CrowdStrike (CRWD) Q2 2025 earnings summary

Executive summary

• Q2 FY25 ending ARR reached $3.86 billion, up 32% year-over-year, with net new ARR of $218 million.

• Q2 revenue was $963.9 million, up 32% year-over-year; subscription revenue was $918.3 million, up 33%.

• GAAP net income rose to $47.0 million, up more than 5x year-over-year; non-GAAP net income was $260.8 million, up 45%.

• The July 19 Channel File 291 Incident caused system outages, lawsuits, and increased costs, but customer churn remained low and platform adoption continued to accelerate.

• Platform modules LogScale Next-Gen SIEM, Identity Protection, and Cloud Security surpassed $1 billion in combined ARR, with strong module adoption among large customers.

Financial highlights

• Free cash flow reached $272.2 million, up 44% year-over-year, representing 28% of revenue.

• Non-GAAP operating income was $226.8 million, up 46% year-over-year; GAAP income from operations was $13.7 million.

• Non-GAAP operating margin improved to 24%; GAAP operating margin was 1%.

• Gross margin was 75% (GAAP) and 78% (non-GAAP); subscription gross margin was 78% (GAAP) and 81% (non-GAAP).

• Cash and cash equivalents totaled $4.04 billion as of July 31, 2024.

Outlook and guidance

• Q3 FY25 revenue guidance: $979.2–$984.7 million; full-year FY25: $3.89–$3.90 billion.

• Non-GAAP net income per diluted share guidance: Q3 FY25 $0.80–$0.81; full-year FY25 $3.61–$3.65.

• Guidance includes a $30 million quarterly and $60 million annual impact from customer commitment incentives.

• Long-term targets reaffirmed: $10 billion ARR by FY31 and target operating model by FY29.

• Management believes liquidity is sufficient for at least the next 12 months.