CrowdStrike has reported 20 percent increase in its first-quarter revenue to $1.10 billion, as it continued to add major customers despite tightened IT budgets.
CrowdStrike’s Annual Recurring Revenue (ARR) has reached $4.44 billion, reflecting 22 percent year-over-year growth. The company added $194 million in new ARR and achieved $1.1 billion in subscription revenue with 80 percent gross margin.
Flex model adoption significantly contributed to platform growth, with accounts on this model representing over $3.2 billion in total deal value. In Q1 alone, Flex accounts added $774 million in total contract value, marking a 124 percent increase. The average deal size for Flex customers exceeded $1 million, and over 75 percent of existing Flex contracts were already deployed. Additionally, 39 Flex customers returned for renewed engagements.
CrowdStrike also saw 113 percent growth in deals exceeding $10 million, with 60 percent of Q1 deal value sourced through partners and more than 15 percent from Managed Security Service Provider (MSSP) channels. The company’s next-gen SIEM ending ARR grew over 100 percent year-over-year, underscoring its strength as a trusted cybersecurity platform leveraging AI-powered solutions.
CrowdStrike did not reveal its revenue from AI solutions.
George Kurtz, Founder and CEO of CrowdStrike, said: “The scale of Falcon Flex demand and the pace of innovation across AI, next-gen SIEM, cloud, identity, and exposure management advances us towards $10 billion in ending ARR.”
Innovations
CrowdStrike recently announced several advancements aimed at strengthening its cybersecurity platform and market position. As of April 30, 2025, module adoption rates stood at 48 percent for six or more modules, 32 percent for seven or more, and 22 percent for eight or more.
The company launched Falcon Privileged Access within its Falcon Identity Protection suite and introduced Charlotte AI Agentic Response and Workflows to enhance SOC operations. It unveiled AI Model Scanning and Shadow AI detection features, leveraging NVIDIA AI software to advance AI-powered cybersecurity.
CrowdStrike became the first to offer managed threat hunting for third-party data via Falcon Adversary OverWatch Next-Gen SIEM and rolled out new Falcon Data Protection tools to safeguard data across endpoints, cloud, SaaS, and GenAI environments.
Additional innovations in Falcon Exposure Management aim to replace outdated tools and extend AI-driven risk prioritization to network assets. The company also announced a partnership with Microsoft to standardize cyber threat identification across vendors and launched a Services Partner Program to support broader adoption of its Next-Gen SIEM platform among GSIs, MSPs, and MSSPs.
Cautious outlook
However, the cybersecurity firm offered a cautious outlook for the second quarter, projecting revenue between $1.14 billion and $1.15 billion triggering a 5.7 percent dip in its shares after hours, Reuters news report said.
CrowdStrike disclosed a $29 million hit to free cash flow in Q2 related to an outage and associated expenses.
Strategic Customer Wins Power Momentum
While budget constraints across government and enterprise sectors have slowed overall tech spending, CrowdStrike’s focus on landing high-value contracts in strategic industries has helped sustain growth. The company continues to expand its footprint among large enterprises, benefiting from heightened demand for endpoint protection, threat intelligence, and managed security services in sectors facing sophisticated cyberattacks.
Despite weaker public sector spending — cited by analysts as a concern heading into 2025 —CrowdStrike has seen momentum in regulated industries such as healthcare, financial services, and critical infrastructure, where the need for robust cybersecurity remains non-negotiable.
Strategy Centered on Platform Expansion
CrowdStrike’s strategic focus on platform unification via its Falcon platform continues to set it apart. Rather than relying on point solutions, the company is deepening customer engagement through cross-selling and upselling within its existing base. This platform-centric model is central to its growth strategy, aimed at increasing customer lifetime value and improving retention.
Additionally, CrowdStrike remains committed to investing in AI and automation to improve threat detection and response capabilities, further differentiating itself from competitors like Palo Alto Networks and Fortinet.
Rajani Baburajan
