What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-05 compared with 2025-03-10 · 420 added, 245 removed, 1090 unchanged (38% of the section changed)

51 unchanged sentences

March 4, 2026

We have served as the Company’s auditor since 2016.

CrowdStrike Holdings, Inc.

3 unchanged sentences

Cash and cash equivalents $ 5,230,125 $ 4,323,295

Short-term investments — 99,591

Accounts receivable, net of allowance for credit losses of $ 3.0 million and $ 2.8 million as of January 31, 2026 and January 31, 2025, respectively

34 unchanged sentences

Class B common stock, $ 0.0005 par value;

92,364 shares and 300,000 shares authorized as of January 31, 2025 and January 31, 2024, respectively;

0 shares, and 12,485 shares issued and outstanding as of January 31, 2025 and January 31, 2024, respectively.

92,364 shares authorized as of January 31, 2026 and January 31, 2025;

0 shares issued and outstanding as of January 31, 2026 and January 31, 2025.

Additional paid-in capital 5,694,549 4,409,503

Accumulated deficit ( 1,283,042 ) ( 1,120,540 )

Accumulated other comprehensive loss ( 9,593 ) ( 1,663 )

Accumulated other comprehensive income (loss) 16,756 ( 9,593 )

Total CrowdStrike Holdings, Inc.

25 unchanged sentences

Interest income 194,969 196,174 148,930

Other income, net 5,101 1,638 3,053

Other income (expense), net ( 645 ) 5,101 1,638

Income (loss) before provision for income taxes ( 126,989 ) 58,564 105,671

37 unchanged sentences

Issuance of common stock for restricted stock awards 125 — — — — — —

Vesting of early exercised options — — 2,204 — — — 2,204

Issuance of common stock for founders holdbacks related to acquisitions 27 — 4,314 — — — 4,314

Issuance of common stock for payment of board of director fees 2 — 344 — — — 344

Stock-based compensation expense, net of founder revest — — 644,007 — — — 644,007

1 unchanged sentence

Fair value of replacement equity awards attributable to pre-acquisition service — — 652 — — — 652

Net income (loss) — — — ( 183,245 ) — 960 ( 182,285 )

Net income — — — 72,181 — 1,258 73,439

Non-controlling interest — — — — — 8,088 8,088

Other comprehensive income — — — — 221 — 221

Other comprehensive loss — — — — ( 644 ) — ( 644 )

Balances at January 31, 2024 241,865 $ 121 $ 3,410,791 $ ( 1,105,299 ) $ ( 1,663 ) $ 33,139 $ 2,337,089

8 unchanged sentences

Fair value of replacement equity awards attributable to pre-acquisition service — — 1,155 — — — 1,155

Net income — — — 89,327 — 1,258 90,585

Net income (loss) — — — ( 15,241 ) — 2,675 ( 12,566 )

Non-controlling interest — — — — — 3,609 3,609

12 unchanged sentences

Non-controlling interest — — — — — 3,455 3,455

Other comprehensive loss — — — — ( 7,930 ) — ( 7,930 )

Other comprehensive income — — — — 26,349 — 26,349

Balances at January 31, 2026 253,363 $ 127 $ 5,694,549 $ ( 1,283,042 ) $ 16,756 $ 44,215 $ 4,472,605

33 unchanged sentences

Proceeds from sales of strategic investments 5,217 12,507 2,000

Business acquisitions, net of cash acquired ( 310,257 ) ( 239,030 ) ( 18,349 )

Business acquisitions, net of cash and restricted cash acquired ( 382,268 ) ( 310,257 ) ( 239,030 )

Purchases of intangible assets — — ( 11,126 )

5 unchanged sentences

Financing activities

Repayment of loan payable — — ( 1,591 )

Proceeds from issuance of common stock upon exercise of stock options 3,163 3,983 8,695

6 unchanged sentences

Cash, cash equivalents, and restricted cash at beginning of period 4,324,666 3,377,597 2,456,924

Cash, cash equivalents and restricted cash at end of period $ 4,324,666 $ 3,377,597 $ 2,456,924

Cash, cash equivalents, and restricted cash $ 5,314,617 $ 4,324,666 $ 3,377,597

Cash, cash equivalents, and restricted cash at the end of period:

Cash and cash equivalents $ 5,230,125 $ 4,323,295 $ 3,375,069

Restricted cash included in prepaid expenses and other assets 1,371 2,528 1,555

Restricted cash included in prepaid expenses and other current assets 523 1,371 2,528

Restricted cash included in other long-term assets 83,969 — —

Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 5,314,617 $ 4,324,666 $ 3,377,597

4 unchanged sentences

Net increase (decrease) in property and equipment included in accounts payable and accrued expenses $ ( 5,218 ) $ 9,452 $ ( 3,081 )

Vesting of early exercised stock options $ — $ — $ 2,204

Equity consideration for acquisitions $ 2,302 $ 1,155 $ 652

Operating lease liabilities arising from obtaining operating right-of-use assets $ 40,895 $ 6,821 $ 16,445

$ 6,821 $ 16,445 $ 18,464

Proceeds from sales of strategic investments not yet received $ 9,161 $ 4,992 $ 8,774

2 unchanged sentences

Noncash consideration received from sales of strategic investments $ — $ 3,319 $ —

Fair value of common stock to be issued for consideration transferred $ 10,318 $ — $ —

Restricted cash held in escrow for purchase consideration for business combinations $ 82,500 $ — $ —

The accompanying notes are an integral part of these consolidated financial statements.

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(and/or its subsidiaries, as applicable, the “Company”) was formed on November 7, 2011.

The Company is a global cybersecurity leader that delivers cybersecurity’s AI-native platform for the XDR era, purpose-built to stop breaches.

The Company’s unified platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data via a software as a service (“SaaS”) subscription-based model that spans multiple large security markets, including corporate endpoint security, security and IT operations, managed security services, next-gen SIEM, cloud security, identity protection, threat intelligence, data protection, exposure management and cybersecurity generative AI.

The Company conducts its business in the United States, as well as locations internationally, including in Australia, Germany, India, Israel, Japan, Romania, and the United Kingdom.

The Company is a global cybersecurity leader that delivers an AI-native platform designed for the agentic era and purpose-built to stop breaches.

The Company’s unified, cloud-delivered platform provides protection across endpoints, cloud workloads, identity, and data through a software as a service (“SaaS”) subscription-based model, spanning multiple large and strategic markets, including endpoint protection, security and IT operations, managed detection and response, Next-Gen SIEM, cloud and identity security, threat intelligence, data protection, exposure management, and AI security capabilities.

The Company conducts its business in the United States and internationally, including Australia, Canada, Germany, India, Israel, Japan, Romania, Singapore, Spain, and the United Kingdom.

Basis of Presentation

1 unchanged sentence

generally accepted accounting principles (“U.S.

Certain prior year information has been reclassified to conform to the current year presentation.

These reclassifications had no effect on previously reported results of operations or accumulated deficit.

Principles of Consolidation

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Estimates and assumptions used by management include, but are not limited to, revenue recognition, the allowance for credit losses, the useful lives of long-lived assets, the fair values of strategic investments, the period of benefit for deferred contract acquisition costs, the discount rate used for operating leases, the recognition and disclosure of contingent liabilities, income taxes, stock-based compensation, and the fair value of assets acquired and liabilities assumed in business combinations.

In February 2026, the Company completed an assessment of the estimated period of benefit of commissions earned upon the initial acquisition of a contract, or subsequent upsell, and determined that it should increase from four to five years .

This change in estimate will be effective beginning in fiscal year 2027.

Concentration of Credit Risk and Geographic Information

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The Company’s cash is placed with high-credit-quality financial institutions and issuers, and at times exceeds federally insured limits.

The Company has not experienced any credit loss relating to its cash, cash equivalents, short-term investments, or strategic investments.

The Company has not experienced any credit loss relating to its cash, cash equivalents or strategic investments.

The Company performs periodic credit evaluations of its customers and generally does not require collateral.

There were no channel partners or direct customers who represented 10% or more of the Company’s accounts receivable as of January 31, 2026 and January 31, 2025.

There were two end users who represented 10% or more of the Company’s financing receivables as of January 31, 2025 representing 41 % and 37 %, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

As of January 31, 2026, two end users represented 10% or more of the Company’s financing receivables, and in aggregate represented 27 % of the Company’s financing receivables.

As of January 31, 2025, two end users represented 10% or more of the Company’s financing receivables, and in aggregate represented 78 % of the Company’s financing receivables.

There were no channel partners or direct customers who represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash equivalents, short-term investments, strategic investments, accounts receivable, financing receivables, accounts payable, accrued expenses, the Senior Notes, and investments for the Company’s deferred compensation plan.

The carrying values of cash equivalents, short-term investments, accounts receivable, financing receivables, accounts payable, and accrued expenses approximate fair value.

The Company’s financial instruments consist of cash equivalents, strategic investments, accounts receivable, financing receivables, accounts payable, accrued expenses, the Senior Notes, and investments for the Company’s deferred compensation plan.

The carrying values of cash equivalents, accounts receivable, financing receivables, accounts payable, and accrued expenses approximate fair value.

If these financial instruments were measured at fair value in the consolidated financial statements, money market funds, accounts receivable, accounts payable, accrued expenses, and investments for the Company’s deferred compensation plan would be classified as Level 1, U.S.

treasury securities included in cash equivalents and short-term investments would be classified as Level 2, and financing receivables would be classified as Level 3.

treasury securities would be classified as Level 2, and financing receivables would be classified as Level 3.

The Senior Notes are carried at the initially allocated liability value less unamortized debt discount and issuance costs on the Company’s consolidated balance sheets.

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Refer to Note 2, Investments and Fair Value Measurements, regarding the fair value of the Company’s financial instruments, and Note 5, Debt, for the fair value of the Company’s Senior Notes.

