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CrowdStrike Holdings (CRWD)
NASDAQ:CRWD
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CrowdStrike Holdings
(NASDAQ:CRWD)
Rating:76Outperform
Price Target:―
Positive Factors
Guidance
CRWD expects F1Q26 results to be in-line with or above guidance and it has reaffirmed its FY26 guidance.
Innovation
CRWD has gone from 3 modules in 2016 to 29 modules today, demonstrating strong innovation and growth.
Platform Leadership
CRWD is emerging as the cleanest platform play across the security software space.
Negative Factors
Revenue Productivity
CRWD's revenue-per-employee was down ~1.9% y/y, which is only the second y/y decline on record, adding pressure to deliver productivity gains.
Valuation Concerns
CRWD shares traded down ~4% pre-market, indicating investors are concerned about valuation premium, macro uncertainty, and potential execution risks.
Workforce Reduction
CRWD announced a strategic plan which includes a reduction in workforce by 500 positions, approximately 5% of CRWD's workforce.
CrowdStrike Holdings (CRWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$110.15B
Dividend YieldN/A
Average Volume (3M)3.57M
Price to Earnings (P/E)721.6
Beta (1Y)2.01
Revenue Growth29.39%
EPS Growth-119.62%
CountryUS
Employees10,118
SectorTechnology
Sector Strength76
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.03
Shares Outstanding249,074,070
10 Day Avg. Volume3,366,571
30 Day Avg. Volume3,567,133
Financial Highlights & Ratios
PEG Ratio46.49
Price to Book (P/B)30.91
Price to Sales (P/S)0.00
P/FCF Ratio92.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$429.62Price Target Upside-1.18% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering38
CrowdStrike Holdings Business Overview & Revenue Model
Company DescriptionCrowdStrike Holdings, Inc. is a global cybersecurity technology company that specializes in providing cloud-delivered protection for endpoints, cloud workloads, identity, and data. Founded in 2011 and headquartered in Sunnyvale, California, CrowdStrike is a leader in the endpoint protection sector. Its core product, the CrowdStrike Falcon platform, leverages artificial intelligence (AI) and machine learning (ML) to offer comprehensive threat detection, prevention, and response across a wide array of digital environments.
How the Company Makes MoneyCrowdStrike makes money primarily through subscription-based services for its cybersecurity products. The company's key revenue stream is its Falcon platform, which operates under a Software-as-a-Service (SaaS) model. Customers pay recurring fees for access to CrowdStrike's suite of cybersecurity solutions, which include endpoint protection, threat intelligence, and proactive threat hunting services. Additionally, CrowdStrike offers professional services for incident response and security assessments, which contribute to its revenue. The company's growth is also supported by strategic partnerships and collaborations with other technology providers, expanding its market reach and enhancing its product offerings.
CrowdStrike Holdings Key Performance Indicators (KPIs)
Any
Subscription Annual Recurring Revenue
Measures the predictable revenue generated from subscriptions, highlighting the company's ability to retain customers and ensure steady cash flow.
Measures the predictable revenue generated from subscriptions, highlighting the company's ability to retain customers and ensure steady cash flow.
