In an era where cybersecurity is paramount, CrowdStrike Holdings, Inc. stands at the forefront, revolutionizing how businesses protect their digital environments. Renowned for its Falcon platform, this technology leader excels in delivering cutting-edge cloud-based security solutions that safeguard endpoints and cloud workloads. With a reputation for innovation and quality, CrowdStrike not only shapes the cybersecurity landscape but also impacts the daily operations of countless organizations. As we dive into this analysis, I’ll explore whether the company’s robust fundamentals continue to justify its impressive market valuation and growth potential.
Table of contents
Company Description
CrowdStrike Holdings, Inc. is a key player in the software infrastructure industry, specializing in cloud-delivered cybersecurity solutions. Founded in 2011 and headquartered in Austin, Texas, the company offers a comprehensive suite of services including threat intelligence, managed security services, and Zero Trust identity protection through its flagship Falcon platform. With a market capitalization of approximately $128B, CrowdStrike primarily operates on a subscription model, serving a diverse clientele across global markets. Its innovative approach to endpoint and cloud workload security positions it as a leader in the cybersecurity landscape, shaping industry standards with a commitment to proactive threat management and operational resilience.
Fundamental Analysis
In this section, I will analyze CrowdStrike Holdings, Inc. by examining its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes the Income Statement for CrowdStrike Holdings, Inc. (CRWD) over the past five fiscal years, illustrating key metrics such as revenue, gross profit, and net income.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 874M | 1.45B | 2.24B | 3.06B | 3.95B |
| Cost of Revenue | 230M | 383M | 601M | 756M | 991M |
| Operating Expenses | 737M | 1.21B | 1.83B | 2.30B | 3.08B |
| Gross Profit | 644M | 1.06B | 1.64B | 2.30B | 2.96B |
| EBITDA | -46M | -66M | -41M | 293M | 295M |
| EBIT | -86M | -135M | -134M | 149M | 81M |
| Interest Expense | 2M | 25M | 25M | 26M | 26M |
| Net Income | -93M | -235M | -183M | 89M | -19M |
| EPS | -0.43 | -1.02 | -0.78 | 0.37 | -0.08 |
| Filing Date | 2021-03-18 | 2022-03-16 | 2023-03-09 | 2024-03-07 | 2025-03-10 |
Interpretation of Income Statement
Over the last five fiscal years, CRWD has shown a consistent upward trend in revenue, growing from 874M in 2021 to 3.95B in 2025. However, net income reflects volatility, with significant losses in earlier years, followed by a profitable year in 2024, and a return to losses in 2025. Notably, while gross profit margins improved significantly in 2024, they contracted in 2025 due to rising operating expenses. The recent year indicates a slowdown in growth, underlining the importance of monitoring operational efficiencies to enhance profitability moving forward.
Financial Ratios
The following table summarizes the financial ratios for CrowdStrike Holdings, Inc. (CRWD) over the last few fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -10.59% | -16.18% | -8.18% | 2.92% | -0.49% |
| ROE | -10.64% | -22.89% | -12.52% | 3.88% | -0.59% |
| ROIC | -5.19% | -9.32% | -7.40% | -0.04% | 0.70% |
| P/E | -505.45 | -174.75 | -134.73 | 781.41 | -5055.66 |
| P/B | 53.78 | 40.00 | 16.87 | 30.30 | 29.71 |
| Current Ratio | 2.56 | 1.74 | 1.64 | 1.67 | 1.67 |
| Quick Ratio | 2.56 | 1.74 | 1.64 | 1.67 | 1.67 |
| D/E | 0.89 | 0.76 | 0.54 | 0.34 | 0.24 |
| Debt-to-Assets | 28.51% | 21.41% | 15.59% | 11.93% | 9.07% |
| Interest Coverage | -59.35 | -5.65 | -7.51 | -0.08 | -4.58 |
| Asset Turnover | 0.32 | 0.40 | 0.45 | 0.46 | 0.45 |
| Fixed Asset Turnover | 4.30 | 4.97 | 4.21 | 4.57 | 4.76 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing the financial ratios for CrowdStrike Holdings, Inc. (CRWD) reveals mixed indicators of financial health. The current ratio stands at 1.67, indicating good short-term liquidity. However, the net profit margin is negative at -0.49%, suggesting that the company is struggling to turn revenue into profit. The gross profit margin is strong at 74.92%, but the operating profit margin is weak at -3.05%, highlighting operational inefficiencies. The debt-to-equity ratio is relatively low at 0.24, indicating manageable leverage. Still, the negative interest coverage ratio of -4.58 raises concerns about the ability to meet interest obligations. Overall, while liquidity and leverage appear adequate, profitability remains a significant concern.
