CrowdStrike reported a record quarter, with revenue rising 26% year-over-year to $1.47 billion, outpacing analysts' expectations. After a $70.2 million loss the prior year, the company recorded net income of $5.3 million. Adjusted earnings per share were $0.31, compared with Wall Street expectations of $0.29.
Recurring revenue and new bookings
Annual recurring revenue (ARR) increased 25% to $5.84 billion. During the quarter the company added a record $333 million of new annual recurring revenue.
Management highlighted growth of the Falcon Flex offering: Flex volume more than doubled year-over-year, and CrowdStrike added 935 new Flex accounts in the quarter. All ten of the company's largest contracts during the period were tied to this Flex structure, which the company says supports larger, longer-term deals.
AI seen as a primary growth driver
CEO George Kurtz said one of the next major growth waves will be driven by the rapid spread of artificial intelligence. More advanced AI systems are reshaping how companies operate while also creating new attack surfaces, boosting demand for cybersecurity solutions.
Kurtz pointed to the appearance of Anthropic’s advanced Mythos model as a turning point, arguing it can enable exploitation of previously unknown software vulnerabilities. He described this as a "Mythos moment" that increased corporate awareness of the need to secure AI deployments.
Kurtz also said that "every company will be built on AI," and securing those AI systems represents what could be CrowdStrike’s largest market opportunity.
Guidance and market reaction
Following the strong quarter, CrowdStrike raised its full-year guidance. The company now expects revenue of $5.99–6.01 billion for the year, above the analyst consensus of $5.93 billion. It increased its full-year adjusted EPS outlook to $1.25–1.26, versus analysts' $1.23 forecast.
For the coming quarter the company guided to revenue of $1.52–1.53 billion and adjusted EPS of $0.31, roughly in line with market expectations. After the report, the stock was reported to be set to open about 9% higher.
Financial perspective on the business model
CFO Burt Podbere said the Flex model allows CrowdStrike to secure higher-value, longer-duration contracts while enabling customers to buy multiple security products through a single platform.
Overall, the company’s leadership is positioning CrowdStrike to capture demand driven by AI adoption and the attendant new cyber threats.
This article does not constitute investment advice or a recommendation.
