CrowdStrike Is Paying More for Growth

Here's our initial take on 's (NASDAQ: CRWD) fiscal 2025 fourth-quarter results.

CrowdStrike reported its second quarter of operating results since the short-term operating outage it experienced in July 2024 that put millions of its customers' devices out of operation for, in some cases, multiple days. What the company reported in its fiscal 2025 fourth quarter (ended Jan. 31, 2025) was similar to what we saw in the prior one: solid growth, but some signs it is coming at a higher cost than before.

A few metrics that stood out as being less impressive than in the past include subscription gross margin falling to 77% in Q4 (80% on an adjusted basis) versus 78% (81% adjusted) in the first and second quarters of the year. Typically, CrowdStrike has been able to raise its margins, so this small drop bears watching. CrowdStrike's operating results also worsened, with it reporting an $85 million operating loss, compared to $30 million in operating income in last year's Q4. It also reported a net loss on a GAAP basis, of $92 million, versus $54 million in GAAP net income in the year-ago quarter.

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Source Fool.com