# SentinelOne (S) Q2 2026 Financial Results Summary
SentinelOne, Inc. (NYSE: S) announced its financial results for the second quarter of fiscal year 2026, which ended on July 31, 2025, on August 28, 2025. Below is a summary of key financial metrics and results.
## Key Highlights
– **Total Revenue**: Increased by **22%** year-over-year to **$242.2 million**, up from **$198.9 million**.
– **Annualized Recurring Revenue (ARR)**: Rose by **24%** year-over-year to exceed **$1 billion**, reaching **$1.0 billion** as of July 31, 2025.
– **High-Value Customers**: The number of customers with ARR of **$100,000 or more** grew by **23%** to **1,513**.
– **Margins**:
– **GAAP Gross Margin**: Steady at **75%** (no change).
– **Non-GAAP Gross Margin**: Decreased to **79%** from **80%**.
– **GAAP Operating Margin**: Improved to **(33%)** from **(40%)**.
– **Non-GAAP Operating Margin**: Improved to **2%** from **(3%)**.
– **Net Income (Loss) Margin**:
– **GAAP Net Loss Margin**: Improved to **(30%)** from **(35%)**.
– **Non-GAAP Net Income Margin**: Increased to **5%** from **2%**.
– **Cash Flow Margins**:
– **Operating Cash Flow Margin**: Declined to **0%** from **1%**.
– **Free Cash Flow Margin**: Consistent at **(3%)**.
– **Trailing-twelve Month Operating Cash Flow Margin**: Increased to **4%**, up from **2%**.
– **Trailing-twelve Month Free Cash Flow Margin**: Rose to **2%** from **(1%)**.
## Financial Performance Overview
– **Net Income**: The net loss reported was **$(72.0 million)** compared to **$(69.2 million)** in the same quarter last year. The net loss per share remained steady at **$(0.22)**.
– **Operating Expenses**: Total operating expenses were **$262.3 million**, up from **$227.6 million** year-over-year.
## Balance Sheet Highlights
– **Cash, Cash Equivalents, and Investments**: Recorded at **$1.2 billion** as of July 31, 2025.
– **Year-on-Year Comparisons**:
– **Current Assets**: Increased to **$1.092 billion** from **$1.069 billion**.
– **Total Assets**: Decreased slightly to **$2.35 billion** from **$2.41 billion**.
## Guidance
– For **Q3 FY26**: Revenue is anticipated to be **$256 million**.
– For the **Full FY2026**: Projected revenue between **$998 million** to **$1.002 billion**.
– **Non-GAAP Gross Margin Guidance**: Expected to remain around **78.5%**.
## Share Repurchase and Dividends
– **Share Repurchase Program**: SentinelOne repurchased **$52.7 million** worth of common stock.
– **Dividend Declaration**: There was no quarterly dividend declared during this period.
## Conclusion
SentinelOne continues to maintain momentum in revenue growth and product adoption, supported by ongoing investments in its AI cybersecurity platform. The company’s improved operating margins and cash flow metrics indicate strengthened operational efficiency despite the reported net losses. As of now, SentinelOne has not announced any plans for a dividend payout, maintaining focus on reinvestment and business expansion.
For more details, investors can access further information through the Investor Relations section of the SentinelOne website.
| Three Months Ended July | Six Months Ended July | |||
|---|---|---|---|---|
| 31, 2025 | 31, 2024 | 31, 2025 | 31, 2024 | |
| Revenue | $242,183 | $198,937 | $471,212 | $385,292 |
| Cost of revenue (1) | 60,474 | 50,699 | 117,006 | 100,836 |
| Gross profit | 181,709 | 148,238 | 354,206 | 284,456 |
| Operating expenses: | ||||
| Research and development (1) | 79,091 | 63,602 | 151,344 | 121,923 |
| Sales and marketing (1) | 127,879 | 119,617 | 261,760 | 235,447 |
| General and administrative (1) | 51,474 | 44,400 | 100,153 | 87,067 |
| Restructuring (1) | 3,883 | — | 9,050 | — |
| Total operating expenses | 262,327 | 227,619 | 522,307 | 444,437 |
| Loss from operations | -80,618 | -79,381 | -168,101 | -159,981 |
| Interest income, net | 12,196 | 12,817 | 24,486 | 24,863 |
| Other income (expense), net | -327 | -421 | 165 | -460 |
| Loss before income taxes | -68,749 | -66,985 | -143,450 | -135,578 |
| Provision for income taxes | 3,270 | 2,199 | 136,762 | 3,711 |
| Net loss | $-72,019 | $-69,184 | $-280,212 | $-139,289 |
| Net loss per share attributable to Class A and Class B common stockholders, basic and diluted | $-0.22 | $-0.22 | $-0.85 | $-0.45 |
| Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted | 330,938,421 | 312,615,531 | 329,481,933 | 310,358,089 |
| (1) Includes stock-based compensation expense as follows: | ||||
| Cost of revenue | $5,399 | $5,564 | $10,064 | $10,433 |
| Research and development | 24,289 | 20,811 | 45,230 | 38,276 |
| Sales and marketing | 21,338 | 18,882 | 44,253 | 36,956 |
| General and administrative | 22,858 | 19,420 | 43,028 | 37,565 |
| Restructuring | — | — | -36 | — |
| Total stock-based compensation expense | $73,884 | $64,677 | $142,539 | $123,230 |
| Assets | July 31, 2025 | January 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 278,005 | $ 186,574 |
| Short-term investments | 532,818 | 535,331 |
| Accounts receivable, net | 179,332 | 236,012 |
| Deferred contract acquisition costs, current | 65,402 | 64,782 |
| Prepaid expenses and other current assets | 37,141 | 47,023 |
| Total current assets | 1,092,698 | 1,069,722 |
| Property and equipment, net | 79,227 | 71,774 |
| Long-term investments | 347,009 | 419,367 |
| Deferred contract acquisition costs, non-current | 83,271 | 85,322 |
| Intangible assets, net | 94,272 | 107,155 |
| Goodwill | 629,636 | 629,636 |
| Other assets | 24,371 | 23,649 |
| Total assets | $ 2,350,484 | $ 2,406,625 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 9,725 | $ 8,159 |
| Accrued payroll and benefits | 66,548 | 79,612 |
| Deferred revenue, current | 457,221 | 470,127 |
| Other current liabilities | 63,282 | 55,655 |
| Total current liabilities | 596,776 | 613,553 |
| Deferred revenue, non-current | 89,586 | 102,017 |
| Other liabilities | 156,336 | 21,808 |
| Total liabilities | 842,698 | 737,378 |
| Stockholders’ equity: | ||
| Preferred stock | — | — |
| Class A common stock | 32 | 31 |
| Class B common stock | 1 | 1 |
| Additional paid-in capital | 3,414,117 | 3,294,542 |
| Accumulated other comprehensive income | 1,333 | 2,158 |
| Accumulated deficit | -1,907,697 | -1,627,485 |
| Total stockholders’ equity | 1,507,786 | 1,669,247 |
| Total liabilities and stockholders’ equity | $ 2,350,484 | $ 2,406,625 |
