CrowdStrike Holdings, Inc.

Previous wording

ARR grew to $4.4 billion as of April 30, 2025, of which $193.8 million was net new ARR added for the three months ended April 30, 2025. ARR grew to $3.6 billion as of April 30, 2024, of which $211.7 million was net new ARR added for the three months ended April 30, 2024.

Current wording

ARR grew to $4.7 billion as of July 31, 2025, of which $221.1 million and $414.8 million was net new ARR added for the three and six months ended July 31, 2025, respectively. ARR grew to $3.9 billion as of July 31, 2024, of which $217.6 million and $429.3 million was net new ARR added for the three and six months ended July 31, 2024, respectively.

Previous wording

Our dollar-based net retention rate was in line with our expectations as of April 30, 2025. Our dollar-based net retention rate can fluctuate from period to period due to large customer contracts in a given period and incentives provided, which may reduce our dollar-based net retention rate in subsequent periods. In addition, if our customers are not able to fully utilize their product subscriptions (including in connection with our flexible subscription offering), we may experience increased contraction as such customers may elect to renew with shorter subscription periods, fewer cloud modules, fewer endpoints or smaller contract values, which may reduce our dollar-based net retention rate.

Current wording

Our dollar-based net retention rate continued to be strong as of July 31, 2025. Our dollar-based net retention rate can fluctuate from period to period due to large customer contracts in a given period and incentives provided, which may reduce our dollar-based net retention rate in subsequent periods. In addition, if our customers are not able to fully utilize their product subscriptions (including in connection with our flexible subscription offering), we may experience increased contraction as such customers may elect to renew with shorter subscription periods, fewer cloud modules, fewer endpoints or smaller contract values, which may reduce our dollar-based net retention rate.

Previous wording

Subscription revenue increased by $178.6 million, or 20%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.

Current wording

Subscription revenue increased by $184.7 million, or 20%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024, which was primarily driven by a combination of the addition of new customers and the sale of additional sensors and modules to existing customers.

Previous wording

Professional services revenue increased by $3.8 million, or 8%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024, which was primarily attributable to an increase in the number of professional service hours.

Current wording

Professional services revenue increased by $20.4 million, or 45%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024, which was primarily attributable to an increase in the number of professional service hours.

Previous wording

Total cost of revenue increased by $64.1 million, or 29%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. Subscription cost of revenue increased by $52.7 million, or 28%, for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The increase in subscription cost of revenue was primarily due to an increase in employee-related expenses of $14.8 million driven by a 28% increase in average headcount, an increase in cloud hosting and related services costs of $10.3 million, an increase in stock-based compensation expense of $10.2 million, an increase in depreciation of data center equipment of $8.0 million, an increase in allocated overhead costs of $4.7 million, and an increase in amortization of internal-use software of $4.7 million.

Current wording

Total cost of revenue increased by $72.9 million, or 31%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. Subscription cost of revenue increased by $53.7 million, or 27%, for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The increase in subscription cost of revenue was primarily due to an increase in employee-related expenses of $13.6 million driven by a 19% increase in average headcount, an increase in cloud hosting and related services costs of $12.9 million, an increase in depreciation of data center equipment of $7.3 million, an increase in stock-based compensation expense of $6.6 million, an increase in amortization of internal-use software of $5.8 million, an increase in allocated overhead costs of $3.9 million, and charges related to the Plan (as defined

Previous wording

Subscription gross margin slightly decreased by 1 percentage point for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The decrease in subscription gross margin was primarily due to an increase in stock-based compensation expense during the three months ended April 30, 2025.

Current wording

Subscription gross margin slightly decreased by one percentage point for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The decrease in subscription gross margin was primarily due to an increase in stock-based compensation expense, and an increase in depreciation of data center equipment during the three months ended July 31, 2025.

Previous wording

Professional services gross margin decreased by 17 percentage points for the three months ended April 30, 2025, compared to the three months ended April 30, 2024. The decrease in professional services gross margin was primarily due to an increase in consulting expense during the three months ended April 30, 2025.

