F

CrowdStrike Holdings, Inc. — Earnings Quality Grade F

CRWD · Technology

Major red flags

Revenue
$4.8B
2026
Net Income
-$163M
2026
Gross Margin
74.7%
Free Cash Flow
$1.2B
01

Screening Summary

12
Passed
4
Watch
1
Failed
-2.95
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 103 days, change -1 days YoY

A2AR vs Revenue Growth

AR growth 20.7% vs revenue growth 21.7%

A3Revenue vs CFFO

Revenue 21.7%, CFFO 16.7%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 18.2% vs revenue 21.7%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 69.6%. Normal

B4Gross Margin

Gross margin 74.7%, change -0.3pp. Stable

03

Cash Flow Quality

!
C1CFFO vs Net Income

CFFO/NI = -9.92. Below 1.0

C2Free Cash Flow

FCF $1.2B, FCF/NI = -7.64

C3Accruals Ratio

Accruals ratio = -16.0%. Low accruals

C4Cash vs Debt

Cash $5.2B covers debt $0.8B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $1.5B = 34% of equity

D2Leverage

Debt/EBITDA = 4.5x (>4x). Interest coverage = -10.5x (<2x). Financial stress

!
D3Soft Asset Growth

Other assets grew 182.9% vs revenue 21.7%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 43% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.95 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.95
-4.0 Clean-2.22 Grey-1.78 Danger0
0.991
DSRI
AR growing faster than revenue?
1.004
GMI
Gross margin declining?
1.171
AQI
Asset quality deteriorating?
1.217
SGI
Revenue growth rate
0.965
DEPI
Depreciation slowing?
1.025
SGAI
SG&A ratio changing?
-0.1601
TATA
Accruals level
0.92
LVGI
Leverage increasing?
05

Altman Z-Score

2.18
Grey Zone
0 Distress1.102.605.0+ Safe
0.2918
Liquidity
-0.1157
Cumulative profit
-0.0089
Operating efficiency
0.6695
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25

Latest Quarterly Check

About this →

Across the last 5–6 quarters, CRWD tripped 1 red flag.

  • Q2 · DSO driftDSO: 68 → 74 → 94 days

Updated 2026-05-19