SentinelOne Announces Second Quarter Fiscal Year 2026 Financial Results

Revenue increased 22% year-over-year

ARR up 24% year-over-year

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- SentinelOne, Inc. (NYSE: S) today announced financial results for the second quarter of fiscal year 2026 ended July 31, 2025.

“We surpassed $1 billion in ARR and delivered record net new ARR, continuing to deliver robust growth and platform adoption across AI, data, cloud, and endpoint,” said Tomer Weingarten, CEO of SentinelOne. “Our second-quarter results highlight the momentum of our AI-powered platform, strengthening competitive position, and growing product differentiation. With relentless focus on innovations unifying AI, data, and security, SentinelOne is at the forefront of AI-powered cybersecurity – delivering high growth, driving operating leverage, and expanding our leadership in the industry.”

“We continued to deliver top-tier growth and margin expansion, underscoring the scalability of our model and operating leverage,” said Barbara Larson, CFO of SentinelOne. “Our strategic investments and focus on operational excellence position us well to deliver durable growth and sustained profitability. Based on our second-quarter outperformance and business momentum, we’re raising our full-year revenue outlook and reaffirming our commitment to full-year operating profitability and free cash flow.”

Second Quarter Fiscal Year 2026 Highlights

(All metrics are compared to the second quarter of fiscal year 2025 unless otherwise noted)

• Total revenue increased 22% to $242.2 million, compared to $198.9 million.

• Annualized recurring revenue (ARR) increased 24% to $1.0 billion as of July 31, 2025.

• Customers with ARR of $100,000 or more grew 23% to 1,513 as of July 31, 2025.

• Gross margin: GAAP gross margin was 75%, compared to 75%. Non-GAAP gross margin was 79%, compared to 80%.

• Operating margin: GAAP operating margin was (33)%, compared to (40)%. Non-GAAP operating margin was 2%, compared to (3)%.

• Net income (loss) margin: GAAP net loss margin was (30)%, compared to (35)%. Non-GAAP net income margin was 5%, compared to 2%.

• Cash flow margin: Operating cash flow margin was 0%, compared to 1%. Free cash flow margin remained consistent at (3)%. Trailing-twelve month operating cash flow margin was 4%, compared to 2%. Trailing-twelve month free cash flow margin was 2%, compared to (1)%.

• Cash, cash equivalents, and investments were $1.2 billion as of July 31, 2025.

Financial Outlook

We are providing the following guidance for the third quarter of fiscal year 2026, and for fiscal year 2026 (ending January 31, 2026).

	Q3FY26 Guidance		Full FY2026 Guidance
Revenue	$256 million		$998 - 1,002 million
Non-GAAP gross margin	78.5%		78.5 - 79%
Non-GAAP operating margin	4%		3%

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, acquisition-related compensation costs, restructuring charges, gains and losses on strategic investments, and income tax provision. We have not provided the most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP gross margin and non-GAAP operating margin is not available without unreasonable effort.

Webcast Information

We will host a live audio webcast for analysts and investors to discuss our earnings results for the second quarter of fiscal year 2026 and outlook for third quarter of fiscal year 2026 and full fiscal year 2026 today, August 28, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The live webcast and a recording of the event will be available on the Investor Relations section of our website at investors.sentinelone.com.

We have used, and intend to continue to use, the Investor Relations section of our website at investors.sentinelone.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve risks and uncertainties, including but not limited to statements regarding our future growth, execution, product innovation and technological development, competitive position, and future financial and operating performance, including our financial outlook for the third quarter of fiscal year 2026 and our full fiscal year 2026, including non-GAAP gross margin and non-GAAP operating margin; share repurchase program; progress towards our long-term profitability targets; and general market trends. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms and similar expressions are intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words.