Cash Equivalents and Short-term Investments

Cash Equivalents

The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents.

2 unchanged sentences

The Company had $ 3.1 billion and $ 4.0 billion of cash equivalents as of January 31, 2026 and January 31, 2025, respectively.

Short-term investments consist of U.S.

Treasury bills and time deposits with original maturities greater than three months but less than one year.

The Company had no short-term investments as of January 31, 2025, and $ 99.6 million of short-term investments as of January 31, 2024.

The Company classifies investments in U.S.

Treasury bills as available-for-sale securities at the time of purchase and re-evaluates the designations as of each balance sheet date.

The Company classifies its available-for-sale securities as short-term investments based on their nature and their availability for use in current operations.

Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in accumulated other comprehensive income (loss).

Unrealized losses are recorded in other income, net, for declines in fair value below the cost of an individual investment that is deemed to be other-than-temporary.

The Company did not identify any available-for-sale securities as other-than-temporarily impaired as of January 31, 2025 and January 31, 2024.

Realized gains and losses from the sale of available-for-sale securities are determined based on a specific identification method and are recorded in other income, net.

Restricted Cash

The Company records cash that is restricted as to withdrawal or use under the terms of certain contractual agreements as restricted cash.

The Company’s restricted cash primarily relates to indemnity holdback amounts arising from business combinations.

Restricted cash is classified as current or noncurrent based on the remaining term of the restriction.

The current portion of restricted cash is recorded in prepaid expenses and other current assets in the consolidated balance sheets.

The noncurrent portion of restricted cash is recorded in other long-term assets in the consolidated balance sheets.

Accounts Receivable

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Amounts deemed uncollectible are written off against the allowance for credit losses.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Financing Receivables

The Company provides financing arrangements for certain qualified end-users to purchase its products and services.

The Company provides financing arrangements for certain qualified end-users to purchase its products and services in the United States.

Payment terms on these financing arrangements are generally up to five years .

1 unchanged sentence

Financing receivables, with contractual maturities of one year or less, are included in prepaid expenses and other current assets, while those with contractual terms exceeding one year are included in other long-term assets on the consolidated balance sheets.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Interest income is recognized over the financing period using the effective interest method.

The Company evaluates the allowance for credit losses by assessing the risks and losses inherent in the financing receivables on either an individual or a collective basis.

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Although the Company believes the assumptions and estimates it has made are reasonable, they are based in part on historical experience, market conditions, and information obtained from management of the acquired companies and are inherently uncertain.

Examples of judgments used to estimate the fair value of intangibles assets include, but are not limited to, future expected cash flows, expected customer attrition rates, estimated obsolescence rates, and discount rates.

Examples of judgments used to estimate the fair value of intangibles assets include, but are not limited to, future

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

expected cash flows, expected customer attrition rates, estimated obsolescence rates, and discount rates.

These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

1 unchanged sentence

Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statements of operations.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Goodwill and Intangible Assets

6 unchanged sentences

See Note 4, Balance Sheet Components, and Note 12, Acquisitions, to the consolidated financial statements for more information.

Acquired intangible assets mainly consisting of developed technology, customer relationships, intellectual property and other acquired intangible assets are stated at fair value at the acquisition date and are amortized on a straight-line basis over their estimated economic lives, which are generally one to 20 years.

Acquired intangible assets mainly consisting of developed technology, customer relationships, and intellectual property are stated at fair value at the acquisition date and are amortized on a straight-line basis over their estimated economic lives, which are generally 2 to 20 years.

The Company reviews the carrying amounts of intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

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Notes to Consolidated Financial Statements

Capitalized Internal-Use Software and Website Development Costs

The Company capitalizes certain development costs incurred in connection with its internal-use software and website development.

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Maintenance and training costs are expensed as incurred.

Internal-use software and website development costs are amortized to cost of revenue on a straight-line basis over its estimated useful life of three years .

Internal-use software and website development costs are amortized to cost of revenue on a straight-line basis over its estimated useful life.

Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

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Professional services are invoiced upfront, invoiced in installments, or invoiced as the services are performed.

Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multi-year non-cancellable contracts that have not yet been billed.

Accordingly, the Company’s deferred revenue balance does not include revenue for future years of multi-year non-cancelable contracts that have not yet been billed.

The Company recognizes subscription revenue ratably over the contract term beginning on the commencement date of each contract, the date that services are made available to customers.

34 unchanged sentences

The typical subscription term is one to three years .

The Company’s contracts with customers typically include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions.

The Company’s contracts with customers typically include a fixed amount of consideration and are generally non-cancelable and without any refund-type provisions.

Customers typically have the right to terminate their contracts for cause if the Company fails to perform in accordance with the contractual terms.

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The stock-based compensation expense relating to PSUs is recognized using the accelerated attribution method over the requisite service period when it is probable that the performance condition will be satisfied.

The Special PSU Awards are subject to the Company’s achievement of specified stock price hurdles and a service-based vesting condition.

Special PSU Awards (as defined below) are subject to the Company’s achievement of specified market conditions and a service-based vesting condition.

The Company measured the fair value of the Special PSU Awards using a Monte Carlo simulation valuation model.

6 unchanged sentences

In December 2022, the board of directors approved the CrowdStrike Inc.

Deferred Compensation Plan (the “Plan”), effective January 1, 2023.

The Plan is a non-qualified, deferred compensation arrangement that permits eligible employees to make 100 % vested salary and incentive compensation deferrals within established limits.

The Company does not make contributions to the Plan.

The Plan’s assets consist of marketable securities held in a Rabbi Trust and are included in other long-term assets in the consolidated balance sheets because they are intended to fund the Plan’s long-term liabilities.

Deferred Compensation Plan (the “DCP”), effective January 1, 2023.

The DCP is a non-qualified, deferred compensation arrangement that permits eligible employees to make 100 % vested salary and incentive compensation deferrals within established limits.

The Company does not make contributions to the DCP.

The DCP’s assets consist of marketable securities held in a Rabbi Trust and are included in other long-term assets in the consolidated balance sheets because they are intended to fund the DCP’s long-term liabilities.

They are not available for use in the Company’s daily operations and are not intended to be sold within a short period of time after purchase.

11 unchanged sentences

Lease payments consist of the fixed payments under the arrangement, less any lease incentives, such as tenant improvement allowances.

Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-to-use (“ROU”) assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs.

Variable costs, such as maintenance and utilities based on actual usage, are not included in the measurement of right-of-use (“ROU”) assets and lease liabilities but are expensed when the event determining the amount of variable consideration to be paid occurs.

As the implicit rate of the leases is not determinable, the Company uses an incremental borrowing rate (“IBR”) based on the information available at the lease commencement date in determining the present value of lease payments.

2 unchanged sentences

Notes to Consolidated Financial Statements

The Company uses the non-cancellable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised.

The Company uses the non-cancelable lease term when recognizing the ROU assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised.

The Company accounts for the lease and non-lease components as a single lease component.

2 unchanged sentences

Debt issuance costs incurred in connection with securing the Company’s financing arrangements are generally presented in the consolidated balance sheets as a direct deduction from the carrying amount of the outstanding borrowings, consistent with debt discounts.

However, the Company has chosen to present debt issuance costs under other long-term assets for its revolving credit facility on the consolidated balance sheets regardless of whether the Company has any outstanding borrowings on the revolving credit facility.

Debt issuance costs, net of accumulated amortization, were $ 2.9 million and $ 4.0 million as of January 31, 2025 and January 31, 2024, respectively.

However, the Company has chosen to present debt issuance costs under other long-term assets for its revolving facility on the consolidated balance sheets regardless of whether the Company has any outstanding borrowings on the revolving facility.

The Company’s revolving facility expired on January 2, 2026.

Debt issuance costs were fully amortized as of January 31, 2026, and were $ 2.9 million, net of accumulated amortization, as of January 31, 2025.

Debt issuance costs associated with the Senior Notes are recorded as a reduction to the carrying value of the Senior Notes on the consolidated balance sheets.

2 unchanged sentences

The effective interest method is used for debt issuance costs related to the Senior Notes.

Debt issuance costs related to the revolving credit facility are amortized over the term of the financing arrangement under the straight-line method.

Debt issuance costs related to the revolving facility are amortized over the term of the financing arrangement under the straight-line method.

The Company’s amortization of these costs was $ 4.0 million, $ 2.2 million, and $ 1.6 million for the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively.

22 unchanged sentences

Net Income (Loss) per Share

The Company computes basic and diluted net income (loss) per share attributable to common stockholders for Class A and Class B common stock using the two-class method required for participating securities.

The Company computes basic and diluted net income (loss) per share attributable to common stockholders using the two-class method required for participating securities.

Under the two-class method, basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period.

On December 11, 2024, all of the Company’s outstanding shares of Class B common stock were automatically converted into an equal number of shares of Class A common stock pursuant to the provisions of the Amended and Restated Certificate of Incorporation.

Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founder holdbacks.

The dilutive potential shares are computed using the treasury stock method.

The effects of the outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted earnings per share in periods in which the effect would be anti-dilutive.

The effects of the outstanding stock options, RSUs, PSUs, Special PSU Awards, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted earnings per share in periods in which the effect would be anti-dilutive.

Revision of Prior Period Financial Statements

During the fourth quarter of the fiscal year ended January 31, 2026, the Company identified an immaterial error related to the timing of recognition of stock-based compensation expense in prior periods associated with certain awards granted in the fiscal years ended January 31, 2022 and 2023.

Specifically, stock-based compensation expense was attributed based on such awards’ vesting schedule, rather than on a straight-line basis.

The Company evaluated the error and concluded that it was not material to its previously issued Consolidated Financial Statements.

To correct this error, the Company has revised its prior period Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Stockholders’ Equity, and Consolidated Statements of Cash Flows.

