SentinelOne, Inc.

Previous wording

Our Singularity Platform is used globally by organizations of all sizes across a broad range of industries. We had 1,702 customers with annualized recurring revenue (ARR) of $100,000 or more as of April 30, 2026, up from 1,459 as of April 30, 2025. We define ARR as the annualized revenue run rate of our subscription, consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. As of April 30, 2026, no single end customer accounted for more than 5% of our ARR. Our revenue outside of the U.S. represented 39% and 38% for the three months ended April 30, 2026 and 2025, respectively, illustrating the global nature of our solutions.

Current wording

Our Singularity Platform is used globally by organizations of all sizes across a broad range of industries. We had 1,715 customers with annualized recurring revenue (ARR) of $100,000 or more as of July 31, 2026, up from 1,513 as of July 31, 2025. We define ARR as the annualized revenue run rate of our subscription, consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. As of July 31, 2026, no single end customer accounted for more than 9% of our ARR. Our revenue outside of the U.S. represented 39% and 38% for the three months ended July 31, 2026 and 2025, respectively, and 39% and 38% for the six months ended July 31, 2026 and 2025, respectively, illustrating the global nature of our solutions.

Previous wording

We have grown rapidly since our inception. Our revenue was $276.7 million and $229.0 million for the three months ended April 30, 2026 and 2025, respectively, representing year-over-year growth of 21%. During this period, we continued to invest in growing our business to capitalize on our market opportunity. As a result, our net loss for the three months ended April 30, 2026 and 2025 was $76.2 million and $208.2 million, respectively.

Current wording

We have grown rapidly since our inception. Our revenue was $292.0 million and $242.2 million for the three months ended July 31, 2026 and 2025, respectively, representing year-over-year growth of 21%. Our revenue was $568.6 million and $471.2 million for the six months ended July 31, 2026 and 2025, respectively, representing year-over-year growth of 21%. During this period, we continued to invest in growing our business to capitalize on our market opportunity. As a result, our net loss for the three months ended July 31, 2026 and 2025 was $93.4 million and $72.0 million, respectively, and our net loss for the six months ended July 31, 2026 and 2025 was $169.6 million and $280.2 million, respectively.

Previous wording

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), we use non-GAAP operating income (loss) as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We believe that non-GAAP operating income (loss) provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this measure excludes, among other expenses, expenses that we do not consider to be indicative of our overall operating performance. Non-GAAP operating income (loss) is calculated as GAAP operating loss adjusted to exclude amortization of acquired intangible assets, acquisition-related compensation, stock-based compensation expense, payroll tax on employee stock transactions, and restructuring charges.

Current wording

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), we use non-GAAP operating income as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. We believe that non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this measure excludes, among other expenses, expenses that we do not consider to be indicative of our overall operating performance. Non-GAAP operating income is calculated as GAAP operating loss adjusted to exclude amortization of acquired intangible assets, acquisition-related compensation, stock-based compensation expense, payroll tax on employee stock transactions, and restructuring charges.

Previous wording

Non-GAAP operating income (loss) has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP, including GAAP operating loss. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures, including non-GAAP operating income (loss), differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP operating income (loss) is presented for supplemental informational purposes only.

Current wording

Non-GAAP operating income has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP, including GAAP operating loss. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures, including non-GAAP operating income, differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP operating income is presented for supplemental informational purposes only.

Previous wording

A reconciliation of non-GAAP operating income (loss) to GAAP operating loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, is provided below:

Current wording

A reconciliation of non-GAAP operating income to GAAP operating loss, the most directly comparable financial measure calculated and presented in accordance with GAAP, is provided below:

Previous wording

ARR grew 23% year-over-year to $1,162.6 million as of April 30, 2026, primarily driven by a combination of new customer additions and adoption of adjacent platform solutions by existing customers.

Current wording

ARR grew 22% year-over-year to $1,218.1 million as of July 31, 2026, primarily driven by a combination of new customer additions and adoption of adjacent platform solutions by existing customers.

Previous wording

Customers with ARR of $100,000 or more grew 17% year-over-year to 1,702 as of April 30, 2026, primarily due to the growth in the ARR of existing customers from additional purchases and the growth in the average size of purchases by new customers.

Current wording

Customers with ARR of $100,000 or more grew 13% year-over-year to 1,715 as of July 31, 2026, primarily due to the growth in the ARR of existing customers from additional purchases and the growth in the average size of purchases by new customers.

