CrowdStrike's Q4 2025: Contradictions in Customer Retention, AI Strategy, and Falcon Flex Adoption

These are the key contradictions discussed in CrowdStrike's latest 2025 Q4 earnings call, specifically including: Customer Churn and Retention, Net New ARR Seasonality, AI War and Data Security, Falcon Flex Adoption and Impact, and Geopolitical AI Armed Race and AI War Strategy:



Financial Performance and Revenue Growth:
- CrowdStrike reported Q4 net new ARR of $224 million, surpassing expectations and closing FY 2025 at $4.24 billion in ending ARR.
- The growth was driven by strong customer engagement, excellent execution, and accelerating market opportunities.

AI Integration and Innovation:
- The company's AI-native single platform and innovation engine were highlighted, with Charlotte AI deals increasing, aiming to drive AI outcomes for customers.
- The integration of AI is crucial for CrowdStrike as it helps customers leverage AI for SOC operations and threat response times.

Cloud Security and Identity Protection Growth:
- Cloud Security business grew more than 45% with ending ARR over $600 million, and Identity Protection ended with more than $370 million in ARR.
- Growth in these areas was driven by trends like the increasing identity attack surface and the need for integrated identity protection solutions.

Next-Gen SIEM Expansion:
- CrowdStrike's Next-Gen SIEM business grew more than 115% year-over-year, reaching more than $330 million in ending ARR.
- The expansion was fueled by the unique advantages of the platform, including unmatched speed, scalability, and cost efficiency compared to legacy SIEMs.

Ecosystem and Partnership Success:
- CrowdStrike's ecosystem partners sourced 60% of new business in FY 2025, with the GSI business approaching $1 billion and growing over 40% year-over-year.
- The growth was attributed to the company's partner-first strategy, strategic investments in cloud marketplaces, and the attractiveness of the Falcon Flex subscription model.