A summary of the revisions to the previously reported financial information is included in Note 16.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The standard requires disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount for other segment items required to reconcile the difference between segment revenue and segment expenses to segment profit or loss along with a description of their composition, and the title and position of the entity’s CODM.

The update also expands interim segment disclosure requirements.

The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

The Company adopted this guidance during the year ended January 31, 2025.

See Note 14, Segment Information for further details.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, Improvements to Income Tax Disclosures (Topic 740).

The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid.

The Company has adopted ASU 2023-09 on a prospective basis for the fiscal year ended January 31, 2026.

Refer to Note 6, Income Taxes, for the inclusion of new disclosures required.

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures.

The standard requires additional disclosure of specific expense categories included in the expense captions presented on the statements of operations.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The standard intends to modernize the recognition and capitalization framework by removing the previous “development stage” model and introducing a more judgment-based approach.

The standard can be applied prospectively, using a modified transition method based on the status of the project and whether software costs were capitalized prior to the date of adoption, or retrospectively, and is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods.

Early adoption is permitted as of the beginning of an annual reporting period.

The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.

The standard amends ASC 326-20 to provide a practical expedient (for all entities) and an accounting policy election (for all entities, other than public business entities that elect the practical expedient) related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606.

The standard should be applied prospectively, and is effective for annual periods, including interim reporting periods, beginning after December 15, 2025, with early adoption permitted.

The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, with a subsequent clarification of its effective date through ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date in January 2025, requiring additional disclosure on specific expense categories included in the expense captions presented on the statements of operations.

The new standard can be applied either prospectively or retrospectively, and is effective for annual periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027.

1 unchanged sentence

The Company is currently evaluating the impact of this new guidance on its disclosures within the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, a final standard on improvements to income tax disclosures.

The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, as well as information on income taxes paid.

The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes.

The new standard is effective for annual periods beginning after December 15, 2024.

The Company does not expect the adoption of this new guidance to have a material impact on its disclosures within the consolidated financial statements.

Investments and Fair Value Measurements

The Company follows ASC 820, Fair Value Measurements, with respect to cash equivalents, short-term investments, and deferred compensation investments that are measured at fair value on a recurring basis.

The Company follows ASC 820, Fair Value Measurements, with respect to cash equivalents and deferred compensation investments that are measured at fair value on a recurring basis.

Under the standard, fair value is defined as the exit price, or the amount that would be received to sell an asset or a liability in an orderly transaction between market participants as of the measurement date.

2 unchanged sentences

Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The hierarchy is broken down into three levels as follows:

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Treasury securities — 598,398 — 598,398 — 2,490,097 — 2,490,097

Short-term investments

Treasury securities — — — — — 99,591 — 99,591

Deferred compensation investments 12,710 — — 12,710 5,496 — — 5,496

Total assets $ 1,419,772 $ 598,398 $ — $ 2,018,170 $ 1,475,536 $ 2,490,097 $ — $ 3,965,633

(1) Cash equivalents exclude $ 1.1 billion of time deposits, which are carried at cost and approximate fair value as of January 31, 2026.

There were no transfers between the levels of the fair value hierarchy during the periods presented.

1 unchanged sentence

Treasury securities are carried at fair value, and there were no material realized or unrealized gains or losses, either individually or in aggregate.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The total estimated fair value of the Company’s financing receivables approximates their carrying amounts as of January 31, 2026.

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The Company’s investments in privately held securities as of January 31, 2025, consisted of the following (in thousands):

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Privately held equity securities Privately held debt and other securities Total

8 unchanged sentences

2026 2025 2024

Unrealized gains recognized on privately held equity securities $ — $ — $ 4,758

Unrealized losses recognized on privately held equity securities including impairment $ ( 1,579 ) $ ( 1,000 ) $ ( 1,459 )

Unrealized gains (losses), net ( 1,000 ) ( 1,459 ) 1,830

Unrealized losses ( 1,579 ) ( 1,000 ) ( 1,459 )

Realized gains recognized on sales of privately held equity securities 4,161 6,975 3,936

2 unchanged sentences

Gains on strategic investments, net $ 2,582 $ 5,321 $ 2,477

Unrealized gains (losses) recognized during the reporting period on

Unrealized losses recognized during the reporting period on

privately held equity securities still held at the reporting date $ ( 1,579 ) $ ( 1,000 ) $ ( 1,459 )

Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.

Realized gains and losses recognized on sales of privately held equity securities reflects the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

Realized gains and losses recognized on sales of privately held equity securities reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Financing Receivables

The Company’s short-term and long-term financing receivables were as follows (in thousands):

January 31, 2025

January 31, 2026 January 31, 2025

Short-term financing receivables, gross $ 81,723 $ 9,579

6 unchanged sentences

Long-term financing receivables, net $ 194,106 $ 37,842

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company’s amortized cost basis of financing receivables categorized by internal risk rating and year of origination was as follows (in thousands):

January 31, 2026 January 31, 2025

Fiscal Year of Origination Fiscal Year of Origination

Internal Risk Rating (1)

January 31, 2025

2026 2025 Total 2025 Total

1 to 4 $ 127,440 $ 17,374 $ 144,814 $ 18,413 $ 18,413

5 to 6 91,249 23,719 114,968 27,011 27,011

7 to 9 4,459 — 4,459 — —

Amortized cost basis of financing receivables $ 223,148 $ 41,093 $ 264,241 $ 45,424 $ 45,424

(1) Internal risk ratings are determined based on the end-user’s financial condition and are categorized as 1 through 9, with the lowest rating representing the highest quality.

There were no financing receivables prior to fiscal year ended January 31, 2025.

There was no significant activity in allowance for credit losses during the year ended January 31, 2025.

Past due amounts on financing receivables were not material as of January 31, 2025.

Credit quality indicators are generally updated at least annually, or more frequently to the extent required by economic conditions.

There was no significant activity in allowance for credit losses during the fiscal years ended January 31, 2026 or January 31, 2025.

Past due amounts on financing receivables were not material as of January 31, 2026 or January 31, 2025 .

Balance Sheet Components

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Other current assets were $ 128.8 million and $ 67.1 million as of January 31, 2026 and January 31, 2025, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Property and Equipment, Net

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Amortization expense associated with internal-use software and website development costs totaled $ 79.6 million, $ 54.8 million, and $ 37.3 million during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

value of capitalized internal-use software and website development costs was $ 144.0 million and $ 106.9 million as of January 31, 2025 and January 31, 2024, respectively.

The net book value of capitalized internal-use software and website development costs was $ 184.7 million and $ 144.0 million as of January 31, 2026 and January 31, 2025, respectively.

Intangible Assets, Net

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Total $ 243,798 $ 107,096 $ 136,702

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

January 31, 2025 Weighted-Average Remaining Useful Life

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Thereafter 11,032

Total amortization expense $ 133,114

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Total future amortization expense $ 136,702

The change in goodwill during the fiscal year ended January 31, 2026 consisted of the following (in thousands):

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Goodwill as of January 31, 2026

(1) Goodwill acquired resulted from the acquisitions of Flow Security and A.S.

Adaptive Shield Ltd.

(1) Goodwill acquired resulted from the acquisitions of Pangea Cyber Corporation and Onum Technology Inc.

Refer to Note 12 for additional information.

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Accrued payroll and benefits $ 389,690 $ 319,243

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Secured Revolving Credit Facility

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On January 4, 2021, the Company amended and restated its existing credit agreement (the “A&R Credit Agreement” and the facility thereunder the “Revolving Facility”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto, providing the Company with a revolving line of credit of up to $ 750.0 million, including a letter of credit sub-facility in the aggregate amount of $ 100.0 million, and a swingline sub-facility in the aggregate amount of $ 50.0 million.

The Company also has the option to request an incremental facility of up to an additional $ 250.0 million from one or more of the lenders under the A&R Credit Agreement.

The A&R Credit Agreement is guaranteed by all of the Company’s material domestic subsidiaries.

The Company also had the option to request an incremental facility of up to an additional $ 250.0 million from one or more of the lenders under the A&R Credit Agreement.

The A&R Credit Agreement was guaranteed by all of the Company’s material domestic subsidiaries.

The A&R Credit Agreement extended the maturity date of April 19, 2022 to January 2, 2026.

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There were no changes to the borrowing amounts or maturity date.

Under the Amended A&R Credit Agreement, revolving loans are Alternate Base Rate (“ABR”) Loans.

Outstanding ABR Loans incur interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect on such day plus 0.50 %, and (c) the Term Secured Overnight Finance Rate (the “Term SOFR”) for a one-month tenor in effect on such day plus 1.00 %, in each case plus a margin between ( 0.25 )% and 0.25 %, depending on the senior secured leverage ratio.

The Company will be charged a commitment fee of 0.15 % to 0.25 % per year for committed but unused amounts, depending on the senior secured leverage ratio.

The financial covenants require the Company to maintain a minimum consolidated interest coverage ratio of 3.00 :1.00 and a maximum total leverage ratio of 5.50 :1.00 stepping down to 3.50 :1.00 over time.

The Company was in compliance with all of its financial covenants as of January 31, 2025.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Amended A&R Credit Agreement is secured by substantially all of the Company’s current and future consolidated assets, property and rights, including, but not limited to, intellectual property, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and certain of its subsidiaries.

The Amended A&R Credit Agreement contains customary covenants limiting the Company’s ability and the ability of its subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions.

No amounts were outstanding under the Amended A&R Credit Agreement as of January 31, 2025.

Under the Amended A&R Credit Agreement, revolving loans were Alternate Base Rate (“ABR”) Loans.

Outstanding ABR Loans incurred interest at the highest of (a) the Prime Rate, as published by the Wall Street Journal, (b) the federal funds rate in effect on such day plus 0.50 %, and (c) the Term Secured Overnight Finance Rate (the “Term SOFR”) for a one-month tenor in effect on such day plus 1.00 %, in each case plus a margin between ( 0.25 )% and 0.25 %, depending on the senior secured leverage ratio.

