CrowdStrike shares rose 2.2% to $189.49 at the latest close. The latest filing gives investors a more complicated object to price: a business growing quickly, generating serious cash, and still losing money before investments and other income are counted.
For the six months ended July 31, revenue rose 25.8% to $1.5 billion, while gross margin edged up to 74.6%. Operating loss narrowed from $105.5 million to $33.2 million, and net income moved from a $70.2 million loss to $5.3 million.
The cash number is much larger than the profit number. Operating cash flow reached $1.1 billion, up 56.4% from the comparable six-month period. But that cash did not simply pile up: investing activities used $1.1 billion, including $881.4 million for the Seraphic and SGNL acquisitions and $222.0 million of capital spending.
The company attributes the operating-cash inflow largely to movements in working capital, not just to accounting profit. Its explanation includes a large reduction in accounts receivable and a rise in deferred revenue, alongside a substantial increase in deferred contract acquisition costs.
"The net cash inflow from changes in operating assets and liabilities was primarily due to a $324.2 million decrease in accounts receivable, an $83.3 million increase in deferred revenue, a $28.4 million increase in accrued payroll and benefits, and an $11.9 million increase in accrued expenses and other liabilities, partially offset by a $298.4 million increase in deferred contract acquisition costs, a $95.4 million increase in prepaid expenses and other assets, a $9.1 million decrease in operating lease liabilities, and a $7.7 million decrease in accounts payable."
CrowdStrike, 10-Q, 2026-08-27
That cash conversion period is also a reminder that operating cash flow and operating income are measuring different things. Accounts receivable grew 17.1% year over year on the balance sheet, and capex nearly doubled from the comparable period.
The bottom line also received help outside the core operating line. CrowdStrike said other income rose mainly because of $36.4 million in realized gains on strategic investments and the absence of downward adjustments or impairment charges in the current period. Those are realized gains, but they are not revenue from selling cybersecurity software.
"Investing Activities Net cash used in investing activities of $1.1 billion during the six months ended July 31, 2026 was primarily due to business acquisitions, net of cash acquired, of $881.4 million, which was related to the Seraphic and SGNL acquisitions, purchases of property and equipment of $222.0 million, capitalized internal-use software and website development costs of $49.1 million, purchases of deferred compensation investments of $4.3 million, purchases of strategic investments of $3.4 million, and purchases of intangible assets of $3.0 million, partially offset by proceeds from sales of strategic investments of $17.5 million."
CrowdStrike, 10-Q, 2026-08-27
The spending makes the cash story less passive. CrowdStrike is using its cash generation to buy businesses and build infrastructure, while research and development rose 29.7% and sales and marketing costs also increased. Stock compensation rose 34.8% to $376.9 million, another non-cash expense that helps explain why operating cash flow is so far ahead of operating income.
The longer record adds one more wrinkle. Annual revenue growth slowed to 21.7% in the year ended January 31, 2026, while operating margin was negative 6.1%. The latest six-month figures show improvement from that base, but not a completed transition to operating profitability.
The unresolved question is how CrowdStrike’s next reported period will separate cash generated from collections and deferred revenue, investment gains, and non-cash compensation from profit generated by the operating business itself. CrowdStrike’s latest 10-Q leaves that operating-profit bridge unresolved.