CrowdStrike (CRWD) Q1 FY26 earnings call

Earnings call· Apr 2025 (Q1 FY26)· Information Technology· Jun 3, 2025

Source: earnings call transcript

CrowdStrike delivered a strong Q1 FY26, exceeding expectations for net new ARR and demonstrating robust platform adoption driven by the Falcon Flex model. The company anticipates sequential net new ARR growth in Q2 and reacceleration in the second half of FY26, fueled by continued innovation in areas like Next-Gen SIEM and AI-native security, despite temporary revenue recognition impacts from prior programs. Management expressed high confidence in future growth and profitability, authorizing a $1 billion share repurchase program.

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CRWD operating KPIs by quarter

CRWD operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jan 2025 Q4 FY25	This call Apr 2025 Q1 FY26	Jul 2025 Q2 FY26	Oct 2025 Q3 FY26	Jan 2026 Q4 FY26	Apr 2026 Q1 FY27	Jul 2026 Q2 FY27	Change vs prior quarter
Annual recurring revenue (ARR)	$4.24B Q4 and FY 2025 highlights include: Q4 net new ARR of $224 million, well ahead of our expectations closing FY 2025 at $4.24 billion in ending ARR. Source: earnings call transcript	$4.44B In Q1, we achieved net new ARR of $194 million, growing ending ARR to $4.44 billion, up 22% over last year. Source: earnings call transcript	$4.66B Highlights included: one, record Q2 net new ARR of $221 million, double-digit millions ahead of our expectations, showcasing accelerating net new ARR; two, ending ARR of $4.66 billion, growing more than 20% year-over-year; three, record Q2 free cash flow of $284 million or 24% of revenue; four, record operating income of $255 million or 22% of revenue; five, total revenue growth of 21% year-over-year, reaching $1.17 billion and exceeding the high end of our guidance; six, cloud, Next-Gen Identity, and Next-Gen SIEM platform solutions are now more than $1.56 billion in ending ARR, growing more than 40% year-over-year; and seven, we surpassed the 1,000 Falcon Flex customer milestone with the average Flex customer representing more than $1 million of ending ARR. Source: earnings call transcript	$4.92B Across the entire CrowdStrike team, I'm extremely proud of our Q3 with highlights including: one, record Q3 net new ARR of $265 million, which grew 73% year-over-year, beating our expectations by more than 10%; two, ending ARR of $4.92 billion, which accelerated to 23% growth year-over-year; three, record Q3 free cash flow of $296 million or 24% of revenue; four, all-time record operating income of $265 million or 21% of revenue, this is the second consecutive quarter of record operating income; five, broad-based ending ARR acceleration across cloud, Next-Gen Identity and Next-Gen SIEM collectively as well as acceleration in our endpoint business; and six, more than $1.35 billion in ending ARR from accounts that have adopted the Falcon Flex subscription model, growing more than 200% year-over-year. Source: earnings call transcript	$5.25B Two, ending ARR of $5.25 billion, crossing the $5 billion milestone, which accelerated to 24% growth year-over-year. Source: earnings call transcript	$5.51B In this new Agentic era, we're now guiding net new ARR acceleration for the full year Q1 highlights included: one, record Q1 net new ARR of $256 million, up 32% year-over-year and exceeding the high end of our guidance; two, ending ARR of $5.51 billion, accelerating over our record Q4 and more than 24% growth; three, total revenue of $1.39 billion, up 26% year-over-year, beating guidance and accelerating for the fourth consecutive quarter; four, all-time record free cash flow of $468 million or 34% of revenue, exceeding our expectations. Source: earnings call transcript	$5.84B Two, ending ARR growth accelerated for the fourth consecutive quarter, reaching $5.84 billion, up more than 25% year-over-year; three, total revenue growth accelerated for the fifth consecutive quarter, reaching $1.47 billion, up 26% year-over-year. Source: earnings call transcript	+6%
Annual recurring revenue (ARR) Identity	$370M+ Moving on to our Identity business, which grew to more than $370 million in ending ARR. Source: earnings call transcript	—	—	—	—	—	$585M+ Ending ARR grew 34% year-over-year to more than $585 million driven by strength across our identity product portfolio. Source: earnings call transcript	—
Annual recurring revenue (ARR) Next-Gen SIEM	$330M+ Moving on to our Next-Gen SIEM business, which grew more than 115% year-over-year, finishing the year at more than $330 million in ending ARR. Source: earnings call transcript	—	—	—	$585M+ Our Next-Gen SIEM business grew over 75% year-over-year, delivering ending ARR of more than $585 million. Source: earnings call transcript	$600M+ Our next-gen SIEM business exceeded $600 million in ending ARR and has transformed CrowdStrike into the operating system of the AI SOC. Source: earnings call transcript	$695M+ NextGen SIEM ending ARR surpassed $695 million this quarter as both new and existing customers are standardizing on Falcon as the operating system of the SOC. Source: earnings call transcript	—