The Company was charged a commitment fee of 0.15 % to 0.25 % per year for committed but unused amounts, depending on the senior secured leverage ratio.

The financial covenants required the Company to maintain a minimum consolidated interest coverage ratio of 3.00 :1.00 and a maximum total leverage ratio of 5.50 :1.00 stepping down to 3.50 :1.00 over time.

The Amended A&R Credit Agreement was secured by substantially all of the Company’s consolidated assets, property and rights, including, but not limited to, intellectual property, cash, goods, equipment, contractual rights, financial assets, and intangible assets of the Company and certain of its subsidiaries.

The Amended A&R Credit Agreement contained customary covenants limiting the Company’s ability and the ability of its subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock, and make investments, in each case subject to certain exceptions.

On January 2, 2026, the Company’s Revolving Facility expired and at the time of expiration, there were no outstanding amounts under the Amended A&R Credit Agreement.

On January 20, 2021, the Company issued $ 750.0 million in aggregate principal amount of 3.00 % Senior Notes maturing in February 2029 (the “Senior Notes”).

The Senior Notes are guaranteed by the Company’s subsidiaries, CrowdStrike, Inc.

and CrowdStrike Financial Services, Inc., and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under the A&R Credit Agreement.

and CrowdStrike Financial Services, Inc., and will be guaranteed by each of the Company’s existing and future domestic subsidiaries that becomes a borrower or guarantor under any credit agreement the Company may enter into in the future that replaces the Amended A&R Credit Agreement.

The Senior Notes were issued at par and bear interest at a rate of 3.00 % per annum.

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in each case, plus accrued and unpaid interest, if any, to but excluding, the date of redemption.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The net proceeds from the debt offering were $ 738.0 million after deducting the underwriting commissions of $ 9.4 million and $ 2.6 million of issuance costs.

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accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company’s geographical breakdown of its income (loss) before provision for income taxes for the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023 is as follows (in thousands):

The Company’s geographical breakdown of its income (loss) before provision for income taxes is as follows (in thousands):

Year Ended January 31,

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Income (loss) before provision for income taxes $ ( 126,989 ) $ 58,564 $ 105,671

The components of the provision for income taxes during the fiscal years ended January 31, 2025, January 31, 2024, and January 31, 2023 are as follows (in thousands):

The provision for income taxes consists of the following (in thousands):

Year Ended January 31,

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Provision for income taxes $ 34,176 $ 71,130 $ 32,232

The following table provides a reconciliation between income taxes computed at the federal statutory rate and the provision for income taxes during the fiscal years ended January 31, 2025 , January 31, 2024, and January 31, 2023 (in thousands):

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Upon the adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 1, the reconciliation of taxes at the federal statutory rate to the Company’s provision for (benefit from) income taxes for the fiscal year ended January 31, 2026 is as follows (in thousands, except for percentages):

As of January 31, 2026

Amount Percent

federal statutory tax rate $ ( 26,668 ) 21.0 %

State and local income taxes, net of federal income tax effect (1)

( 7,846 ) 6.2 %

Foreign tax effects

Withholding tax 9,690 ( 7.6 ) %

Other 498 ( 0.4 ) %

Stock-based compensation ( 1,674 ) 1.3 %

Other 1,146 ( 0.9 ) %

United Kingdom

Stock-based compensation ( 12,609 ) 9.9 %

Valuation allowance 8,593 ( 6.8 ) %

Other 884 ( 0.7 ) %

Non-deductible intercompany interest expense 2,846 ( 2.2 ) %

Tax impact of intercompany transactions 11,516 ( 9.1 ) %

Withholding tax 5,784 ( 4.6 ) %

Other 1,965 ( 1.5 ) %

Valuation allowance 2,993 ( 2.4 ) %

Other ( 202 ) 0.2 %

Other foreign jurisdictions 8,215 ( 6.5 ) %

Effect of cross-border tax laws

Branch income ( 68,126 ) 53.6 %

Deductible foreign taxes ( 4,900 ) 3.9 %

Research and development tax credits ( 61,175 ) 48.2 %

Changes in valuation allowances 236,543 ( 186.3 ) %

Nontaxable or nondeductible items

Stock-based compensation ( 96,077 ) 75.7 %

Meals & entertainment 3,669 ( 2.9 ) %

Transaction costs 1,839 ( 1.4 ) %

Other 2,120 ( 1.7 ) %

Changes in unrecognized tax benefits 15,520 ( 12.2 ) %

Other adjustments ( 368 ) 0.3 %

Provision for income taxes $ 34,176 ( 26.9 ) %

(1) State taxes in California made up a majority (greater than 50%) of the tax effect in this category.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

A reconciliation of the U.S.

federal statutory income tax rates to the Company’s effective tax rate for the fiscal years ended January 31, 2025 and January 31, 2024 is as follows (in thousands):

Year Ended January 31,

Provision for income taxes at statutory rate $ 12,298 $ 22,191

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Provision for income taxes $ 71,130 $ 32,232

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended January 31, 2026 is as follows (in thousands):

As of January 31, 2026

Federal $ ( 2,834 )

Australia 3,592

Brazil 10,915

Israel 15,512

Other countries 15,887

Total cash paid for income taxes, net of refunds $ 51,464

Cash paid for income taxes, net of refunds, during the fiscal years ended January 31, 2025 and January 31, 2024 was $ 19.0 million and $ 22.6 million, respectively.

The Company recognized income tax expense of $ 34.2 million, $ 71.1 million, and $ 32.2 million for the fiscal years January 31, 2026, January 31, 2025 and January 31, 2024, respectively.

The tax expense for the fiscal year ended January 31, 2025 was primarily attributable to pre-tax foreign earnings, withholding taxes related to customer payments in certain foreign jurisdictions, intercompany sale of intellectual property from acquired entities and change in the realizability of deferred tax assets in certain foreign jurisdictions.

The tax expense for the fiscal years ended January 31, 2026 and January 31, 2025 was primarily attributable to pre-tax foreign earnings and withholding taxes in certain foreign jurisdictions, intercompany sales of intellectual property from acquisitions, and change in the realizability of deferred tax assets in certain foreign jurisdictions.

The Company transferred acquired intellectual property from foreign subsidiaries to the U.S.

Although the transfer of the intellectual property between consolidated entities did not result in any gain in the consolidated statement of operations, such transactions were taxable for tax purposes.

The tax expense for the fiscal years ended January 31, 2024 and January 31, 2023 was primarily attributable to pre-tax foreign earnings and withholding taxes related to customer payments in certain foreign jurisdictions and intercompany sales of intellectual property from acquisitions.

The tax expense for the fiscal year ended January 31, 2024 was primarily attributable to pre-tax foreign earnings and withholding taxes in certain foreign jurisdictions.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Significant components of the Company’s deferred tax assets and liabilities as of January 31, 2026 and January 31, 2025 are as follows (in thousands):

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Capitalized commissions ( 201,954 ) ( 171,349 )

Intangible assets ( 6,921 ) ( 6,489 )

Operating right-of-use assets ( 25,230 ) ( 16,853 )

Intangible assets ( 4,963 ) ( 6,921 )

Other, net ( 242 ) —

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federal and state and certain foreign deferred tax assets, including net operating loss carryforwards and tax credits, which the Company has determined are not realizable on a more-likely-than-not basis.

In completing the assessment of the continued need for valuation allowance, we analyzed various factors including, but not limited to, cumulative pre-tax losses, excess tax benefits related to stock-based compensation, future reversal of existing temporary differences and tax planning strategies that are prudent and feasible.

In completing the assessment of the continued need for valuation allowance, the Company analyzed various factors including, but not limited to, cumulative pre-tax losses, excess tax benefits related to stock-based compensation, future reversal of existing temporary differences and tax planning strategies that are prudent and feasible.

During the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, the valuation allowance increased by $ 320.3 million, $ 233.6 million, and $ 52.0 million, respectively.

The increases in the valuation allowance during the fiscal years ended January 31, 2026 and January 31, 2025 were primarily driven by U.S.

As of January 31, 2025, January 31, 2024, and January 31, 2023 the valuation allowance for deferred taxes was $ 1.2 billion, $ 957.7 million, and $ 910.1 million, respectively.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

As of January 31, 2025, the Company had aggregate federal and California net operating loss carryforwards of $ 1.4 billion and $ 307.9 million, respectively, which may be available to offset future taxable income for income tax purposes.

As of January 31, 2026, January 31, 2025, and January 31, 2024 the valuation allowance for deferred taxes was $ 1.5 billion, $ 1.2 billion, and $ 1.0 billion, respectively.

As of January 31, 2026, the Company had aggregate U.S federal and California net operating loss carryforwards of $ 2.6 billion and $ 417.4 million, respectively, which may be available to offset future taxable income for income tax purposes.

The federal net operating losses are carried forward indefinitely, and California net operating loss carryforwards begin to expire in fiscal 2034 through fiscal 2046.

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As of January 31, 2026, the Company had federal and California research and development (“R&D”) credit carryforwards of $ 227.0 million and $ 59.8 million, respectively.

The federal R&D credit carryforwards begin to expire in fiscal 2037 though fiscal 2045.

The federal R&D credit carryforwards begin to expire in fiscal 2037 through fiscal 2046.

The California R&D credits are carried forward indefinitely.

The Internal Revenue Code imposes limitations on a corporation’s ability to utilize net operating loss (“NOLs”) and credit carryovers if it experiences an ownership change as defined in Section 382.

In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50% over a three-year period.

If an ownership change has occurred, or were to occur, utilization of the Company’s NOLs and credit carryovers could be restricted.

The Company’s net operating losses and credit carryovers are not currently subject to a limitation due to an ownership change.

Realization of these net operating losses and R&D credit carryforwards depends on future income, and there is a risk that the Company’s existing carryforwards could expire unused and be unavailable to offset future income tax liabilities, which could adversely affect the Company’s results of operations.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

On July 4, 2025, tax reform legislation included in the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States.

