The Channel Partners Who Sign the ContractNarrow moat

CrowdStrike (CRWD) — moat facet

Most of CrowdStrike's revenue arrives through partners, and the one deal regulators examined was a sale through a distributor.

CrowdStrike's real counterparty is often not the customer. The 10-K says: "The vast majority of sales of our Falcon platform flow through our channel partners, and we expect this to continue for the foreseeable future"1. The partners include resellers, distributors, managed security providers, managed service providers and global system integrators2, and the cloud marketplaces of AWS, Google and, from fiscal 2027, Microsoft3.

Accounts receivable, net ($M)1,361.831 Jan 20261,038.631 Jul 2026CrowdStrike Q2 FY2027 results release, balance sheet
Receivables peak after the January billing season.

None of them is large enough to disclose. No channel partner reached 10% of revenue in any of the last three fiscal years4. Accounts receivable, most of it owed by partners, was $1,361.8 million at January 2026 and $1,038.6 million at 31 July 20265, the fall reflecting the seasonal pattern of annual billing.

The channel has already produced the company's most awkward inquiry. The Department of Justice and the SEC asked about revenue recognition and ARR reporting for transactions with certain customers6; press reports tied the inquiry to a $32 million 2023 deal with the distributor Carahsoft for software intended for the IRS7. The DOJ reportedly closed its inquiry in September 20268. The episode shows the cost of selling through intermediaries: the company records a sale to a partner before the end user has used anything.

Partners also help with the moat. The company says its ecosystem helps it "source new logos, expand within existing accounts, and maintain high renewal rates"9. A reseller that has trained its staff on Falcon has its own reason to renew it.

Accounts receivable is the figure that would show a channel problem first. At $1,038.6 million in July 2026 it was about 71% of the second quarter's revenue10; if it rises well above the level a year's billing pattern explains, partners are being given longer to pay, and the channel is carrying sales the end market has not yet absorbed.

Moat trajectory: Holding steady

No partner at 10% of revenue; receivables $1,038.6M at Jul 2026.

The number that tests this moat
Reported
Accounts receivable, latest quarter
$1,038.6M (Jul 2026), from $1,361.8M (Jan 2026)

What partners owe; a rise beyond the annual billing pattern would mean the channel is carrying unsold demand.

