CrowdStrike Holdings, Inc. · Q2 FY2027

The quarter in short

Revenue $1.47B, up 25.8% year over year and 6.1% on the quarter. Non-GAAP EPS $0.31, up 34.8% year over year and 14.8% on the quarter. GAAP EPS $0.01. Free cash flow $377M, up 33.1% year over year and down 19.4% on the quarter. Non-GAAP EPS beat consensus by 7%. Rule of 40 score +51.

What we learned

1. Net new ARR accelerated to +51% and beat the implied bar by 16%. $332.8 million against the $284.0–286.0 million the company's own ARR guide implied — a $47 million clearance, against a bar that had been cleared by 2.3% the quarter before.
2. The full-year guide was raised a second time, and by more than the quarter justifies. Net new ARR for fiscal 2027 goes to $1,350–1,359 million, +34% — a 630 basis point raise on top of June's 520, or 1,150 basis points and about $116 million above the initial outlook.
3. Falcon Flex is now how CrowdStrike sells, and it compounds. Flex ending ARR passed $2.29 billion (+101%) , with more than 935 accounts added in one quarter — more than the previous three combined , the top ten deals by value all Flex, and 34% of net new ARR landing on Flex from n…
4. The GAAP company and the non-GAAP company are $405 million apart, and $399 million of that is stock. GAAP operating loss $(33.2)M against $371.6M non-GAAP; stock-based compensation and payroll taxes were 27.1% of revenue , up 44% year over year against 26% revenue growth.
5. Free cash flow set a Q2 record while capital expenditure quadrupled. $377.4 million at a 26% margin, ahead of the company's own 24.5% expectation, on operating cash flow of $530.3 million (+59%) — but property and equipment purchases went from $30.5M to $124.4M , 3% of revenue to 8%.

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