CrowdStrike Holdings (CRWD) risk factors, 2025 10-K

Risks Related to Our Business and Industry

1. 01The July 19 Incident has had, and is expected to continue to have, an adverse effect on our business, sales, customer and partner relations, reputation, results of operations and financial condition
2. 02We have experienced rapid growth in recent periods, and if we do not manage our future growth, our business and results of operations will be adversely affected
3. 03We have a history of losses, and while we have achieved profitability in certain periods, we may not be able to achieve or sustain profitability in the future
4. 04If organizations do not adopt cloud-based SaaS-delivered endpoint security solutions, our ability to grow our business and results of operations may be adversely affected
5. 05If we are unable to successfully enhance our existing products and services and introduce new products and services in response to rapid technological changes and market developments as well as evolving security threats, our competitive position and prospects will be harmed
6. 06If we are unable to attract new customers, our future results of operations could be harmed
7. 07If our customers do not renew their subscriptions for our products and add additional cloud modules to their subscriptions, our future results of operations could be harmed
8. 08Our sales cycles can be long and unpredictable, and our sales efforts require considerable time and expense
9. 09may also experience longer sales cycles as customers seek to consolidate on our Falcon platform and negotiate larger deals, including in connection with our flexible subscription offering
10. 10We face intense competition and could lose market share to our competitors, which could adversely affect our business, financial condition, and results of operations
11. 11Competitive pricing pressure may reduce our gross profits and adversely affect our financial results
12. 12If our solutions fail or are perceived to fail to detect or prevent incidents or have or are perceived to have defects, errors, or vulnerabilities, our brand and reputation would be harmed, which would adversely affect our business and results of operations
13. 13until after some of our customers are affected. Additionally, our Falcon platform may falsely indicate a cyberattack or threat that does not actually exist, which may lessen customers’ trust in our solutions
14. 14As a cybersecurity provider, we have been, and expect to continue to be, a target of cyberattacks. If our or our service providers’ internal networks, systems, or data are or are perceived to have been compromised, our reputation may be damaged and our financial results may be negatively affected
15. 15We rely on our key technical, sales and management personnel to grow our business, and the loss of one or more key employees could harm our business
16. 16If we are unable to attract and retain qualified personnel, our business could be harmed
17. 17If we do not effectively expand and train our direct sales force, we may be unable to add new customers or increase sales to our existing customers, and our business will be adversely affected
18. 18Because we recognize revenue from subscriptions to our platform over the term of the subscription, downturns or upturns in new business will not be immediately reflected in our results of operations
19. 19Our results of operations may fluctuate significantly, which could make our future results difficult to predict and could cause our results of operations to fall below expectations
20. 20If we are not able to maintain and enhance our CrowdStrike and Falcon brands and our reputation as a provider of high-efficacy security solutions, our business and results of operations may be adversely affected
21. 21Our international operations and plans for future international expansion expose us to significant risks, and failure to manage those risks could adversely impact our business
22. 22Our business depends, in part, on sales to government organizations, and significant changes in the contracting or fiscal policies of such government organizations could have an adverse effect on our business and results of operations
23. 23We may not timely and cost-effectively scale and adapt our existing technology to meet our customers’ performance and other requirements
24. 24Our ability to maintain customer satisfaction depends in part on the quality of our customer support
25. 25We may need to raise additional capital to expand our operations and invest in new solutions, which capital may not be available on terms acceptable to us, or at all, and which could reduce our ability to compete and could harm our business
26. 26If we cannot maintain our company culture as we grow, we could lose the innovation, teamwork, passion, and focus on execution that we believe contribute to our success and our business may be harmed
27. 27We are exposed to the credit risks of certain of our customers and end-users, which could adversely impact our business, financial condition or results of operations