There are a significant number of factors that could cause our actual results to differ materially from statements made in this press release, including but not limited to: our limited operating history; our history of losses; intense competition in the market we compete in; fluctuations in our operating results; actual or perceived network or security incidents against us; actual or perceived defects, errors or vulnerabilities in our platform; our ability to successfully integrate any acquisitions and strategic investments; risks associated with managing our rapid growth; general global, political, economic, and macroeconomic climate, including but not limited to, the changes in U.S. federal spending, significant political or regulatory developments or changes in trade policy, actual or perceived instability in the banking industry; supply chain disruptions; a potential recession, inflation, and interest rate volatility; geopolitical conflicts around the world; our ability to attract new and retain existing customers, or renew and expand our relationships with them; the ability of our platform to effectively interoperate within our customers' IT infrastructure; disruptions or other business interruptions that affect the availability of our platform including cybersecurity incidents; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; rapidly evolving technological developments in the market for security products and subscription and support offerings; length of sales cycles; and risks of securities class action litigation.

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our filings and reports with the Securities and Exchange Commission (SEC), including our most recently filed Annual Report on Form 10-K, dated March 26, 2025, subsequent Quarterly Reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC, copies of which are available on our website at investors.sentinelone.com and on the SEC’s website at www.sec.gov.

You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information and estimates available to us as of the date hereof, and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date of this press release or to reflect new information or the occurrence of unexpected events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Non-GAAP Financial Measures

In addition to our results being determined in accordance with GAAP, we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, with the financial information presented in accordance with GAAP, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. In addition, the utility of free cash flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period.

Reconciliations between non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP are contained below. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

As presented in the “Reconciliation of GAAP to Non-GAAP Financial Information” table below, each of the non-GAAP financial measures excludes one or more of the following items:

Stock-based compensation expense

Stock-based compensation expense is a non-cash expense that varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for stock-based compensation expense provide investors with a basis to measure our core performance against the performance of other companies without the variability created by stock-based compensation as a result of the variety of equity awards used by other companies and the varying methodologies and assumptions used.

Employer payroll tax on employee stock transactions

Employer payroll tax expenses related to employee stock transactions are tied to the vesting or exercise of underlying equity awards and the price of our common stock at the time of vesting, which varies in amount from period to period and is dependent on market forces that are often beyond our control. As a result, management excludes this item from our internal operating forecasts and models. Management believes that non-GAAP measures adjusted for employer payroll taxes on employee stock transactions provide investors with a basis to measure our core performance against the performance of other companies without the variability created by employer payroll taxes on employee stock transactions as a result of the stock price at the time of employee exercise.

Amortization of acquired intangible assets

Amortization of acquired intangible asset expense is tied to the intangible assets that were acquired in conjunction with acquisitions, which results in non‑cash expenses that may not otherwise have been incurred. Management believes excluding the expense associated with intangible assets from non-GAAP measures allows for a more accurate assessment of our ongoing operations and provides investors with a better comparison of period-over-period operating results.

Acquisition-related compensation costs

Acquisition-related compensation costs include cash-based compensation expenses resulting from the employment retention of certain employees established in accordance with the terms of each acquisition. Acquisition-related cash-based compensation costs have been excluded as they were specifically negotiated as part of the acquisitions in order to retain such employees and relate to cash compensation that was made either in lieu of stock-based compensation or where the grant of stock-based compensation awards was not practicable. In most cases, these acquisition-related compensation costs are not factored into management’s evaluation of potential acquisitions or our performance after completion of acquisitions, because they are not related to our core operating performance. In addition, the frequency and amount of such charges can vary significantly based on the size and timing of acquisitions and the maturities of the businesses being acquired. Excluding acquisition-related compensation costs from non-GAAP measures provides investors with a basis to compare our results against those of other companies without the variability caused by purchase accounting.

Restructuring charges

Restructuring charges primarily relate to contract termination charges, severance payments, employee benefits, stock-based compensation and asset impairment charges related to facilities. These restructuring charges are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude restructuring charges from non-GAAP financial measures because it enables the comparison of period-over-period operating results from continuing operations.

Gains and losses on strategic investments

Gains and losses on strategic investments relate to the subsequent changes in the recorded value of our strategic investments. These gains and losses are excluded from non-GAAP financial measures because they are the result of discrete events that are not considered core-operating activities. We believe that it is appropriate to exclude gains and losses from strategic investments from non-GAAP financial measures because it enables the comparison of period-over-period net income (loss).

