CrowdStrike Holdings, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Index to Consolidated Financial Statements Page Report of Independent Registered Public Accounting Firm (PCAOB ID 238 ) 80 Consolidated Financial Statements Consolidated Balance Sheets as of January 31, 2026 and 2025 82 Consolidated Statements of Operations for the years ended January 31, 2026, 2025 and 2024 83 Consolidated Statements of Comprehensive Income (Loss) for the years ended January 31, 2026, 2025 and 2024 84 Consolidated Statements of Stockholders’ Equity for the years ended January 31, 2026, 2025 and 2024 85 Consolidated Statements of Cash Flows for the years ended January 31, 2026, 2025 and 2024 86 Notes to Consolidated Financial Statements 87 79 Table of Contents Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of CrowdStrike Holdings, Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of CrowdStrike Holdings, Inc. and its subsidiaries (the “Company”) as of January 31, 2026 and 2025, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended January 31, 2026, including the related notes (collectively referred to as the “consolidated financial statements”). We also have audited the Company’s internal control over financial reporting as of January 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of January 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended January 31, 2026 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 31, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 80 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition - Subscription Revenue As described in Note 1 to the consolidated financial statements, subscription revenues are primarily comprised of fees that give customers access to the ordered service, related support and updates, if any, during the subscription term. The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement. The Company recognized consolidated subscription revenue of $4,564.7 million for the year ended January 31, 2026. The principal consideration for our determination that performing procedures relating to revenue recognition for subscription revenue is a critical audit matter is a high degree of auditor effort in performing procedures relating to the Company’s subscription revenue recognition. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the subscription revenue recognition process. These procedures also included, among others (i) testing subscription revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as agreements, evidence of delivery of the service, invoices, and receipt of payment and (ii) confirming a sample of outstanding customer invoice balances as of January 31, 2026 and, for confirmations not returned, obtaining and inspecting source documents, such as agreements, evidence of delivery of the service, invoices, and subsequent receipt of payment. /s/ PricewaterhouseCoopers LLP San Jose, California March 4, 2026 We have served as the Company’s auditor since 2016. 81 Table of Contents CrowdStrike Holdings, Inc. Consolidated Balance Sheets (in thousands, except per share data) January 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 5,230,125 $ 4,323,295 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 1,361,844 1,128,564 Deferred contract acquisition costs, current 447,455 347,042 Prepaid expenses and other current assets 379,695 314,444 Total current assets 7,419,119 6,113,345 Strategic investments 76,832 72,544 Property and equipment, net 976,331 788,640 Operating lease right-of-use assets 69,860 42,763 Deferred contract acquisition costs, noncurrent 655,658 500,908 Goodwill 1,363,294 912,805 Intangible assets, net 136,702 133,114 Other long-term assets 388,888 137,459 Total assets $ 11,086,684 $ 8,701,578 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 105,319 $ 130,887 Accrued expenses 181,089 191,349 Accrued payroll and benefits 389,690 319,243 Operating lease liabilities, current 18,232 13,811 Deferred revenue 3,421,051 2,733,005 Other current liabilities 68,811 72,755 Total current liabilities 4,184,192 3,461,050 Long-term debt 745,471 743,983 Deferred revenue, noncurrent 1,332,387 995,672 Operating lease liabilities, noncurrent 56,374 31,107 Other liabilities, noncurrent 295,655 150,849 Total liabilities 6,614,079 5,382,661 Commitments and contingencies (Note 10) Stockholders’ Equity Preferred stock, $ 0.0005 par value; 100,000 shares authorized as of January 31, 2026 and January 31, 2025; no shares issued and outstanding as of January 31, 2026 and January 31, 2025. — — Class A common stock, $ 0.0005 par value; 2,000,000 shares authorized as of January 31, 2026 and January 31, 2025; 253,363 shares, and 247,872 shares issued and outstanding as of January 31, 2026 and January 31, 2025, respectively; Class B common stock, $ 0.0005 par value; 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. 127 124 Additional paid-in capital 5,694,549 4,409,503 Accumulated deficit ( 1,283,042 ) ( 1,120,540 ) Accumulated other comprehensive income (loss) 16,756 ( 9,593 ) Total CrowdStrike Holdings, Inc. stockholders’ equity 4,428,390 3,279,494 Non-controlling interest 44,215 39,423 Total stockholders’ equity 4,472,605 3,318,917 Total liabilities and stockholders’ equity $ 11,086,684 $ 8,701,578 The accompanying notes are an integral part of these consolidated financial statements. 82 Table of Contents CrowdStrike Holdings, Inc. Consolidated Statements of Operations (in thousands, except per share data) Year Ended January 31, 2026 2025 2024 Revenue Subscription $ 4,564,683 $ 3,761,480 $ 2,870,557 Professional services 247,322 192,144 184,998 Total revenue 4,812,005 3,953,624 3,055,555 Cost of revenue Subscription 1,015,915 834,578 632,743 Professional services 203,014 155,594 126,186 Total cost of revenue 1,218,929 990,172 758,929 Gross profit 3,593,076 2,963,452 2,296,626 Operating expenses Sales and marketing 1,831,254 1,523,001 1,140,275 Research and development 1,384,770 1,075,587 780,319 General and administrative 670,344 481,264 395,173 Total operating expenses 3,886,368 3,079,852 2,315,767 Loss from operations ( 293,292 ) ( 116,400 ) ( 19,141 ) Interest expense ( 28,021 ) ( 26,311 ) ( 25,756 ) Interest income 194,969 196,174 148,930 Other income (expense), net ( 645 ) 5,101 1,638 Income (loss) before provision for income taxes ( 126,989 ) 58,564 105,671 Provision for income taxes 34,176 71,130 32,232 Net income (loss) ( 161,165 ) ( 12,566 ) 73,439 Net income attributable to non-controlling interest 1,337 2,675 1,258 Net income (loss) attributable to CrowdStrike $ ( 162,502 ) $ ( 15,241 ) $ 72,181 Net income (loss) per share attributable to CrowdStrike common stockholders: Basic $ ( 0.65 ) $ ( 0.06 ) $ 0.30 Diluted $ ( 0.65 ) $ ( 0.06 ) $ 0.30 Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders: Basic 250,576 244,750 238,637 Diluted 250,576 244,750 243,635 The accompanying notes are an integral part of these consolidated financial statements. 83 Table of Contents CrowdStrike Holdings, Inc. Consolidated Statements of Comprehensive Income (Loss) (in thousands) Year Ended January 31, 2026 2025 2024 Net income (loss) $ ( 161,165 ) $ ( 12,566 ) $ 73,439 Other comprehensive income (loss): Foreign currency translation adjustments 27,023 ( 8,631 ) ( 594 ) Unrealized gain (loss) on cash equivalents and short-term investments, net of tax ( 674 ) 701 ( 50 ) Other comprehensive income (loss) 26,349 ( 7,930 ) ( 644 ) Less: Comprehensive income attributable to non-controlling interest 1,337 2,675 1,258 Total comprehensive income (loss) attributable to CrowdStrike $ ( 136,153 ) $ ( 23,171 ) $ 71,537 The accompanying notes are an integral part of these consolidated financial statements. 84 Table of Contents CrowdStrike Holdings, Inc. Consolidated Statements of Stockholders’ Equity (in thousands) Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income (Loss) Non-controlling Interest Total Stockholders’ Equity Shares Amount Balances at January 31, 2023 235,777 $ 118 $ 2,642,022 $ ( 1,177,480 ) $ ( 1,019 ) $ 23,793 $ 1,487,434 Issuance of common stock upon exercise of options 1,146 2 8,693 — — — 8,695 Issuance of common stock under RSU and PSU release 4,041 — — — — — — Issuance of common stock under employee stock purchase plan 747 1 76,374 — — — 76,375 Issuance of common stock for restricted stock awards 125 — — — — — — 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 Capitalized stock-based compensation — — 34,385 — — — 34,385 Fair value of replacement equity awards attributable to pre-acquisition service — — 652 — — — 652 Net income — — — 72,181 — 1,258 73,439 Non-controlling interest — — — — — 8,088 8,088 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 Issuance of common stock upon exercise of options 514 — 3,983 — — — 3,983 Issuance of common stock under RSU and PSU release 4,552 3 ( 3 ) — — — — Issuance of common stock under employee stock purchase plan 858 — 99,616 — — — 99,616 Issuance of common stock for restricted stock awards 72 — — — — — — Issuance of common stock for founders holdbacks related to acquisitions 11 — 3,555 — — — 3,555 Issuance of common stock for payment of board of director fees — — 348 — — — 348 Stock-based compensation expense, net of founder revest — — 853,099 — — — 853,099 Capitalized stock-based compensation — — 36,959 — — — 36,959 Fair value of replacement equity awards attributable to pre-acquisition service — — 1,155 — — — 1,155 Net income (loss) — — — ( 15,241 ) — 2,675 ( 12,566 ) Non-controlling interest — — — — — 3,609 3,609 Other comprehensive loss — — — — ( 7,930 ) — ( 7,930 ) Balances at January 31, 2025 247,872 $ 124 $ 4,409,503 $ ( 1,120,540 ) $ ( 9,593 ) $ 39,423 $ 3,318,917 Issuance of common stock upon exercise of options 359 — 3,163 — — — 3,163 Issuance of common stock under RSU and PSU release 4,646 3 ( 3 ) — — — — Issuance of common stock under employee stock purchase plan 440 — 125,834 — — — 125,834 Issuance of common stock for restricted stock awards 26 — — — — — — Issuance of common stock for founders holdbacks related to acquisitions 20 — 9,204 — — — 9,204 Issuance of common stock for payment of board of director fees — — 375 — — — 375 Stock-based compensation expense, net of founder revest — — 1,086,346 — — — 1,086,346 Capitalized stock-based compensation — — 57,825 — — — 57,825 Fair value of replacement equity awards attributable to pre-acquisition service — — 2,302 — — — 2,302 Net income (loss) — — — ( 162,502 ) — 1,337 ( 161,165 ) Non-controlling interest — — — — — 3,455 3,455 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 The accompanying notes are an integral part of these consolidated financial statements. 