CrowdStrike Holdings Inc. (NASDAQ:CRWD)

The return on equity (ROE) for the analyzed period demonstrates significant volatility. Initially, the metric is negative, gradually improving before experiencing another downturn. A detailed examination of the components contributing to this trend is warranted.

Net Income

Net income attributable to CrowdStrike exhibited substantial losses from 2020 through 2023. Losses decreased from US$141,779 thousand in 2020 to US$92,629 thousand in 2021, before increasing to US$234,802 thousand in 2022 and decreasing again to US$183,245 thousand in 2023. A positive net income of US$89,327 thousand was recorded in 2024, followed by a loss of US$19,271 thousand in 2025.

Stockholders’ Equity

Total stockholders’ equity consistently increased throughout the period. Starting at US$742,107 thousand in 2020, equity rose to US$870,574 thousand in 2021, US$1,025,764 thousand in 2022, US$1,463,641 thousand in 2023, US$2,303,950 thousand in 2024, and further to US$3,279,494 thousand in 2025. This consistent growth suggests ongoing investment and capital accumulation.

Return on Equity (ROE)

ROE began at -19.10% in 2020, reflecting the net loss relative to equity. It improved to -10.64% in 2021, but deteriorated to -22.89% in 2022. A further improvement to -12.52% was observed in 2023. The metric turned positive in 2024, reaching 3.88%, before declining to -0.59% in 2025. The fluctuations in ROE directly correlate with the changes in net income, while the increasing equity base moderates the magnitude of the percentage change. The recent return to a negative value in 2025, despite continued equity growth, indicates a renewed period of net losses impacting profitability.

The observed pattern suggests that while the company has been successful in increasing its equity base, profitability has been inconsistent. The positive ROE in 2024 was short-lived, and the return to a negative value in 2025 warrants further investigation into the underlying causes of the net loss.