a minimal impact on ARR but offers significant opportunity for growth. Customers are excited about the new technology and adoption has been swift. Demand plans for Falcon Flex are ahead of schedule, driving robust deal value and potential upsell opportunities. CrowdStrike exceeded $1 billion in sales through AWS Marketplace in a 12-month period, showing strong growth potential in the cloud environment for the next two to three years. Customers are increasingly looking to consume services through cloud providers, indicating continued growth for CrowdStrike. CrowdStrike reported a $600 million cloud ARR, growing by 45%. Competitors are seeing customers gravitating towards workload protection and agent architecture. CrowdStrike’s strength lies in workload protection, essential for stopping breaches and earning customer trust. The company has expanded its CNAPP capabilities and is consolidating customer spend in cloud environments. CrowdStrike is guiding for a 20% operating profit margin in fiscal ’26, with a potential snap back to 23% in fiscal ’27. Investments in marketing, innovation, AI tools, and platform resiliency are key focus areas for the company. Operating margin and free cash flow are expected to expand in the second half of FY ’26. The Motley Fool has positions in and recommends CrowdStrike. 1. In a groundbreaking study, researchers have discovered a new species of dinosaur in Argentina. The species, named Llukalkan aliocranianus, is believed to have lived approximately 80 million years ago and had a unique skull structure never seen before in other dinosaurs.

2. The stock market saw a significant increase today, with the Dow Jones Industrial Average reaching a new all-time high. This surge was fueled by positive economic data and strong corporate earnings reports. The S&P 500 and Nasdaq also experienced gains, indicating a broad-based rally across various sectors.

3. The COVID-19 vaccine rollout continues to progress, with over 100 million doses administered in the United States alone. This milestone comes as the country ramps up efforts to vaccinate as many people as possible in an effort to achieve herd immunity and end the pandemic.

4. Tesla has announced plans to build a new Gigafactory in Texas, which will focus on producing the highly anticipated Cybertruck. The factory is expected to create thousands of jobs in the area and boost the local economy. This move is part of Tesla’s larger strategy to expand its manufacturing capabilities and meet growing demand for its electric vehicles.



Read more at Nasdaq: CrowdStrike (CRWD) Q4 2025 Earnings Call Transcript