CrowdStrike: Fairly Valued But Built To Compound

  • CrowdStrike reported $4.24 billion in ARR for FY2025, growing 23% YoY with 112% net retention and 97% gross retention. FCF reached $1.07 billion in FY2025, but GAAP margins turned negative due to $636 million in SBC. Gross margin declined from 78% to 75% (GAAP), driven by rising cloud infrastructure costs and post-incident remediation expenses.