CRWD - Comprehensive Filing Intelligence

Q3 2026•10-Q•Filed Dec 3, 2025
5.0/10
Filing Health:CAUTION

Notable concerns that warrant closer review

Executive Summary

Despite the July 19 Incident causing sales cycle delays and increased customer contraction, the company maintained strong gross retention and achieved 23% ARR growth.. Management is prioritizing continued investment in sales, marketing, and R&D to capture a large market opportunity, signaling a focus on growth.. Significant contingent liabilities exist due to numerous lawsuits stemming from the July 19 Incident, with potential for material impact and ongoing legal/professional expenses.. Total revenue increased 22% YoY to $1,234.2M for the quarter.

Top Concerns

  • !Gross margins have slightly declined due to increased stock-based compensation and data center depreciation, while professional services margins saw a larger drop due to consulting expenses.
  • !High stock-based compensation expense relative to revenue (22.93%) indicates potential significant dilution and earnings quality concerns.
  • !Significant increase in goodwill through acquisitions ($442.21M) warrants scrutiny for potential overpayment or integration risks.
  • !Significant contingent liabilities exist due to numerous lawsuits stemming from the July 19 Incident, with potential for material impact and ongoing legal/professional expenses.
  • !Substantial non-cancelable purchase obligations totaling $2.57 billion over the next several fiscal years, primarily for data center capacity and technology.

Top Positives

  • +Despite the July 19 Incident causing sales cycle delays and increased customer contraction, the company maintained strong gross retention and achieved 23% ARR growth.
  • +Management is prioritizing continued investment in sales, marketing, and R&D to capture a large market opportunity, signaling a focus on growth.
  • +Gross margins have slightly declined due to increased stock-based compensation and data center depreciation, while professional services margins saw a larger drop due to consulting expenses.

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is balanced with focus on increase in stock-based compensation expense.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

4.0/10

Earnings quality shows aggressive accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is moderate with $2.57 billion in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows july 19 incident impact as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.