CrowdStrike Holdings, Inc. (NASDAQ: CRWD) Q1 2026 Earnings Call | 6/3/2025

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CrowdStrike Holdings, Inc. (NASDAQ: CRWD) delivered a robust Q1 FY2026, reporting net new Annual Recurring Revenue (ARR) of $194 million—surpassing expectations—and ending the quarter with ARR of $4.44 billion, up 22% year-over-year. Total revenue grew 20% to $1.10 billion, with subscription revenue up 20% to $1.05 billion. The company maintained a best-in-class subscription gross margin of 80% and a gross retention rate of 97%, underscoring strong customer loyalty and platform efficiency. Non-GAAP diluted EPS was $0.73, beating forecasts of $0.66, while non-GAAP operating income reached $201 million (18% margin). Free cash flow was $279 million, representing 25% of revenue, and cash and equivalents hit a record $4.61 billion. However, profitability metrics showed some contraction: non-GAAP operating margin declined from 23% to 18% year-over-year, and free cash flow margin fell from 35% to 25%. GAAP net loss was $110 million ($0.44 per share), largely due to increased R&D, sales, and marketing expenses, as well as $39.7 million in outage-related costs. CrowdStrike’s Falcon Flex model continued to drive rapid platform adoption, with $774 million in new Falcon Flex account value added, up 31% sequentially. The company authorized a $1 billion share repurchase program, reflecting confidence in its long-term vision. Outlook: For Q2 FY2026, CrowdStrike guided revenue to $1.145–$1.152 billion (19% YoY growth), with non-GAAP EPS of $0.82–$0.84. Full-year FY26 revenue guidance was reaffirmed at $4.74–$4.81 billion (20–22% growth), and non-GAAP net income guidance was raised to $878.7–$909.7 million. Management expects ARR growth to accelerate in the second half of the year, driven by continued innovation and strong demand for its AI-powered cybersecurity platform. Key Highlights: Net new ARR: $194 million; Ending ARR: $4.44 billion (+22% YoY) Revenue: $1.10 billion (+20% YoY); Subscription revenue: $1.05 billion Non-GAAP EPS: $0.73 (beat by 10.6%); GAAP net loss: $110 million ($0.44/share) Subscription gross margin: 80%; Gross retention: 97% Free cash flow: $279 million (25% of revenue); Cash: $4.61 billion $1 billion share repurchase authorized Q2 guidance: Revenue $1.145–$1.152 billion, Non-GAAP EPS $0.82–$0.84 CEO George Kurtz emphasized CrowdStrike’s leadership in AI-driven cybersecurity and its momentum in platform consolidation, with strong competitive win rates and a growing pipeline for the second half of FY26. #CrowdStrike #CRWD #EarningsCall #Q12026 #Cybersecurity #AI #StockMarket #Investing #InsideTicker