The OBBBA includes significant corporate tax reforms, including (i) the permanent reinstatement of deducting domestic R&D expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years);

(ii) the option to claim 100% accelerated depreciation deductions on qualified property;

and (iii) international tax provisions modifying global intangible low-taxed income (“GILTI”), foreign-derived intangible income (“FDII”), and base erosion and anti-abuse tax (“BEAT”).

The change in U.S.

tax law resulted in an immaterial favorable effect on the income tax provision due to the Company’s valuation allowance and was accounted for in the second quarter of fiscal year 2026.

Total gross unrecognized tax benefits as of January 31, 2026, January 31, 2025, and January 31, 2024 were $ 137.8 million, $ 117.5 million, and $ 58.9 million, respectively.

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The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as part of the income tax provision in the consolidated statements of operations.

Cumulatively, the Company had incurred $ 3.0 million of interest and penalties related to unrecognized tax benefits as of January 31, 2025, and $ 1.4 million and an insignificant amount of interest and penalties related to unrecognized tax benefits as of January 31, 2024, and January 31, 2023, respectively.

Cumulatively, the Company had incurred $ 6.6 million of interest and penalties related to unrecognized tax benefits as of January 31, 2026, and $ 3.0 million and $ 1.4 million related to unrecognized tax benefits as of January 31, 2025 and January 31, 2024, respectively.

During the fiscal year ended January 31, 2026, the net increase in unrecognized tax benefits was a result of increase in R&D credits, partially offset by reduction in prior year reserves based on our view of a recent position taken by a tax authority.

During the fiscal year ended January 31, 2025, the net increase in unrecognized tax benefits was a result of certain taxable foreign transactions and R&D credits.

During the fiscal year ended January 31, 2024, and January 31, 2023 the net increase in unrecognized tax benefits was a result of R&D credits.

The potential change in unrecognized tax benefits during the next 12 months is not expected to be material.

During the fiscal year ended January 31, 2024, the net increase in unrecognized tax benefits was a result of R&D credits.

The following is a rollforward of the total gross unrecognized tax benefits for the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024 (in thousands):

Balance as of February 1, 2023 $ 36,901

Increases in prior period tax positions

Decreases in prior period tax positions ( 1,321 )

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Balance as of January 31, 2024 58,875

Increases in current period tax positions 66,354

Increases in prior period tax positions 890

Decreases in prior period tax positions ( 5,285 )

Increases in current period tax positions 18,538

Settlements with taxing authorities ( 2,882 )

Statute of limitations expirations ( 151 )

Impact from currency fluctuations ( 261 )

Balance as of January 31, 2025 117,540

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Tax years 2011 and onwards remain subject to examination by taxing authorities.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company does not provide for federal and state income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested offshore indefinitely.

If the Company repatriated these earnings, the tax impact of future distributions of foreign earnings would generally be limited to withholding tax from foreign jurisdictions, and the resulting income tax liability would be insignificant.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Operating Leases

The Company has entered into non-cancellable operating lease agreements with various expiration dates through fiscal 2033.

The Company has entered into non-cancelable operating lease agreements with various expiration dates through fiscal 2039.

Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments.

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Total lease cost $ 40,140 $ 32,371 $ 27,654

Sublease income for the fiscal years ended January 31, 2025 and January 31, 2024 was immaterial .

There was no sublease income for the fiscal year ended January 31, 2023.

As of January 31, 2025, the Company has not entered into non-cancellable operating leases with terms greater than 12 months that have not yet commenced.

The maturities of the Company’s non-cancellable operating lease liabilities are as follows (in thousands):

Sublease income for the fiscal years ended January 31, 2026, January 31, 2025 and January 31, 2024 was immaterial.

As of January 31, 2026, the Company has entered into non-cancelable operating leases with lease terms greater than 12 months that have not yet commenced with undiscounted future minimum payments of $ 103.7 million, which are excluded from the table above.

The operating leases are expected to commence between October 2026 and August 2027, with lease terms between 11.2 and 11.3 years.

The maturities of the Company’s non-cancelable operating lease liabilities are as follows (in thousands):

January 31, 2026

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In May 2019, the Company’s board of directors adopted, and the stockholders approved the CrowdStrike Holdings, Inc.

2019 Equity Incentive Plan (the “2019 Plan”) with the purpose of granting stock-based awards to employees, directors, officers, and consultants, including stock options, restricted stock awards, restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”).

A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan.

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(i) two percent ( 2 %) of outstanding shares of the Company’s capital stock as of the last day of the immediately preceding fiscal year or (ii) such other amount as the Company’s board of directors may determine.

The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s IPO, and stock-based awards are no longer granted under the 2011 Plan.

The 2011 Plan was terminated on June 10, 2019, which was the business day prior to the effectiveness of the Company’s registration statement on Form S-1 used in connection with the Company’s initial public offering (“IPO”), and stock-based awards are no longer granted under the 2011 Plan.

Any shares underlying stock options that expire, terminate, or are forfeited or repurchased under the 2011 Plan will be automatically transferred to the 2019 Plan.

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Special PSU Awards

In fiscal 2022 the Company’s board of directors granted 655,000 performance stock units (the “Special PSU Awards”) to certain executives under the 2019 Plan.

In fiscal 2026 the Company’s board of directors approved a performance-based equity award under the Company’s 2019 Plan, consisting of PSUs with a target of 300,000 PSUs (the “2026 Special PSU Award”), that can result in as few as zero shares of the Company’s Class A common stock being issued if the Company’s stock price performance is below the 25 th percentile of the companies in the S&P 500 over a three-year period beginning on December 22, 2025 and ending on December 22, 2028, and up to 600,000 shares being issued if the Company’s stock price performance meets or exceeds the 90 th percentile of the companies in the S&P 500.

The Company measured the fair value of the 2026 Special PSU Award on the grant date using a Monte Carlo simulation valuation model.

The risk-free interest rate used was 3.50 %, which was based on the term-matched zero-coupon-risk-free interest rate derived from the Treasury Constant Maturities yield curve for a period commensurate with the expected term of the award on the grant date.

The expected volatility used was 44.83 %, which was calculated based on the daily stock price returns for the Company over a lookback period commensurate with the expected term of the award on the grant date.

In fiscal 2022 the Company’s board of directors granted 655,000 PSUs (the “2022 Special PSU Awards” and, together with the “2026 Special PSU Award”, the “Special PSU Awards”).

The 2022 Special PSU Awards vest upon the satisfaction of the Company’s achievement of specified stock price hurdles, which are based on the average of the closing stock price per share of the Company’s Class A common stock during any 45 consecutive trading day period during the applicable performance period, and a service-based vesting condition.

The service condition applicable to each tranche of the 2022 Special PSU Awards will be satisfied in installments as follows, subject to continued employment with the Company through each applicable vesting date:

(i) 50 % of the Special PSU Awards underlying the applicable tranche will service vest on the first anniversary of the vesting commencement date applicable to such tranche of the Special PSU Awards (i.e., February 1, 2022, February 1, 2023, February 1, 2024, and February 1, 2025) and (ii) the remaining PSUs with respect to such tranche will thereafter service vest in four equal quarterly installments of 12.5 %.

The Company measured the fair value of the Special PSU Awards on the grant date using a Monte Carlo simulation valuation model.

The risk-free interest rates used were 0.85 % - 1.51 %, which were based on the zero-coupon-risk-free interest rate derived from the Treasury Constant Maturities yield curve for the expected term of the award on the grant date.

The expected volatility was a blended volatility rate of 54.89 % - 55.36 %, which includes 50 % weight on the Company’s historical volatility calculated from daily stock returns over a 2.21 - 2.58 year look-back from the grant date and 50 % weight based on the Company’s implied volatility as of the grant date.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

(i) 50 % of the 2022 Special PSU Awards underlying the applicable tranche will service vest on the first anniversary of the vesting commencement date applicable to such tranche of the 2022 Special PSU Awards (i.e., February 1, 2022, February 1, 2023, February 1, 2024, and February 1, 2025) and (ii) the remaining PSUs with respect to such tranche will thereafter service vest in four equal quarterly installments of 12.5 %.

The Company measured the fair value of the 2022 Special PSU Awards on the respective grant dates using a Monte Carlo simulation valuation model.

The expected volatility used were 54.89 % - 55.36 %, which were calculated based on an equal blend of the Company’s historical volatility calculated from daily stock price returns over a 2.21 - 2.58 year lookback from the grant date and the Company’s implied volatility as of the grant date.

Total unrecognized stock-based compensation expense related to the unvested portion of the Special PSU Awards was $ 183.4 million as of January 31, 2026.

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Performance adjustment (1)

( 55 ) $ 296.43

Forfeited ( 950 ) $ 252.76

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(1) The performance adjustment represents adjustments in shares outstanding due to the actual achievement of performance-based awards, the achievement of which was based upon pre-defined financial performance targets.

(2) Excludes in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.

(2) Excludes in progress PSUs and the 2026 Special PSU Award where pre-defined targets have not yet been achieved.

Employee Stock Purchase Plan

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The first offering period commenced on June 11, 2019 and ended on June 10, 2021.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The ESPP provides eligible employees with an opportunity to purchase shares of the Company’s Class A common stock through payroll deductions of up to 15 % of their eligible compensation.

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If an employee elects to increase his or her contribution, the Company treats this as an accounting modification.

The ESPP also offers a two-year look-back feature, as well as a rollover feature that provides for an offering period to be rolled over to a new lower-priced offering if the offering price of the new offering period is less than that of the

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

current offering period.

During the fiscal years ended January 31, 2025 and January 31, 2023, there were ESPP rollovers because the Company’s closing stock price on the purchase date was lower than the Company’s closing stock price on the first day of the offering periods.

