Q4 2025 CrowdStrike Holdings Inc Earnings Call Transcript
Key Points
- CrowdStrike Holdings Inc (CRWD) reported a Q4 net new ARR of $224 million, surpassing expectations and closing FY 2025 with $4.24 billion in ending ARR.
- The company achieved a record free cash flow of $1.07 billion for the fiscal year, representing 27% of revenue.
- CrowdStrike Holdings Inc (CRWD) became the first cybersecurity ISV to cross $1 billion in deal value on AWS Marketplace in a single calendar year.
- The Falcon Flex subscription model has been a significant success, with accounts adopting Falcon Flex reaching $2.5 billion in total deal value, growing 80% quarter over quarter.
- The company's cloud security business grew over 45% in Q4, with ending ARR surpassing $600 million, highlighting strong demand for its cloud security solutions.
- Despite strong performance, the net new ARR was down about 1% year over year, indicating some challenges in maintaining growth momentum.
- The company faced a GAAP net loss of $92.3 million in Q4, impacted by tax expenses related to acquisitions and incident-related expenses.
- There is a noted decline in growth from existing customers, with upselling to existing customers decreasing from 21% growth in Q1 to 15% by year-end.
- The company anticipates cash impacts of approximately $73 million for outage-related costs in Q1 of FY26, affecting short-term financial performance.
- Operating margin guidance for FY26 reflects upfront investments and amortized costs from the Customer Commitment Program, which may pressure margins in the near term.
Hello, and welcome to CrowdStrike's fourth quarter and fiscal year 2025 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the call over to Maria Riley, Vice President of Investor Relations. Maria, please go ahead.
Good afternoon, and thank you for your participation today. With me on the call are George Kurtz, Chief Executive Officer and Founder of CrowdStrike; and Burt Podbere, Chief Financial Officer.
Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, growth, including projections and expected performance, including our outlook for the first quarter and fiscal year 2026 and any assumptions for fiscal periods beyond that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward
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