CrowdStrike (NASDAQ: $CRWD), a leading cybersecurity company, released its q$ fiscal 2025 results on Wednesday, March 5, 2025, after markets closed. Despite the earnings beat in Q4, the stock took a sharp dive. Here is an in-depth look at the results.
CrowdStrike Q4 Results
For the fourth quarter of fiscal 2025, CrowdStrike reported revenue of $1.06 billion, a 25% YoY increase compared to the $845.3 million reported last year. The revenue was above analysts’ estimates of $1.03 billion.
It reported a non-GAAP EPS of $1.03, beating estimates of $0.86. It reported a non-GAAP net income of $260.9 million, compared to $236.2 million the previous year.
Other Q4 Highlights
Subscription revenue was up 27% YoY to $1.01 billion, while non-GAAP income from operations rose to $217.3 million compared to $213.1 million last year.
CrowdStrike reported a 23% YoY increase in Annual Recurring Revenue (ARR) to $4.24 billion as of January 31, 2025. Of this ARR, $224.3 million was net new additions in Q4. It reported a non-GAAP subscription gross margin of 80%, the same as last year.
CrowdStrike reported $345.7 million in net cash from operations, while free cash flow for Q4 was $239.8 million, compared to $283 million last year. As of the end of Q4 fiscal 2025, CrowdStrike has $4.32 billion in cash and cash equivalents.
Full-Year Highlights
Full-year revenue grew 29% YoY to $3.95 billion, while the non-GAAP subscription gross margin was 80%, the same as last year. Non-GAAP income from operations came in at $837.7 million, for a non-GAAP EPS of $3.93, compared to $3.09 the previous year.
For fiscal 2025, CrowdStrike reported $1.38 billion in net cash from operations and a free cash flow of $1.07 billion compared to $938.2 million the previous year.
Q1 And Fiscal 2026 Guidance
For the first quarter of fiscal 2026, CrowdStrike expects revenue of $1,100.6 to $1,106.4 million, reflecting cautious optimism. It expects Q1 non-GAAP EPS of $0.64 to $0.66 and a non-GAAP net income of $162.1 to $167.5 million. The EPS estimate is below analysts’ forecast of $0.95.
For the full year, CrowdStrike expects revenue of $4,743.5 to $4,805.5 million, which is in line with estimates of $4.77 billion at the midpoint. The company expects a full-year non-GAAP EPS of $3.33 to $3.45, which is below analysts’ estimate of $4.42. It expects full-year non-GAAP net income of $851.2 to $883.0 million and a non-GAAP income from operations of $944.2 to $985.1 million.
CrowdStrike (CRWD) Market Performance
Following the guidance miss, CROWD shares sank 7.63% in pre-market trading to $360.40 per share as of 6:12 AM EST on March 5, 2025. However, the stock is up 50.46% in the past six months and 24.33% in the past 12 months.
Based on the pre-market price, the stock has dipped below its 50-day moving average of $385.87 but is still above its 200-day moving average of $333.
Analysts are optimistic about the future of CRWD, giving it a strong buy rating. They forecast an average price of $436.90, which is an 11.98% upside based on Tuesday’s closing price. The analysts give a wide range of forecasts, with a high of $506 and a low of $365.
Should You Add CRWD To Your Portfolio In 2025?
Following a faulty software update in July 2024, CrowdStrike has made a remarkable recovery. While compensation packages have weighed down on its quarterly results, the company continues to grow revenue by double digits. The company estimates that its total addressable market will reach $250 billion in 2029, aided by the continued development of AI.
However, some analysts consider CRWD shares highly priced, with a trailing P/E ratio of 750.45 and forward P/E ratio of 88.50. Despite this, the expected solid performance in the next few years makes CRWD potentially worth adding to your watchlist.
Click Here For Updates on CRWD – It’s FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