85 Table of Contents CrowdStrike Holdings, Inc. Consolidated Statements of Cash Flows (in thousands) Year Ended January 31, 2026 2025 2024 Operating activities Net income (loss) $ ( 161,165 ) $ ( 12,566 ) $ 73,439 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 250,218 187,952 126,838 Amortization of intangible assets 31,233 26,004 18,416 Amortization of deferred contract acquisition costs 449,413 318,837 238,901 Non-cash operating lease cost 17,197 15,283 13,398 Stock-based compensation expense 1,096,679 861,391 648,665 Deferred income taxes ( 14,797 ) ( 9,903 ) ( 3,387 ) Realized gains on strategic investments ( 4,161 ) ( 6,321 ) ( 3,936 ) Accretion of short-term investments purchased at a discount — 2,285 ( 2,285 ) Non-cash interest expense 5,444 3,763 3,173 Change in fair value of strategic investments 1,579 1,000 1,459 Changes in operating assets and liabilities, net of impact of acquisitions Accounts receivable, net ( 232,528 ) ( 274,219 ) ( 217,699 ) Deferred contract acquisition costs ( 703,707 ) ( 584,484 ) ( 371,649 ) Prepaid expenses and other assets ( 206,157 ) ( 190,232 ) ( 102,520 ) Accounts payable ( 11,267 ) 84,939 ( 18,898 ) Accrued expenses and other liabilities 22,587 218,518 14,586 Accrued payroll and benefits 61,610 85,873 65,102 Operating lease liabilities ( 13,692 ) ( 15,657 ) ( 14,035 ) Deferred revenue 1,023,863 669,264 696,639 Net cash provided by operating activities 1,612,349 1,381,727 1,166,207 Investing activities Purchases of property and equipment ( 302,108 ) ( 254,852 ) ( 176,529 ) Capitalized internal-use software and website development costs ( 68,751 ) ( 58,969 ) ( 49,457 ) Purchases of strategic investments ( 10,767 ) ( 19,702 ) ( 17,177 ) Proceeds from sales of strategic investments 5,217 12,507 2,000 Business acquisitions, net of cash and restricted cash acquired ( 382,268 ) ( 310,257 ) ( 239,030 ) Purchases of intangible assets — — ( 11,126 ) Purchases of short-term investments — — ( 195,581 ) Proceeds from maturities and sales of short-term investments — 97,300 348,281 Purchases of deferred compensation investments ( 6,009 ) ( 2,721 ) ( 2,031 ) Proceeds from the sale of deferred compensation investments 207 106 — Net cash used in investing activities ( 764,479 ) ( 536,588 ) ( 340,650 ) Financing activities Proceeds from issuance of common stock upon exercise of stock options 3,163 3,983 8,695 Proceeds from issuance of common stock under the employee stock purchase plan 125,834 99,616 76,375 Distributions to non-controlling interest holders ( 2,545 ) ( 4,891 ) — Capital contributions from non-controlling interest holders 6,000 8,500 8,088 Net cash provided by financing activities 132,452 107,208 93,158 Effect of foreign exchange rates on cash, cash equivalents, and restricted cash 9,629 ( 5,278 ) 1,958 Net increase in cash, cash equivalents, and restricted cash 989,951 947,069 920,673 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 $ 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 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 Supplemental disclosure of cash flow information: Interest paid $ 22,500 $ 22,500 $ 22,500 Income taxes paid, net of refunds received $ 51,464 $ 19,022 $ 22,608 Supplemental disclosure of non-cash investing and financing activities: Net increase (decrease) in property and equipment included in accounts payable and accrued expenses $ ( 5,218 ) $ 9,452 $ ( 3,081 ) 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 Proceeds from sales of strategic investments not yet received $ 9,161 $ 4,992 $ 8,774 Stock-based compensation included in capitalized software development costs and fixed assets $ 56,956 $ 36,959 $ 31,919 Noncash consideration for the purchase of strategic investments $ 1,101 $ 3,319 $ — 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. 86 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 1. Description of Business and Significant Accounting Policies Business CrowdStrike Holdings, Inc. (and/or its subsidiaries, as applicable, the “Company”) was formed on November 7, 2011. 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 The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the consolidated financial statements. On a regular basis, management evaluates these estimates and assumptions. Actual results may differ from these estimates and such differences could be material to the Company’s consolidated financial statements. 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 The Company generates revenue from the sale of subscriptions to access its cloud platform and professional services. The Company’s sales team, along with its channel partner network of system integrators and value-added resellers (collectively, “channel partners”), sells the Company’s services worldwide to organizations of all sizes. Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents, accounts receivable, financing receivables, and strategic investments. 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 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. 87 Table of Contents 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, 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 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. The Company discloses the fair value of the Senior Notes at each reporting period for disclosure purposes only. The Company’s investments related to the deferred compensation plan are invested within a Rabbi Trust. Participants in the deferred compensation plan may select the securities in which their compensation deferrals are invested within the confines of the Rabbi Trust. These securities are marked-to-market each reporting period. 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 The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents are mainly comprised of money market funds, U.S. Treasury bills, and time deposits. The Company had $ 3.1 billion and $ 4.0 billion of cash equivalents as of January 31, 2026 and January 31, 2025, respectively. 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 Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of the allowance for credit losses. The Company has a well-established collections history from its customers. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company generally does not require collateral from its customers; however, the Company may require payment prior to commencing service in certain instances to limit credit risk. The Company regularly reviews the adequacy of the allowance for credit losses by considering various factors including the age of each outstanding invoice, each customer’s expected ability to pay, historical loss rates, and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. Amounts deemed uncollectible are written off against the allowance for credit losses. 88 Table of Contents 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 in the United States. Payment terms on these financing arrangements are generally up to five years . Financing receivables are recorded at amortized cost, which approximates fair value. 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. 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. The Company’s assessment considers various factors, including lifetime expected losses determined using customer risk profile, current economic conditions that may affect a customer's ability to pay, and forward-looking economic considerations. Financing receivables deemed uncollectible are charged against the allowance for credit losses. The allowance for credit losses on off-balance sheet credit exposure is estimated at each reporting period based 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. The portion of the allowance for credit losses related to future disbursements is shown as a liability on the consolidated balance sheets, and the related expense for credit losses is reflected in the consolidated statements of operations. Strategic Investments In July 2019, the Company agreed to commit up to $ 10.0 million to a newly formed entity, CrowdStrike Falcon Fund LLC (the “Original Falcon Fund”) in exchange for 50 % of the sharing percentage of any distributions by the Original Falcon Fund. In December 2021, the Company agreed to commit an additional $ 50.0 million to a newly formed entity, CrowdStrike Falcon Fund II LLC (“Falcon Fund II”) in exchange for 50 % of the sharing percentage of any distributions by Falcon Fund II. Further, entities associated with Accel also agreed to commit up to $ 10.0 million and $ 50.0 million, respectively, to the Original Falcon Fund and Falcon Fund II (collectively, the “Falcon Funds”), and collectively own the remaining 50 % of the sharing percentage of the Falcon Funds. Both Falcon Funds are in the business of purchasing, selling, and investing in minority equity and convertible debt securities of privately-held companies that develop applications that have potential for substantial contribution to CrowdStrike and its platform. The Company is the manager of the Falcon Funds and controls the investment decisions and day-to-day operations and accordingly has consolidated each of the Falcon Funds. Each Falcon Fund has a duration of ten years and may be extended for three additional years. At dissolution, the Falcon Funds will be liquidated, and the remaining assets will be distributed to the investors based on their respective sharing percentage. The Company elected the measurement alternative for the non-marketable equity investments of the Falcon Funds where eligible. Under the measurement alternative, the non-marketable equity investments are measured at cost, less any impairment, plus or minus adjustments resulting from price changes from observable transactions of identical or similar securities of the same issuer. All gains and losses on strategic investments, realized and unrealized, are recognized in other income (expense), net. Strategic investments are classified within Level 3 in the fair value hierarchy as these investments do not have readily determinable market values. The carrying amount of strategic investments is adjusted based on observable price changes from observable transactions of identical or similar securities of the same issuer and other unobservable inputs including volatility, rights, and obligations of the investments, or by impairments when identified events and circumstances indicate a decline in value has occurred. The Company classifies the investments in the Falcon Funds as a non-current asset called strategic investments on the consolidated balance sheets. Business Combinations The Company allocates the purchase price of acquired companies to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. The purchase price allocation process requires management to make significant estimates and assumptions with respect to intangible assets. 