Source: CrowdStrike Q2 FY2027 results release ↗
References
  1. ReportedThe 10-K says: "The vast majority of sales of our Falcon platform flow through our channel partners, and we expect this to continue for the foreseeable future".
    CrowdStrike Form 10-K for fiscal 2026 (year ended 31 January 2026) - Item 1A risk factors and Item 3 legal proceedings: competition, the July 19 incident, customer commitment packages, insurance and litigation. — FY2026 · publ. 5 March 2026 · source ↗
  2. ReportedThe partners include resellers, distributors, managed security providers, managed service providers and global system integrators, and the cloud marketplaces of AWS, Google and, from fiscal 2027, Microsoft.
    CrowdStrike Form 10-K for fiscal 2026 (year ended 31 January 2026) - Item 1 business: the Falcon platform, modules, markets, customers, channels, managed service providers, public sector, employees and the Onum and Pangea acquisitions. — FY2026 · publ. 5 March 2026 · source ↗
  3. ReportedThe partners include resellers, distributors, managed security providers, managed service providers and global system integrators, and the cloud marketplaces of AWS, Google and, from fiscal 2027, Microsoft.
    CrowdStrike Form 10-K for fiscal 2026 (year ended 31 January 2026) - Item 1 business: the Falcon platform, modules, markets, customers, channels, managed service providers, public sector, employees and the Onum and Pangea acquisitions. — FY2026 · publ. 5 March 2026 · source ↗
  4. ReportedNo channel partner reached 10% of revenue in any of the last three fiscal years.
    CrowdStrike Form 10-K for fiscal 2026 (year ended 31 January 2026) - financial statements and notes: contract terms, deferred revenue, remaining performance obligations, backlog, concentration, revisions and commission amortisation. — FY2026 · publ. 5 March 2026 · source ↗
  5. ReportedAccounts receivable, most of it owed by partners, was $1,361.8 million at January 2026 and $1,038.6 million at 31 July 2026, the fall reflecting the seasonal pattern of annual billing.
    CrowdStrike second-quarter fiscal 2027 results release, Form 8-K exhibit 99.1 - balance sheet and cash flow statement. — Q2 FY2027 · publ. 26 August 2026 · source ↗
  6. ReportedThe Department of Justice and the SEC asked about revenue recognition and ARR reporting for transactions with certain customers; press reports tied the inquiry to a $32 million 2023 deal with the distributor Carahsoft for software intended for the IRS.
    CrowdStrike Form 10-Q for the quarter ended 31 July 2026 - remaining performance obligations of $10.7 billion (46% within twelve months), unbilled backlog of $5.9 billion, the SGNL, Seraphic and XM Cyber transactions, the $750 million 3.00% senior notes, legal proceedings, the DOJ and SEC requests, purchase commitments and the share repurchase programme. — Q2 FY2027 · publ. 27 August 2026 · source ↗
  7. Third-party estimateThe Department of Justice and the SEC asked about revenue recognition and ARR reporting for transactions with certain customers; press reports tied the inquiry to a $32 million 2023 deal with the distributor Carahsoft for software intended for the IRS.
    Quiver Quant summary of the Bloomberg report - the inquiry concerned a $32 million 2023 deal with the distributor Carahsoft for software intended for the IRS. — September 2026 · publ. 25 September 2026 · source ↗
  8. ReportedThe DOJ reportedly closed its inquiry in September 2026.
    Bloomberg via Yahoo Finance, 25 September 2026 - US prosecutors closed an investigation into CrowdStrike's deals with a distributor without further action. — September 2026 · publ. 25 September 2026 · source ↗