As a result, these offering dates were rolled over to new 24-month offering periods through December 10, 2026, and December 12, 2024, respectively.

During the fiscal year ended January 31, 2025, there were ESPP rollovers because the Company’s closing stock price on the purchase date was lower than the Company’s closing stock price on the first day of the offering periods.

As a result, these offering dates were rolled over to new 24-month offering periods through December 10, 2026.

These rollovers were accounted for as a modification to the original offerings.

The total incremental expense as a result of the rollover and contribution modifications was $ 12.4 million and $ 58.6 million, respectively, which will be recognized over the new or remaining offering periods.

There were no ESPP rollovers during the fiscal year ended January 31, 2024.

The total incremental expense as a result of the rollover and contribution modifications during fiscal year ended January 31, 2025 was $ 12.4 million, which will be recognized over the new or remaining offering periods.

There were no ESPP rollovers during the fiscal years ended January 31, 2026 and January 31, 2024.

Total incremental expense as a result of contribution modifications during the fiscal year ended January 31, 2026, was $ 4.7 million, which will be recognized over the remaining offering periods.

Total incremental expense as a result of contribution modifications during the fiscal year ended January 31, 2024 was $ 7.3 million, which was fully recognized by the end of fiscal year 2026.

Employee payroll contributions ultimately used to purchase shares are reclassified to stockholders’ equity on the purchase date.

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Total stock-based compensation expense $ 1,097,668 $ 861,391 $ 648,665

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Revenue, Deferred Revenue and Remaining Performance Obligations

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No single country other than the United States represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Contract Balances

13 unchanged sentences

Remaining Performance Obligations

The Company’s subscription contracts with its customers have a typical term of one to three years , and most subscription contracts are non-cancellable.

The Company’s subscription contracts with its customers have a typical term of one to three years , and most subscription contracts are non-cancelable.

Customers generally have the right to terminate their contracts for cause as a result of the Company’s failure to perform.

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These costs are recorded as deferred contract acquisition costs, current and deferred contract acquisition costs, noncurrent on the consolidated balance sheets.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values.

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The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs.

The Company did no t recognize any material impairment losses of deferred contract acquisition costs during the year ended January 31, 2025.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company did no t recognize any material impairment losses of deferred contract acquisition costs during the fiscal year ended January 31, 2026.

The following table summarizes the activity of deferred contract acquisition costs (in thousands):

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On January 21, 2025, an amended complaint was filed.

• On August 5, 2024, a putative class action lawsuit was filed against CrowdStrike, Inc.

in federal court in the Western District of Texas alleging, among other things, negligence and violations of the California Unfair Competition Law.

The complainants seek certification of a nationwide class, as well as sub-classes of certain California, Ohio, and Pennsylvania citizens, who had a flight delayed or canceled during a specified period of time and are seeking unspecified monetary damages, certain injunctive relief, costs and attorneys’ fees.

On November 6, 2024, this lawsuit was consolidated with the August 19, 2024 lawsuit described below, and interim class counsel was appointed.

On December 6, 2024, a consolidated class action complaint was filed.

On February 4, 2025, CrowdStrike, Inc.

filed a motion to dismiss the complaint.

• On August 19, 2024, a putative class action lawsuit was filed against the Company and CrowdStrike, Inc.

in federal court in the Western District of Texas alleging, among other things, negligence in the design and testing of the Falcon sensor and tortious interference between certain airline customers and their airline.

The complainants seek certification of a nationwide class (or alternatively a class of Iowa citizens) who had a flight delayed or canceled on a specified airline during a specific period of time and are seeking unspecified monetary damages, costs and attorneys’ fees.

On November 6, 2024, this lawsuit was consolidated with the lawsuit filed on August 5, 2024 described above and was administratively closed.

• On September 4, September 11, and September 20, 2024, three derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas alleging breach of fiduciary duty under Delaware law and violations of federal securities laws, including that the defendants made false or misleading statements in violation of Sections 10(b) and 14(a) of the Exchange Act and SEC Rules 10b-5 and 14a-9.

On April 7, 2025, the defendants filed a motion to dismiss, which the court granted on January 12, 2026.

On January 26, 2026, the plaintiffs filed a notice of intention not to amend the complaint.

On January 28, 2026, the court entered final judgment and closed the case.

The plaintiffs did not file a notice of appeal within the time permitted under applicable law, and the judgment is final.

• On August 5, 2024, a putative class action was filed against CrowdStrike, Inc.

in the Western District of Texas in relation to passenger airline flight disruptions allegedly caused by the July 19 Incident.

On August 19, 2024, a second putative class action was filed against the Company and CrowdStrike, Inc.

in the Western District of Texas, making similar allegations in relation to passenger airline flight disruptions.

On November 6, 2024, these two lawsuits were consolidated, and interim class counsel was appointed.

On December 6, 2024, a consolidated class action complaint was filed, which, among other things, asserts causes of action for negligence and public nuisance, and seeks certification of a nationwide class, as well as several state sub-classes of citizens of California, Ohio, Pennsylvania, Iowa, and Nevada.

The putative classes are comprised of individuals who allegedly had a flight delayed or canceled as a result of the July 19 Incident.

The consolidated complaint seeks

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

unspecified monetary damages, certain injunctive relief, costs, and attorneys’ fees.

On February 4, 2025, the Company and CrowdStrike, Inc.

filed a motion to dismiss the consolidated complaint.

On June 18, 2025, the district court granted the Company and CrowdStrike, Inc.’s motion to dismiss the consolidated complaint and entered a final judgment.

On June 25, 2025, the plaintiffs filed a notice of appeal to the United States Court of Appeals for the Fifth Circuit.

The appeal is currently pending.

• On September 4, September 11, and September 20, 2024, three derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas alleging various claims, including breach of fiduciary duty, unjust enrichment, and violations of federal securities laws, including that the defendants made false or misleading statements in violation of Sections 10(b) and 14(a) of the Exchange Act and SEC Rules 10b-5 and 14a-9.

One of the lawsuits also brings a claim against certain of the defendants for contribution under Sections 10(b) and 21D of the Exchange Act.

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On November 21, 2024, all three cases were consolidated and stayed pending resolution of the putative securities class action described above.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

On April 9, 2025, another derivative lawsuit was filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the District of Delaware, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits.

On May 22, 2025, this lawsuit was voluntarily dismissed without prejudice.

On April 10, 2025, two additional derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as nominal defendant, in federal court in the Western District of Texas, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits.

On May 23, 2025, these lawsuits were consolidated with each other and stayed pending a response by the Company’s board of directors to a litigation demand submitted by one of the plaintiffs and a proposed order governing next steps.

On July 18, 2025, these consolidated lawsuits were stayed pending resolution of the putative securities class action described above.

On July 3 and July 17, 2025, two additional derivative lawsuits were filed against certain of the Company’s officers and directors, and against the Company as a nominal defendant, in the Delaware Court of Chancery, asserting similar claims and seeking similar relief as the previously filed derivative lawsuits.

On August 18, 2025, these two lawsuits were consolidated and stayed pending resolution of the putative securities class action described above.

• On October 25, 2024, Delta Airlines, Inc.

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filed a motion to dismiss.

Additionally, some customers and third parties have asserted claims or publicly threatened litigation against the Company.

The Company has also received inquiries from governmental authorities and other third parties related to the July 19 Incident.

On May 16, 2025, CrowdStrike, Inc.’s motion to dismiss was granted in part and denied in part.

Discovery is ongoing.

The Company has received requests for information from the U.S.

Department of Justice and the U.S.

Securities and Exchange Commission relating to the Company’s recognition of revenue and reporting of ARR for transactions with certain customers, the July 19 Incident and related matters.

The Company is cooperating and providing information in response to these requests.

Additionally, some customers and third parties have asserted claims against the Company.

The Company has also received inquiries from other governmental authorities and third parties related to the July 19 Incident.

The Company is cooperating and providing information in connection with these inquiries.

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For claims and legal proceedings where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established.

While the Company believes it is reasonably possible that it could incur losses associated with the claims, proceedings and inquiries described above, it is not possible to estimate the amount of any loss or range of possible loss that might result from adverse judgments, settlements, penalties or other resolutions of these claims, proceedings and inquiries based on their early stage, and the lack of resolution on significant factual and legal issues.

While the Company believes it is reasonably possible that it could incur losses associated with the claims, proceedings and inquiries described above, it is not possible to estimate the amount of any loss or range of possible loss that might result from adverse judgments, settlements, penalties or other resolutions of these claims, proceedings and inquiries based on their current stage, and the lack of resolution on significant factual and legal issues.

Because the final outcome of any of these matters cannot be predicted with certainty, unfavorable or unexpected developments or outcomes could result in a material impact to the Company’s results of operations.

The Company expects to incur significant legal and professional services and other expenses associated with the July 19 Incident in future periods.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company expects to incur significant legal and professional services and other expenses associated with the July 19 Incident and related matters in future periods.

These expenses will be recognized as incurred.

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Any amounts recoverable under such policies will be reflected in future periods in which recovery is considered probable.

Amounts accrued and expenses incurred, net of insurance receivable recorded, relating to the July 19 Incident during fiscal years ended January 31, 2025 were as follows (in thousands):

The following is the rollforward of amounts accrued and expenses incurred, net of insurance receivable recorded, associated with the July 19 Incident and related matters during the fiscal years ended January 31, 2026 and January 31, 2025 (in thousands):

Balance at January 31, 2024 $ —

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Balance at January 31, 2025 $ 21,145

(1) These expenses were included in the Company’s consolidated statements of operations as sales and marketing expenses, research and development expenses, and general and administrative expenses.

Accruals were recorded in accrued expenses in the Company’s consolidated balance sheets.

Insurance receivable was recorded in prepaid expenses and other current assets in the Company’s consolidated balance sheets.

