Stock Analysis

Stock Analysis · Crowdstrike Holdings Inc (CRWD)

Overview

CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity company best known for its cloud-based “Falcon” platform. In simple terms, the company helps organizations protect computers, servers, and cloud workloads from malware, hacking attempts, identity-based attacks, and other digital threats. Its product approach is platform-based: customers can start with one protection module and later add more features over time.

CrowdStrike primarily earns money by selling subscriptions to its cloud security platform. The company’s filings describe revenue as coming mainly from subscription arrangements (recurring software access and related cloud-delivered services), with a smaller portion from professional services (such as incident response and other support services). Exact percentages can vary by period and are detailed in the company’s annual report.

Main revenue sources (from largest to smallest) are typically described as:

Subscription revenue (recurring platform access and cloud-delivered security services)
Professional services revenue (services such as incident response and other security-related support)

CrowdStrike’s recent financial profile also shows a common pattern for software businesses: high gross profit (revenue minus the direct cost to deliver the service) while spending heavily on research and development and go-to-market activities to grow the platform.

Over the period shown, total revenue rises substantially (from about $1.45B in FY2022 to about $3.95B in FY2025). Gross profit increases in step with revenue, while research and development and other operating costs also grow. Net income moves from losses in FY2022–FY2023 to profitability in FY2024, then back to a small loss in FY2025, highlighting that earnings can still fluctuate even as the business scales.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Technology
Industry	Software - Infrastructure
Market Cap ⓘ	$99.70B
Beta ⓘ	1.03
Fundamental
P/E Ratio ⓘ	N/A	25.66
Profit Margin ⓘ	-6.88%	6.68%
Revenue Growth ⓘ	22.20%	15.20%
Debt to Equity ⓘ	20.37%	19.82%
PEG ⓘ	3.26
Free Cash Flow ⓘ	$1.16B

CrowdStrike’s market capitalization is about $99.7B, placing it among the larger publicly traded cybersecurity-focused software companies. The stock’s beta of ~1.03 suggests price moves broadly in line with the overall market on average (though individual months can still be volatile). The company shows year-over-year revenue growth of ~22.2%, higher than the industry median shown (~15.2%). Profitability is currently negative on a net margin basis (about -6.9% vs an industry median of about +6.7%). Leverage appears moderate with debt-to-equity of ~20%, close to the industry median (~19.8%). Despite net losses, the company generates meaningful cash, with trailing twelve-month free cash flow of about $1.16B.

Growth (High)

Cybersecurity is a structurally growing area because organizations continue to shift work and data to cloud services, expand remote access, and face increasingly frequent and sophisticated attacks. CrowdStrike’s strategy is designed around a cloud-native platform that can be deployed broadly and expanded over time as customers adopt additional modules. This “land and expand” model can support longer-term growth if the platform remains competitive and customers continue consolidating security tools.

A practical catalyst for many security platforms is continued demand for endpoint protection, cloud security, identity protection, and threat intelligence—especially when customers want fewer vendors and a more integrated set of tools. CrowdStrike’s filings emphasize ongoing investment in research and development, which aligns with the need to keep pace with new attacker techniques.

The chart shows revenue growth rates that were extremely high earlier in the period (around 60%–70% year-over-year in 2021), then gradually normalized into the 20%–30% range more recently. The latest value shown is about 22.2% YoY, which is still above the industry median shown (about 15.2%), but clearly slower than the hyper-growth phase.

Free cash flow trends upward over time, rising from about $441M (FY2022) to about $1.07B (FY2025), with the latest trailing twelve-month value around $1.16B. For a subscription software business, growing free cash flow can be a meaningful indicator of scale and operating discipline, even when net income remains volatile due to expenses such as stock-based compensation and other non-cash or timing-related items.