CrowdStrike reports strong fiscal year 2025 financial growth

CrowdStrike has announced its financial results for the fourth quarter and the fiscal year ending January 31, 2025, showcasing significant growth in its subscription and annual recurring revenue.

The company reported that its ending annual recurring revenue (ARR) rose by 23% year-over-year to reach USD $4.24 billion, with an addition of USD $224 million in net new ARR for the fourth quarter alone. Concurrently, full-year subscription revenue increased by 31% year-over-year, totaling USD $3.76 billion.

George Kurtz, CrowdStrike's Founder and CEO, commented, "Delivering USD $224 million of net new ARR, which brings our ending ARR to USD $4.24 billion, places us firmly on the flight path to our USD $10 billion ending ARR goal. As businesses of all sizes rapidly adopt AI, stopping the breach necessitates cybersecurity's AI-native platform. We are seeing strong momentum in our Next-Gen SIEM, Cloud Security, and Identity Protection businesses, surpassing USD $1.3 billion in combined ending ARR. With 97% gross retention and accounts adopting Falcon Flex adding over USD $1 billion of in-quarter deal value, customers are increasingly consolidating on the Falcon platform as their AI-native SOC for today and tomorrow."

The fiscal year also saw CrowdStrike achieving record full-year operating cash flow of USD $1.38 billion and free cash flow of USD $1.07 billion. In terms of customer retention, the company maintained a strong rate of 97% gross retention in the fourth quarter.

Burt Podbere, CrowdStrike's Chief Financial Officer, stated, "We achieved fourth-quarter results above all guided metrics. The fundamental strengths of our business reflected in our strong customer retention, accelerating module adoption, and multiple large growth opportunities give us confidence in our ability to achieve our target model by fiscal year 2029 and deliver long-term profitable growth."

For the fourth quarter, CrowdStrike reported a total revenue of USD $1.06 billion, marking a 25% increase from the USD $845.3 million reported in the fourth quarter of fiscal 2024. Subscription revenue in the quarter was USD $1.01 billion, a 27% increase compared to the previous fiscal year.

Despite widespread gains, the company reported a GAAP loss from operations of USD $85.3 million, a shift from the income of USD $29.7 million seen in the fourth quarter of fiscal 2024. Non-GAAP income from operations remained stable at USD $217.3 million compared to USD $213.1 million the year before.

GAAP net loss attributable to CrowdStrike for the fourth quarter was USD $92.3 million, in contrast to a net income of USD $53.7 million in the same quarter last year. Non-GAAP net income attributable to the company rose to USD $260.9 million from USD $236.2 million the previous year.

Cash and cash equivalents were reported at USD $4.32 billion as of January 31, 2025. The quarter also generated a net cash flow from operations of USD $345.7 million and a free cash flow of USD $239.8 million.

Across the fiscal year, total revenue increased by 29% to USD $3.95 billion, with consistent subscription gross margins on both GAAP and non-GAAP bases.

CrowdStrike's achievements this year extend beyond financial metrics with its growing market presence. The company was the first cloud-native cybersecurity Independent Software Vendor (ISV) to exceed USD $1 billion in annual AWS Marketplace sales, an indication of its expanding impact in the industry.

The company has also reported high adoption rates for its modules, reaching 67% for customers using five or more modules. This progression was bolstered by releases such as the Charlotte AI Detection Triage and CrowdStrike Insider Risk Services.

Looking toward fiscal year 2026, CrowdStrike plans to implement changes in the presentation of its non-GAAP measures, notably in how it accounts for employer payroll taxes related to employee stock-based awards and adopting a long-term projected non-GAAP tax rate of 22.5% for greater consistency.