CrowdStrike Holdings, Inc. (CRWD) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reflects strong financial performance with significant ARR growth, high gross margins, and record cash flow. Positive guidance and a $1 billion share repurchase plan bolster investor confidence. Despite competitive and regulatory risks, the company's innovation and strong product demand, particularly for Falcon Flex, are promising. The Q&A highlights management's strategic focus and adaptability, further supporting a positive outlook. The slight miss in revenue is offset by optimistic guidance and strategic initiatives, suggesting a positive stock price movement.
Key Financial Performance
Net New ARR $194 million, up from previous year, driven by Falcon Flex momentum and re-Flexes.
Ending ARR $4.44 billion, up 22% year-over-year, reflecting strong demand and customer retention.
Subscription Gross Margin 80%, demonstrating efficiency of the AI platform.
Gross Retention Rate 97%, indicating strong customer commitment to Falcon.
Free Cash Flow $279 million or 25% of revenue, showing double-digit quarter-on-quarter growth.
Total Revenue $1.10 billion, up 20% year-over-year, driven by strong subscription revenue.
Subscription Revenue $1.05 billion, up 20% year-over-year, reflecting strong customer adoption.
Professional Service Revenue $52.7 million, a record high.
Total Gross Margin 78%, indicating overall profitability.
Non-GAAP Operating Income $201.1 million, with an operating margin of 18%, exceeding guidance.
GAAP Net Loss $110.2 million, including $39.7 million of expenses for outage and related matters.
Non-GAAP Net Income $184.7 million or $0.73 per diluted share, exceeding guidance.
Cash and Cash Equivalents $4.61 billion, a record high.
Cash Flow from Operations $384.1 million, a record high.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Falcon Flex: In less than 2 years since starting Falcon Flex, we've closed more than $3.2 billion of total account deal value across more than 820 accounts that have adopted the subscription model.
Cloud Data Protection: We built on our unified offering with the launch of cloud data protection, all on our unified sensor.
AI Model Scanning and AI Security Dashboard: We announced the general availability of both our AI model scanning and AI security dashboard technologies at RSA.
Charlotte AI: Charlotte AI's expanded detection triage enables autonomous expert-level triage, reasoning and response at machine speed.
M&A Activity: Recent M&A in the cloud space is increasing our relevance and competitiveness as a hyperscaler agnostic, independent solution.
Partnership with Microsoft: We announced a joint threat actor strategic collaboration with Microsoft to enhance adversary attribution.
MSSP Growth: Our MSSP business continues growing at a rapid pace, now representing more than 15% of our Q1 deal value.
Subscription Gross Margin: Subscription gross margin of 80%, demonstrating our AI platform efficiency.
Free Cash Flow: Free cash flow of $279 million or 25% of revenue, demonstrating double-digit quarter-on-quarter growth.
Strategic Realignment Plan: We identified opportunities to reallocate and focus investment in platform growth areas and AI to accelerate internal execution.
Share Repurchase Authorization: The company has authorized up to $1 billion in share repurchases, reflecting confidence in long-term strategy.
Focus on AI and Cybersecurity: CrowdStrike is positioned to protect workloads, identities, data, and infrastructure for the AI age.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Regulatory Issues: The company acknowledges potential risks related to regulatory compliance, particularly in the context of evolving cybersecurity laws and standards that could impact operations.
Competitive Pressures: CrowdStrike faces significant competitive pressures in the cybersecurity market, necessitating continuous innovation and platform consolidation to maintain its leadership position.
Supply Chain Challenges: There are mentions of supply chain challenges that could affect the delivery of services and products, particularly in the context of rapid technological advancements and market demands.
Economic Factors: The company is navigating evolving market conditions, which may include economic downturns or shifts in customer spending patterns that could impact revenue growth.
Operational Risks: The company reported a GAAP net loss attributable to CrowdStrike of $110.2 million, which included $39.7 million in expenses for outage and related matters, indicating operational risks that could affect financial performance.
Investment Risks: CrowdStrike's strategic realignment plan may incur cash charges and impact free cash flow, indicating potential risks associated with investment decisions and their timing.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Net New ARR: Q1 net new ARR of $194 million, double-digit millions ahead of expectations.
Ending ARR: Q1 ending ARR surpassing $4.4 billion, maintaining leadership as a pure-play cybersecurity software company.
Subscription Gross Margin: Subscription gross margin of 80%, demonstrating AI platform efficiency.
Free Cash Flow: Free cash flow of $279 million or 25% of revenue, demonstrating double-digit quarter-on-quarter growth.
