CrowdStrike CEO: Subscription Deals Surging As Falcon Flex Is A ‘Home Run’

The cybersecurity giant saw newly added total account value from its Falcon Flex subscription model jump 31 percent in a single quarter, helping to drive business in newer product categories such as Next-Gen SIEM, CrowdStrike CEO George Kurtz said Tuesday.

CrowdStrike saw a major spike in business related to its Falcon Flex subscription model during the cybersecurity vendor’s latest quarter, helping to drive business in newer product categories such as Next-Gen SIEM, CrowdStrike Co-founder and CEO George Kurtz said Tuesday.

Kurtz made the comments as CrowdStrike disclosed financial results for the first quarter of its fiscal 2026, ended April 30, which included a surge in Falcon Flex deals.

The Flex subscription model simplifies and expedites procurement while providing larger discounts for bigger commitments — helping to incentivize customers to deploy more of the 30 modules on CrowdStrike’s Falcon platform, according to the company.

For CrowdStrike’s fiscal Q1, the vendor saw newly added Falcon Flex account value jump 31 percent from the prior quarter sequentially, reaching $774 million in total account value for Flex.

“Seeing our customers and ecosystem embrace Falcon Flex at this speed and scale gives me confidence” looking ahead, Kurtz said Tuesday during the company’s quarterly call with analysts.

CrowdStrike has closed more than $3.2 billion of total Flex deal value — from more than 820 accounts — since debuting the subscription model less than two years ago, he said.

Recent customer wins from Flex have included a Fortune 100 technology firm that went from a $12 million contract for EDR (endpoint detection and response) previously to a contract worth more than $100 million as a result of the Flex model, according to Kurtz. Flex enabled an evolution for the customer “from what was a singular outcome sale into a multi-dimensional platform experience more than eight times the size of the initial deal,” he said.

A related highlight is the growth of customers that have already fully deployed their initial Flex contract and returned for a second Flex deal, which Kurtz termed “re-Flex” deals. So far, 39 customers have signed up for "re-Flexes,” he said.

Just five months into their nearly three-year contracts, “they came back to CrowdStrike wanting more of the Falcon platform to achieve their cybersecurity consolidation goals,” he said. “The model we pioneered is a game-changer. Flex accelerates what would have taken years of module sales cycles into rapid platform transformations, unlocking adoption and spend while creating even more platform stickiness.”

In response to an analyst’s question on Flex later during the call, Kurtz summarized the momentum this way: “I think the net of it is, Falcon Flex has been a real home run.”

Key products getting a boost from Falcon Flex include CrowdStrike’s Next-Gen SIEM, according to Kurtz. The offering aims to replace aging SIEM (security information and event management) tools with an approach that makes full use of cloud-native technologies and AI, executives have said.

“I think if you look at Next-gen SIEM with some of our larger GSIs, Falcon Flex is the perfect complement to running out existing legacy licenses and then being able to bring up Next-gen SIEM,” Kurtz said during the call Tuesday. “So I think for sure, Next-Gen SIEM is one of the areas that's benefiting.”

In March, CrowdStrike announced a major channel expansion as the cybersecurity giant unveiled its new Services Partner Program, which is seeing the company primarily rely on partners to deliver the services around its fast-growing Falcon Next-Gen SIEM offering.

Total revenue for CrowdStrike’s first quarter of its fiscal 2026 was $1.10 billion, up 20 percent from the same period a year earlier and slightly below the Wall Street analyst consensus estimate for the quarter.

CrowdStrike’s stock price was down about 6.5 percent, to $457.09 a share, in after-hours trading Tuesday evening as the company also reportedly fell short of analyst expectations for its revenue forecast.

Responding to an analyst’s question referencing impacts on other cybersecurity vendors from macroeconomic uncertainty, Kurtz said the company has remained focused on growth and done a “great job on execution” recently. He pointed to the company’s net new ARR (annual recurring revenue) during its latest quarter, which totaled $193.8 million.

The results show that “customers want to buy more and more from us,” Kurtz said. “I think the team did a fantastic job in the environment that had a lot of noise — to power through it and deliver the results as we delivered.”