CrowdStrike Reports Disappointing Q4 Results, Sees Increased Costs Ahead

CrowdStrike Holdings reported its fiscal fourth-quarter results for 2025, revealing solid revenue growth but concerning signs of increased costs and declining margins. The company generated $1.059 billion in revenue with a 25.4% year-over-year growth, but its subscription gross margin fell from 78% to 77%. Operating expenses surged by 43.3%, resulting in a significant operating loss of $85 million compared to a profit last year. Additionally, CrowdStrike is facing ongoing financial impacts from a major software outage in July 2024, incurring $21 million in costs during the latest quarter, bringing the total to $60.1 million for the fiscal year. These financial pressures coincide with a notable increase in sales and marketing expenses, which rose 41% in the fourth quarter. As the company navigates these challenges, it continues to grow, albeit at a higher operational cost.