Current wording

Professional services gross margin decreased by four percentage points for the three months ended July 31, 2025, compared to the three months ended July 31, 2024. The decrease in professional services gross margin was primarily due to an increase in consulting expense during the three months ended July 31, 2025.

Previous wording

Sales and marketing expenses increased by $89.5 million, or 26%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $48.0 million driven by a 21% increase in average headcount, an increase in stock-based compensation expense of $12.9 million, an increase in marketing programs of $6.9 million, an increase in allocated overhead costs of $6.8 million, an increase in travel expenses of $5.9 million, an increase in employee benefits of $4.8 million, and an increase in term-based software licenses of $2.1 million, partially offset by a decrease in company events expenses of $3.1 million.

Current wording

Sales and marketing expenses increased by $91.6 million, or 26%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $46.2 million driven by a 11% increase in average headcount, an increase in stock-based compensation expense of $11.1 million, an increase in marketing programs of $10.6 million, charges related to the Plan of $8.7 million, an increase in employee benefits of $5.1 million, an increase in allocated overhead costs of $4.6 million, and an increase in travel expenses of $2.2 million, partially offset by a decrease in expenses associated with the July 19 Incident and related matters of $3.0 million, and a decrease in company events expenses of $2.1 million.

Previous wording

The following shows interest expense, interest income, and other income (expense), net for the three months ended April 30, 2025 as compared to the three months ended April 30, 2024 (in thousands, except percentages):

Current wording

The following shows interest expense, interest income, and other expense, net for the three months ended July 31, 2025 as compared to the three months ended July 31, 2024 (in thousands, except percentages):

Previous wording

Total revenue increased by $182.4 million, or 20%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. Subscription revenue accounted for 95% total revenue for both the three months ended April 30, 2025 and April 30, 2024. Professional services revenue accounted for 5% of our total revenue for both the three months ended April 30, 2025 and April 30, 2024.

Current wording

Total revenue increased by $387.5 million, or 21%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024. Subscription revenue accounted for 95% total revenue for both the six months ended July 31, 2025 and July 31, 2024. Professional services revenue accounted for 5% of our total revenue for both the six months ended July 31, 2025 and July 31, 2024.

Previous wording

Research and development expenses increased by $98.9 million, or 42%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. This increase was primarily due to an increase in stock-based compensation expense of $40.5 million, an increase in employee-related expenses of $36.7 million driven by a 28% increase in average headcount, an increase in cloud hosting and related costs of $14.5 million, an increase in allocated overhead costs of $7.6 million, an increase in employee benefits of $4.4 million, and an increase in term-based software licenses of $1.4 million, partially offset by an increase in software capitalization of $7.6 million, a decrease in other labor expenses of $6.2 million, and a decrease in depreciation of data center equipment of $1.1 million.

Current wording

Research and development expenses increased by $194.6 million, or 40%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024. This increase was primarily due to an increase in stock-based compensation expense of $71.7 million, an increase in employee-related expenses of $66.8 million driven by a 22% increase in average headcount, an increase in cloud hosting and related costs of $25.1 million, charges related to the Plan of $16.7 million, an increase in allocated overhead costs of $13.7 million, an increase in employee benefits of $8.9 million, and an increase in term-based software licenses of $1.9 million, partially offset by an increase in software capitalization of $10.4 million, a decrease in other labor expenses of $8.8 million, and a decrease in depreciation of data center equipment of $1.1 million.

Previous wording

General and administrative expenses increased by $61.5 million, or 59%, for the three months ended April 30, 2025 compared to the three months ended April 30, 2024. The increase in general and administrative expenses was primarily due to $38.7 million of expenses associated with the July 19 Incident and related matters, an increase in strategic plan related charges of $6.6 million, an increase in employee-related expenses of $5.4 million driven by a 26% increase in average headcount, an increase in stock-based compensation expense of $3.5 million, an increase in allocated overhead costs of $1.7 million, an increase in legal expense of $1.4 million unrelated to the July 19 Incident or related matters, an increase in term-based software licenses of $1.2 million, and an increase in travel expenses of $1.2 million, partially offset by a decrease in consulting expense of $1.8 million.