Evolution of Financial Ratios
Over the past five years, CRWD’s financial ratios have shown volatility, particularly in profitability metrics, with net profit margins fluctuating between positive and negative values. The current ratio has remained relatively stable, indicating consistent liquidity management despite operational challenges.
Distribution Policy
CrowdStrike Holdings, Inc. (CRWD) does not pay dividends, reflecting its focus on reinvestment and growth during a high-growth phase. The company prioritizes research and development, which aligns with creating long-term shareholder value. Additionally, CRWD engages in share buybacks to return value to shareholders. This strategy, although lacking in immediate cash returns, supports sustainable growth and value creation in the long term, provided the company’s financials improve.
Sector Analysis
CrowdStrike Holdings, Inc. operates in the Software – Infrastructure industry, offering cloud-delivered cybersecurity solutions that position it strongly against competitors through its innovative Falcon platform.
Strategic Positioning
CrowdStrike Holdings, Inc. (CRWD) operates in the competitive Software – Infrastructure sector, focusing on cloud-delivered cybersecurity solutions. Currently, it maintains a significant market share within the endpoint protection domain, bolstered by its robust Falcon platform. However, competitive pressure is intensifying from emerging technologies and established players in the cybersecurity space, necessitating ongoing innovation. Additionally, the rapid pace of technological disruption presents both challenges and opportunities, as the company adapts to evolving threats and customer needs while striving to enhance its service offerings.
Revenue by Segment
The following chart illustrates CrowdStrike Holdings, Inc.’s revenue by segment for the fiscal year 2025, providing insights into the distribution of income across its primary service lines.
In FY 2025, CrowdStrike generated $3.76B from Subscription and Circulation services, a significant increase from $2.87B in FY 2024. Professional Services also saw growth, rising to $192.1M from $185M the previous year. The Subscription segment continues to drive the majority of revenue, highlighting the company’s strong market position and customer retention. However, the slower growth rate in Professional Services could indicate emerging concentration risks, necessitating a closer look at service diversification to mitigate future threats.
Key Products
Below is a table outlining the key products offered by CrowdStrike Holdings, Inc. (CRWD), which play a crucial role in their business strategy and customer offerings.
| Product | Description |
|---|---|
| Falcon Platform | A comprehensive cloud-based security solution that provides endpoint protection, threat detection, and response capabilities. |
| Threat Intelligence | A service that delivers insights into potential threats and vulnerabilities, helping organizations stay ahead of cyber risks. |
| Managed Security Services | A suite of services where CrowdStrike experts monitor and manage security environments on behalf of clients, ensuring optimal security posture. |
| IT Operations Management | Tools designed to streamline IT operations and improve efficiency while maintaining security across the organization. |
| Zero Trust Identity Protection | A security model that enforces strict access controls and continuously verifies user identities to prevent unauthorized access. |
| Log Management | A service that helps organizations collect, analyze, and manage logs to enhance security monitoring and compliance efforts. |
These products collectively empower organizations to safeguard their digital assets against an increasingly complex threat landscape.
Main Competitors
The competitive landscape for CrowdStrike Holdings, Inc. (CRWD) includes several prominent players in the software and cybersecurity sector. Below is a table of the main competitors, sorted by descending market cap:
| Company | Market Cap |
|---|---|
| Accenture plc | 166.59B |
| Texas Instruments Incorporated | 165.86B |
| KLA Corporation | 159.57B |
| Adobe Inc. | 144.95B |
| Analog Devices, Inc. | 139.06B |
| Palo Alto Networks, Inc. | 132.98B |
| CrowdStrike Holdings, Inc. (CRWD) | 127.58B |
| Synopsys, Inc. | 86.70B |
| Cloudflare, Inc. | 70.39B |
| Fortinet, Inc. | 66.40B |
In summary, CrowdStrike operates in a highly competitive market primarily focused on cybersecurity and cloud services. Competitors like Accenture and Palo Alto Networks indicate a robust rivalry in the global technology sector.