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 89 Table of Contents 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. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the consolidated statements of operations. Goodwill and Intangible Assets The Company evaluates and tests goodwill for impairment at least annually, on January 31, or more frequently if circumstances indicate that goodwill may not be recoverable. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its one reporting unit is less than its carrying value. In assessing the qualitative factors, the Company considers the impact of certain key factors including macroeconomic conditions, industry and market considerations, management turnover, changes in regulation, litigation matters, changes in enterprise value, and overall financial performance. If the Company determines it is more likely than not that the fair value of its one reporting unit is less than its carrying value, a quantitative test is performed by estimating the fair value of its reporting unit, including goodwill, and comparing it to its carrying value. If the fair value is lower than the carrying value, the excess is recognized as an impairment loss. No impairment losses were recorded during the fiscal years ended January 31, 2026, January 31, 2025, or January 31, 2024. 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, 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. The impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. No impairment indicators were identified by the Company, and no impairment losses were recorded by the Company during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024. Property and Equipment, Net Property and equipment, net, is stated at historical cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets as follows: Data center and other computer equipment 3 – 5 years Furniture and equipment 5 years Purchased software 3 – 5 years Capitalized internal-use software and website development 3 years Leasehold improvements Estimated useful life or term of the lease, whichever is shorter Expenditures for routine maintenance and repairs are charged to operating expense as incurred. Major renewals and improvements are capitalized and depreciated over their estimated useful lives. The Company reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of the asset (or asset group) may not be recoverable. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable, include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition are less than its carrying amount. No impairment indicators were identified by the Company, and no impairment losses were recorded by the Company during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024. 90 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements The Company capitalizes certain development costs incurred in connection with its internal-use software and website development. These capitalized costs are primarily related to the Company’s cybersecurity platform, as well as redefining, redesigning, and rebuilding crowdstrike.com. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized until the internal-use software and website are substantially complete and ready for their intended use. The Company contracts with third party information technology providers for various service arrangements including software, platform, and information technology infrastructure. The Company capitalizes the implementation costs incurred to develop or obtain internal-use software in such arrangements, which are recorded as part of property and equipment, net in the consolidated balance sheets. All capitalized implementation costs are amortized over the term of the arrangement, which includes reasonably certain renewals. Costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Capitalized costs are recorded as property and equipment, net. 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. 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. Deferred Contract Acquisition Costs Under ASC 340-40, Other Assets and Deferred Costs - Contracts with Customers, the Company capitalizes contract acquisition costs that are incremental to the acquisition of customer contracts. Contract acquisition costs are accrued and capitalized upon execution of the sales contract by the customer. 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. Commissions, including referral fees paid to referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years , while commissions earned for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of five months . Deferred Revenue The deferred revenue balance consists of subscription and professional services, which have been invoiced upfront, and are recognized as revenue only when the revenue recognition criteria are met. The Company’s subscription contracts are typically invoiced to its customers at the beginning of the term, or in some instances, such as in multi-year arrangements, in installments. 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-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. The Company recognizes professional services revenue as services are delivered. Once services are available to customers, the Company records amounts due in accounts receivable and in deferred revenue. To the extent the Company bills customers in advance of the contract commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on the consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Revenue Recognition In accordance with ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve the core principle of this standard, the Company applies the following five steps: (1) Identify the contract with a customer 91 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements The Company considers the terms and conditions of contracts with customers and its customary business practices in identifying contracts under ASC 606. The Company determines it has a contract with a customer when the contract is approved, each party’s rights regarding the services to be transferred can be identified, payment terms for the services can be identified, it has been determined that the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer. (2) Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from the Company or from third parties, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. The Company’s performance obligations consist of (i) subscriptions and (ii) professional services. (3) Determine the transaction price The transaction price is determined based on the consideration to which the Company is expected to be entitled in exchange for transferring services to the customer. Variable consideration is included in the transaction price if it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s contracts contain a significant financing component. (4) Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”). (5) Recognize revenue when or as performance obligations are satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised service to the customer. Revenue is recognized when control of the services is transferred to the customer, in an amount that reflects the consideration expected to be received in exchange for those services. The Company generates all its revenue from contracts with customers. Subscription Revenue The Company’s Falcon Platform technology solutions are subscription SaaS offerings designed to continuously monitor, share, and mitigate risks from determined attackers. Subscription revenues are primarily comprised of fees that give customers access to the ordered service, related support, and updates, if any, during the subscription term. Customers do not have the right to take possession of the cloud-based software platform. Fees are based on several factors, including the solutions subscribed for by the customer and the number of endpoints purchased by the customer. The subscription fees are typically payable within 30 to 60 days after the execution of the arrangement, and thereafter upon renewal or subsequent installment. The Company initially records the subscription fees as deferred revenue and recognizes revenue on a straight-line basis over the term of the agreement. 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-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. Some customers have the option to purchase additional subscription at a stated price. These options generally do not provide a material right as they are priced at the Company’s SSP. 92 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements Professional Services Revenue The Company offers several types of professional services including incident response and forensic services, surge forensic and malware analysis, and attribution analysis, which are focused on responding to imminent and direct threats, assessing vulnerabilities, and recommending solutions. These services are distinct from subscription services. Professional services do not result in significant customization of the subscription service. The Company’s professional services are available through time and material and fixed fee agreements. Revenue for time and material agreements is recognized as services are performed. Fixed fee contracts account for an immaterial portion of the Company’s revenue. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple promised services consisting of subscription and professional services that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative SSP basis. The SSP is the price at which the Company would sell promised subscription or professional services separately to a customer. Judgment is required to determine the SSP for each distinct performance obligation. The Company determines SSP based on its overall pricing objectives, taking into consideration the type of subscription or professional service and the number of endpoints. Variable Consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and may include estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If subscriptions do not meet certain service level commitments, the Company’s customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. The Company has historically not experienced any significant incidents affecting the defined levels of reliability and performance as required by its subscription contracts. Accordingly, any estimated refunds related to these agreements in the consolidated financial statements is not material during the periods presented. The Company provides rebates and other credits within its contracts with certain resellers, which are estimated based on the expected value to be earned or claimed on the related sales transaction. Overall, the transaction price is reduced to reflect the Company’s estimate of the amount of consideration to which it is entitled based on the terms of the contract. Estimated rebates and other credits were not material during the periods presented. Research and Development Expense Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above. Research and development expenses consist primarily of personnel and related headcount costs, stock-based compensation expenses, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead. Advertising Most advertising costs are expensed as incurred, except for certain production costs that are deferred and expensed at the time the advertising first takes place. The Company incurred $ 126.5 million, $ 118.1 million, and $ 79.9 million of advertising costs during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. Stock-Based Compensation Compensation related to stock-based awards to employees and directors is measured and recognized in the Company’s consolidated statements of operations based on the fair value of the awards granted. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. The stock-based compensation expense relating to stock options is recognized on a straight-line basis over the period during which the employee or director is required to provide service in exchange for the award, usually the vesting period, which is generally four years . 93 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements Restricted stock units (“RSUs”) are generally subject to a service-based vesting condition. The service-based vesting condition is generally four years . The valuation of these RSUs is based solely on the Company’s stock price on the date of grant, and the corresponding compensation expense is amortized on a straight-line basis. Performance-based stock units (“PSUs”) are generally subject to both a service-based vesting condition and a performance-based vesting condition. The fair value of the award is equal to the Company’s stock price on the date of grant. PSUs generally vest over a four-year period, subject to continued service through the applicable vesting dates. 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. 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. The stock-based compensation expense relating to the Special PSU Awards is recognized using the accelerated attribution method over the longer of the derived service period and the explicit service period. Employee Stock Purchase Plan (“ESPP”) grants are measured based on the fair value at grant date using the Black-Scholes option-pricing model. The resulting stock-based compensation expense is recognized using the accelerated attribution method over a two-year offering period and is accounted for as having four separate tranches starting on the same initial enrollment date. The requisite service periods for the four tranches are approximately 6 , 12 , 18 , and 24 months. The Company accounts for forfeitures as they occur for all stock-based awards. Deferred Compensation In December 2022, the board of directors approved the CrowdStrike Inc. 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. The marketable securities were recorded at fair value based on quoted market prices and were $ 12.7 million and $ 5.5 million as of January 31, 2026 and January 31, 2025, respectively. The deferred compensation liability was $ 12.7 million and $ 5.5 million as of January 31, 2026 and January 31, 2025, respectively, and is included in other liabilities, noncurrent in the consolidated balance sheets. Gains and losses on deferred compensation investments are included in other income (expense), net, and corresponding changes in the deferred compensation liability are included in operating expenses and cost of revenue. Changes in the fair value of the deferred compensation asset and liability were immaterial for the fiscal years ended January 31, 2026 and January 31, 2025. Operating Leases The Company enters into operating lease arrangements for real estate assets related to office space. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date, which is the date the leased assets are made available for use. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current, and operating lease liabilities, noncurrent in the consolidated balance sheets. The Company did not have any financing leases in any of the periods presented. Operating lease right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. 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-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. Lease expenses are recognized on a straight-line basis over the lease term. 94 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 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. Leases with a term of twelve months or less are not recognized on the consolidated balance sheets but are recognized as expense on a straight-line basis over the term of the lease. Debt Issuance Costs 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 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. The unamortized issuance costs relating to the Senior Notes were $ 1.0 million and $ 1.3 million as of January 31, 2026 and January 31, 2025, respectively. All deferred financing costs are amortized to interest expense. The effective interest method is used for debt issuance costs related to the Senior Notes. 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. Foreign Currency Translation and Transactions The functional currencies of the Company’s foreign subsidiaries are generally the country’s local currency. Assets and liabilities of the subsidiaries are translated into U.S. Dollars at exchange rates in effect at the reporting date. Amounts classified in stockholders’ equity (deficit) are translated at historical exchange rates. Revenue and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss). Foreign currency transaction gains or losses, whether realized or unrealized, are reflected in the consolidated statements of operations within other income (expense), net, and have not been material for all periods presented. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company accounts for unrecognized tax benefits using a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company establishes a liability for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. The Company’s assumptions, judgments, and estimates relative to the current provision for income taxes take into account current tax laws, the Company’s interpretation of current tax laws, and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. The Company has established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. In addition, the Company is subject to the continual examination of its income tax returns by the U.S. Internal Revenue Service (“IRS”) and other domestic and foreign tax authorities. The Company regularly assesses the likelihood of outcomes resulting from these examinations to determine the adequacy of its provision for income taxes and have reserved for potential adjustments that may result from such examinations. The Company believes such estimates to be reasonable; however, the final determination of any of these examinations could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements. 95 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements Net Income (Loss) per Share 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 PSU Awards, 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 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 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 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. 96 Table of Contents 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. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance on its disclosures within the consolidated financial statements. 2. Investments and Fair Value Measurements 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. The standard also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from sources independent of the Company. 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. The hierarchy is broken down into three levels as follows: Level 1 Assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in active markets Level 2 Assets and liabilities whose values are based on quoted prices in markets that are not active or inputs that are observable for substantially the full term of the asset or liability Level 3 Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis are as follows (in thousands): January 31, 2026 January 31, 2025 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) Money market funds $ 1,407,062 $ — $ — $ 1,407,062 $ 1,470,040 $ — $ — $ 1,470,040 U.S. Treasury securities — 598,398 — 598,398 — 2,490,097 — 2,490,097 Other assets 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. As of January 31, 2026, and January 31, 2025, the Company’s U.S. Treasury securities are carried at fair value, and there were no material realized or unrealized gains or losses, either individually or in aggregate. 