Current wording

General and administrative expenses increased by $133.0 million, or 63%, for the six months ended July 31, 2025 compared to the six months ended July 31, 2024. The increase in general and administrative expenses was primarily due to an increase in expenses associated with the July 19 Incident and related matters of $72.9 million, an increase in stock-based compensation expense of $21.2 million, charges related to the Plan of $12.7 million, an increase in employee-related expenses of $11.8 million driven by a 16% increase in average headcount, an increase in legal expense of $3.1 million unrelated to the July 19 Incident or related matters, an increase in term-based software licenses of $2.5 million, an increase in travel expenses of $2.5 million, and an increase in allocated overhead costs of $2.4 million, partially offset by a decrease in consulting expense of $1.2 million.

Previous wording

The decrease in other income (expense), net for the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily due to a decrease in gains on our strategic investments of $6.9 million, downward adjustments and impairment of $1.6 million of our strategic investments, and an increase in net foreign currency transaction losses of $2.6 million.

Current wording

The decrease in other income (expense), net for the six months ended July 31, 2025 compared to the six months ended July 31, 2024 was primarily due to a decrease in net realized gains on our strategic investments of $6.2 million, an increase in net foreign currency transaction losses of $5.3 million, and downward adjustments and impairment of $1.6 million of our strategic investments.

Previous wording

The increase in provision for income taxes of $13.4 million during the three months ended April 30, 2025 compared to the three months ended April 30, 2024 was primarily attributable to an increase in U.S. taxable income, foreign pre-tax earnings, and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

Current wording

The increase in provision for income taxes of $8.5 million during the six months ended July 31, 2025 compared to the six months ended July 31, 2024 was primarily attributable to income taxes in foreign jurisdictions and withholding taxes related to customer payments in certain foreign jurisdictions in which the Company conducts business.

Previous wording

Our primary sources of liquidity as of April 30, 2025, consisted of: (i) $4.6 billion in cash and cash equivalents, which mainly consists of cash on hand and highly liquid investments in money market funds and U.S. Treasury bills, (ii) cash we expect to generate from operations, and (iii) available capacity under our $750.0 million Revolving Facility. It is not currently possible to reasonably estimate the amount of loss or range of possible loss that might result from adverse judgments, settlements, penalties, or other resolution of proceedings resulting from the July 19 Incident or related matters. However, despite such uncertainties, we expect that the combination of our existing cash and cash equivalents, cash flows from operations, and the Revolving Facility will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months. Our Revolving Facility matures on January 2, 2026.

Current wording

Our primary sources of liquidity as of July 31, 2025, consisted of: (i) $5.0 billion in cash and cash equivalents, which mainly consists of cash on hand and highly liquid investments in money market funds, U.S. Treasury bills, and time deposits, (ii) cash we expect to generate from operations, and (iii) available capacity under our $750.0 million Revolving Facility. It is not currently possible to reasonably estimate the amount of loss or range of possible loss that might result from adverse judgments, settlements, penalties, or other resolution of proceedings resulting from the July 19 Incident or related matters. However, despite such uncertainties, we expect that the combination of our existing cash and cash equivalents, cash flows from operations, and the Revolving Facility will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months. Our Revolving Facility matures on January 2, 2026.

Previous wording

We have historically generated operating losses, as reflected in our accumulated deficit of $1.2 billion as of April 30, 2025. We expect to continue to make investments, particularly in sales and marketing and research and development. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

Current wording

We have historically generated operating losses, as reflected in our accumulated deficit of $1.3 billion as of July 31, 2025. We expect to continue to make investments, particularly in sales and marketing and research and development. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

Previous wording

We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Therefore, a substantial source of our cash is from such prepayments, which are included on our condensed consolidated balance sheets as deferred revenue. Deferred revenue primarily consists of billed fees for our subscriptions, prior to satisfying the criteria for revenue recognition, which are subsequently recognized as revenue in accordance with our revenue recognition policy. As of April 30, 2025, we had deferred revenue of $3.8 billion, of which $2.7 billion was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

