CrowdStrike's Q4 2025 Earnings: A Beacon of Strength in Cybersecurity
Wednesday, Mar 5, 2025 8:25 am ET
4min read CrowdStrike Holdings, Inc. (NASDAQ: CRWD), a leading cybersecurity solutions provider, recently reported its Q4 2025 earnings, showcasing the company's resilience and growth in the face of a rapidly evolving threat landscape. The company's AI-native single platform strategy has contributed significantly to its financial performance and market competitiveness.
CrowdStrike's Q4 2025 highlights include:
1. Strong Net New ARR: The company reported net new ARR of $224 million in Q4 2025, well ahead of expectations, closing FY 2025 at $4.24 billion in ending ARR. This strong performance reflects the company's ability to attract and retain customers, as well as its success in upselling and cross-selling its products and services.
2. Growing Module Adoption: CrowdStrike's module adoption rates grew to 67% for five or more modules, 48% for six or more, 32% for seven or more, and 21% for eight or more modules, as of January 31, 2025. This trend indicates that customers are increasingly adopting multiple modules, enabling them to consolidate their cybersecurity programs and reduce costs.
3. High Customer Retention: CrowdStrike achieved a gross dollar retention rate of 97% in Q4 2025, indicating that customers remain firmly committed to the Falcon platform. This high retention rate is a testament to the company's focus on customer satisfaction and its ability to meet the evolving needs of its clients.
4. Record Free Cash Flow: For the full year, CrowdStrike delivered free cash flow of $1.07 billion, or 27% of revenue, setting a new record and for the first time exceeding $1 billion in annual free cash flow. This strong performance reflects the company's operational efficiency and its ability to generate cash from its business activities.
net income (fy)(6517)operating profit margin(6517)free cash flow(6517)
Net Income (FY)(USD)2024.12.31  | Operating Profit Margin%2024.12.31  | Free Cash Flow(USD)2024.12.31 |
|---|---|---|
| 100.12B | -- | 78.02B |
| 100.12B | 32.11 | 78.02B |
| 93.74B | 31.51 | 117.40B |
| 89.56B | -- | 83.44B |
| 89.56B | -- | 83.44B |
| 88.14B | 44.64 | 131.26B |
| 62.36B | 42.18 | 27.56B |
| 59.25B | 11.11 | 23.08B |
| 58.47B | -- | 66.41B |
| 36.13B | 46.49 | 59.53B |
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CrowdStrike's focus on customer satisfaction and retention has significantly contributed to its financial performance. The company's ability to maintain strong customer satisfaction and retention rates, coupled with its continuous innovation and expansion into new markets, has enabled it to maintain its competitive edge in the cybersecurity industry.
As the cybersecurity landscape continues to evolve, CrowdStrike's AI-native single platform strategy will remain a critical factor in its success. The company's ability to integrate multiple security functions into a single solution, coupled with its focus on customer satisfaction and retention, will enable it to maintain its market competitiveness and drive growth in the coming years.
Investors should closely monitor CrowdStrike's progress as it continues to execute on its growth strategy and adapt to the rapidly evolving threat landscape. The company's strong financial performance and market position indicate that it is well-positioned to capitalize on the growing demand for advanced, integrated cybersecurity solutions.
Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Please always apply independent thinking and note that the rating is not intended to time a specific entry/exit at the point of writing unless otherwise specified.
