📊 CRWD Key Takeaways
Is CrowdStrike Holdings, Inc. (CRWD) a Good Investment?
CrowdStrike demonstrates strong revenue growth (21.7% YoY) and exceptional gross margins (75.3%), supported by a fortress balance sheet with $4.6B cash and minimal leverage. However, the company is operationally unprofitable (-2.2% margin) with net income collapsing 1,183% YoY, indicating severe operational challenges from recent critical incidents that have damaged profitability and customer confidence despite sustained cash flow generation.
CrowdStrike combines strong top-line growth with elite gross margins and very robust free cash flow generation, which points to a high-quality software model with meaningful operating leverage potential. The balance sheet is strong, with substantial cash, modest leverage, and solid liquidity, reducing financial risk. The main fundamental constraint is that GAAP profitability remains negative, so the case depends on sustaining growth while converting revenue scale into durable operating income.
CrowdStrike Holdings, Inc. Key Strengths (CRWD)
- Strong revenue growth of 21.7% YoY demonstrates continued market demand for cybersecurity solutions
- Exceptional gross margins of 75.3% indicate pricing power and high-quality SaaS product economics
- Robust free cash flow generation of $493.3M (35.6% FCF margin) shows strong cash conversion despite profitability challenges
- Fortress balance sheet with $4.6B cash reserves and conservative 0.16x debt-to-equity ratio provides substantial financial flexibility and downside protection
- Revenue growth of 21.7% YoY is strong for a company already above $4.8B in annual revenue
- Gross margin of 74.7% and free cash flow margin of 27.2% indicate a highly scalable, cash-generative software platform
- Financial health is strong with $5.23B in cash, a 1.77x current ratio, and low debt-to-equity of 0.17x
CRWD Stock Risks: CrowdStrike Holdings, Inc. Investment Risks
- Operating margin is negative at -2.2%, indicating the core business remains unprofitable despite strong revenue, raising questions about unit economics and scalability
- Net income declined 1,183% year-over-year with net margin of only 2.0%, suggesting major operational disruptions from recent critical security incidents damaged earnings substantially
- Returns on equity (0.6%) and assets (0.2%) are critically low, indicating extremely poor capital efficiency and shareholder value creation despite asset base of $11.3B
- Negative interest coverage ratio (-4.7x) shows operating income cannot service debt obligations, creating financial stress if cash generation deteriorates
- Operating margin of -6.1% and net margin of -3.4% show the business has not yet translated scale into consistent GAAP profitability
- Diluted EPS deteriorated sharply year over year, signaling continued pressure from expenses, dilution, or accounting charges
- Negative interest coverage reflects reported operating losses, which weakens earnings-based credit strength despite solid cash reserves
Key Metrics to Watch
- Operating margin trajectory - must achieve positive operating profitability to validate sustainable business model
- Customer retention and churn rates - critical to assess lasting damage from recent major security incidents on customer confidence
- Net income stabilization and recovery - current minimal profitability ($27.8M) provides no buffer; need clear path to sustained earnings growth
- Free cash flow sustainability - confirm $493M FCF level can be maintained as business stabilizes and growth moderates
- Operating margin trend and pace of GAAP net income improvement
- Revenue growth relative to free cash flow margin durability
CrowdStrike Holdings, Inc. (CRWD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 35.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CRWD Profit Margin, ROE & Profitability Analysis
CRWD vs Technology Sector: How CrowdStrike Holdings, Inc. Compares
How CrowdStrike Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CrowdStrike Holdings, Inc. Stock Overvalued? CRWD Valuation Analysis 2026
Based on fundamental analysis, CrowdStrike Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CrowdStrike Holdings, Inc. Balance Sheet: CRWD Debt, Cash & Liquidity
CRWD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CrowdStrike Holdings, Inc.'s revenue has grown significantly by 450% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.30 reflects profitable operations.
CRWD Revenue Growth, EPS Growth & YoY Performance
CRWD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2027 | $1.1B | $27.8M | $0.11 |
| Q3 2026 | $1.0B | -$16.8M | $-0.07 |
| Q2 2026 | $963.9M | $47.0M | $0.19 |
| Q3 2025 | $786.0M | -$16.8M | $-0.07 |
| Q2 2025 | $731.6M | $8.5M | $0.03 |
| Q1 2025 | $692.6M | $491.0K | $0.00 |
| Q3 2024 | $580.9M | $26.7M | $0.11 |
| Q2 2024 | $535.2M | $8.5M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CrowdStrike Holdings, Inc. Dividends, Buybacks & Capital Allocation
CRWD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CrowdStrike Holdings, Inc. (CIK: 0001535527)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Jun 9, 2026 | 4 | xslF345X06/form4-06102026_010624.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/form4-06092026_080601.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/form4-06092026_080601.xml | View → |
| Jun 9, 2026 | 4 | xslF345X06/form4-06092026_080602.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/form4-06052026_080601.xml | View → |
❓ Frequently Asked Questions about CRWD
What is the AI rating for CRWD?
CrowdStrike Holdings, Inc. (CRWD) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CRWD's key strengths?
Claude: Strong revenue growth of 21.7% YoY demonstrates continued market demand for cybersecurity solutions. Exceptional gross margins of 75.3% indicate pricing power and high-quality SaaS product economics. ChatGPT: Revenue growth of 21.7% YoY is strong for a company already above $4.8B in annual revenue. Gross margin of 74.7% and free cash flow margin of 27.2% indicate a highly scalable, cash-generative software platform.
What are the risks of investing in CRWD?
Claude: Operating margin is negative at -2.2%, indicating the core business remains unprofitable despite strong revenue, raising questions about unit economics and scalability. Net income declined 1,183% year-over-year with net margin of only 2.0%, suggesting major operational disruptions from recent critical security incidents damaged earnings substantially. ChatGPT: Operating margin of -6.1% and net margin of -3.4% show the business has not yet translated scale into consistent GAAP profitability. Diluted EPS deteriorated sharply year over year, signaling continued pressure from expenses, dilution, or accounting charges.
What is CRWD's revenue and growth?
CrowdStrike Holdings, Inc. reported revenue of $1.4B.
Does CRWD pay dividends?
CrowdStrike Holdings, Inc. does not currently pay dividends.
Where can I find CRWD SEC filings?
Official SEC filings for CrowdStrike Holdings, Inc. (CIK: 0001535527) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CRWD's EPS?
CrowdStrike Holdings, Inc. has a diluted EPS of $0.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CRWD's fundamental grade?
Based on our AI fundamental analysis in June 2026, CrowdStrike Holdings, Inc. has a A grade with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CRWD stock overvalued or undervalued?
Valuation metrics for CRWD: ROE of 0.6% (sector avg: 22%), net margin of 2.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CRWD's AI grade for 2026?
Our dual AI analysis gives CrowdStrike Holdings, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CRWD's free cash flow?
CrowdStrike Holdings, Inc.'s operating cash flow is $590.9M, with capital expenditures of $97.6M. FCF margin is 35.6%.
How does CRWD compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.0% (avg: 18%), ROE 0.6% (avg: 22%), current ratio 1.53 (avg: 2.5).