Previous wording

Dollar-Based Net Retention Rate

Current wording

Dollar-Based Net Retention Rate (NRR)

Previous wording

Research and development expenses consist primarily of employee salaries, benefits, bonuses, and stock-based compensation. Research and development expenses also include third-party cloud infrastructure and general services expenses, such as consulting fees, software, and subscription services, incurred in developing our platform and modules.

Current wording

Research and development expenses consist primarily of employee salaries, benefits, bonuses, and stock-based compensation. Research and development expenses also include third-party cloud infrastructure and general services expenses, such as consulting fees and software subscription services, incurred in developing our platform and modules.

Previous wording

Restructuring charges related to the restructuring plans executed in March 2025 (March 2025 Plan), consist primarily of charges related to severance payments, employee benefits, stock-based compensation, and asset impairment charges related to facilities. The actions associated with the March 2025 Plan were completed as of July 31, 2025.

Current wording

Restructuring charges related to the restructuring plans executed in May 2026 (May 2026 Plan), July 2025 (July 2025 Plan) and March 2025 (March 2025 Plan), consist primarily of charges related to severance payments, employee benefits, stock-based compensation, contract terminations, and asset impairment charges related to facilities. The March 2025 Plan and July 2025 Plan were completed as of July 31, 2025 and January 31, 2026, respectively. The actions associated with the May 2026 Plan are expected to be fully completed by the end of fiscal 2027.

Previous wording

Other income, net consists primarily of gains and losses on foreign currency remeasurements and transactions, derivative instruments, and strategic investments.

Current wording

Other income (expense), net consists primarily of gains and losses on foreign currency remeasurements and transactions, derivative instruments, and strategic investments.

Previous wording

Provision for income taxes consists primarily of income taxes in foreign jurisdictions in which we conduct business and the tax effects including the interest expense of the Agreement with the ITA. The Agreement resulted in $180.0 million of tax expense, exclusive of interest, during fiscal 2026, payable over time to the ITA, with additional interest expense accruing on the tax liability over the installment period. In connection with our global consolidated losses, we maintain a full valuation allowance against our U.S. deferred tax assets, as we have concluded that it is more likely than not that the deferred tax assets will not be realized.

Current wording

Provision for income taxes consists primarily of income taxes in foreign jurisdictions in which we conduct business, and the tax effects (including the interest expense) of the fiscal 2026 Assessment Agreement (the Agreement) with the Israeli Tax Authority (ITA). The Agreement resulted in $180.0 million of tax expense, exclusive of interest, during fiscal 2026, payable over time to the ITA, with additional interest expense accruing on the tax liability over the installment period. In connection with our global consolidated losses, we maintain a full valuation allowance against our U.S. deferred tax assets, as we have concluded that it is more likely than not that the deferred tax assets will not be realized.

Previous wording

Exclusive of the fiscal 2026 assessment agreement (the Agreement) with the Israeli Tax Authority (ITA), we expect our provision for income taxes to increase in fiscal 2027 and beyond based upon increased foreign earnings and certain minimum taxes.

Current wording

Exclusive of the Agreement with the ITA, we expect our provision for income taxes to increase in fiscal 2027 and beyond based upon increased foreign earnings and certain minimum taxes.

Previous wording

Revenue increased by $47.6 million primarily due to a combination of sales to new customers and sales of additional licenses and platform solutions to existing customers.

Current wording

Revenue increased by $49.8 million primarily due to a combination of sales to new customers and sales of additional licenses and platform solutions to existing customers.

Previous wording

Cost of revenue increased by $21.4 million primarily due to a $9.1 million increase in cloud hosting usage charges to support our expanding business, a $6.3 million increase in customer support costs which were mostly personnel-related expenses, a $3.9 million increase in amortization of acquired intangible assets in connection with fiscal 2026 acquisitions, and a $1.7 million increase in amortization of capitalized internal-use software due to the continued investment in our platform. Gross margin was 72% compared to 75% in the prior period, primarily due to higher costs of revenue associated with scaling operations to meet increased customer demand and sales volume.

