This brief reports what CrowdStrike's 10-Q, filed 2026-08-27, states, and nothing else. Every item below is a sentence the filing contains, quoted exactly and verified character-for-character against the document fetched from EDGAR. No inference is drawn and no claim is made about what any figure means.
The figures
| Metric | Value | Period |
|---|---|---|
| ARR | 5841421 | July 31, 2026 |
| ARR | 4656682 | July 31, 2025 |
| ARR | 25% | July 31, 2026 |
| ARR | 20% | July 31, 2025 |
| ARR | 5800000000 | July 31, 2026 |
| Net new ARR | 332800000 | three months ended July 31, 2026 |
| Net new ARR | 588600000 | six months ended July 31, 2026 |
| ARR | 4700000000 | July 31, 2025 |
| Net new ARR | 221100000 | three months ended July 31, 2025 |
| Net new ARR | 414800000 | six months ended July 31, 2025 |
| Sales commission expense | $25.5 million | three months ended July 31, 2026 |
| Sales commission expense | $53.4 million | six months ended July 31, 2026 |
| Backlog | $5.9 billion | July 31, 2026 |
| Full-time employees | 11,706 | July 31, 2026 |
| Subscription gross margin | one percentage point | six months ended July 31, 2026 |
| Professional services gross margin | one percentage point | six months ended July 31, 2026 |
| Sales and marketing expenses | $112.9 million | six months ended July 31, 2026 |
| Increase in sales and marketing expenses | $29.1 million | six months ended July 31, 2026 |
| Research and development expenses | $179.1 million | six months ended July 31, 2026 |
| Increase in research and development expenses | $73.3 million | six months ended July 31, 2026 |
| General and administrative expenses | $12.0 million | six months ended July 31, 2026 |
| Increase in general and administrative expenses | $5.7 million | six months ended July 31, 2026 |
| Increase in other income (expense), net | $36.4 million | six months ended July 31, 2026 |
Every figure above is quoted from the filing; the sentence it was read from appears under its beat below.
The evidence, by beat
ARR / NRR / NDR growth or dilution
Annual recurring revenue$5,841,421 $4,656,682
Annual recurring revenue$5,841,421 $4,656,682
Year-over-year growth25 %20 %
Year-over-year growth25 %20 %
ARR grew to $5.8 billion as of July 31, 2026, of which $332.8 million and $588.6 million was net new ARR added for the three and six months ended July 31, 2026, respectively.
ARR grew to $5.8 billion as of July 31, 2026, of which $332.8 million and $588.6 million was net new ARR added for the three and six months ended July 31, 2026, respectively.
ARR grew to $5.8 billion as of July 31, 2026, of which $332.8 million and $588.6 million was net new ARR added for the three and six months ended July 31, 2026, respectively.
ARR grew to $4.7 billion as of July 31, 2025, of which $221.1 million and $414.8 million was net new ARR added for the three and six months ended July 31, 2025, respectively.
ARR grew to $4.7 billion as of July 31, 2025, of which $221.1 million and $414.8 million was net new ARR added for the three and six months ended July 31, 2025, respectively.
ARR grew to $4.7 billion as of July 31, 2025, of which $221.1 million and $414.8 million was net new ARR added for the three and six months ended July 31, 2025, respectively.
Our dollar-based net retention rate improved sequentially as of July 31, 2026.
seat vs consumption / usage-based pricing mix shift
The filing names this beat, but no statement in it verified as a verbatim quote, so none is reported here.
competitive displacement / win-loss / platform consolidation
We have also experienced, and may continue to experience, longer sales cycles in connection with the July 19 Incident.
We may also experience longer sales cycles as customers seek to consolidate on our Falcon platform and negotiate larger deals, including in connection with our flexible subscription offering.
We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition, and results of operations.
Our ability to compete effectively depends upon numerous factors, many of which are beyond our control, including, but not limited to:•product capabilities, including performance and reliability, of our Falcon platform, including our cloud modules, services, and features compared to those of our competitors;
Our competitors include the following by general category:•legacy antivirus product providers who offer a broad range of approaches and solutions including traditional signature-based anti-virus protection;•alternative endpoint security providers who generally offer a mix of on-premise and cloud-hosted products that rely heavily on malware-only or application whitelisting techniques;•network security vendors who are supplementing their core perimeter-based offerings with endpoint or cloud security solutions;•cloud security vendors, including those who focus on public cloud infrastructure and services;•identity security vendors that seek to identify and secure user accounts and related activities; •professional service providers who offer cybersecurity response services; and•legacy SIEM vendors who offer a range of log management and security capabilities.
Many of our competitors have greater financial, technical, marketing, sales, and other resources, greater name recognition, longer operating histories, and a larger base of customers than we do.
They may be able to devote greater resources to the development, promotion, and sale of services than we can, and they may offer lower pricing than we do.
Further, they may have greater resources for research and development of new technologies, the provision of customer support, and the pursuit of acquisitions.
Our larger competitors have substantially broader and more diverse product and services offerings as well as routes to market, which allows them to leverage their relationships based on other products or incorporate functionality into existing products to gain business in a manner that discourages users from purchasing our platform, including our cloud modules.
