CrowdStrike reported a net loss of $162.5 million for its fiscal year ended Jan. 31, 2026, on nearly $4.8 billion in revenue—a 21.7 percent increase from the prior year. The loss resulted in a negative net margin of 3.4 percent, widening from negative 0.5 percent previously.
The expanded loss reflects strategic investments in customer remediation following the July 2024 content configuration incident. The company deployed customer commitment packages and subscription extensions to stem contract terminations, a decision that prioritized retention over near-term profitability.
CrowdStrike's balance sheet remains solid: current ratio of 1.8x and debt-to-equity of 0.2x reflect low leverage and adequate liquidity. But stock-based compensation represented 68 percent of operating cash flow, masking the true cash generation picture. The company's Falcon platform—marketed as AI-native for endpoint and cloud workload protection—faces pressure to demonstrate margin expansion as it scales beyond remediation headwinds.
Fastly, the edge cloud platform provider, posted $624.0 million in revenue for the year ended Dec. 31, 2025, up 14.8 percent, but recorded a net loss of $121.7 million. The net margin improved to negative 19.5 percent from negative 29.1 percent, suggesting progress toward profitability as the platform matures.
Fastly's revenue is heavily concentrated: its ten largest customers, including TikTok and Jio Platforms, represent a significant portion of total sales. This customer dependency is a material risk—loss of a single anchor account could pressure near-term results.
Fastly's balance sheet shows strength: current ratio of 2.6x and debt-to-equity of 0.5x demonstrate solid financial footing. The company's ability to reduce losses while growing revenue at mid-teens rates suggests operational leverage is beginning to kick in, though the path to positive net margins remains unclear given customer concentration risk.