Income tax provision

The tax charge related to a framework for a final settlement and resolution discussed during the six months ended July 31, 2025 with the Israel Tax Authorities (ITA) as a part of the ongoing bilateral Advance Pricing Agreement negotiations with the U.S. Internal Revenue Service and ITA of $136.0 million (included in the balance sheet within other liabilities) and the $4.7 million tax benefit, related to valuation allowance release for the recording of Israeli deferred tax assets, have been excluded from our non-GAAP results because these represent discrete, non-recurring items that are not indicative of our core operating performance. These exclusions provide investors with a clearer view of our underlying financial results and facilitates meaningful comparisons across reporting periods. No finalized resolutions or agreement has been reached at this time.

Dilutive shares applying the treasury stock method

During periods in which we incur a net loss under a GAAP basis, we exclude certain potential common stock equivalents from our GAAP diluted shares because their effect would have been anti-dilutive. In periods where we have net income on a non-GAAP basis, these common stock equivalents would have been dilutive. Accordingly, we have included the impact of these common stock equivalents in the calculation of our non-GAAP diluted net income per share applying the treasury stock method.

Non-GAAP Cost of Revenue, Non-GAAP Gross Profit, Non-GAAP Gross Margin, Non-GAAP Income (Loss) from Operations, Non-GAAP Operating Margin, Non-GAAP Net Income and Non-GAAP Net Income Per Share

We define these non-GAAP financial measures as their respective GAAP measures, excluding the expenses referenced above. We use these non-GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance.

Free Cash Flow

We define free cash flow as cash (used in) provided by operating activities less purchases of property and equipment and capitalized internal-use software costs. We believe free cash flow is a useful indicator of liquidity that provides our management, board of directors, and investors with information about our future ability to generate or use cash to enhance the strength of our balance sheet and further invest in our business and pursue potential strategic initiatives.

Key Business Metrics

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Annualized Recurring Revenue (ARR)

We believe that ARR is a key operating metric to measure our business because it is driven by our ability to acquire new subscription and consumption and usage-based customers, and to maintain and expand our relationship with existing customers. ARR represents the annualized revenue run rate of our subscription and consumption and usage-based agreements at the end of a reporting period, assuming contracts are renewed on their existing terms for customers that are under contracts with us. ARR is not a forecast of future revenue, which can be impacted by contract start and end dates, usage, renewal rates, and other contractual terms.

Customers with ARR of $100,000 or More

We believe that our ability to increase the number of customers with ARR of $100,000 or more is an indicator of our market penetration and strategic demand for our platform. We define a customer as an entity that has an active subscription for access to our platform. We count Managed Service Providers, Managed Security Service Providers, Managed Detection & Response firms, and Original Equipment Manufacturers, who may purchase our products on behalf of multiple companies, as a single customer. We do not count our reseller or distributor channel partners as customers.

Source: SentinelOne
NYSE: S
Category: Investors

SENTINELONE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
	July 31,				January 31,
		2025				2025
Assets
Current assets:
Cash and cash equivalents	$	278,005			$	186,574
Short-term investments		532,818				535,331
Accounts receivable, net		179,332				236,012
Deferred contract acquisition costs, current		65,402				64,782
Prepaid expenses and other current assets		37,141				47,023
Total current assets		1,092,698				1,069,722
Property and equipment, net		79,227				71,774
Long-term investments		347,009				419,367
Deferred contract acquisition costs, non-current		83,271				85,322
Intangible assets, net		94,272				107,155
Goodwill		629,636				629,636
Other assets		24,371				23,649
Total assets	$	2,350,484			$	2,406,625
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	9,725			$	8,159
Accrued payroll and benefits		66,548				79,612
Deferred revenue, current		457,221				470,127
Other current liabilities		63,282				55,655
Total current liabilities		596,776				613,553
Deferred revenue, non-current		89,586				102,017
Other liabilities		156,336				21,808
Total liabilities		842,698				737,378
Stockholders’ equity:
Preferred stock		—				—
Class A common stock		32				31
Class B common stock		1				1
Additional paid-in capital		3,414,117				3,294,542
Accumulated other comprehensive income		1,333				2,158
Accumulated deficit		(1,907,697	)			(1,627,485	)
Total stockholders’ equity		1,507,786				1,669,247
Total liabilities and stockholders’ equity	$	2,350,484			$	2,406,625

SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
		2025				2024				2025				2024
Revenue	$	242,183			$	198,937			$	471,212			$	385,292
Cost of revenue(1)		60,474				50,699				117,006				100,836
Gross profit		181,709				148,238				354,206				284,456
Operating expenses:
Research and development(1)		79,091				63,602				151,344				121,923
Sales and marketing(1)		127,879				119,617				261,760				235,447
General and administrative(1)		51,474				44,400				100,153				87,067
Restructuring(1)		3,883				—				9,050				—
Total operating expenses		262,327				227,619				522,307				444,437
Loss from operations		(80,618	)			(79,381	)			(168,101	)			(159,981	)
Interest income, net		12,196				12,817				24,486				24,863
Other income (expense), net		(327	)			(421	)			165				(460	)
Loss before income taxes		(68,749	)			(66,985	)			(143,450	)			(135,578	)
Provision for income taxes		3,270				2,199				136,762				3,711
Net loss	$	(72,019	)		$	(69,184	)		$	(280,212	)		$	(139,289	)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted	$	(0.22	)		$	(0.22	)		$	(0.85	)		$	(0.45	)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted		330,938,421				312,615,531				329,481,933				310,358,089
(1) Includes stock-based compensation expense as follows:
Cost of revenue	$	5,399			$	5,564			$	10,064			$	10,433
Research and development		24,289				20,811				45,230				38,276
Sales and marketing		21,338				18,882				44,253				36,956
General and administrative		22,858				19,420				43,028				37,565
Restructuring		—				—				(36	)			—
Total stock-based compensation expense	$	73,884			$	64,677			$	142,539			$	123,230

SENTINELONE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Six Months Ended July 31,
		2025				2024
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(280,212	)		$	(139,289	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		23,117				21,110
Amortization of deferred contract acquisition costs		37,507				31,252
Non-cash operating lease costs		2,120				1,939
Stock-based compensation expense		142,539				123,230
Accretion of discounts, and amortization of premiums on investments, net		(4,856	)			(7,420	)
Asset impairment charges		2,176				1,429
Other		280				113
Changes in operating assets and liabilities, net of effects of acquisitions
Accounts receivable		56,409				59,258
Prepaid expenses and other assets		3,159				8,942
Deferred contract acquisition costs		(36,076	)			(34,901	)
Accounts payable		1,547				10
Accrued and other liabilities		144,040				4,658
Accrued payroll and benefits		(13,063	)			(10,645	)
Operating lease liabilities		(2,119	)			(2,800	)
Deferred revenue		(25,337	)			(12,583	)
Net cash provided by operating activities		51,231				44,303
CASH FLOW FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(410	)			(1,439	)
Purchases of intangible assets		(100	)			(133	)
Capitalization of internal-use software		(12,525	)			(14,544	)
Purchases of investments		(208,090	)			(442,629	)
Proceeds from sales, maturities and return of capital of investments		286,767				404,677
Cash paid for acquisitions, net of cash acquired		—				(61,553	)
Net cash provided by (used in) investing activities		65,642				(115,621	)
CASH FLOW FROM FINANCING ACTIVITIES:
Repurchases of common stock		(52,693	)			—
Repurchase of early exercised stock options		—				(21	)
Proceeds from exercise of stock options		15,229				12,813
Proceeds from issuance of common stock under the employee stock purchase plan		9,065				8,800
Net cash (used in) provided by financing activities		(28,399	)			21,592
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH		88,474				(49,726	)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–Beginning of period		193,302				322,086
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH–End of period	$	281,776			$	272,360