Current wording

We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Therefore, a substantial source of our cash is from such prepayments, which are included on our condensed consolidated balance sheets as deferred revenue. Deferred revenue primarily consists of billed fees for our subscriptions, prior to satisfying the criteria for revenue recognition, which are subsequently recognized as revenue in accordance with our revenue recognition policy. As of July 31, 2025, we had deferred revenue of $3.8 billion, of which $2.8 billion was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

Previous wording

Net cash provided by operating activities during the three months ended April 30, 2025 was $384.1 million, which resulted from net loss of $111.0 million, adjusted for non-cash charges of $425.7 million and net cash inflow of $69.4 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $253.6 million in stock-based compensation expense, $102.9 million of amortization of deferred contract acquisition costs, $56.4 million of depreciation and amortization, $7.6 million of amortization of intangibles assets, $4.2 million of non-cash operating lease costs, $1.6 million change in fair value of strategic investments, and $1.1 million of non-cash interest expense, partially offset by $1.7 million of deferred income taxes. The net cash inflow from changes in operating assets and liabilities was primarily due to a $319.9 million decrease in accounts receivable and a $42.7 million increase in deferred revenue, partially offset by a $102.8 million increase in deferred contract acquisition costs, a $83.2 million decrease in accounts payable, a $43.8 million decrease in accrued expenses and other liabilities, a $37.8 million decrease in accrued payroll and benefits, a $21.0 million increase in prepaid expenses and other assets, and a $4.6 million decrease in operating lease liabilities.

Current wording

Net cash provided by operating activities during the six months ended July 31, 2025 was $716.9 million, which resulted from net loss of $188.6 million, adjusted for non-cash charges of $893.1 million and net cash inflow of $12.5 million from changes in operating assets and liabilities. Non-cash charges primarily consisted of $540.8 million in stock-based compensation expense, $209.9 million of amortization of deferred contract acquisition costs, $116.8 million of depreciation and amortization, $15.3 million of amortization of intangibles assets, $8.7 million of non-cash operating lease costs, $2.3 million of non-cash interest expense, and $1.6 million change in fair value of strategic investments, partially offset by $2.3 million of deferred income taxes. The net cash inflow from changes in operating assets and liabilities was primarily due to a $242.0 million decrease in accounts receivable, a $106.2 million increase in deferred revenue, and a $12.7 million increase in accrued expenses and other liabilities, partially offset by a $251.6 million increase in deferred contract acquisition costs, a $50.4 million increase in prepaid expenses and other assets, a $24.9 million decrease in accrued payroll and benefits, a $13.3 million decrease in accounts payable, and an $8.1 million decrease in operating lease liabilities.

Previous wording

Net cash used in investing activities of $101.8 million during the three months ended April 30, 2025 was primarily due to purchases of property and equipment of $85.8 million, capitalized internal-use software and website development costs of $17.4 million, purchases of deferred compensation investments of $1.5 million, and purchases of strategic investments of $0.4 million, partially offset by proceeds from sales of strategic investments of $3.1 million.

Current wording

Net cash used in investing activities of $150.6 million during the six months ended July 31, 2025 was primarily due to purchases of property and equipment of $116.2 million, capitalized internal-use software and website development costs of $34.7 million, purchases of deferred compensation investments of $2.8 million, and purchases of strategic investments of $1.4 million, partially offset by proceeds from sales of strategic investments of $4.4 million.

Previous wording

Net cash provided by financing activities of $2.1 million during the three months ended April 30, 2025 was primarily due to capital contributions from non-controlling interest holders of $1.5 million, and proceeds from the exercise of stock options of $0.6 million.

Current wording

Net cash provided by financing activities of $76.3 million during the six months ended July 31, 2025 was primarily due to proceeds from our employee stock purchase plan of $74.6 million, proceeds from the exercise of stock options of $2.4 million, and capital contributions from non-controlling interests of $1.5 million, partially offset by distributions to non-controlling interest holders of $2.2 million.