Risks Related to Intellectual Property, Legal, and Regulatory Matters

1. 28The success of our business depends in part on our ability to protect and enforce our intellectual property rights
2. 29Claims by others that we infringe their proprietary technology or other intellectual property rights could result in significant costs and substantially harm our business, financial condition, results of operations, and prospects
3. 30We license technology from third parties, and our inability to maintain those licenses could harm our business
4. 31We are required to comply with stringent, complex and evolving laws, rules, regulations and standards in many jurisdictions, as well as contractual obligations, relating to data privacy and security. Any actual or perceived failure to comply with these requirements could have a material adverse effect on our business
5. 32Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose customers or negatively impact our ability to contract with customers, including those in the public sector
6. 33We are subject to governmental export controls and economic sanctions laws that could impair our ability to compete in international markets and subject us to liability if we are not in full compliance with applicable laws
7. 34We are subject to anti-corruption, anti-bribery and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation
8. 35Some of our technology incorporates “open source” software, which could negatively affect our ability to sell our Falcon platform and subject us to possible litigation
9. 36We utilize AI, which could expose us to liability or adversely affect our business
10. 37We provide service level commitments under some of our customer contracts. If we fail to meet these contractual commitments, we could be obligated to provide credits for future service and our business could suffer
11. 38We are currently, and may in the future become, involved in litigation that may adversely affect us

Risks Related to Ownership of Our Common Stock

1. 39The market price of our common stock may be volatile regardless of our operating performance, and you could lose all or part of your investment
2. 40Sales of substantial amounts of our common stock in the public markets, or the perception that they might occur, could reduce the price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us
3. 41If industry or financial analysts do not publish research or reports about our business, or if they issue inaccurate or unfavorable research regarding our common stock, our stock price and trading volume could decline
4. 42We do not intend to pay dividends in the foreseeable future. As a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock
5. 43Certain provisions in our charter documents and under Delaware law could make an acquisition of our company more difficult, limit attempts by our stockholders to replace or remove members of our board of directors or current management, and may adversely affect the market price of our common stock
6. 44These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for a certain period of time

Risks Related to our Indebtedness

1. 45Our indebtedness could adversely affect our financial condition
2. 46We may not be able to generate sufficient cash to service all of our indebtedness, including the notes, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
3. 47Our revolving facility and the indenture that governs our Senior Notes contain terms which restrict our current and future operations, particularly our ability to respond to changes or to take certain actions
4. 48The covenants in the indenture and supplemental indenture that govern the Senior Notes are subject to exceptions and qualifications
5. 49These restrictions may affect our ability to expand our business, which could have a material adverse effect on our business, financial condition and results of operations
6. 50Our revolving facility and the indenture that governs our Senior Notes contain cross-default provisions that could result in the acceleration of all of our indebtedness
7. 51If we fail to maintain an effective system of internal controls, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired
8. 52Future acquisitions, strategic investments, partnerships, or alliances could be difficult to identify and integrate, divert the attention of key management personnel, disrupt our business, dilute stockholder value and adversely affect our business, financial condition, and results of operations
9. 53such acquisitions could result in dilution to our stockholders. The incurrence of indebtedness would result in increased fixed obligations and could also include covenants or other restrictions that would impede our ability to manage our operations
10. 54Our corporate structure and intercompany arrangements are subject to the tax laws of various jurisdictions, and we could be obligated to pay additional taxes, which would harm our results of operations
11. 55Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited
12. 56Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value added or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our results of operations
13. 57If our estimates or judgments relating to our critical accounting policies prove to be incorrect or financial reporting standards or interpretations change, our results of operations could be adversely affected
14. 58We are subject to risks associated with our equity investments, including partial or complete loss of invested capital, and significant changes in the fair value of this portfolio could adversely impact our financial results
15. 59Expectations of our performance relating to environmental, social and governance factors may impose additional costs and expose us to new risks
16. 60Our business is subject to the risks of catastrophic events, including, but not limited to, natural events such as earthquakes, fire, floods, and the outbreak of diseases, as well as man-made problems such as power disruptions, computer viruses or data security breaches