CRWD

CrowdStrike remains a top-tier growth franchise. FY2026 revenue of $4.81B (+21.7% YoY) marks a fifth straight year of ~20%+ growth — and notably that pace held even as the company absorbed what its 10-K calls the 'July 19 Incident,' which it says 'has had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation, results of operations and financial condition.' The model is the high-quality kind: subscription, land-and-expand across Falcon modules, with a 74.7% gross margin. Revenue durability is the strongest part of this call.

Profitability optics look ugly but are mostly non-cash. GAAP net income swung from +$72.2M (FY2024) to -$15.2M (FY2025) to -$163M (FY2026), with operating income -$293M (-6.1% margin) and ROE -3.7%. Yet operating cash flow was $1.61B (+16.7%), implying roughly $1.31B of free cash flow after $302M of capex. The gap between a GAAP loss and gushing cash reflects heavy reinvestment (R&D $1.38B, +28.7%), stock-based comp, and incident-related costs — not a broken business. The accumulated deficit of -$1.28B is the legacy of years of growth spending, not current cash burn.