Current wording

Cost of revenue increased by $21.1 million primarily due to a $9.1 million increase in cloud hosting usage charges to support our expanding business, a $6.0 million increase in customer support costs, which were mostly personnel-related, a $4.0 million increase in amortization of acquired intangible assets in connection with the fiscal 2026 acquisitions, and a $1.4 million increase in amortization of capitalized internal-use software due to the continued investment in our platform. Gross margin was 72% compared to 75% in the prior period, primarily due to higher costs of revenue associated with scaling operations to meet increased customer demand and sales volume.

Previous wording

Research and development expenses increased by $23.5 million primarily due to an increase in personnel-related expenses of $19.4 million as a result of increased headcount. This included an $8.0 million increase in stock-based compensation expense, primarily driven by equity awards issued in connection with the fiscal 2026 acquisitions. The remaining increase was attributable to an increase of $1.9 million in cloud hosting expenses driven by expanded research and development activities, and a $1.6 million increase in general services expenses primarily driven by higher software subscription costs.

Current wording

Research and development expenses increased by $17.8 million primarily due to an increase in personnel-related expenses of $10.7 million as a result of increased headcount. This included a $4.1 million increase in stock-based compensation expense, primarily driven by the new equity awards granted, including those issued in connection with the fiscal 2026 acquisitions. The remaining increase was attributable to a $2.9 million increase in cloud hosting expenses driven by expanded research and development activities, a $2.2 million increase in general services expenses primarily driven by higher software subscription costs, and a $2.0 million increase in allocated overhead costs.

Previous wording

We compute our tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in those periods.

Current wording

We compute our tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from continuing operations and adjusting for discrete items arising in those periods.

Previous wording

Sales and marketing expenses decreased by $1.8 million primarily due to a $4.3 million decrease in marketing-related expenses, reflecting lower corporate marketing, advertising, and branding costs. The decrease was partially offset by a $1.2 million increase in sales-related expenses driven by higher sales conference and partner commission costs, and a $1.1 million increase in acquisition-related compensation expense.

Current wording

Sales and marketing expenses decreased by $6.1 million primarily due to a $9.8 million decrease in marketing-related expenses, reflecting lower corporate marketing, advertising and promotions costs. The decrease was partially offset by a $2.0 million increase in allocated overhead costs and a $1.4 million increase in software subscription costs.

Previous wording

General and administrative expenses increased by $1.8 million primarily due to a $1.3 million increase in acquisition-related transaction expenses and a $1.0 million increase in salaries and wages reflecting increased headcount, partially offset by a $0.9 million decrease in consulting expenses.

Current wording

General and administrative expenses increased by $6.7 million, primarily due to a $5.7 million increase in personnel-related expenses, including a $1.0 million increase in stock-based compensation expense, as a result of increased headcount, and a $3.0 million increase in legal expenses, partially offset by a $2.8 million decrease in consulting expenses.

Previous wording

Interest income, net decreased $5.5 million primarily driven by lower income earned from investments in marketable securities during the three months ended April 30, 2026. The change in other income, net is primarily due to a gain on strategic investment, partially offset by net foreign currency exchange fluctuations.

Current wording

Interest income, net decreased by $11.5 million primarily driven by lower average investment balances and a lower weighted-average book yield on our marketable securities during the six months ended July 31, 2026. The change in other income (expense), net was primarily due to net gains on strategic investments, partially offset by net foreign currency exchange fluctuations.

Previous wording

The provision for income taxes decreased by $127.7 million primarily due to the non-recurrence of a $136.0 million accrual for an unrecognized tax benefit recorded in the prior year in connection with our matter with the ITA. This decrease was partially offset by the non-recurrence of a $4.7 million discrete tax benefit from the release of a valuation allowance on Israeli deferred tax assets recorded in the prior year, as well as $2.6 million of interest expense recognized in the current period on the ITA liability pursuant to the final settlement agreement reached in fiscal 2026.

Current wording

The provision for income taxes decreased by $124.6 million primarilydue to the non-recurrence of a $136.0 million accrual for an unrecognized tax benefit recorded in the prior year in connection with our matter with the ITA. This decrease was partially offset by the non-recurrence of a $4.7 million discrete tax benefit from the release of a valuation allowance on Israeli deferred tax assets recorded in the prior year, as well as $5.4 million of interest expense recognized in the current period on the ITA liability pursuant to the final settlement agreement reached in fiscal 2026.

