<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>The Falcon Flex model is driving rapid adoption of the company's security platform.</li><li>Its unified platform continues to drive expansion within existing accounts.</li><li>Profitability is set to improve, with free cash flow margins expected to expand from 26% to at least 30% this year. </li><li>10 stocks we like better than CrowdStrike ›</li></ul>The market has recognized CrowdStrike (NASDAQ: CRWD) as a major winner in the evolving cybersecurity landscape. After some brief volatility earlier in the year, the stock has climbed 70% from its February lows and now trades at an all-time high.The company's partnerships with tech leaders such as Nvidia and Anthropic helped persuade investors that its security platform will indeed be useful as AI's footprint expands across workplaces. Where the stock might go from here is tougher to gauge. Shares now trade at roughly 30 times sales even though revenue growth slowed to 22% last quarter. That valuation leaves little margin of safety for investors who buy at today's price.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »While CrowdStrike's role in AI will unfold over time, the current story for the cybersecurity company is about platform consolidation. Its strategy is gaining traction, driving the results that have fueled the market's optimism.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDYyOS9nZXR0eWltYWdlcy0xNDg1ODIyNDA0LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="415" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MDYyOS9nZXR0eWltYWdlcy0xNDg1ODIyNDA0LmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>Falcon flexes its muscles</h2>CrowdStrike is moving from its roots as an endpoint security vendor to an integrated cybersecurity operating system for its enterprise clients. The company's Falcon Flex model allows customers to buy credits for the entire platform and activate new security modules on demand. This removes the hassle of traditional sales cycles and has been a key driver of adoption growth.The results have been strong: 50% of the company's customers now use six or more of its modules. This helped the company improve its dollar-based net retention rate by 3 percentage points to 115%. Annual recurring revenue (ARR) from Flex customers reached $1.7 billion at the end of last year, up 120% year over year.CrowdStrike's competitive advantage stems from its network effects and data-driven approach to cybersecurity. The company's platform collects massive amounts of data from its installed base of clients, which it uses to train its artificial intelligence (AI) models. As more businesses subscribe to the company's platform, the volume of data flowing through it increases, making it more effective at detecting and responding to threats.<h2>How profitable can the business become?</h2>The Falcon Flex model has proven to be a powerful tool for expanding CrowdStrike's sales to its established customers. Net new ARR reaccelerated in the second half of its fiscal 2026 (which ended Jan. 31), and management expects to add another $1.2 billion in fiscal 2027.The company generates substantial cash flow. Free cash flow (FCF) reached $1.2 billion in fiscal 2026, for a margin of 26%. Management expects margins to expand to at least 30% this fiscal year. That level of profitability is impressive, but the stock is a bit rich at this stage of the game, trading at around 125 times FCF.The valuation has held up, even as revenue growth has naturally decelerated from over 50% a few years ago to the low 20% range today. CrowdStrike is a high-quality business, but interested investors should be patient and wait for a better entry point.<h2>Should you buy stock in CrowdStrike right now?</h2> Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. Bryan White has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

CRWD

CRWL

CrowdStrike's Falcon Flex model is significantly boosting adoption of its security platform, with profitability expected to improve as free cash flow margins rise from 26% to at least 30%. The stock has surged 70% since February, trading at an all-time high, but is valued at around 125 times free cash flow, raising concerns about its price. Despite slowing revenue growth, the company's competitive edge lies in its data-driven approach and network effects, with expectations of adding $1.2 billion in annual recurring revenue in fiscal 2027.

nasdaq

CrowdStrike

GraniteShares 2x Long CRWD Daily ETF

NVIDIA

Intel

Netflix

S&P 500

Nasdaq

NVIDIA Corporation

CrowdStrike's Falcon Has Its Shares Flying High at Over 100 Times Free Cash Flow