Expenses incurred, net of insurance receivable recorded (1)

Payments made / cash received ( 123,377 )

Balance at January 31, 2026

(1) These expenses are included in the Company’s consolidated statements of operations as sales and marketing expenses, research and development expenses, and general and administrative expenses.

Accruals are recorded in accrued expenses in the Company’s consolidated balance sheets.

Insurance receivable is recorded in prepaid expenses and other current assets in the Company’s consolidated balance sheets.

In addition to customer commitment packages, the Company has made an immaterial amount of settlement offers to certain customers in response to the July 19 Incident.

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Other Legal Proceedings

In March 2022, Webroot, Inc.

and Open Text, Inc.

(collectively, “Webroot”) filed a lawsuit against the Company and CrowdStrike, Inc.

in federal court in the Western District of Texas alleging that certain of the Company’s products infringe six patents held by them.

In the complaint, Webroot sought unspecified damages, attorneys’ fees and a permanent injunction.

In May 2022, CrowdStrike, Inc.

asserted counterclaims alleging that certain of Webroot’s products infringe two of its patents.

In the filing, CrowdStrike, Inc.

sought unspecified damages, reasonable fees and costs, and a permanent injunction.

In September 2022, Webroot amended its complaint to assert six additional patents.

In November 2023, CrowdStrike, Inc.

entered into an

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

agreement that provided for, among other things, the settlement and dismissal of the parties’ claims and filed for dismissal.

The amount attributable to the settlement was not material.

In addition, the Company is involved in various other legal proceedings and subject to claims that arise in the ordinary course of business.

The Company is involved in various other legal proceedings and subject to claims that arise in the ordinary course of business.

For any claims for which the Company believes a liability is both probable and reasonably estimable, the Company records a liability in the period for which it makes this determination.

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In addition, the costs of litigation and the timing of these costs from period to period are difficult to estimate, subject to change and could adversely affect the Company’s consolidated financial statements.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Purchase Obligations

In the normal course of business, the Company enters into non-cancellable purchase commitments with various parties to purchase products and services such as data center capacity, advertising, technology, equipment, office renovations, corporate events, and consulting services.

A summary of non-cancellable purchase obligations in excess of one year as of January 31, 2025, with expected date of payment is as follows (in thousands):

In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties to purchase products and services such as data center capacity, advertising, technology, equipment, office renovations, corporate events, and consulting services.

A summary of non-cancelable purchase obligations in excess of one year as of January 31, 2026, with expected date of payment is as follows (in thousands):

Fiscal 2027 $ 600,248

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When the Company enters into these financing arrangements with the end-users, the funds provided by the Company for the sales transactions do not always occur immediately upon signing, depending on the terms of the arrangements.

The Company estimates an allowance for credit losses on these off-balance sheet credit exposures at each reporting period on the contractual period over which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company.

As of January 31, 2025, the Company had non-cancellable unfunded commitments totaling approximately $ 94.2 million.

The Company had non-cancelable unfunded commitments totaling approximately $ 89.9 million as of January 31, 2026.

Warranties and Indemnification

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The Company has not incurred any material costs because of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements as of January 31, 2026 or January 31, 2025 .

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The Company has also agreed to indemnify its directors and certain executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request.

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No liabilities have been accrued associated with this indemnification provision as of January 31, 2026 or January 31, 2025 .

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Geographic Information

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Total property and equipment, net and operating lease right-of-use assets $ 1,046,191 $ 831,403

Pangea Cyber Corporation

On September 26, 2025, the Company acquired 100 % of the equity interest of Pangea Cyber Corporation (“Pangea”), a company that offers AI detection and response solutions.

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 212.1 million in cash, net of $ 9.4 million of cash and restricted cash acquired, and $ 0.3 million and $ 10.3 million representing the fair value of replacement equity and liability awards, respectively, attributable to pre-acquisition service.

The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The cash consideration included (i) cash held back in an escrow fund for a partial security for post-closing true-up adjustments, which was released from escrow in January 2026, and (ii) cash held back in an escrow fund for a partial security for post-closing indemnification claims.

Amounts reflected in restricted cash at January 31, 2026 are expected to be released in fiscal year 2028.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to developed technology of $ 13.2 million with a useful life of 72 months, net tangible liabilities of $ 0.4 million, and goodwill of $ 209.9 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The fair value of the developed technology was estimated using the relief-from-royalty method under the income approach.

The goodwill was primarily attributable to the assembled workforce of Pangea, planned growth in new markets, and synergies expected to be achieved from the integration of Pangea.

Goodwill is not deductible for income tax purposes.

Per the terms of the merger agreement with Pangea, certain unvested stock options held by Pangea employees were canceled and exchanged for replacement stock options under the 2019 Plan.

Additionally, certain shares of Pangea stock held by Pangea employees were exchanged for the right to receive shares of the Company’s common stock, subject to service-based vesting conditions.

Further, the Company granted RSUs and PSUs under the 2019 Plan to certain continuing employees.

The awards that are subject to continued service are recognized ratably as stock-based compensation cost over the requisite service period.

The awards that are subject to both continued service and specified performance targets are recognized over the requisite service period when it is probable that the performance condition will be satisfied.

Acquisition costs incurred during the fiscal year ended January 31, 2026 were $ 3.1 million.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisition of Pangea did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

Onum Technology Inc.

On September 12, 2025, the Company acquired 100 % of the equity interest of Onum Technology Inc.

(“Onum”), a leader in real-time telemetry pipeline management.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 252.7 million in cash, net of $ 15.2 million of cash and restricted cash acquired, and $ 2.0 million representing the fair value of replacement equity awards attributable to pre-acquisition service.

The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The cash consideration included cash held back in an escrow fund for a partial security for post-closing indemnification claims.

Escrow amounts are reflected within restricted cash and are expected to be released in fiscal year 2028.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to identifiable intangible assets, which include developed technology and customer relationships of $ 21.4 million, net tangible assets acquired of $ 0.2 million, and goodwill of $ 233.1 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The fair value of the developed technology was estimated using the relief-from-royalty method under the income approach.

In addition, the fair value of customer relationships was estimated using the with-and-without method.

The goodwill was primarily attributable to the assembled workforce of Onum, planned growth in new markets, and synergies expected to be achieved from the integration of Onum.

Goodwill is not deductible for income tax purposes.

Per the terms of the merger agreement with Onum, certain unvested stock options held by Onum employees were canceled and exchanged for replacement stock options under the 2019 Plan.

Additionally, certain shares of Onum stock held by Onum employees were exchanged for shares or the right to receive shares of the Company’s common stock, subject to service-based vesting conditions.

Further, the Company granted RSUs and PSUs under the 2019 Plan to certain continuing employees.

The awards that are subject to continued service are recognized ratably as stock-based compensation cost over the requisite service period.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

Fair Value Useful Life

Developed technology $ 20,600 84

Customer relationships 800 24

Total intangible assets acquired $ 21,400

Acquisition costs incurred during the fiscal year ended January 31, 2026 were $ 4.1 million.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisition of Onum did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

Adaptive Shield

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The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to identifiable intangible assets, which include developed technology and customer relationships of $ 31.1 million, net tangible liabilities acquired of $ 7.7 million, and goodwill of $ 191.0 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The purchase price was allocated to developed technology and customer relationships of $ 31.1 million, net tangible liabilities acquired of $ 7.7 million, and goodwill of $ 191.0 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of Adaptive Shield, planned growth in new markets, and synergies expected to be achieved from the integration of Adaptive Shield.

Goodwill is not deductible for income tax purposes.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Per the terms of the share purchase agreement with Adaptive Shield, certain unvested stock options held by Adaptive Shield employees were canceled and exchanged for replacement stock options under the 2019 Plan.

3 unchanged sentences

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

3 unchanged sentences

Total intangible assets acquired $ 31,100

Acquisition costs incurred during the fiscal year ended January 31, 2025 were $ 2.7 million and are recorded in general and administrative expenses on the Company’s consolidated statements of operations.

Acquisition costs incurred during the fiscal year ended January 31, 2026 were immaterial.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

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The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The purchase price was allocated on a preliminary basis, subject to working capital adjustment and continuing management analysis, to developed technology of $ 13.5 million with a useful life of 72 months, net tangible liabilities acquired of $ 0.6 million, and goodwill of $ 84.0 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The purchase price was allocated to developed technology of $ 13.5 million with a useful life of 72 months, net tangible liabilities acquired of $ 0.6 million, and goodwill of $ 84.0 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of Flow Security, planned growth in new markets, and synergies expected to be achieved from the integration of Flow Security.

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Acquisition costs incurred during the fiscal year ended January 31, 2025 were $ 3.2 million and are primarily recorded in general and administrative expenses on the Company’s consolidated statements of operations.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisition of Flow Security did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented.

On September 28, 2023, the Company acquired 100 % of the equity interest of Bionic Stork, Ltd.

(“Bionic”), a privately-held company that provides an Application Security Posture Management platform designed to proactively reduce and mitigate security, data privacy, and operational risks by analyzing application architecture and dependencies that run in production.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The acquisition has been accounted for as a business combination.

The total consideration transferred consisted of $ 239.0 million in cash, net of $ 25.7 million of cash acquired, and $ 0.7 million representing the fair value of replacement equity awards attributable to pre-acquisition service.

The remaining fair value of these replacement awards attributed to post-combination service was excluded from the purchase price.

The purchase price was allocated to identified intangible assets, which include developed technology and customer relationships of $ 34.9 million, net tangible liabilities acquired of $ 2.7 million, and goodwill of $ 207.5 million, which was allocated to the Company’s one reporting unit and represents the excess of the purchase price over the fair value of net tangible and intangible assets acquired.

The goodwill was primarily attributable to the assembled workforce of Bionic, planned growth in new markets, and synergies expected to be achieved from the integration of Bionic.

Goodwill is not deductible for income tax purposes.

Per the terms of the share purchase agreement with Bionic, certain unvested stock options held by Bionic employees were canceled and exchanged for replacement stock options under the 2019 Plan.

