SentinelOne shares jumped 10.6% to $22.69 on Aug. 27. The six-month report filed the next day describes a business still growing quickly, though the cash coming out of that growth got thinner.
Revenue rose 20.6% year over year to $292.0 million for the six months ended July 31. Operating cash flow fell 37.6% to $31.9 million, cash declined to $201.0 million, and diluted shares increased 3.2%.
That is the central tension in the numbers: SentinelOne is adding sales, but it is not converting them into cash at the same rate. Accounts receivable rose 22.6% to $219.9 million, faster than revenue. The company does not disclose why in the figures provided.
Management directly links the margin pressure to serving that growth. Gross margin fell to 72% from 75%, even as revenue expanded.
"Gross margin decreased to 72% compared to 75% in the prior period, primarily due to higher costs of revenue associated with scaling operations to meet increased customer demand and sales volume."
SentinelOne 10-Q, Aug. 28, 2026
In plain English, more demand came with a higher cost to deliver the product. Gross profit still increased 15.8%, but that lagged the 20.6% revenue gain.
The loss also carries a restructuring charge that needs to be separated from the underlying operating line. Restructuring charges increased by $20.5 million, with the May 2026 plan accounting for $24.4 million, including employee severance and stock-based compensation.
"Restructuring charges increased by $20.5 million, primarily due to $24.4 million of charges related to the May 2026 Plan, consisting of $13.6 million in employee severance and related benefits and $10.8 million of stock-based compensation expense from the acceleration and modification of certain equity awards."
SentinelOne 10-Q, Aug. 28, 2026
The $10.8 million stock-based compensation item is a non-cash accounting expense, while the severance and related benefits are tied to the restructuring program. Even with those items, the operating loss widened to $90.8 million from $80.6 million, and net loss widened to $93.4 million from $72.0 million.
The cost base is moving, too. Research and development expense rose 22.5% to $96.9 million, while stock compensation increased 24.7% to $92.1 million. The latest six-month net margin moved in the other direction, to negative 32.0% from negative 29.7%.
At the latest close, SentinelOne had a $7.5 billion market capitalization and an enterprise value equal to 7.3 times annual sales. Its shares had risen 68.3% over six months, a market backdrop that puts more attention on whether sales growth can eventually produce steadier cash generation, not just a larger revenue base.
The unanswered question is straightforward: in SentinelOne's next report, will operating cash flow regain ground against revenue while receivables and gross-margin pressure remain part of the expansion?
Source: SentinelOne 10-Q filed Aug. 28, 2026.