Falcon Flex Adoption: Added $774 million of total Falcon Flex account value, bringing total deal value to $3.2 billion, growing 31% sequentially.
Share Repurchase Authorization: Authorized up to $1 billion in share repurchases, reflecting confidence in long-term strategy.
Strategic Realignment Plan: Identified opportunities to reallocate investment in platform growth areas, AI, and customer success.
Q2 Revenue Guidance: Expect total revenue in the range of $1,144.7 million to $1,151.6 million, reflecting a year-over-year growth rate of 19%.
FY 2026 Revenue Guidance: Expect total revenue in the range of $4,743.5 million to $4,805.5 million, reflecting a growth rate of 20% to 22%.
Non-GAAP Net Income Guidance: Expect non-GAAP net income per share for FY 2026 to be in the range of $3.44 to $3.56.
Operating Margin Guidance: Expect non-GAAP operating margin to increase to at least 24% in FY '27.
Free Cash Flow Margin Guidance: Anticipate FY '27 free cash flow margin of more than 30%.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Share Repurchase Authorization: CrowdStrike has authorized up to $1 billion in share repurchases, reflecting confidence in the company's long-term strategy and growth prospects.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What products do you feel like are benefiting most in terms of usage as customers adopt Falcon Flex?
A:Falcon Flex has been a real home run for us, particularly benefiting Next-Gen SIEM, cloud, and identity. Customers are adopting it rapidly, and it's changing our sales motion to focus on outcomes rather than module-by-module sales.
Q:Why is there a divergence between revenue growth and ARR growth?
A:The divergence is due to the impact of our CCP programs and how amortization affects revenue recognition under ASC 606. ARR is not impacted in the same way as revenue.
Q:What drives your expectation for ARR growth to accelerate in the second half?
A:We expect acceleration due to momentum in our products, particularly Next-Gen SIEM and Flex, as well as overall platform consolidation.
Q:How does the budget conversation work when customers burn through their usage quickly?
A:We engage in demand planning and business value assessments to help customers replace point products, which allows them to save money and see ROI.
Q:How has the sales go-to-market effort changed in 1Q?
A:The response from the sales force has been positive, focusing on innovation and consolidation of point products, with customers eager to do more business with us.
Q:What is driving demand today for your products?
A:Demand is driven by our ability to deliver outcomes, particularly through AI and automation, and the need for better security solutions.
Q:What is your vision for getting deeper into the identity management space?
A:We aim to expand our capabilities in identity management, particularly with Privileged Access, to meet customer demand and consolidate solutions.
Q:How does the CCP impact ARR in the second half of the year?
A:The CCP will contribute to net new ARR as customers re-Flex and purchase more licenses, with a retention rate of around 95%.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on the impact of the U.S. Fed and the Bloomberg article regarding the DOJ and SEC inquiries, which lacked clarity on the implications for the company.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI SOC
AI agent
AI model
Capital Markets
Cloud Security
Co
Division Keith
Falcon Cloud
Falcon Exposure
Gen SIEM
LLC Research
NVIDIA
Research Division
VM
attack surface
availability
collaboration
customer Falcon
customer subscription
detection
digit
expansion Falcon
infrastructure AI
launch
machine speed
model platform
need
network vulnerability
partner success
power
scanning
security outcome
severity
space
store
unit
value deal
workload identity
world class
CRWD Transcript
Parex Resources Inc. (PXT:CA) Q4 2025 Earnings Call Transcript
Positive3-5
The earnings call summary shows strong financial performance, with impressive reserves growth and successful M&A strategy. Despite risks like commodity price volatility and geopolitical challenges, the company demonstrated resilience with consistent production and robust shareholder returns. The Q&A section highlighted uncertainty in differentials due to geopolitical tensions, but overall sentiment remains positive. The strategic M&A and capital efficiency improvements further support a positive outlook, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
CrowdStrike Holdings, Inc. (CRWD) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Neutral3-5
CrowdStrike Holdings, Inc. (CRWD) Q4 2026 Earnings Call Transcript
Positive3-4
The earnings call reveals strong financial performance, with significant revenue and net income growth, along with robust ARR and subscription revenue increases. The consistent gross margin and improved operating income demonstrate operational efficiency. Despite the lack of new strategic or operational updates, the financial metrics and optimistic guidance for FY '27 suggest positive market sentiment. The absence of concerning details in the Q&A section further supports this outlook. Overall, these factors indicate a likely positive stock price movement in the short term.
CrowdStrike Holdings, Inc. (CRWD) Presents at UBS Global Technology and AI Conference 2025 Transcript
Neutral12-3
CRWD Slides
CRWD Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
