SentinelOne (S) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 ended with strong Q4 results, exceeding expectations across all guided metrics and achieving the first quarter of positive operating income and the first full year of positive net income and free cash flow.

• Revenue grew 32% year-over-year to $821.5 million, with Q4 revenue up 29% to $226 million and ARR rising 27% to $920.1 million.

• The business transformed from an endpoint-focused model to a comprehensive AI-native cybersecurity platform, with non-endpoint solutions accounting for over 50% of full-year bookings and 3x growth in enterprise customers using 3+ solutions in 24 months.

• Customer growth reached record levels, with over 14,000 direct customers and customers with ARR over $100,000 growing 25% year-over-year to 1,411.

• Recognized as a technology leader with multiple industry accolades, including Gartner Magic Quadrant, MITRE ATT&CK, and Gartner Peer Insights Customer Choice.

Financial highlights

• Q4 revenue was $226 million, up 29% year-over-year, with ARR at $920 million, up 27% year-over-year.

• Q4 non-GAAP gross margin was 79%, operating margin was 1%, and net income margin was 5%.

• Full-year revenue was $821.5 million (32% growth), non-GAAP gross margin was 79%, and non-GAAP operating margin was -3%.

• Free cash flow margin turned positive for the first time at 1% for the full year.

• Customers with ARR of $100,000+ grew 25% year-over-year to 1,411, with over 100 net new additions in Q4.

Outlook and guidance

• Fiscal 2026 revenue guidance is $1.007–$1.12 billion (23% growth), with Q1 2026 revenue expected at $228 million (22% growth).

• Non-GAAP gross margin guidance for Q1 and full year is 78.5–79.5%; Q1 operating margin expected at -2%, full-year at 3–4%.

• Net new ARR for FY26 expected at $200 million (2% YoY growth), with a $10 million headwind from deception product retirement.

• Excluding deception impact, net new ARR would increase mid to high single digits YoY.

• Over $1.1 billion in cash and equivalents provides flexibility for investment and scaling.