Competitive Advantages
CrowdStrike Holdings, Inc. (CRWD) has established itself as a leader in cloud-delivered cybersecurity solutions, thanks to its cutting-edge Falcon platform. Its subscription-based model ensures a steady revenue stream while providing customers with robust protection across endpoints, cloud workloads, and identity management. Looking ahead, the company is poised to capitalize on emerging markets and sectors by expanding its product offerings, particularly in Zero Trust solutions and AI-driven threat intelligence. This strategic focus on innovation and scalability positions CrowdStrike favorably for sustained growth and competitive dominance in the cybersecurity landscape.
SWOT Analysis
This SWOT analysis provides a strategic overview of CrowdStrike Holdings, Inc. to identify its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong market position
- Innovative product offerings
- Robust customer base
Weaknesses
- High dependency on subscription revenue
- Limited diversification
- Potential scalability challenges
Opportunities
- Growing demand for cybersecurity
- Expansion into new markets
- Increasing global cyber threats
Threats
- Intense competition
- Rapid technological changes
- Regulatory challenges
Overall, the SWOT assessment indicates that CrowdStrike possesses significant strengths and opportunities that could drive growth, but it must address its weaknesses and be vigilant against external threats to sustain its competitive advantage. Strategic focus on innovation and market expansion will be crucial for future success.
Stock Analysis
Over the past year, CrowdStrike Holdings, Inc. (CRWD) has exhibited significant stock price movements, particularly marked by a substantial increase of 80.71%, indicating strong investor interest and bullish momentum in the stock.
Trend Analysis
Analyzing the stock’s performance over the past year, I observe a price change of +80.71%. This strong growth clearly indicates a bullish trend. Notably, the stock has experienced acceleration, with a highest price of 543.01 and a lowest price of 217.89. The standard deviation of 79.68 suggests considerable volatility in price movements.
Volume Analysis
In examining trading volumes over the last three months, I note that total volume reached approximately 2.33B shares, with buyer-driven activity constituting 54.68% of the overall trading. Despite this buyer dominance, the volume trend is currently decreasing, which may indicate a cooling of investor enthusiasm or market participation. The recent period reflects a similar trend, with buyers accounting for 63.58% of the activity, further suggesting a prevailing bullish sentiment among investors.
Analyst Opinions
Recent analyst recommendations for CrowdStrike Holdings, Inc. (CRWD) indicate a cautious outlook. Analysts have assigned a “Hold” rating, reflecting concerns over its current valuation and performance metrics. Notably, the overall score is 2, with low marks on return on equity and return on assets, suggesting potential inefficiencies. Analysts like those from notable firms emphasize the need for improvement in profitability ratios before considering a buy. As of now, the consensus leans towards a “Hold” for 2025, advising investors to monitor performance closely before making further commitments.
Stock Grades
CrowdStrike Holdings, Inc. (CRWD) has received consistent ratings from several reputable grading companies, reflecting a strong ongoing confidence in its performance.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Buy | 2025-12-04 |
| Citigroup | maintain | Buy | 2025-12-04 |
| Needham | maintain | Buy | 2025-12-03 |
| DA Davidson | maintain | Buy | 2025-12-03 |
| BTIG | maintain | Buy | 2025-12-03 |
| Cantor Fitzgerald | maintain | Overweight | 2025-12-03 |
| Citizens | maintain | Market Outperform | 2025-12-03 |
| Scotiabank | maintain | Sector Outperform | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-12-03 |
| Rosenblatt | maintain | Buy | 2025-12-03 |
Overall, the trend in grades for CRWD is positive, with multiple firms maintaining their buy ratings, indicating strong investor confidence and a bullish outlook on the company’s future performance.
