CrowdStrike's Q1 FY 2026 Earnings: A Record-Breaking Quarter for the Cybersecurity Leader
CrowdStrike, the leading cybersecurity software company, has announced a stellar performance in its fiscal first quarter of 2026. According to the company's latest conference call transcript reported on June 3, 2025, CrowdStrike has achieved impressive results that demonstrate its continued leadership and growth in the industry.
In his opening remarks, George Kurtz, Chief Executive Officer and Founder of CrowdStrike, emphasized the company's strong position and ability to capitalize on accelerated demand through continuous innovation. He highlighted several key metrics that were met or exceeded during Q1, including a net new Annual Recurring Revenue (ARR) of $194 million, double-digit millions ahead of expectations.
The company also announced that its ending ARR surpassed $4.4 billion, solidifying its leadership as the only pure-play cybersecurity software company of this size. Additionally, CrowdStrike reported a subscription gross margin of 80%, demonstrating the efficiency of its AI platform, and sustained 97% gross retention, with customers remaining firmly committed to the Falcon platform.
One of the most significant developments during Q1 was the growth of CrowdStrike's subscription-based model, known as Falcon Flex. The company added $774 million of total Falcon Flex account value, bringing the total deal value of accounts that have adopted the subscription model to $3.2 billion, a 31% sequential and more than 6x year-over-year increase.
Falcon Flex has proven to be a game-changer for CrowdStrike, as it sparks Falcon platform adoption, delivers point product consolidation, and fuels partner success. The company reported that the average Flex customer deal size is greater than $1 million in ending ARR, customers commit to longer durations, with an average subscription length of 31 months, and Flex customers adopt Falcon faster, with more than 75% of Flex contracts already deployed.
What's even more impressive is the phenomenon of Reflexes, where 39 Flex customers have already deployed their initial contract demand plan and returned to CrowdStrike wanting more of the Falcon platform. These customers' initial Flex contracts were 35 months on average, and they came back to CrowdStrike within just 5 months, seeking additional cybersecurity consolidation goals.
As George Kurtz noted, "The model we pioneered is a game changer. Flex accelerates what would have taken years of module sales cycles into rapid platform transformations unlocking adoption and spend while creating even more platform stickiness."