SENTINELONE, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (in thousands, except percentages and per share data) (unaudited)
	Three Months Ended July 31,								Six Months Ended July 31,
		2025				2024				2025				2024
Cost of revenue reconciliation:
GAAP cost of revenue	$	60,474			$	50,699			$	117,006			$	100,836
Stock-based compensation expense		(5,399	)			(5,564	)			(10,064	)			(10,433	)
Employer payroll tax on employee stock transactions		(187	)			(132	)			(417	)			(339	)
Amortization of acquired intangible assets		(4,195	)			(4,195	)			(8,254	)			(9,666	)
Acquisition-related compensation		(17	)			(39	)			(37	)			(312	)
Non-GAAP cost of revenue	$	50,676			$	40,769			$	98,234			$	80,086
Gross profit reconciliation:
GAAP gross profit	$	181,709			$	148,238			$	354,206			$	284,456
Stock-based compensation expense		5,399				5,564				10,064				10,433
Employer payroll tax on employee stock transactions		187				132				417				339
Amortization of acquired intangible assets		4,195				4,195				8,254				9,666
Acquisition-related compensation		17				39				37				312
Non-GAAP gross profit	$	191,507			$	158,168			$	372,978			$	305,206
Gross margin reconciliation:
GAAP gross margin		75	%			75	%			75	%			74	%
Stock-based compensation expense		2	%			3	%			2	%			3	%
Employer payroll tax on employee stock transactions		—	%			—	%			—	%			—	%
Amortization of acquired intangible assets		2	%			2	%			2	%			3	%
Acquisition-related compensation		—	%			—	%			—	%			—	%
Non-GAAP gross margin*		79	%			80	%			79	%			79	%
Research and development expense reconciliation:
GAAP research and development expense	$	79,091			$	63,602			$	151,344			$	121,923
Stock-based compensation expense		(24,289	)			(20,811	)			(45,230	)			(38,276	)
Employer payroll tax on employee stock transactions		(211	)			(198	)			(742	)			(611	)
Acquisition-related compensation		(667	)			(789	)			(1,341	)			(1,576	)
Non-GAAP research and development expense	$	53,924			$	41,804			$	104,031			$	81,460
Sales and marketing expense reconciliation:
GAAP sales and marketing expense	$	127,879			$	119,617			$	261,760			$	235,447
Stock-based compensation expense		(21,338	)			(18,882	)			(44,253	)			(36,956	)
Employer payroll tax on employee stock transactions		(487	)			(370	)			(1,179	)			(1,293	)
Amortization of acquired intangible assets		(2,253	)			(2,253	)			(4,433	)			(4,457	)
Acquisition-related compensation		(8	)			(29	)			(25	)			(73	)
Non-GAAP sales and marketing expense	$	103,793			$	98,083			$	211,870			$	192,668
General and administrative expense reconciliation:
GAAP general and administrative expense	$	51,474			$	44,400			$	100,153			$	87,067
Stock-based compensation expense		(22,858	)			(19,420	)			(43,028	)			(37,565	)
Employer payroll tax on employee stock transactions		(202	)			(341	)			(1,497	)			(983	)
Acquisition-related compensation		—				1				—				—
Non-GAAP general and administrative expense	$	28,414			$	24,640			$	55,628			$	48,519
Restructuring expense reconciliation:
GAAP restructuring expense	$	3,883			$	—			$	9,050			$	—
Stock-based compensation		—				—				36				—
Restructuring charges		(3,883	)			—				(9,086	)			—
Non-GAAP restructuring expense	$	—			$	—			$	—			$	—
Operating loss reconciliation:
GAAP operating loss	$	(80,618	)		$	(79,381	)		$	(168,101	)		$	(159,981	)
Stock-based compensation expense		73,884				64,677				142,539				123,230
Employer payroll tax on employee stock transactions		1,087				1,038				3,835				3,226
Amortization of acquired intangible assets		6,448				6,448				12,687				14,123
Acquisition-related compensation		692				858				1,403				1,961
Restructuring charges		3,883				—				9,086				—
Non-GAAP operating income (loss)	$	5,376			$	(6,359	)		$	1,449			$	(17,440	)
Operating margin reconciliation:
GAAP operating margin		(33	)%			(40	)%			(36	)%			(42	)%
Stock-based compensation expense		31	%			33	%			30	%			32	%
Employer payroll tax on employee stock transactions		—	%			1	%			1	%			1	%