  9. ReportedThe company says its ecosystem helps it "source new logos, expand within existing accounts, and maintain high renewal rates".
    CrowdStrike Form 10-K for fiscal 2026 (year ended 31 January 2026) - Item 1 business: the Falcon platform, modules, markets, customers, channels, managed service providers, public sector, employees and the Onum and Pangea acquisitions. — FY2026 · publ. 5 March 2026 · source ↗
  10. Moat Explorer calcAt $1,038.6 million in July 2026 it was about 71% of the second quarter's revenue; if it rises well above the level a year's billing pattern explains, partners are being given longer to pay, and the channel is carrying sales the end market has not yet absorbed.
    Moat Explorer calculation from CrowdStrike's reported figures ($ millions unless stated; fiscal years end 31 January). Revenue growth: FY2019 249.8 / 118.8 - 1 = 110.4%; FY2020 481.4 / 249.8 - 1 = 92.7%; FY2021 874.4 / 481.4 - 1 = 81.6%, about 82%; FY2022 1,451.6 / 874.4 - 1 = 66.0%; FY2023 2,241.2 / 1,451.6 - 1 = 54.4%; FY2024 3,055.6 / 2,241.2 - 1 = 36.3%; FY2025 3,953.6 / 3,055.6 - 1 = 29.4%, about 29%; FY2026 4,812.0 / 3,953.6 - 1 = 21.7%, about 22%; FY2024 to FY2026 4,812.0 / 3,055.6 - 1 = 57.5%, about 57%; compound FY2018-FY2026 (4,812.0 / 118.8)^(1/8) - 1 = 58.8%, about 59%; revenue grew about 40 times in eight years (4,812.0 / 118.8 = 40.5); FY2027 guidance midpoint (5,991.1 + 6,011.1) / 2 = 6,001.1, 6,001.1 / 4,812.0 - 1 = 24.7%, about 25%; H1 FY2027 revenue 2,856.5 / 6,001.1 = 47.6%; trailing revenue to 31 July 2026 4,812.0 - 2,272.4 + 2,856.5 = 5,396.1, about $5.40 billion. Subscription growth: FY2019 219.4 / 92.6 - 1 = 137.0%; FY2020 98.9%; FY2021 804.7 / 436.3 - 1 = 84.4%; FY2022 69.0%; FY2023 2,111.7 / 1,359.5 - 1 = 55.3%; FY2024 35.9%; FY2025 3,761.5 / 2,870.6 - 1 = 31.0%; FY2026 4,564.7 / 3,761.5 - 1 = 21.4%; H1 FY2027 2,721.1 / 2,153.7 - 1 = 26.3%, about 26%; compound FY2018-FY2026 (4,564.7 / 92.6)^(1/8) - 1 = 62.8%. Subscription added: FY2022 1,359.5 - 804.7 = 554.9; FY2023 2,111.7 - 1,359.5 = 752.1; FY2024 2,870.6 - 2,111.7 = 758.9; FY2025 890.9; FY2026 803.2. Subscription share of revenue FY2018 92.6 / 118.8 = 78%. Subscription gross profit FY2026 4,564.7 - 1,015.9 = 3,548.8. Professional services: revenue FY2018 118.8 - 92.6 = 26.2; FY2024 185.0 / 129.6 - 1 = 42.8%; FY2025 192.1 / 185.0 - 1 = 3.9%, about 4%; FY2026 247.3 / 192.1 - 1 = 28.7%, about 29%; compound FY2018-FY2026 (247.3 / 26.2)^(1/8) - 1 = 32.4%; gross profit FY2026 247.3 - 203.0 = 44.3; GAAP gross margin 44.3 / 247.3 = 17.9%, about 18%; share of gross profit 44.3 / 3,593.1 = 1.2%. Region: FY2026 growth United States 3,216.7 / 2,682.9 - 1 = 19.9%; EMEA 782.7 / 619.5 - 1 = 26.3%; Asia Pacific 495.7 / 402.5 - 1 = 23.2%; Other 317.0 / 248.7 - 1 = 27.4%. United States share FY2018 99.2 / 118.8 = 84%. ARR and net new ARR: ARR compound FY2018-FY2026 (5,252.8 / 141.3)^(1/8) - 1 = 57.1%, about 57%; net new ARR FY2026 5,252.8 - 4,241.8 = 1,010.9; FY2026 growth 1,010.9 / 806.7 - 1 = 25.3%, about 25%; FY2025 change 806.7 / 875.5 - 1 = -7.9%; FY2024 875.5 / 828.4 - 1 = 5.7%; FY2023 828.4 / 681.3 - 1 = 21.6%; H1 FY2027 net new ARR 255.8 + 332.8 = 588.6; FY2027 guided net new ARR 6,607.5 - 5,252.8 = 1,354.7; FY2027 ARR guidance midpoints: March (6,465.8 + 6,516.4) / 2 = 6,491.1, June (6,531.7 + 6,555.5) / 2 = 6,543.6, August (6,603.0 + 6,611.9) / 2 = 6,607.5; 6,607.5 / 5,252.8 - 1 = 25.8%, about 26%; FY2036 goal (20,000 / 5,252.8)^(1/10) - 1 = 14.3% a