97 Table of Contents 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. The fair value of the Company’s financing receivables is considered to be a Level 3 measurement as unobservable inputs are used in determining discounted cash flows to estimate fair value. Strategic Investments The Company’s investments in privately held securities as of January 31, 2026, consisted of the following (in thousands): Privately held equity securities Privately held debt and other securities Total Initial total cost $ 75,007 $ — $ 75,007 Cumulative net gains 1,825 — 1,825 Carrying amount, end of period $ 76,832 $ — $ 76,832 The Company’s investments in privately held securities as of January 31, 2025, consisted of the following (in thousands): Privately held equity securities Privately held debt and other securities Total Initial total cost $ 68,140 $ 1,000 $ 69,140 Cumulative net gains 3,404 — 3,404 Carrying amount, end of period $ 71,544 $ 1,000 $ 72,544 As of January 31, 2026, the cumulative net gains of $ 1.8 million are comprised of upward adjustments of $ 7.3 million, less downward adjustments and impairment of $ 5.5 million. As of January 31, 2025, the cumulative net gains of $ 3.4 million are comprised of upward adjustments of $ 7.3 million, less downward adjustments and impairment of $ 3.9 million. Gains and Losses on Strategic Investments The components of gains and losses on strategic investments were as follows (in thousands): Year Ended January 31, 2026 2025 2024 Unrealized losses recognized on privately held equity securities including impairment $ ( 1,579 ) $ ( 1,000 ) $ ( 1,459 ) Unrealized losses ( 1,579 ) ( 1,000 ) ( 1,459 ) Realized gains recognized on sales of privately held equity securities 4,161 6,975 3,936 Realized losses recognized on sales of privately held equity securities — ( 654 ) — Realized gains, net 4,161 6,321 3,936 Gains on strategic investments, net $ 2,582 $ 5,321 $ 2,477 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 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. 98 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 3. Financing Receivables The Company’s short-term and long-term financing receivables were as follows (in thousands): January 31, 2026 January 31, 2025 Short-term financing receivables, gross $ 81,723 $ 9,579 Unearned income ( 13,236 ) ( 2,339 ) Allowance for credit losses ( 1,002 ) ( 76 ) Short-term financing receivables, net $ 67,485 $ 7,164 Long-term financing receivables, gross $ 213,601 $ 43,235 Unearned income ( 17,847 ) ( 5,051 ) Allowance for credit losses ( 1,648 ) ( 342 ) Long-term financing receivables, net $ 194,106 $ 37,842 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) 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. 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 . 4. Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses were $ 250.9 million and $ 247.3 million as of January 31, 2026 and January 31, 2025, respectively. Other current assets were $ 128.8 million and $ 67.1 million as of January 31, 2026 and January 31, 2025, respectively. 99 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): January 31, 2026 2025 Data center and other computer equipment $ 1,058,690 $ 755,728 Capitalized internal-use software and website development costs 383,119 265,987 Leasehold improvements 54,305 42,230 Purchased software 18,628 15,876 Furniture and equipment 12,752 10,485 Construction in progress 219,509 220,088 1,747,003 1,310,394 Less: Accumulated depreciation and amortization ( 770,672 ) ( 521,754 ) Property and equipment, net $ 976,331 $ 788,640 Construction in progress primarily includes data center equipment purchased that has not yet been placed in service. Data center equipment that was purchased but not yet been placed into service was $ 161.9 million and $ 180.1 million as of January 31, 2026 and January 31, 2025, respectively. Depreciation and amortization expense of property and equipment was $ 250.2 million, $ 188.0 million, and $ 126.8 million, during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. The Company capitalized $ 120.3 million, $ 91.9 million, and $ 77.9 million in internal-use software and website development costs during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. 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. 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 Total intangible assets, net consisted of the following (dollars in thousands): January 31, 2026 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 202,561 $ 90,199 $ 112,362 54 Customer relationships 25,383 12,122 13,261 53 Intellectual property and other acquired intangible assets 15,854 4,775 11,079 100 Total $ 243,798 $ 107,096 $ 136,702 100 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements January 31, 2025 Weighted-Average Remaining Useful Life Gross Carrying Amount Accumulated Amortization Net Amount (in months) Developed technology $ 168,416 $ 63,783 $ 104,633 55 Customer relationships 24,502 8,454 16,048 65 Intellectual property and other acquired intangible assets 15,837 3,404 12,433 112 Total $ 208,755 $ 75,641 $ 133,114 Amortization expense of intangible assets was $ 31.2 million, $ 26.0 million, and $ 18.4 million, during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. The estimated aggregate future amortization expense of intangible assets as of January 31, 2026 was as follows (in thousands): Total Fiscal 2027 $ 32,852 Fiscal 2028 32,180 Fiscal 2029 29,160 Fiscal 2030 19,783 Fiscal 2031 11,695 Thereafter 11,032 Total future amortization expense $ 136,702 Goodwill The change in goodwill during the fiscal year ended January 31, 2026 consisted of the following (in thousands): Amounts Goodwill as of January 31, 2025 $ 912,805 Goodwill acquired (1) 443,040 Foreign currency translation 7,449 Goodwill as of January 31, 2026 $ 1,363,294 (1) Goodwill acquired resulted from the acquisitions of Pangea Cyber Corporation and Onum Technology Inc. Refer to Note 12 for additional information. Accrued Payroll and Benefits Accrued payroll and benefits consisted of the following (in thousands): January 31, 2026 2025 Accrued commissions $ 207,378 $ 174,322 Accrued payroll and related expenses 100,915 69,197 Accrued bonuses 45,204 42,510 Employee stock purchase plan 36,193 33,214 Accrued payroll and benefits $ 389,690 $ 319,243 101 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 5. Debt Secured Revolving Credit Facility In April 2019, the Company entered into a Credit Agreement with Silicon Valley Bank and other lenders, to provide a revolving line of credit of up to $ 150.0 million, including a letter of credit sub-facility in the aggregate amount of $ 10.0 million, and a swingline sub-facility in the aggregate amount of $ 10.0 million. 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 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. On January 6, 2022, the Company modified the A&R Credit Agreement (the “Amended A&R Credit Agreement”) among CrowdStrike, Inc., as borrower, CrowdStrike Holdings, Inc., as guarantor, and Silicon Valley Bank and the other lenders party thereto. There were no changes to the borrowing amounts or maturity date. 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. Senior Notes 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 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. Interest payments are payable semiannually on February 15 and August 15 of each year, commencing on August 15, 2021. The Company may voluntarily redeem the Senior Notes, in whole or in part, 1) at any time prior to February 15, 2024 at (a) 100.00 % of their principal amount, plus a “make whole” premium or (b) with the net cash proceeds received from an equity offering at a redemption price equal to 103.00 % of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40 % of the original aggregate principal amount of the Senior Notes; 2) at any time on or after February 15, 2024 at a prepayment price equal to 101.50 % of the principal amount; 3) at any time on or after February 15, 2025 at a prepayment price equal to 100.75 % of the principal amount; and 4) at any time on or after February 15, 2026 at a prepayment price equal to 100.00 % of the principal amount; in each case, plus accrued and unpaid interest, if any, to but excluding, the date of redemption. 102 Table of Contents 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. The debt issuance costs are being amortized to interest expense using the effective interest method over the term of the Senior Notes. Interest expense related to contractual interest expense, amortization of debt issuance costs, and accretion of debt discount was $ 24.0 million during both fiscal years ended January 31, 2026 and January 31, 2025. In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase all or, at the holder’s option, any part, of each holder’s notes of that series at 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indenture governing the Senior Notes (the “Indenture”) contains covenants limiting the Company’s ability and the ability of its subsidiaries to create liens on certain assets to secure debt; grant a subsidiary guarantee of certain debt without also providing a guarantee of the Senior Notes; declare dividends; and consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to, another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the notes are rated investment grade by Fitch Ratings, Inc. (“Fitch”), Moody’s Investors Service, Inc. (“Moody’s”), and Standard & Poor’s Ratings Services (“S&P”). As of January 31, 2026, the Company was in compliance with all of its financial covenants under the Indenture associated with the Senior Notes. Based on the trading prices of the Senior Notes, the fair value of the Senior Notes was approximately $ 718.2 million and $ 688.4 million as of January 31, 2026 and January 31, 2025, respectively. While the Senior Notes are recorded at cost, the fair value of the Senior Notes was determined based on quoted prices in markets that are not active; accordingly, the Senior Notes are categorized as Level 2 for purposes of the fair value measurement hierarchy. 6. Income Taxes The Company’s geographical breakdown of its income (loss) before provision for income taxes is as follows (in thousands): Year Ended January 31, 2026 2025 2024 Domestic $ ( 151,441 ) $ 66,415 $ 82,095 International 24,452 ( 7,851 ) 23,576 Income (loss) before provision for income taxes $ ( 126,989 ) $ 58,564 $ 105,671 The provision for income taxes consists of the following (in thousands): Year Ended January 31, 2026 2025 2024 Current Federal $ 177 $ 431 $ 272 State 1,340 2,493 4,462 Foreign 47,456 78,109 30,885 Total current 48,973 81,033 35,619 Deferred Federal 59 323 ( 307 ) State 187 ( 204 ) ( 343 ) Foreign ( 15,043 ) ( 10,022 ) ( 2,737 ) Total deferred ( 14,797 ) ( 9,903 ) ( 3,387 ) Provision for income taxes $ 34,176 $ 71,130 $ 32,232 103 Table of Contents 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 U.S. 