Previous wording

We have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers, and we have generated operating losses, as reflected in our accumulated deficit of $2.2 billion and $2.1 billion as of April 30, 2026 and January 31, 2026, respectively. We expect these and other operating losses to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and expansion of our business. On January 8, 2026, we entered into the Agreement with the ITA that fully and finally resolves disputed tax matters regarding intercompany transfer pricing and intellectual property valuations for fiscal years 2021 through 2025. As more fully described in the section titled “Risk Factors—Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results and financial condition,” through April 30, 2026, we recorded a total tax expense of $183.5 million, inclusive of interest, related to the Agreement with the ITA. Pursuant to the Agreement, we are required to make installment payments in Israeli New Shekels through fiscal 2031, with unpaid amounts subject to a 7.0% annual interest rate, and an option to extend the final payment through 2033. These payments will adversely affect our cash flows over the next several years. Furthermore, in the event of a change in control, all unpaid amounts plus interest that would have accrued through 2033—$267.1 million (or 792.7 million Israeli New Shekels) as of April 30, 2026, less cumulative payments made—would accelerate and become immediately due.

Current wording

We have financed operations primarily through proceeds received from sales of equity securities and payments received from our customers, and we have generated operating losses, as reflected in our accumulated deficit of $2.2 billion and $2.1 billion as of July 31, 2026 and January 31, 2026, respectively. We expect these and other operating losses to continue for the foreseeable future. We also expect to incur significant research and development, sales and marketing, and general and administrative expenses over the next several years in connection with the continued development and expansion of our business. On January 8, 2026, we entered into the Agreement with the ITA that fully and finally resolves disputed tax matters regarding intercompany transfer pricing and intellectual property valuations for fiscal years 2021 through 2025. As more fully described in the section titled “Risk Factors—Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our operating results and financial condition,” through July 31, 2026, we recorded a total tax expense of $186.3 million, inclusive of interest, related to the Agreement with the ITA. Pursuant to the Agreement, we are required to make installment payments in Israeli New Shekels through fiscal 2031, with unpaid amounts subject to a 7.0% annual interest rate, and an option to extend the final payment through 2033. These payments will adversely affect our cash flows over the next several years. Furthermore, in the event of a change in control, all unpaid amounts plus interest that would have accrued through 2033—$259.7 million (or 792.7 million Israeli New Shekels) as of July 31, 2026, less cumulative payments made—would accelerate and become immediately due.

Previous wording

As of April 30, 2026 and January 31, 2026, our principal source of liquidity was cash, cash equivalents, and investments of $812.5 million and $769.6 million, respectively.

Current wording

As of July 31, 2026 and January 31, 2026, our principal source of liquidity was cash, cash equivalents, and investments of $813.2 million and $769.6 million, respectively.

Previous wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead expenses.

Current wording

Our largest source of operating cash is payments received from our customers. Our primary uses of cash from operating activities are for personnel-related expenses, sales and marketing expenses, third-party cloud infrastructure expenses, and overhead costs.

Previous wording

Our operating cash flow is influenced by seasonal billing patterns, with a concentration of annual billings in our fiscal fourth quarter due to enterprise buying and renewal cycles. This makes our fiscal first quarter our strongest for collections and operating cash flow. Acquisitions can also impact cash flow due to transaction costs, financing expenses, and lower near-term operating cash flow contributions from acquired entities.

Current wording

Our operating cash flow is influenced by seasonal billing patterns, with a concentration of annual billings in our fiscal fourth quarter due to enterprise buying and renewal cycles. This makes our fiscal first quarter our strongest quarter for collections and operating cash flow. Acquisitions can also impact cash flow due to transaction costs, financing expenses, and lower near-term operating cash flow contributions from acquired entities.

Previous wording

Cash provided by operating activities during the three months ended April 30, 2026 was $38.5 million, primarily consisting of adjustments for non-cash items of $113.5 million, and $1.2 million provided by net changes to our operating assets and liabilities, partially offset by our net loss of $76.2 million. The main drivers of the changes in operating assets and liabilities were a $108.2 million decrease in accounts receivable, partially offset by a $46.9 million decrease in deferred revenue, a $34.1 million decrease in accrued expenses and other liabilities, primarily relating to the installment payment of the ITA liabilities, a $15.6 million increase in deferred contract acquisition costs, a $4.3 million decrease in accrued payroll and benefits, a $2.6 million increase in prepaid expenses and other assets, a $2.3 million decrease in accounts payable due to timing of invoices received from vendors, and a $1.3 million decrease in operating lease liabilities.