Additionally, certain shares of Bionic stock held by Bionic employees were exchanged for shares of the Company’s common stock, subject to service-based vesting and other conditions.

Further, the Company granted RSUs and PSUs under the 2019 Plan to certain continuing employees.

The awards that are subject to continued service are recognized ratably as stock-based compensation expense over the requisite service period.

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (dollars in thousands):

Fair Value Useful Life

Developed technology $ 29,900 72

Customer relationships 5,000 96

Total intangible assets acquired $ 34,900

Acquisition costs incurred during the fiscal year ended January 31, 2025 were immaterial.

The results of operations for the acquisition have been included in the Company’s consolidated financial statements from the date of acquisition.

The acquisition of Bionic did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented .

Net Income (Loss) Per Share Attributable to Common Stockholders

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Diluted net income per share attributable to CrowdStrike common stockholders is calculated by dividing net income by the combination of the weighted-average number of common shares outstanding and the effect of the weighted-average number of dilutive common share equivalents during the period.

The dilutive potential shares of common stock are comprised of outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founders’ holdbacks, and are computed using the treasury stock method.

The effects of the outstanding stock options, RSUs, PSUs, Special PSUs, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted net income per share in periods in which the effect would be anti-dilutive.

Diluted net loss per share is the same as basic net loss per share for the fiscal year ended January 31, 2025 and January 31, 2023 because the effects of potentially dilutive items were antidilutive given the Company’s net loss position during fiscal year ended January 31, 2025 and January 31, 2023.

The dilutive potential shares of common stock are comprised of outstanding stock options, RSUs, PSUs, Special PSU Awards, ESPP obligations, and founders’ holdbacks, and are computed using the treasury stock method.

The effects of the outstanding stock options, RSUs, PSUs, Special PSU Awards, ESPP obligations, and founders holdbacks are excluded from the computation of the diluted net income per share in periods in which the effect would be anti-dilutive.

Diluted net loss per share is the same as basic net loss per share for the fiscal years ended January 31, 2026 and January 31, 2025 because the effects of potentially dilutive items were antidilutive given the Company’s net loss position during fiscal years ended January 31, 2026 and January 31, 2025.

The rights of the holders of Class A and Class B common stock are identical, except with the respect to voting and conversion rights.

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CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The following table sets forth the computation of basic and diluted net income (loss) per share attributable to CrowdStrike common stockholders (in thousands, except per share data):

7 unchanged sentences

Net income (loss) per share attributable to CrowdStrike common stockholders, diluted $ ( 0.65 ) $ ( 0.06 ) $ 0.30

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

The potential shares of common stock that were excluded from the computation of diluted net income (loss) per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows (in thousands):

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During the fiscal year ended January 31, 2026, 19,560 shares were issued to settle founder holdbacks at a weighted average price of $ 470.56 per share.

As of January 31, 2025, the above table also excludes 575,747 outstanding shares of in progress PSUs and Special PSUs where pre-defined targets have not yet been achieved.

As of January 31, 2026, the above table also excludes 340,021 outstanding shares of in progress PSUs where pre-defined targets have not yet been achieved.

Segment Information

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See Note 9 for additional information about the Company’s revenue by geographic region, and Note 11 for additional information about the Company’s property and equipment, net and operating lease right-of-use assets by geographic region.

Strategic Plan

On May 6, 2025, the Company announced a strategic plan (the “Strategic Plan”) to evolve its operations to yield greater efficiencies as the Company continues to scale its business with focus and discipline to meet its goals.

The Strategic Plan resulted in a reduction of roles representing approximately 500 positions, or 5 %, of the Company’s global workforce.

The actions associated with the Strategic Plan were substantially completed as of January 31, 2026.

For the fiscal year ended January 31, 2026, the Company recorded charges related to the Strategic Plan of $ 44.8 million, which consisted of $ 19.9 million related to severance payments and employee benefits, $ 17.9 million related to stock-based compensation expense, and $ 7.0 million for non-employee costs.

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Charges related to the Strategic Plan included in the consolidated statement of operations are as follows (in thousands):

January 31, 2026

Subscription cost of revenue $ 3,442

Professional services cost of revenue 3,271

Sales and marketing 8,975

Research and development 16,573

General and administrative 12,516

Total $ 44,777

The following table summarizes the activities related to the Strategic Plan for the fiscal year ended January 31, 2026 (in thousands):

January 31, 2026

Severance and Related Costs Non-Employee Costs Total

Liability, beginning of the period $ — $ — $ —

Charges 37,784 6,993 44,777

Payments ( 19,858 ) ( 6,957 ) ( 26,815 )

Non-cash items ( 17,896 ) — ( 17,896 )

Liability, end of the period $ 30 $ 36 $ 66

As of January 31, 2026, the liability associated with the Strategic Plan is included in accrued payroll and benefits and accounts payable on the consolidated balance sheets.

Revision of Prior Period Financial Statements

As discussed in Note 1, during the fourth quarter of the fiscal year ended January 31, 2026, the Company identified an immaterial error related to the timing of recognition of stock-based compensation expense in prior periods associated with certain awards granted in the fiscal years ended January 31, 2022 and 2023.

The Company evaluated the error and concluded that it was not material to its previously issued Consolidated Financial Statements.

However, the impact of correcting the cumulative effect of the error as an out-of-period adjustment during the fiscal year ended January 31, 2026 would have been material.

The cumulative impact of this error to the fiscal years ended January 31, 2023 and 2022, in the amount of $ 29.3 million, has been reflected as an adjustment to the Accumulated deficit and Additional paid-in capital balances at February 1, 2023.

The following tables reflect the impacts of the revision to the previously filed financial statements for the fiscal years ended January 31, 2025 and 2024, respectively (in thousands, except per share data):

Consolidated Balance Sheets

As of January 31, 2025

As previously reported Adjustments As revised

Additional paid-in-capital $ 4,367,070 $ 42,433 $ 4,409,503

Accumulated deficit $ ( 1,078,107 ) $ ( 42,433 ) $ ( 1,120,540 )

CrowdStrike Holdings, Inc.

Notes to Consolidated Financial Statements

Consolidated Statements of Operations

Year Ended January 31, 2025 Year Ended January 31, 2024

As previously reported Adjustments As revised As previously reported Adjustments As revised

Subscription cost of revenue $ 835,509 $ ( 931 ) $ 834,578 $ 630,745 $ 1,998 $ 632,743

Professional services cost of services 155,972 ( 378 ) 155,594 124,978 1,208 126,186

Total cost of revenue 991,481 ( 1,309 ) 990,172 755,723 3,206 758,929

Gross profit 2,962,143 1,309 2,963,452 2,299,832 ( 3,206 ) 2,296,626

Sales and marketing 1,523,356 ( 355 ) 1,523,001 1,140,566 ( 291 ) 1,140,275

Research and development 1,076,901 ( 1,314 ) 1,075,587 768,497 11,822 780,319

General and administrative 482,316 ( 1,052 ) 481,264 392,764 2,409 395,173

Total operating expenses 3,082,573 ( 2,721 ) 3,079,852 2,301,827 13,940 2,315,767

Loss from operations ( 120,430 ) 4,030 ( 116,400 ) ( 1,995 ) ( 17,146 ) ( 19,141 )

Income (loss) before provision for income taxes 54,534 4,030 58,564 122,817 ( 17,146 ) 105,671

Net income (loss) ( 16,596 ) 4,030 ( 12,566 ) 90,585 ( 17,146 ) 73,439

Net income (loss) attributable to CrowdStrike $ ( 19,271 ) $ 4,030 $ ( 15,241 ) $ 89,327 $ ( 17,146 ) $ 72,181

Net income (loss) per share attributable to CrowdStrike common stockholders:

Basic $ ( 0.08 ) $ 0.02 $ ( 0.06 ) $ 0.37 $ ( 0.07 ) $ 0.30

Diluted $ ( 0.08 ) $ 0.02 $ ( 0.06 ) $ 0.37 $ ( 0.07 ) $ 0.30

There was no impact to the consolidated statements of cash flows from operating activities, investing activities, or financing activities for any period.

The impact to the consolidated statements of comprehensive income (loss) is limited to the impact to net income (loss) as detailed above.

The impact to the consolidated statements of stockholders’ equity is to Additional paid-in capital and Accumulated deficit for the same amounts as detailed above, with no resulting impact on Total stockholders’ equity as previously reported.

Subsequent Events

Subsequent to January 31, 2026 and through March 4, 2026, the Company repurchased 143,801 shares of its Class A common stock under the Share Repurchase Program at an average price of $ 351.97 per share, for an aggregate purchase price of $ 50.6 million.

As of March 4, 2026, approximately $ 949.4 million remained available for future share repurchases under the Share Repurchase Program.

On January 7, 2026, the Company entered into a definitive agreement to acquire 100 % of the equity interest of SGNL.AI, Inc., a leader in continuous identity.

The acquisition closed on February 20, 2026.

The total consideration transferred consisted of $ 627.9 million in cash, net of $ 9.4 million of cash acquired, and $ 8.9 million representing the fair value of replacement equity awards attributable to pre-acquisition service, subject to customary net working capital and purchase price adjustments.

The cash consideration included cash held back in an escrow fund for a partial security for post-closing indemnification claims.

The Company is currently finalizing the intangible assets valuation and purchase price allocation.

On January 12, 2026, the Company entered into a definitive agreement to acquire 100 % of the equity interest of Seraphic Algorithms Ltd.

(“Seraphic”), a leader in browser runtime security.

The acquisition closed on February 3, 2026.

The total consideration transferred consisted of $ 327.4 million in cash, net of $ 1.1 million of cash and restricted cash acquired, and $ 13.9 million representing the fair value of replacement equity awards attributable to pre-acquisition service, subject to customary net working capital and purchase price adjustments.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data