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 Brazil Withholding tax 9,690 ( 7.6 ) % Other 498 ( 0.4 ) % Denmark 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 ) % Israel 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 ) % Spain 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 % Tax credits 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. 104 Table of Contents 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, 2025 2024 Provision for income taxes at statutory rate $ 12,298 $ 22,191 State income taxes, net of federal benefits 2,289 4,118 Effects of foreign operations 10,236 22,425 Research and other credits ( 36,669 ) ( 21,182 ) Stock-based compensation ( 125,590 ) ( 31,852 ) Non-deductible expenses 6,904 4,604 Change in valuation allowance 151,762 32,146 Tax impact of foreign transactions 49,883 — Other 17 ( 218 ) Provision for income taxes $ 71,130 $ 32,232 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 ) State 467 Foreign Australia 3,592 Brazil 10,915 India 7,925 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 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 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. 105 Table of Contents 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): As of January 31, 2026 2025 Deferred tax assets Net operating loss carryforwards $ 675,515 $ 400,277 Research and other credit carryforwards 210,753 144,068 Intangible assets 104,051 117,620 Stock-based compensation 85,705 71,140 Deferred revenue 271,640 209,357 Accrued expenses 39,562 29,833 Operating lease liabilities 26,460 17,418 Capitalized research and development 463,335 473,889 Other, net 12,176 13,898 Gross deferred assets 1,889,197 1,477,500 Less: Valuation allowance ( 1,523,498 ) ( 1,203,216 ) Total deferred tax assets 365,699 274,284 Deferred tax liabilities Property and equipment, net ( 104,395 ) ( 64,576 ) Capitalized commissions ( 201,954 ) ( 171,349 ) Operating right-of-use assets ( 25,230 ) ( 16,853 ) Intangible assets ( 4,963 ) ( 6,921 ) Other, net ( 242 ) — Total deferred tax liabilities ( 336,784 ) ( 259,699 ) Net deferred tax assets $ 28,915 $ 14,585 The Company maintains a full valuation allowance on U.S. 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, 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. operations. 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. As of January 31, 2026, net operating loss carryforwards for other states totaled $ 998.3 million, which begin to expire in fiscal 2027 through fiscal 2046. As of January 31, 2026, net operating loss carryforwards for the U.K. totaled $ 84.2 million, which are carried forward indefinitely, and net operating loss carryforwards totaled immaterial amounts in certain foreign jurisdictions. 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 through fiscal 2046. The California R&D credits are carried forward indefinitely. 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. 106 Table of Contents 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. As of January 31, 2026, the Company had $ 41.0 million of unrecognized tax benefits, which, if recognized, would affect the Company’s effective tax rate due to the full valuation allowance. 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 $ 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, 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 4,757 Decreases in prior period tax positions ( 1,321 ) Increases in current period tax positions 18,538 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 ) Settlements with taxing authorities ( 2,882 ) Statute of limitations expirations ( 151 ) Impact from currency fluctuations ( 261 ) Balance as of January 31, 2025 117,540 Increases in current period tax positions 31,538 Increases in prior period tax positions 4,317 Decreases in prior period tax positions ( 21,359 ) Settlements with taxing authorities ( 598 ) Statute of limitations expirations ( 593 ) Impact from currency fluctuations 6,963 Balance as of January 31, 2026 $ 137,808 The Company files income tax returns in the U.S. federal, foreign, and various state jurisdictions. Tax years 2011 and onwards remain subject to examination by taxing authorities. 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. 107 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 7. Leases Operating Leases 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. Cash paid for amounts included in the measurement of operating lease liabilities was $ 19.6 million, $ 19.5 million, and $ 15.4 million for the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets were $ 40.9 million and $ 6.8 million for the fiscal years ended January 31, 2026 and January 31, 2025, respectively. The weighted-average remaining lease terms were 4.7 years and 2.9 years as of January 31, 2026 and January 31, 2025, respectively. The weighted-average discount rates were 5.3 % and 5.5 % as of January 31, 2026 and January 31, 2025, respectively. The components of lease costs were as follows (in thousands): Year Ended January 31, 2026 2025 2024 Lease cost Operating lease cost $ 20,141 $ 17,326 $ 15,510 Short-term lease cost 5,159 3,519 3,664 Variable lease cost 14,840 11,526 8,480 Total lease cost $ 40,140 $ 32,371 $ 27,654 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 Fiscal 2027 $ 16,906 Fiscal 2028 20,419 Fiscal 2029 14,007 Fiscal 2030 11,290 Fiscal 2031 7,768 Thereafter 12,285 Total operating lease payments 82,675 Less: imputed interest ( 8,069 ) Present value of operating lease liabilities $ 74,606 108 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 8. Stock-Based Compensation Stock Incentive Plan 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, RSUs, PSUs, and Special PSU Awards. A total of 8,750,000 shares of Class A common stock were initially available for issuance under the 2019 Plan. The Company’s compensation committee administers the 2019 Plan. The number of shares of the Company’s common stock available for issuance under the 2019 Plan is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (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 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. Stock Options The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model. Stock options granted during both fiscal years ended January 31, 2026 and January 31, 2025 were immaterial. The following table is a summary of stock option activity for the fiscal year ended January 31, 2026: Number of Shares Weighted- Average Exercise Price Per Share (in thousands) Options outstanding at January 31, 2025 1,251 $ 10.23 Granted 44 $ 44.95 Exercised ( 359 ) $ 8.79 Canceled ( 4 ) $ 22.02 Options outstanding at January 31, 2026 932 $ 12.38 Options vested and expected to vest at January 31, 2026 932 $ 12.38 Options exercisable at January 31, 2026 885 $ 10.94 There were no options that were unvested and exercisable as of January 31, 2026. The aggregate intrinsic value of options vested and exercisable was $ 381.0 million, $ 472.3 million, and $ 451.0 million as of January 31, 2026, January 31, 2025, and January 31, 2024, respectively. The weighted-average remaining contractual term of options vested and exercisable was 2.6 years, 3.5 years, and 4.2 years as of January 31, 2026, January 31, 2025, and January 31, 2024, respectively. The weighted-average grant date fair values of all options granted was $ 410.68 , $ 321.98 , and $ 126.16 per share during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. The total intrinsic value of all options exercised was $ 161.7 million, $ 170.4 million, and $ 190.1 million during the fiscal years ended January 31, 2026, January 31, 2025, and January 31, 2024, respectively. 109 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements The aggregate intrinsic value of stock options outstanding as of January 31, 2026, January 31, 2025, and January 31, 2024 was $ 399.9 million, $ 485.3 million, and $ 496.7 million, respectively, which represents the excess of the fair value of the Company’s common stock over the exercise price of the options, multiplied by the number of options outstanding. The weighted-average remaining contractual term of stock options outstanding was 2.9 years, 3.6 years, and 4.3 years as of January 31, 2026, January 31, 2025, and January 31, 2024, respectively. Total unrecognized stock-based compensation expense related to unvested options was $ 16.9 million as of January 31, 2026. This expense is expected to be amortized over a weighted-average vesting period of 1.9 years. Restricted Stock Units RSUs granted under the 2019 Plan are generally subject to only a service-based vesting condition. The service-based vesting condition is generally satisfied based on one of the following vesting schedules: (i) vesting of one-fourth of the RSUs on the first “Company vest date” (defined as March 20, June 20, September 20, or December 20) on or following the one-year anniversary of the vesting commencement date, with the remainder of the RSUs vesting in twelve equal quarterly installments thereafter, subject to continued service, (ii) vesting in sixteen equal quarterly installments, subject to continued service, or (iii) vesting in sixteen quarterly installments with 10 % in the first year, 15 % in the second year, 25 % in the third year, and 50 % in the fourth year, subject to continued service. The valuation of these RSUs is based solely on the fair value of the Company’s stock on the date of grant. Total unrecognized stock-based compensation expense related to unvested RSUs was $ 1.7 billion as of January 31, 2026. This expense is expected to be amortized over a weighted-average vesting period of 2.2 years. Performance-based Stock Units PSUs granted under the 2019 Plan are generally subject to both a service-based vesting condition and a performance-based vesting condition. PSUs will vest upon the achievement of specified performance targets and subject to continued service through the applicable vesting dates. 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. Total unrecognized stock-based compensation expense related to unvested PSUs was $ 157.4 million as of January 31, 2026, which reflects the Company's updated assessment of the likelihood of satisfying the performance conditions. This expense is expected to be amortized over a weighted-average vesting period of 1.1 years. Special PSU Awards 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: 110 Table of Contents 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 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 a period commensurate with the expected term of the award on the grant date. 