Target Prices
The consensus target price for CrowdStrike Holdings, Inc. (CRWD) indicates a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 706 | 353 | 545.79 |
Overall, analysts expect a target price around 545.79, reflecting a strong belief in the company’s future performance.
Consumer Opinions
Consumer sentiment toward CrowdStrike Holdings, Inc. (CRWD) reflects a mix of enthusiasm and caution, showcasing how the company is perceived in the cybersecurity landscape.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional threat detection capabilities!” | “Customer support needs improvement.” |
| “User-friendly interface and features.” | “Pricing is on the higher side.” |
| “Reliable and efficient performance.” | “Some features are not intuitive.” |
Overall, consumer feedback highlights CrowdStrike’s impressive threat detection and user-friendly design as key strengths, while concerns about customer support and pricing are noted as areas for improvement.
Risk Analysis
In evaluating CrowdStrike Holdings, Inc. (CRWD), I’ve identified several key risks that could impact the company’s performance and stock value.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for cybersecurity solutions. | High | High |
| Regulatory Risk | Changes in data privacy laws affecting operations. | Medium | High |
| Competitive Risk | Increasing competition from established firms. | High | Medium |
| Technology Risk | Rapid technological advancements could outpace offerings. | Medium | Medium |
| Economic Risk | Global economic downturn affecting IT budgets. | Medium | High |
The most likely and impactful risks for CrowdStrike include market fluctuations and regulatory changes, particularly as cybersecurity remains a high-stakes industry amidst evolving threats and compliance demands.
Should You Buy CrowdStrike Holdings, Inc.?
CrowdStrike Holdings, Inc. (CRWD) reported a fiscal year 2025 revenue of 3.95B with a gross profit margin of 74.92%, indicating strong profitability despite a net loss of 19.27M. The company’s debt to equity ratio is 0.24, reflecting a moderate debt level relative to equity. Recent fundamentals show a decline in profitability with a return on invested capital (ROIC) of 0.70% compared to a weighted average cost of capital (WACC) of 8.83%, suggesting value destruction. The overall rating is a C, indicating potential caution for investors.
Favorable signals
I found several favorable signals in the data for CrowdStrike Holdings, Inc. The company exhibits a robust revenue growth of 29.39% and a high gross margin of 74.92%, indicating efficient cost management. Additionally, the gross profit growth stands at 28.8%, and there is a favorable interest expense percentage of 0.67%. The current ratio of 1.67 and quick ratio of 1.67 suggest sound liquidity, while a debt-to-equity ratio of 0.24 indicates a manageable level of debt.
Unfavorable signals
There are notable unfavorable signals as well. The net margin is negative at -0.49%, reflecting challenges in profitability. The return on equity (ROE) is also negative at -0.59%, and the return on invested capital (ROIC) of 0.7% is below the weighted average cost of capital (WACC) of 8.83%, indicating value destruction. Furthermore, the price-to-earnings (PE) ratio is significantly negative at -5055.66, and the price-to-book (PB) ratio of 29.71 suggests overvaluation. Additionally, the dividend yield is at 0%, and the asset turnover is relatively low at 0.45.
Conclusion
Given the unfavorable global income statement opinion and the unfavorable global ratios evaluation, it appears unfavorable for long-term investors. With a long-term bullish trend, it might be prudent to wait for clearer signals before considering investment.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- CrowdStrike Holdings Inc (CRWD) Q3 2026 Earnings Call Highlights: Record ARR Growth and … – Yahoo Finance (Dec 05, 2025)
- CrowdStrike’s AI Reality Check (NASDAQ:CRWD) – Seeking Alpha (Dec 05, 2025)
- Wall Street Bulls Look Optimistic About CrowdStrike (CRWD): Should You Buy? – Finviz (Dec 05, 2025)
- Susquehanna Maintains CrowdStrike Holdings (CRWD) Positive Recommendation – Nasdaq (Dec 04, 2025)
- CrowdStrike Holdings Inc (CRWD) Q3 2026 Earnings Call Highlights – GuruFocus (Dec 05, 2025)
For more information about CrowdStrike Holdings, Inc., please visit the official website: crowdstrike.com