Our competitors may more successfully incorporate AI into their products, gain or leverage superior access to certain AI technologies, and achieve higher market acceptance of their AI solutions.
Conditions in our market could also change rapidly and significantly due to partnering or acquisitions by our competitors or continuing market consolidation.
Some of our competitors have recently made acquisitions of businesses or have established cooperative relationships that may allow them to offer more directly competitive and comprehensive solutions than were previously offered and adapt more quickly to new technologies and customer needs.
AI product monetisation / attach
The filing names this beat, but no statement in it verified as a verbatim quote, so none is reported here.
guidance raised/cut, outlook change
In February 2026, we completed an assessment of the estimated period of benefit of commissions earned upon the initial acquisition of a contract, or subsequent upsell, and determined that it should increase from four to five years. This change in estimate was effective beginning in fiscal 2027.
Based on the carrying value of the related deferred contract acquisition costs as of January 31, 2026, the effect of this change in estimate for the three and six months ended July 31, 2026 was a reduction in sales commission expense of $25.5 million and $53.4 million, respectively.
Based on the carrying value of the related deferred contract acquisition costs as of January 31, 2026, the effect of this change in estimate for the three and six months ended July 31, 2026 was a reduction in sales commission expense of $25.5 million and $53.4 million, respectively.
As of July 31, 2026, we had backlog of approximately $5.9 billion.
Net new ARR generation is typically greater in the second half of the year, particularly in the fourth quarter, as compared to the first half of the year.
As of July 31, 2026, we had 11,706 full-time employees.
cost action / restructuring / headcount
Subscription gross margin increased by one percentage point for the six months ended July 31, 2026, compared to the six months ended July 31, 2025.
The increase in subscription gross margin was primarily attributable to hiring efficiencies.
Professional services gross margin decreased by one percentage point for the six months ended July 31, 2026, compared to the six months ended July 31, 2025.
The decrease in professional services gross margin was primarily driven by higher employee-related expenses due to no corresponding Strategic Plan impact, and an increase in stock-based compensation expense, partially offset by a decrease in consulting expenses during the six months ended July 31, 2026.
Sales and marketing expenses increased by $112.9 million, or 13%, for the six months ended July 31, 2026 compared to the six months ended July 31, 2025.
The increase in sales and marketing expenses was primarily due to an increase in employee-related expenses of $29.1 million driven by an 8% increase in average headcount, an increase in stock-based compensation expense of $27.8 million, an increase in allocated overhead costs of $16.2 million, an increase in marketing programs of $15.0 million, an increase in employee benefits of $9.5 million, an increase in travel expenses of $8.3 million, an increase in company event expenses of $5.9 million, and an increase in cloud hosting and related costs of $1.6 million, partially offset by an $8.7 million decrease in charges related to the Strategic Plan and a $3.1 million net decrease in sales commission expense resulting from the change in the estimated period of benefit, partially offset by an increase in capitalized sales commissions.
Research and development expenses increased by $179.1 million, or 27%, for the six months ended July 31, 2026 compared to the six months ended July 31, 2025.
This increase was primarily due to an increase in employee-related expenses of $73.3 million driven by a 16% increase in average headcount, an increase in stock-based compensation expense of $70.2 million, an increase in allocated overhead costs of $21.1 million, an increase in cloud hosting and related costs of $20.0 million, an increase in employee benefits of $9.1 million, an increase in term-based software licenses of $7.7 million, and an increase in depreciation of data center equipment of $3.0 million, partially offset by a $16.7 million decrease in charges related to the Strategic Plan and an increase in software capitalization of $11.0 million.
General and administrative expenses increased by $12.0 million, or 4%, for the six months ended July 31, 2026 compared to the six months ended July 31, 2025.
The increase in general and administrative expenses was primarily due to an increase in stock-based compensation expense of $57.1 million, an increase in employee-related expenses of $5.7 million driven by a 10% increase in average headcount, an increase in legal expense of $3.6 million unrelated to the July 19 Incident or related matters, and an increase in allocated overhead costs of $2.7 million, partially offset by a decrease of $44.9 million in expenses associated with the July 19 Incident and related matters and a $12.7 million decrease in charges related to the Strategic Plan.
The decrease in interest expense for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was primarily due to no amortization of debt issuance costs in the current period related to our secured revolving credit facility, which expired in January 2026.
The decrease in interest income for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was driven by lower market rates.
The increase in other income (expense), net for the six months ended July 31, 2026 compared to the six months ended July 31, 2025 was primarily due to an increase in net realized gains on our strategic investments of $36.4 million, an increase of $1.6 million attributable to no downward adjustments or impairment charges on our strategic investments in the current period, and an increase of $3.4 million attributable to lower net foreign currency transaction losses.
Verification ledger
- 42 statements proposed by the extractor
- 42 verified verbatim against the fetched filing (100%)
- 0 discarded — not quotable character-for-character
The verbatim check contains no model: the extractor proposes a statement, and a deterministic substring match against the fetched text decides whether it is admissible. A proposal that does not verify is dropped.
This brief publishes no inference and no synthesis. The publication's inference layer must clear a measured second-lab confirmation threshold before it may appear; it has not, so it is absent by rule rather than by omission.