Data provided by:
Main Street Data
Main Street DataCrowdStrike Holdings Financial Statement Overview
Summary
CrowdStrike Holdings exhibits strong revenue growth and cash flow generation, crucial for a high-growth software company. Despite current negative profitability metrics, the company is nearing profitability with effective cost management and strong liquidity. While profitability is a concern, the balance sheet is healthy with manageable leverage, positioning the company well for future growth.Income Statement
CrowdStrike Holdings shows a strong revenue growth trend with a TTM revenue of $3.95 billion, up significantly from $3.06 billion last year. The gross profit margin remains robust at 74.9%, indicating effective cost management despite a negative net profit margin of -0.5%. The company is close to breakeven, showcasing potential for future profitability. However, EBIT and EBITDA margins are low due to negative EBIT, which suggests ongoing operational challenges.82
Very Positive
Balance Sheet
The balance sheet reflects strong liquidity, with cash and short-term investments exceeding total debt, leading to a negative net debt position. The equity ratio stands at 37.7%, indicating a solid equity foundation. However, the debt-to-equity ratio is 24.1%, suggesting moderate leverage. The return on equity is negative due to a net loss, highlighting the need for improved profitability to enhance shareholder value.78
Positive
Cash Flow
Cash flow performance is robust, with a strong operating cash flow of $1.38 billion in TTM. Free cash flow has grown significantly from the previous year, indicating effective cash management. The operating cash flow to net income ratio shows efficient conversion of earnings into cash. The company maintains a healthy free cash flow to net income ratio, underscoring its ability to generate cash despite net losses.88
Very Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.95B | 3.06B | 2.24B | 1.45B | 874.44M | Gross Profit |
| 2.96B | 2.30B | 1.64B | 1.07B | 644.89M | EBIT |
| -120.43M | -2.00M | -190.11M | -142.55M | -92.53M | EBITDA |
| 294.80M | 293.83M | -40.75M | -65.98M | -46.17M | Net Income Common Stockholders |
| -19.27M | 89.33M | -182.28M | -232.38M | -92.63M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.32B | 3.47B | 2.71B | 2.00B | 1.92B | Total Assets |
| 8.70B | 6.65B | 5.03B | 3.62B | 2.73B | Total Debt |
| 788.90M | 792.87M | 783.62M | 774.72M | 778.99M | Net Debt |
| -3.53B | -2.58B | -1.67B | -1.22B | -1.14B | Total Liabilities |
| 5.38B | 4.31B | 3.54B | 2.58B | 1.86B | Stockholders Equity |
| 3.28B | 2.30B | 1.46B | 1.03B | 870.57M |
| Cash Flow | Free Cash Flow | |||
| 1.13B | 929.10M | 674.57M | 441.10M | 292.72M | Operating Cash Flow |
| 1.38B | 1.17B | 941.01M | 574.78M | 356.57M | Investing Cash Flow |
| -536.59M | -340.65M | -556.66M | -564.52M | 495.43M | Financing Cash Flow |
| 107.21M | 93.16M | 66.48M | 72.53M | 800.13M |
CrowdStrike Holdings Technical Analysis
Positive
434.74
Price Trends
390.68
Positive
387.37
Positive
345.61
Positive
Market Momentum
13.53
Positive
56.85
Neutral
81.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRWD, the sentiment is Positive. The current price of 434.74 is above the 20-day moving average (MA) of 432.04, above the 50-day MA of 390.68, and above the 200-day MA of 345.61, indicating a bullish trend. The MACD of 13.53 indicates Positive momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 81.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRWD.
CrowdStrike Holdings Risk Analysis
CrowdStrike Holdings disclosed 59 risk factors in its most recent earnings report. CrowdStrike Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We are exposed to the credit risks of certain of our customers and end-users, which could adversely impact our business, financial condition or results of operations. Q4, 2024
2.
The July 19 Incident has had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation, results of operations and financial condition. Q4, 2024
CrowdStrike Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $80.21B | 42.33 | 205.91% | ― | 13.83% | 58.13% | |
76 Outperform | $110.15B | 721.64 | -0.69% | ― | 29.39% | -119.62% | |
76 Outperform | $128.77B | 103.73 | 21.16% | ― | 13.91% | -50.96% | |
74 Outperform | $38.98B | ― | -1.21% | ― | 27.77% | 89.39% | |
72 Outperform | $17.28B | 1,777.39 | -5.36% | ― | 35.12% | -191.84% | |
72 Outperform | $54.56B | ― | -7.35% | ― | 27.79% | 56.19% | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% |
* Technology Sector Average
Performance Comparison
CRWD
CrowdStrike Holdings
434.74
92.39
26.99%
FTNT
Fortinet
102.84
41.91
68.78%
PANW
Palo Alto Networks
181.26
25.54
16.40%
CYBR
CyberArk Software
354.07
114.21
47.62%
ZS
Zscaler
248.72
76.81
44.68%
NET
Cloudflare
156.52
82.90
112.61%
CrowdStrike Holdings Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2025)
| % Change Since: 11.43%|
Next Earnings Date:Jun 03, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record free cash flow, significant growth in key business areas, and successful customer engagement through the Falcon Flex model. However, there are challenges with slight net new ARR decline and operating margin pressure due to ongoing investments.Q4-2025 Updates
Positive Updates
Record-Breaking Free Cash Flow
Achieved a record free cash flow of $1.07 billion for FY 2025, exceeding $1 billion for the first time, with a free cash flow margin of 27% of revenue.