year; average net new ARR (20,000 - 5,252.8) / 10 = 1,474.7, about 1.47 billion. Falcon Flex: share of ARR 2.29 / 5.84 = 39%; Flex-account ARR a year earlier 2.29 / 2.01 = 1.14 billion; ARR outside Flex accounts 4.66 - 1.14 = 3.52 billion (July 2025) and 5.84 - 2.29 = 3.55 billion (July 2026), growth 3.55 / 3.52 - 1 = 0.8%, under 1%; ARR added 5.84 - 4.66 = 1.18 billion, of which Flex accounts 2.29 - 1.14 = 1.15 billion. Contracts: RPO within twelve months 0.46 x 10.7 = 4.9 billion (July 2026) and 0.51 x 9.0 = 4.6 billion (January 2026); RPO after twelve months 0.54 x 10.7 = 5.8 billion, 54% of RPO (July 2026), 0.49 x 9.0 = 4.4 billion (January 2026), 0.47 x 6.5 = 3.1 billion (January 2025), 0.37 x 3.4 = 1.3 billion (January 2023); RPO growth six months to July 2026 10.7 / 9.0 - 1 = 18.9%; FY2026 9.0 / 6.5 - 1 = 38.5%; RPO / trailing revenue 10.7 / 5.40 = about two years; unbilled backlog 5.9 / 2.8 - 1 = 111% in eighteen months. Deferred revenue 31 July 2026 3,497.1 + 1,345.1 = 4,842.2, about $4.84 billion; noncurrent share 1,345.1 / 4,842.2 = 27.8%, just over a quarter; deferred revenue 31 January 2025 2,733.0 + 995.7 = 3,728.7, 31 January 2026 3,421.1 + 1,332.4 = 4,753.4, growth 27.5%. Accounts receivable 1,038.6 / 1,470.9 = 71% of quarterly revenue. Subscription customers 29,000 / 23,019 - 1 = 26.0%, about 26%. H1 FY2027 revenue growth 2,856.5 / 2,272.4 - 1 = 25.7%, about 26%; H1 capital expenditure 222.0 / 116.2 = 1.9 times. Revenue per subscription customer FY2024 3,055.6 / 29,000 = about $105,000. Cash, costs and stock pay: GAAP operating margin FY2026 -293.3 / 4,812.0 = -6.1%; free cash flow margin FY2026 1,235.3 / 4,812.0 = 25.7%; FY2025 1,065.1 / 3,953.6 = 26.9%; FY2024 938.2 / 3,055.6 = 30.7%; free cash flow after stock pay 1,235.3 - 1,096.7 = 138.6, 138.6 / 4,812.0 = 2.9%; stock pay (cash flow) 1,096.7 / 4,812.0 = 22.8% (FY2026), 861.4 / 3,953.6 = 21.8% (FY2025), 648.7 / 3,055.6 = 21.2% (FY2024); stock pay and payroll tax 1,130.6 / 4,812.0 = 23.5% (FY2026), 903.6 / 3,953.6 = 22.9% (FY2025), 399.0 / 1,470.9 = 27.1% (Q2 FY2027), 276.7 / 1,169.0 = 23.7% (Q2 FY2026). Capital expenditure growth FY2024-FY2026 302.1 / 176.5 - 1 = 71.2%, about 71%; capex share of revenue FY2024 176.5 / 3,055.6 = 5.8%, FY2026 302.1 / 4,812.0 = 6.3%. Net cash 5,230.1 - 745.5 = 4,484.6, about $4.5 billion. Non-GAAP operating income guidance midpoint (1,497.2 + 1,508.4) / 2 = 1,502.8, 1,502.8 / 1,050 - 1 = 43%. July 19 incident net costs 60.1 + 117.7 = 177.8 (FY2025-FY2026) and 177.8 + 3.6 = 181.4, about $181 million through July 2026; update live 04:09 to 05:27 UTC = 78 minutes; cash against Delta claim 5,010 / 500 = about 10 times; a $250 million charge against free cash flow 250 / 1,235.3 = 20%, about a fifth. Acquisitions: cash consideration 96.4 + 213.7 + 252.7 + 212.1 + 327.5 + 627.9 = 1,730.3, about $1.7 billion; CyberArk against SGNL 21,061 / 627.9 = 33.5 times. Valuation: market value against Palo Alto Networks 258.72 / 306.54 = 0.84; Palo Alto price to sales 306.54 / 11.48 = 26.7; market value 25 September 2026 against 31 January 2026 258.718 / 111.278 = 2.3 times; price to trailing sales 258.718 / 5.396 = 47.9; analyst target 235.67 / 252.13 - 1 = -6.5%; market value over fiscal revenue 10.25 / 0.4814 = 21.3 (FY2020, December 2019 value), 46.86 / 0.8744 = 53.6 (FY2021, December 2020 value) - growth rates, margins and guidance. — FY2018-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in CrowdStrike's Forms 10-K and 10-Q, its results releases and market data; operands shown in the source line.
Sources
Generated September 28, 2026