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. This expense is expected to be amortized over a weighted-average vesting period of 2.4 years. The following table is a summary of RSUs, PSUs, and the Special PSU Awards activities for the fiscal year ended January 31, 2026: Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) RSUs and PSUs outstanding at January 31, 2025 11,024 $ 227.55 Granted 2,479 $ 451.58 Released ( 4,646 ) $ 222.71 Performance adjustment (1) ( 55 ) $ 296.43 Forfeited ( 950 ) $ 252.76 RSUs and PSUs outstanding at January 31, 2026 7,852 $ 297.62 RSUs and PSUs expected to vest at January 31, 2026 (2) 7,512 $ 284.50 (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 the 2026 Special PSU Award where pre-defined targets have not yet been achieved. Employee Stock Purchase Plan In May 2019, the board of directors adopted, and the stockholders approved, the CrowdStrike Holdings, Inc. 2019 Employee Stock Purchase Plan (“ESPP”), which became effective 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. A total of 3,500,000 shares of Class A common stock were initially reserved for issuance under the ESPP. The Company’s compensation committee administers the ESPP. The number of shares of common stock available for issuance under the ESPP is subject to an annual increase on the first day of each fiscal year beginning on February 1, 2020, equal to the lesser of: (i) one percent ( 1 %) of the 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 its board of directors may determine. In May 2021, the Company’s compensation committee adopted an amendment and restatement of the ESPP, which was approved by the Company’s stockholders in June 2021. The amended and restated ESPP clarified the original intent that the annual increase will in no event exceed 5,000,000 shares of the Company’s Class A common stock in any year. The ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and are comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 11 and December 11 of each year. The first offering period commenced on June 11, 2019 and ended on June 10, 2021. 111 Table of Contents 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. A participant may purchase a maximum of 2,500 shares of common stock during a purchase period. Amounts deducted and accumulated by the participant are used to purchase shares of common stock at the end of each six-month purchase period. The purchase price of the shares is 85 % of the lower of the fair market value of the Class A common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the related offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment. The ESPP allows for up to one increase in contribution during each purchase period. 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 current offering period. 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 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. ESPP employee payroll contributions accrued as of January 31, 2026 and January 31, 2025 totaled $ 36.2 million and $ 33.2 million, respectively, and are included within accrued payroll and benefits in the consolidated balance sheets. The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine the fair value of employee stock purchase rights granted under the Company’s ESPP: Year Ended January 31, 2026 2025 2024 Expected term (in years) 0.5 – 2.0 0.5 – 2.0 0.5 – 2.0 Risk-free interest rate 3.5 % – 5.2 % 3.4 % – 5.3 % 0.2 % – 5.3 % Expected stock price volatility 41.0 % – 59.8 % 40.8 % – 59.8 % 40.8 % – 61.2 % Dividend yield — % — % — % Stock-Based Compensation Expense Stock-based compensation expense included in the consolidated statements of operations is as follows (in thousands): Year Ended January 31, 2026 2025 2024 Subscription cost of revenue $ 92,237 $ 72,661 $ 45,884 Professional services cost of revenue 37,869 30,748 23,509 Sales and marketing 287,023 235,144 175,516 Research and development 439,088 336,306 217,719 General and administrative 241,451 186,532 186,037 Total stock-based compensation expense $ 1,097,668 $ 861,391 $ 648,665 112 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 9. Revenue, Deferred Revenue and Remaining Performance Obligations The following table summarizes revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages): Year Ended January 31, 2026 2025 2024 Amount % Revenue Amount % Revenue Amount % Revenue United States $ 3,216,654 67 % $ 2,682,942 68 % $ 2,088,054 68 % Europe, Middle East, and Africa 782,666 16 % 619,483 16 % 467,928 15 % Asia Pacific 495,701 10 % 402,453 10 % 315,524 10 % Other 316,984 7 % 248,746 6 % 184,049 7 % Total revenue $ 4,812,005 100 % $ 3,953,624 100 % $ 3,055,555 100 % 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. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The Company recognized revenue of $ 2,683.7 million and $ 2,251.3 million for the fiscal years ended January 31, 2026 and January 31, 2025, respectively, which was included in the corresponding contract liability balance at the beginning of the period. The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 – 60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. Changes in deferred revenue were as follows (in thousands): Year Ended January 31, 2026 2025 Beginning balance $ 3,728,677 $ 3,054,099 Additions to deferred revenue 5,836,766 4,628,202 Recognition of deferred revenue ( 4,812,005 ) ( 3,953,624 ) Ending balance $ 4,753,438 $ 3,728,677 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-cancelable. Customers generally have the right to terminate their contracts for cause as a result of the Company’s failure to perform. As of January 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 9.0 billion. The Company expects to recognize approximately 51 % of the remaining performance obligations in the 12 months following January 31, 2026 and 43 % of the remaining performance obligations between 13 to 36 months, with the remainder to be recognized thereafter. Costs to Obtain and Fulfill a Contract The Company capitalizes referral fees paid to partners and sales commissions and associated payroll taxes paid to internal sales personnel, contractors, or sales agents that are incremental to the acquisition of channel partner and direct customer contracts and would not have occurred absent the customer contract. These costs are recorded as deferred contract acquisition costs, current and deferred contract acquisition costs, noncurrent on the consolidated balance sheets. 113 Table of Contents 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. Commissions, including referral fees paid to referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years , while commissions earned for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of five months . Commissions are included in sales and marketing expense in the consolidated statements of operations. In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology. 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 fiscal year ended January 31, 2026. The following table summarizes the activity of deferred contract acquisition costs (in thousands): Year Ended January 31, 2026 2025 Beginning balance $ 847,950 $ 582,303 Capitalization of contract acquisition costs 704,576 584,484 Amortization of deferred contract acquisition costs ( 449,413 ) ( 318,837 ) Ending balance $ 1,103,113 $ 847,950 Deferred contract acquisition costs, current $ 447,455 $ 347,042 Deferred contract acquisition costs, noncurrent 655,658 500,908 Total deferred contract acquisition costs $ 1,103,113 $ 847,950 10. Commitments and Contingencies July 19 Incident On July 19, 2024, the Company released a content configuration update for its Falcon sensor that resulted in system crashes for certain Windows systems (the “July 19 Incident”). The Company is subject to a number of legal proceedings in connection with the July 19 Incident, including: • On July 30, 2024, a putative class action lawsuit was filed against the Company and certain of the Company’s officers in federal court in the Western District of Texas alleging violations of federal securities laws, including that the defendants made false or misleading statements. The complainants seek certification of a class of all persons who purchased or otherwise acquired the Company’s securities during specified periods of time and are seeking unspecified monetary damages, costs and attorneys’ fees. On January 21, 2025, an amended complaint was filed. 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 114 Table of Contents 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. The complainants seek monetary and non-monetary relief purportedly on behalf of the Company. On November 21, 2024, all three cases were consolidated and stayed pending resolution of the putative securities class action described above. 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. (“Delta”) filed a complaint against CrowdStrike, Inc. in the Superior Court for Fulton County, Georgia, alleging, among other things, computer trespass, trespass to personalty, breach of contract, intentional misrepresentation/fraud by omission, strict-liability product defect, gross negligence, and deceptive and unfair business practices. Delta is seeking unspecified monetary damages, attorneys’ fees and unspecified punitive damages. The matter has been transferred to the Metro Atlanta Business Case Division. On December 16, 2024, CrowdStrike, Inc. filed a motion to dismiss. 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. For any claims and legal proceedings 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. 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 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. 115 Table of Contents 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. Certain costs may be recoverable under the Company’s insurance policies in effect at the date of the July 19 Incident. Any amounts recoverable under such policies will be reflected in future periods in which recovery is considered probable. 