Significant Growth in Cloud, Identity, and Next-Gen SIEM Businesses
Ending ARR for cloud security, identity protection, and next-gen SIEM grew nearly 50% year over year, reaching over $1.3 billion.
Falcon Flex Model Success
Falcon Flex deal value reached $2.5 billion, growing 80% quarter over quarter and more than 10 times year over year, showing strong customer commitment to the platform.
Strong Partner and Marketplace Performance
CrowdStrike became the first cybersecurity ISV to achieve over $1 billion in deal value on AWS Marketplace in a calendar year.
Record Total Contract Value
Achieved a total contract value of $6 billion for FY 2025, increasing 40% year over year.
High Customer Retention
Gross dollar retention remained high at 97%, indicating strong customer commitment to the Falcon platform.
Negative Updates
Net New ARR Decline
Net new ARR for Q4 was $224 million, which when adjusted for CCP impact, suggests a slight year-over-year decline.
Operating Margin Pressure
Guidance for FY 2026 indicates an operating margin of approximately 21%, reflecting ongoing investments and amortization of sales and marketing costs.
GAAP Net Loss
Reported a GAAP net loss of $92.3 million for the quarter, impacted by tax expenses related to acquisitions and incident-related expenses.
Company Guidance
During CrowdStrike Holdings, Inc.'s Q4 2025 earnings call, the company reported strong financial metrics, highlighting a net new ARR of $224 million, significantly surpassing expectations and culminating in an ending ARR of $4.24 billion for FY 2025. The company’s cloud security, identity protection, and next-gen SIEM businesses collectively achieved over $1.3 billion in ARR, marking nearly 50% growth year over year. Gross dollar retention remained solid at 97%, while free cash flow hit a record $1.07 billion, representing 27% of revenue. CrowdStrike also became the first cybersecurity ISV to surpass $1 billion in AWS Marketplace sales within a single calendar year. The total contract value for FY 2025 reached $6 billion, a 40% year-over-year increase, underscoring the company's expanding market share and customer commitment to the Falcon platform. Looking towards FY 2026, CrowdStrike anticipates revenue growth between 20% and 22%, alongside expected operating and free cash flow margin improvements in the second half, setting a robust foundation for future growth.CrowdStrike Holdings Corporate Events
Business Operations and Strategy
CrowdStrike Announces Strategic Workforce Restructuring Plan
Neutral
May 7, 2025
On May 6, 2025, CrowdStrike Holdings announced a strategic plan to enhance operational efficiency and scale its business towards a $10 billion ARR target. This plan involves reducing approximately 500 positions, or 5% of its global workforce, while continuing to hire in key strategic areas. The company anticipates incurring charges between $36 million and $53 million related to severance and stock-based compensation, with most actions expected to be completed by the end of the second quarter of fiscal 2026. This restructuring aims to streamline operations and capitalize on AI-driven efficiencies, positioning CrowdStrike as a leader in the evolving cybersecurity landscape.
Executive/Board Changes
CrowdStrike Approves CEO Compensation Package for FY 2026
Neutral
Apr 25, 2025
On April 23, 2025, CrowdStrike Holdings‘ Board of Directors approved the fiscal year 2026 compensation package for CEO George Kurtz, effective February 1, 2025. His annual base salary is set at $1,100,000 with a target incentive compensation award of 135%, aligning with the company’s Corporate Incentive Plan.
Executive/Board Changes
CrowdStrike Approves 2026 Compensation for President
Neutral
Apr 18, 2025
On April 9 and April 16, 2025, CrowdStrike Holdings‘ Board of Directors approved the compensation package for fiscal year 2026 for President Michael Sentonas. Effective February 1, 2025, his annual base salary is set at $875,000 with a target incentive compensation award of 100%, under the terms of the company’s Corporate Incentive Plan.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.