S Q4 2025 Earnings

Call Details

• Call Title: SentinelOne Q4 2025 Earnings Call
• Date: March 12, 2025 at 8:30 PM UTC
• Management Team:
  • Doug Clark (Vice President of Investor Relations)
  • Tomer Weingarten (Chief Executive Officer)
  • Barbara Larson (Chief Financial Officer)

Call Summary

Financial Performance

• Fiscal year 2025 revenue grew 32% to $821 million on a non-GAAP basis.
• Q4 revenue was $226 million, representing 29% year-over-year growth and exceeding expectations.
• Full-year gross margin reached a new high and full-year net income margin was positive 2% on a non-GAAP basis.
• SentinelOne delivered its first quarter of positive operating income in Q4 and its first full year of positive free cash flow with a full-year free cash flow margin of 1%.
• Operating margin expanded by 16 percentage points year over year for the full year.
• Q4 international revenue grew 36% and represented 37% of quarterly revenue.
• RPO reaccelerated to 30% growth and reached a record $1.2 billion at year end.

Guidance

• The company expects fiscal year 2026 net new ARR of approximately $200 million, representing about 2% year-over-year growth.
• Q1 revenue is expected to be approximately $228 million, which management states is 22% growth or 24% growth when normalizing for a leap year comparison.
• Q1 net new ARR is expected in the low $30 million range and nearly half of the expected $10 million ARR churn from deception retirement is expected to impact Q1.
• Full-year fiscal 2026 gross margin is guided to be 78.5% to 79.5%, and Q1 gross margin is guided to be about 79%.
• Q1 operating margin is expected to be about negative 2%, and full-year operating margin is expected to be positive 3% to 4% (midpoint improvement of over 650 basis points versus fiscal 2025).
• The outlook includes up to $10 million of expected ARR churn from the retirement of the legacy deception solution, and excluding that impact company says full-year net new ARR would be mid to high single-digit growth.
• The release contains an internal inconsistency on a revenue range string ("$1.7 billion to $1.12 billion") that cannot be reconciled from the transcript and should be treated as inconsistent reporting of the revenue range.