Gross retention rate	97% Gross retention in Q4 remained high at 97%, and our dollar-based net retention rate was 112%, reflecting the impact of customer commitment packages. Source: earnings call transcript	97% In Q1, where we met or exceeded our key metrics, highlights include: one, Q1 net new ARR of $194 million, double-digit millions ahead of our expectations; two, Q1 ending ARR surpassing $4.4 billion, maintaining our leadership as the only pure-play cybersecurity software company of this size; three, subscription gross margin of 80%, demonstrating our AI platform efficiency; four, sustained 97% gross retention as customers remain firmly committed to Falcon; five, free cash flow of $279 million or 25% of revenue, demonstrating double-digit quarter-on-quarter growth; and six, added $774 million of total Falcon Flex account value, bringing the total deal value of accounts that have adopted Falcon Flex to $3.2 billion, growing 31% sequentially and more than 6x year-over-year. Source: earnings call transcript	—	—	97% Six, dollar-based net retention of 115% and gross retention of 97%, showcasing best-in-class durability and stickiness, which leads to my final point. Source: earnings call transcript	—	—	—
Net revenue retention rate	112% Gross retention in Q4 remained high at 97%, and our dollar-based net retention rate was 112%, reflecting the impact of customer commitment packages. Source: earnings call transcript	—	—	—	115% Six, dollar-based net retention of 115% and gross retention of 97%, showcasing best-in-class durability and stickiness, which leads to my final point. Source: earnings call transcript	—	—	—
Annual recurring revenue (ARR) Falcon Flex	—	—	—	$1.35B+ Across the entire CrowdStrike team, I'm extremely proud of our Q3 with highlights including: one, record Q3 net new ARR of $265 million, which grew 73% year-over-year, beating our expectations by more than 10%; two, ending ARR of $4.92 billion, which accelerated to 23% growth year-over-year; three, record Q3 free cash flow of $296 million or 24% of revenue; four, all-time record operating income of $265 million or 21% of revenue, this is the second consecutive quarter of record operating income; five, broad-based ending ARR acceleration across cloud, Next-Gen Identity and Next-Gen SIEM collectively as well as acceleration in our endpoint business; and six, more than $1.35 billion in ending ARR from accounts that have adopted the Falcon Flex subscription model, growing more than 200% year-over-year. Source: earnings call transcript	$1.69B Seven, we delivered $1.69 billion in ending ARR from accounts that have adopted the Falcon Flex subscription model, growing more than 120% year-over-year, turbocharging our land-and-expand motion. Source: earnings call transcript	$1.9B+ Five, record Q1 operating income of $326 million or 24% of revenue, up 62% year-over-year, exceeding guidance and six, we added over 300 Falcon Flex accounts in the quarter with accounts that have adopted the subscription model reaching more than $1.9 billion in ending ARR, growing 99% year-over-year. Source: earnings call transcript	$2.29B+ Seven, all-time record Falcon Flex quarter with ending ARR from accounts that have adopted the Falcon Flex subscription model surpassing $2.29 billion, accelerating to 101% year-over-year growth. Source: earnings call transcript	—
Annual recurring revenue (ARR) Next-Gen Identity, Cloud and Next-Gen SIEM	—	—	—	—	$1.9B+ Collectively, our Next-Gen Identity, cloud and Next-Gen SIEM businesses grew more than 45% year-over-year reaching more than $1.9 billion in ending ARR. Source: earnings call transcript	$2B+ Combined, these businesses have now exceeded $2 billion in ending ARR. Source: earnings call transcript	$2.1B When you think about cloud, next-gen SIEM, next-gen identity, ending ARR was $2.1 billion, up 39% year-over-year. Source: earnings call transcript	—
Annual recurring revenue (ARR) Cloud	—	—	—	—	$800M+ For the first time, our cloud business exceeded $800 million in ending ARR as our customers look to us to secure the infrastructure powering their AI future. Source: earnings call transcript	—	$905M+ Moving on to cloud, where ending ARR exceeded $905 million, growing more than 29% year-over-year. Source: earnings call transcript	—
Customers Reflex	—	—	—	—	—	480 The most exciting part is the Reflex dynamic, customers renewing and expanding their investment beyond their first Flex contract with highlights including the number of Reflex customers reached 480, representing nearly 25% of all Flex customers. Source: earnings call transcript	630+ We also saw a record reflex activity for existing Flex customers with more than 630 accounts having reflexed at least once up 6x year-over-year. Source: earnings call transcript	—

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