What does this company do and how does it make money?

CrowdStrike operates a subscription-based cybersecurity platform that generates predictable recurring revenue with minimal services dependency. The 95/5 split between subscriptions and services reveals a scalable software model, while 97% retention suggests customers find the platform essential once deployed.

How much cash does it generate and where does it go?

CrowdStrike generates substantial cash — nearly 30% of revenue converts to free cash flow — but allocates nothing to shareholder returns. Instead, the company plows three-quarters of operating cash into R&D while paying employees heavily in stock, creating a tension between cash generation and shareholder dilution.

Is the business getting stronger or weaker?

CrowdStrike shows clear operational improvement, turning from significant losses to profitability while maintaining growth above 20%. The stable gross margins near 77% suggest pricing power remains intact, while the rapid margin expansion indicates operating leverage is finally kicking in after years of heavy investment.

What could go wrong and has it survived trouble before?

While CrowdStrike proved resilient through multiple market shocks, persistent insider selling for nearly three years raises questions about management's confidence at current valuations. The company's high subscription concentration is both a strength and risk — predictable revenue but limited diversification if growth slows.

Stock-based compensation consumes 21% of revenue while free cash flow yields just 0.34% — employees get equity, shareholders get promises.