Are there any notable changes in gross margins, operating expenses, or cash flow that could impact valuation?
Answer
The press release youâve shared is only an announcement of the upcoming FiscalâŻQ2âŻ2026 earnings release and conference call (the call is scheduled forâŻ2âŻp.m.âŻPT /âŻ5âŻp.m.âŻET onâŻWednesday,âŻAugustâŻ27âŻ2025).âŻIt does not contain any of the actual financial resultsâsuch as grossâmargin percentages, operatingâexpense line items, or cashâflow figuresâthat would allow us to assess whether there are ânotable changesâ that could affect CrowdStrikeâs valuation.
What this means for your question
| Item | Information in the release | What we can infer |
|---|---|---|
| Gross margins | Not disclosed | No data to evaluate any shift (e.g., improvement fromâŻ70âŻ% toâŻ72âŻ% or a decline). |
| Operating expenses | Not disclosed | No insight into R&D, salesâandâmarketing, or G&A trends that might affect profitability or growthârate assumptions. |
| Cash flow | Not disclosed | No visibility on operatingâcashâflow, freeâcashâflow, or capitalâexpenditure changes. |
Because the release is purely a logistical notice, we cannot comment on the magnitude or direction of any of those metrics.
How to prepare for the upcoming results
While we wait for the actual Q2âŻ2026 data, here are the typical areas analysts focus on for CrowdStrike (or any highâgrowth cybersecurity firm) and why they matter for valuation:
| Metric | Why it matters for valuation | What to watch for in the upcoming call |
|---|---|---|
| Gross margin | A higher or stable gross margin signals pricing power and efficient delivery of the cloudânative platform. A widening margin can justify a higher EV/Revenue or EV/EBITDA multiple, while a narrowing margin may raise concerns about costâinflation or pricing pressure. | Look for any change in the grossâmargin % versus prior quarters and the companyâs commentary on pricing, product mix (e.g., more subscriptionâbased services), or costâstructure adjustments. |
| Operating expenses (R&D, S&M, G&A) | For a growthâoriented SaaS business, R&D and salesâandâmarketing are critical for expanding the customer base and product roadmap. However, if these expenses are rising faster than revenue, the operatingâmargin and freeâcashâflow conversion can be squeezed, potentially compressing valuation multiples. | Pay attention to the % of revenue allocated to R&D and S&M, any âefficiencyâ initiatives, and whether the company is moving toward a âprofitâfirstâ trajectory (e.g., aiming for operatingâmargin breakeven in the next few years). |
| Cash flow (operating cash flow, free cash flow) | Positive operating cash flow and a growing freeâcashâflow runway underpin the ability to fund growth without excessive dilution or debt. Strong cash generation can support a higher priceâtoâsales multiple because the business is less reliant on external capital. | Review the operatingâcashâflow trend, capitalâexpenditure needs, and any commentary on cashâconversion cycles (e.g., daysâsalesâoutstanding, daysâpayableâoutstanding). |
| Guidance & outlook | Forwardâlooking guidance (revenue, ARR, margin, cash flow) is a primary driver of valuation adjustments. If CrowdStrike raises its FYâŻ2026 or FYâŻ2027 outlook, the market may reâprice the stock upward; a downward revision can have the opposite effect. | Note any revenue/ARR guidance, grossâmargin targets, and expenseâmanagement plans the management provides during the call. |
What to do next
Attend the conference call (or listen to the replay).
The call will include:- The actual Q2âŻ2026 results (including grossâmargin, operatingâexpense, and cashâflow details).
- Managementâs explanations for any variances versus prior expectations.
- Guidance for the remainder of FYâŻ2026 and possibly FYâŻ2027.
- The actual Q2âŻ2026 results (including grossâmargin, operatingâexpense, and cashâflow details).
Review the accompanying earnings release (SEC FormâŻ8âK).
The filing will contain the full income statement, balance sheet, and cashâflow statementâallowing you to compute:- Grossâmargin % = (RevenueâŻââŻCostâŻofâŻRevenue)âŻ/âŻRevenue.
- Operatingâmargin % = OperatingâŻIncomeâŻ/âŻRevenue.
- Freeâcashâflow = OperatingâŻCashâŻFlowâŻââŻCapEx.
- Grossâmargin % = (RevenueâŻââŻCostâŻofâŻRevenue)âŻ/âŻRevenue.
Compare to prior quarters and consensus estimates.
- Trend analysis (e.g., is gross margin expanding quarterâoverâquarter?).
- Variance vs. analystsâ expectations (e.g., a surprise upside in ARR or cash conversion can move the stock sharply).
- Trend analysis (e.g., is gross margin expanding quarterâoverâquarter?).
Update valuation models accordingly.
- If gross margin improves and operating expenses stay disciplined, you may justify a higher EV/Revenue multiple.
- Conversely, a margin compression or accelerating expense growth could warrant a downward adjustment to the valuation.
- If gross margin improves and operating expenses stay disciplined, you may justify a higher EV/Revenue multiple.
Bottom line
Based solely on the current news release, there is *no information** about grossâmargin, operatingâexpense, or cashâflow changes. To determine whether any ânotable changesâ exist that could impact CrowdStrikeâs valuation, youâll need to wait for the actual Q2âŻ2026 earnings release and the conference call on AugustâŻ27âŻ2025. Once those details are public, you can perform the quantitative and qualitative analysis outlined above.*