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): Amounts Balance at January 31, 2024 $ — Expenses incurred, net of insurance receivable recorded (1) 60,062 Payments made / cash received ( 38,917 ) Balance at January 31, 2025 $ 21,145 Expenses incurred, net of insurance receivable recorded (1) 117,730 Payments made / cash received ( 123,377 ) Balance at January 31, 2026 $ 15,498 (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. These amounts are, or will be, entirely offset by recoveries under the Company’s insurance policies. Accordingly, there is no impact on the Company’s consolidated statement of operations for the fiscal year ended January 31, 2026. The customer payables and insurance receivables were recorded as accrued expenses and as prepaid expenses and other current assets in the Company’s consolidated balance sheet as of January 31, 2026, respectively. Other Legal Proceedings 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. Other than as discussed above, there is no pending or threatened legal proceeding to which the Company is a party that, in the Company’s opinion, is reasonably possible to have a material effect on its consolidated financial statements; however, the results of litigation and claims are inherently unpredictable. Regardless of the outcome, litigation can have an adverse impact on the Company’s business because of defense and settlement costs, diversion of management resources, and other factors. 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. 116 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements Purchase Obligations 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): Total Commitments Fiscal 2027 $ 600,248 Fiscal 2028 661,041 Fiscal 2029 627,562 Fiscal 2030 517,282 Fiscal 2031 206,871 Thereafter 157,400 Total purchase commitments $ 2,770,404 Unfunded Loan Commitments The Company provides financing arrangements for certain qualified end-users to purchase its products and services. 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 cancelable by the Company. The Company had non-cancelable unfunded commitments totaling approximately $ 89.9 million as of January 31, 2026. Warranties and Indemnification The Company’s cloud computing services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s online help documentation under normal use and circumstances. In addition, for its Falcon Complete customers, the Company offers a limited warranty, subject to certain conditions, to cover certain costs incurred by the customer in case of a cybersecurity breach. The Company has entered into an insurance policy to reduce its potential liability arising from such limited warranty arrangements. The Company’s customer arrangements generally include certain provisions for indemnifying customers against losses suffered or incurred as a result of third-party claims that the Company’s products or services infringe a third party’s intellectual property rights. From time to time, the Company has also agreed to certain other indemnifications and warranties. 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 . 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. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions. No liabilities have been accrued associated with this indemnification provision as of January 31, 2026 or January 31, 2025 . 117 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 11. Geographic Information The Company’s property and equipment, net and operating lease right-of-use assets, are summarized by geographic area as follows (in thousands): January 31, 2026 2025 United States $ 855,312 $ 688,766 Germany 106,657 88,443 Other countries 84,222 54,194 Total property and equipment, net and operating lease right-of-use assets $ 1,046,191 $ 831,403 12. Acquisitions 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. 118 Table of Contents 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 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. 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 (in months) 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 On November 20, 2024, the Company acquired 100 % of the equity interest of A.S. Adaptive Shield Ltd. (“Adaptive Shield”), a SaaS-based cybersecurity company that offers customers comprehensive SaaS security posture management solutions. The acquisition has been accounted for as a business combination. The total consideration transferred consisted of $ 213.7 million in cash, net of $ 13.7 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 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. 119 Table of Contents 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. Additionally, certain shares of Adaptive Shield stock held by Adaptive Shield 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 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. 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 (in months) Developed technology $ 23,600 72 Customer relationships 7,500 72 Total intangible assets acquired $ 31,100 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. The acquisition of Adaptive Shield did not have a material impact on the Company’s consolidated financial statements, and therefore historical and pro forma disclosures have not been presented. Flow Security On March 26, 2024, the Company acquired 100 % of the equity interest of Flow Security Ltd. (“Flow Security”), a leading provider of data security solutions. The acquisition has been accounted for as a business combination. The total consideration transferred consisted of $ 96.4 million in cash, net of $ 0.8 million of cash acquired, and $ 0.5 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 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. Goodwill is not deductible for income tax purposes. Per the terms of the share purchase agreement with Flow Security, certain unvested stock options held by Flow Security employees were canceled and exchanged for replacement stock options under the 2019 Plan. Additionally, certain shares of Flow Security stock held by Flow Security employees were exchanged for the right to receive 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 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. 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. 120 Table of Contents CrowdStrike Holdings, Inc. Notes to Consolidated Financial Statements 13. Net Income (Loss) Per Share Attributable to Common Stockholders Basic and diluted net income (loss) per share attributable to CrowdStrike’s common stockholders is computed in conformity with the two-class method required for participating securities. Basic net income (loss) per share attributable to CrowdStrike common stockholders is computed by dividing the net income (loss) attributable to CrowdStrike by the weighted-average number of shares of common stock outstanding during the period. 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 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. As such, the undistributed earnings are allocated equally to each share of common stock without class distinction and the resulting basic and diluted net income (loss) per share attributable to CrowdStrike common stockholders are the same for shares of Class A and Class B common stock. 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. 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): Year Ended January 31, 2026 2025 2024 Numerator: Net income (loss) attributable to CrowdStrike $ ( 162,502 ) $ ( 15,241 ) $ 72,181 Denominator: Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders, basic 250,576 244,750 238,637 Dilutive effect of common stock equivalents — — 4,998 Weighted-average shares used in computing net income (loss) per share attributable to CrowdStrike common stockholders, dilutive 250,576 244,750 243,635 Net income (loss) per share attributable to CrowdStrike common stockholders, basic $ ( 0.65 ) $ ( 0.06 ) $ 0.30 Net income (loss) per share attributable to CrowdStrike common stockholders, diluted $ ( 0.65 ) $ ( 0.06 ) $ 0.30 121 Table of Contents 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): Year Ended January 31, 2026 2025 2024 RSUs and PSUs subject to future vesting 7,512 10,454 3,125 Shares of common stock issuable from stock options 885 1,217 1 Share purchase rights under the Employee Stock Purchase Plan 476 742 411 Potential common shares excluded from diluted net income (loss) per share 8,873 12,413 3,537 The above table excludes founder holdbacks related to business combinations where a variable number of shares will be issued upon vesting to settle a fixed monetary amount of $ 45.4 million, contingent upon continued employment with the Company. The share price will be determined based on the Company’s average stock price or the volume weighted average stock price five days prior to each vesting date. 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, 2026, the above table also excludes 340,021 outstanding shares of in progress PSUs where pre-defined targets have not yet been achieved. 14. Segment Information CrowdStrike’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, the CODM uses consolidated net income (loss) to measure segment profit or loss, evaluate financial performance, and allocate resources. Consolidated net income (loss) is evaluated on a monthly basis by comparing actual results against budgeted or forecasted net income (loss), facilitating the analysis of the Company’s financial trends. Significant expenses within net income (loss) include cost of revenue for subscription and professional services, sales and marketing expenses, research and development expenses, and general and administrative expenses. Other segment items within net income (loss) include interest expense, interest income, other income, net, and provision for income taxes, which are each separately disclosed and presented in the consolidated statements of operations. 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. 15. 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. 122 Table of Contents 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): Year Ended 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): Year Ended 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. 16. 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 ) 123 Table of Contents 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. 17. 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. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. 124 Table of Contents