Amortization of acquired intangible assets		3	%			3	%			3	%			4	%
Acquisition-related compensation		—	%			—	%			—	%			1	%
Restructuring charges		2	%			—	%			2	%			—	%
Non-GAAP operating margin*		2	%			(3	)%			—	%			(5	)%
Net income (loss) reconciliation:
GAAP net loss	$	(72,019	)		$	(69,184	)		$	(280,212	)		$	(139,289	)
Stock-based compensation expense		73,884				64,677				142,539				123,230
Employer payroll tax on employee stock transactions		1,087				1,038				3,835				3,226
Amortization of acquired intangible assets		6,448				6,448				12,687				14,123
Acquisition-related compensation		692				858				1,403				1,961
Restructuring charges		3,883				—				9,086				—
Net gain on strategic investments		(795	)			(345	)			(792	)			(345	)
Income tax provision		—				—				131,283				—
Non-GAAP net income	$	13,180			$	3,492			$	19,829			$	2,906
Net income (loss) margin reconciliation:
GAAP net loss margin		(30	)%			(35	)%			(59	)%			(36	)%
Stock-based compensation		31	%			33	%			30	%			32	%
Employer payroll tax on employee stock transactions		—	%			1	%			1	%			1	%
Amortization of acquired intangible assets		3	%			3	%			3	%			4	%
Acquisition-related compensation		—	%			—	%			—	%			1	%
Restructuring charges		2	%			—	%			2	%			—	%
Net gain on strategic investments		—	%			—	%			—	%			—	%
Income tax provision		—	%			—	%			28	%			—	%
Non-GAAP net income margin*		5	%			2	%			4	%			1	%
GAAP basic and diluted shares		330,938,421				312,615,531				329,481,933				310,358,089
Dilutive shares under the treasury stock method		9,074,635				15,508,286				10,212,588				19,210,555
Non-GAAP diluted shares		340,013,056				328,123,817				339,694,521				329,568,644
Diluted EPS reconciliation:
GAAP net loss per share, basic and diluted	$	(0.22	)		$	(0.22	)		$	(0.85	)		$	(0.45	)
Stock-based compensation expense		0.22				0.20				0.42				0.37
Employer payroll tax on employee stock transactions		—				—				0.01				0.01
Amortization of acquired intangible assets		0.02				0.02				0.04				0.04
Acquisition-related compensation		—				—				—				0.01
Restructuring charges		0.01				—				0.03				—
Net gain on strategic investments		—				—				—				—
Income tax provision		—				—				0.39				—
Adjustment to fully diluted earnings per share (1)		0.01				0.01				0.02				0.03
Non-GAAP net income per share, diluted	$	0.04			$	0.01			$	0.06			$	0.01
*Certain figures may not sum due to rounding.
(1) For periods in which we had diluted non-GAAP net income per share, the sum of the impact of individual reconciling items may not total to diluted non-GAAP net income per share because the basic share counts used to calculate GAAP net loss per share differ from the diluted share counts used to calculate non-GAAP net income per share, and because of rounding differences. The GAAP net loss per share calculation uses a lower share count as it excludes dilutive shares which are included in calculating the non-GAAP net income per share.

SENTINELONE, INC. SELECTED CASH FLOW INFORMATION (in thousands) (unaudited)
Reconciliation of cash (used in) provided by operating activities to free cash flow
	Three Months Ended July 31,								Six Months Ended July 31,
		2025				2024				2025				2024
GAAP net cash (used in) provided by operating activities	$	(1,043	)		$	2,300			$	51,231			$	44,303
Less: Purchases of property and equipment		(264	)			(553	)			(410	)			(1,439	)
Less: Capitalized internal-use software		(5,841	)			(7,183	)			(12,525	)			(14,544	)
Free cash flow	$	(7,148	)		$	(5,436	)		$	38,296			$	28,320
Net cash provided by (used in) investing activities	$	131,234			$	(9,357	)		$	65,642			$	(115,621	)
Net cash (used in) provided by financing activities	$	(40,676	)		$	15,059			$	(28,399	)		$	21,592
Operating cash flow margin		—	%			1	%			11	%			11	%
Free cash flow margin		(3	)%			(3	)%			8	%			7	%

 

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Investor Relations:

Saad Nazir

investors@sentinelone.com

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Source: SentinelOne