Crowdstrike Holdings ((CRWD)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
CrowdStrike Holdings’ recent earnings call painted a picture of robust financial health and strategic growth, despite some challenges. The sentiment was overwhelmingly positive, driven by record-breaking figures in annual recurring revenue (ARR), revenue, and cash flow. The company’s strategic investments in artificial intelligence and acquisitions were highlighted as key drivers of its strong market position. However, the call also acknowledged GAAP net losses and costs associated with outages and strategic initiatives.
Record Q2 Net New ARR
CrowdStrike reported a record Q2 net new ARR of $221 million, surpassing expectations and demonstrating an acceleration in net new ARR. This achievement underscores the company’s ability to consistently grow its customer base and expand its market reach.
Ending ARR Growth
The company’s ending ARR reached an impressive $4.66 billion, marking a growth of more than 20% year over year. This significant increase highlights CrowdStrike’s successful strategies in retaining and expanding its customer relationships.
Record Q2 Free Cash Flow
CrowdStrike achieved a record Q2 free cash flow of $284 million, which constitutes 24% of its revenue. This strong cash flow performance indicates the company’s efficient operations and financial management.
Total Revenue Growth
Total revenue for the quarter grew by 21% year over year, reaching $1.17 billion and exceeding the high end of the company’s guidance. This growth reflects the strong demand for CrowdStrike’s cybersecurity solutions.
Next-Gen SIEM Growth
The Falcon Next-Gen SIEM platform saw a remarkable year-over-year growth of more than 95%, with an ending ARR of over $430 million. This growth underscores the platform’s increasing adoption and importance in the cybersecurity landscape.
Cloud Revenue Surge
CrowdStrike’s cloud revenue experienced a surge, with ending ARR exceeding $700 million, growing more than 35% year over year. This growth highlights the company’s successful expansion into cloud-based security solutions.
Falcon Flex Customer Milestone
The company surpassed 1,000 Falcon Flex customers, with the average customer contributing more than $1 million in ending ARR. This milestone reflects the growing appeal and scalability of CrowdStrike’s offerings.
Charlotte AI Growth
Charlotte AI, CrowdStrike’s SOC agent, had a record quarter with growth exceeding 85% over Q1. This rapid growth indicates the increasing reliance on AI-driven solutions in cybersecurity.
Exposure Management Recognition
CrowdStrike’s exposure management surpassed $300 million in ending ARR and was recognized as a leader in the 2025 IDC Worldwide Exposure Management MarketScape. This recognition affirms the company’s leadership in managing cybersecurity risks.
Intent to Acquire Onum
The company announced its intent to acquire Onum, a leading data pipeline platform, to enhance its next-gen SIEM capabilities. This strategic move is expected to bolster CrowdStrike’s data management and analytics capabilities.
GAAP Net Loss
Despite strong financial performance, CrowdStrike reported a GAAP net loss of $77.7 million, which included $35.7 million of expenses related to outages and strategic plans. This loss highlights the costs associated with maintaining and expanding its operations.
Strategic Plan-Related Charges
The earnings call noted $38.4 million in strategic plan-related charges impacting the GAAP net loss. These charges reflect the company’s investments in future growth initiatives.
Outage-Related Costs
Outage-related expenses and strategic plan costs impacted Q2 free cash flow by approximately $29 million. These costs underscore the challenges of maintaining uninterrupted service while pursuing strategic growth.
Forward-Looking Guidance
Looking ahead, CrowdStrike provided robust guidance, forecasting high single-digit sequential net new ARR growth from Q2 to Q3 and at least 40% year-over-year net new ARR growth for the latter half of the fiscal year. The company anticipates ending ARR growth of over 22% for FY 2026. Additionally, plans for future growth through acquisitions, such as the intent to acquire Onum, were highlighted as key components of their strategy.
In conclusion, CrowdStrike Holdings’ earnings call reflected a strong financial performance and strategic growth trajectory. Despite some challenges, the company’s record-breaking ARR, revenue, and cash flow figures, coupled with strategic investments and acquisitions, position it well for future success. Investors and market watchers will likely view these developments as a positive indication of CrowdStrike’s continued leadership in the cybersecurity sector.