Current wording

Cash provided by operating activities during the six months ended July 31, 2026 was $31.9 million, primarily consisting of $243.2 million of adjustments for non-cash items, partially offset by our net loss of $169.6 million and $41.6 million of cash used by changes in our operating assets and liabilities. The main drivers of the changes in operating assets and liabilities were a $55.5 million decrease in deferred revenue, a $39.1 million increase in deferred contract acquisition costs, and a $16.9 million decrease in accrued expenses and other liabilities. These amounts were partially offset by a $68.8 million decrease in accounts receivable and a $6.4 million increase in accrued payroll and benefits.

Previous wording

Cash provided by operating activities during the three months ended April 30, 2025 was $52.3 million, primarily consisting of $161.3 million provided by net changes to our operating assets and liabilities and adjustments for non-cash items of $99.1 million, partially offset by our net loss of $208.2 million. The main drivers of the changes in operating assets and liabilities were an increase of accrued liabilities and other liabilities of $130.7 million, of which $136.0 million is related to an accrual for an unrecognized tax benefit related to our ITA matter, a$80.6 million decrease in accounts receivable, and a $13.4 million increase in accounts payable due to timing of invoices received from vendors. These amounts were partially offset by a $26.8 million decrease in deferred revenue, a $16.4 million decrease in accrued payroll and benefits, a $14.7 million increase in deferred contract acquisition costs, and a$4.2 million increase in prepaid expenses and other assets.

Current wording

Cash provided by operating activities during the six months ended July 31, 2025 was $51.2 million, primarily consisting of adjustments for non-cash items of $202.9 million, and $128.6 million provided by net changes to our operating assets and liabilities, partially offset by our net loss of $280.2 million. The main drivers of the changes in operating assets and liabilities were an increase in accrued and other liabilities of $144.0 million, of which $136.0 million is related to an accrual for an unrecognized tax benefit related to our ITA matter, a$56.4 million decrease in accounts receivable, a$3.2 million decrease in prepaid expenses and other assets, and a $1.5 million increase in accounts payable due to timing of invoices received from vendors. These amounts were partially offset by a $36.1 million increase in deferred contract acquisition costs, a $25.3 million decrease in deferred revenue, a $13.1 million decrease in accrued payroll and benefits, and a $2.1 million decrease in operating lease liabilities.

Previous wording

Cash used in investing activities during the three months ended April 30, 2026 was $63.9 million, primarily consisting of $212.0 million of investment purchases, which included a $100.0 million strategic investment in Knight JV, LLC, $7.4 million of capitalized internal-use software costs, and $1.0 million of payments related to holdback releases in connection with our fiscal 2026 acquisitions. These amounts were partially offset by $156.9 million of proceeds from sales and maturities of investments.

Current wording

Cash used in investing activities during the six months ended July 31, 2026 was $24.0 million, primarily consisting of $260.4 million of investment purchases, which included a $100.0 million strategic investment in Knight JV, LLC, $14.0 million of capitalized internal-use software costs, and $1.0 million of payments related to holdback releases in connection with our fiscal 2026 acquisitions. These amounts were partially offset by $252.0 million of proceeds from sales and maturities of investments.

Previous wording

Cash used in investing activities during the three months ended April 30, 2025 was$65.6 million, primarily consisting of$167.3 million of investment purchases, and$6.7 million of capitalized internal-use software costs. These amounts were partially offset by$108.5 million of investment sales and maturities.

Current wording

Cash provided by investing activities during the six months ended July 31, 2025 was$65.6 million, primarily consisting of$286.8 million of proceeds from sales, maturities and return of capital of investments. These amounts were partially offset by$208.1 million of investment purchases, and$12.5 million of capitalized internal-use software costs.

Previous wording

Cash provided by financing activities during the three months ended April 30, 2026 was $0.9 million, entirely consisting of proceeds from the exercise of employee stock options.

Current wording

Cash provided by financing activities during the six months ended July 31, 2026 was $10.7 million, primarily consisting of $7.5 million of proceeds from the issuance of common stock under our Employee Stock Purchase Plan (ESPP), and $3.1 million of proceeds from the exercise of employee stock options.

Previous wording

There were no material changes outside of the ordinary course of business in our contractual obligations and commitments from those disclosed in our Annual Report.

Current wording

Except as discussed in Note 11, Commitments and Contingencies, to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes outside of the ordinary course of business in our contractual obligations and commitments from those disclosed in our Annual Report.