CrowdStrike said annual recurring revenue reached $5.51 billion as of April 30, 2026, up from $4.44 billion a year earlier, a 24% increase. Net new ARR added in the quarter was $255.8 million, compared with $193.8 million in the prior-year quarter.
The company said its dollar-based net retention rate remained “strong” in the three months ended April 30, 2026, though it also warned that the metric can move around depending on large contracts, incentives, and customer utilization of flexible subscription packages.
CrowdStrike’s filing said the business continues to be shaped by the July 19, 2024 incident, which caused system crashes on certain Windows systems. The company said it has incurred, and expects to continue incurring, significant legal and professional services and other G&A expenses tied to the event. It also said the incident has already affected operations by delaying sales opportunities and lengthening sales cycles.
The company said customer commitment packages introduced after the incident have included discounting, additional modules, professional services, flexible payment terms, and subscription period extensions. Those packages, it said, have led to increased contraction because of longer subscription terms and lower upsell dollar values.
CrowdStrike reiterated that its Falcon platform is sold through a partner-first subscription model and that subscriptions are priced by measures such as per-endpoint, per-identity, per-cloud sensor, per-user, per-device, and per-gigabyte of daily ingestion. It said subscription revenue is recognized ratably over one to three years, while professional services are generally sold separately and recognized as performed.
On the cost side, the company said subscription cost of revenue includes cloud hosting, amortization of capitalized internal-use software, salaries and bonuses, stock-based compensation, benefits, software license fees, depreciation, amortization of acquired intangibles, and allocated facilities and administrative costs. It said those costs will rise as customers add endpoints and modules, increasing cloud hosting and data storage needs.
CrowdStrike also disclosed that it revised previously issued unaudited condensed consolidated financial statements for the three months ended April 30, 2025 to correct an immaterial error, with the revisions made to ensure comparability across periods. Today the company's shares have moved -9.25% to a price of $678.44. Check out the company's full 10-Q submission here.