Previous wording

During the three months ended April 30, 2025, there were no significant changes to our debt obligations related to the Senior Notes or our contractual obligations under our non-cancelable real estate arrangements, as presented in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025.

Current wording

During the six months ended July 31, 2025, there were no significant changes to our debt obligations related to the Senior Notes, as presented in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025.

Previous wording

We have non-cancellable purchase commitments with various parties to purchase products and services entered in the normal course of business totaling $2.7 billion as of April 30, 2025, with remaining terms in excess of 12 months. We expect to fund these obligations with cash flows from operations and cash on our balance sheet.

Current wording

We have non-cancellable purchase commitments with various parties to purchase products and services entered in the normal course of business totaling $2.6 billion as of July 31, 2025, with remaining terms in excess of 12 months. We expect to fund these obligations with cash flows from operations and cash on our balance sheet.

Previous wording

As of April 30, 2025, our unrecognized tax benefits included $53.2 million, which were classified as long-term liabilities due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits.

Current wording

As of July 31, 2025, our unrecognized tax benefits included $58.5 million, which were classified as long-term liabilities due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits.

Previous wording

As of April 30, 2025, we had non-cancellable unfunded commitments from our financing arrangements totaling approximately $24.6 million.

Current wording

As of July 31, 2025, we had non-cancellable unfunded commitments from our financing arrangements totaling approximately $40.6 million.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the three months ended April 30, 2025, as compared to the critical accounting policies and estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended January 31, 2025, filed with the SEC on March 10, 2025.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the six months ended July 31, 2025, as compared to the critical accounting policies and estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended January 31, 2025, filed with the SEC on March 10, 2025.

Previous wording

We enter into both single and multi-year subscription contracts for our solutions. We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Until we have the contractual right to invoice, these contract amounts are classified as backlog. They are not recorded in deferred revenue or elsewhere in our condensed consolidated financial statements. As of April 30, 2025, we had backlog of approximately $3.0 billion. We expect backlog will change from period to period for several reasons, including the timing and duration of customer agreements, varying billing cycles of subscription agreements, and the timing and duration of customer renewals. Because revenue for any period is a function of revenue recognized from deferred revenue under contracts in existence at the beginning of the period, as well as contract renewals and new customer contracts during the period, backlog at the beginning of any period is not necessarily indicative of future revenue performance. We do not utilize backlog as a key management metric internally.

Current wording

We enter into both single and multi-year subscription contracts for our solutions. We generally invoice our subscription customers at the beginning of the subscription term, or in some instances, such as in multi-year arrangements, in installments. Until we have the contractual right to invoice, these contract amounts are classified as backlog. They are not recorded in deferred revenue or elsewhere in our condensed consolidated financial statements. As of July 31, 2025, we had backlog of approximately $3.3 billion. We expect backlog will change from period to period for several reasons, including the timing and duration of customer agreements, varying billing cycles of subscription agreements, and the timing and duration of customer renewals. Because revenue for any period is a function of revenue recognized from deferred revenue under contracts in existence at the beginning of the period, as well as contract renewals and new customer contracts during the period, backlog at the beginning of any period is not necessarily indicative of future revenue performance. We do not utilize backlog as a key management metric internally.

Previous wording

As of April 30, 2025, we had 10,363 full-time employees. We also engage temporary employees and consultants as needed to support our operations. None of our employees in the United States are represented by a labor union or subject to a collective bargaining agreement. In certain countries in which we operate, we are subject to local labor law requirements which may automatically make our employees subject to industry-wide collective bargaining agreements. We have not experienced any work stoppages, and we consider our relations with our employees to be good.

Current wording

As of July 31, 2025, we had 10,047 full-time employees. We also engage temporary employees and consultants as needed to support our operations. None of our employees in the United States are represented by a labor union or subject to a collective bargaining agreement. In certain countries in which we operate, we are subject to local labor law requirements which may automatically make our employees subject to industry-wide collective bargaining agreements. We have not experienced any work stoppages, and we consider our relations with our employees to be good.