SentinelOne (NYSE: S) announced its Q4 fiscal year 2025 earnings on March 12,2025,marking a year of importent transformation for the cybersecurity firm. During the earnings call, which commenced at 4:30 p.m. ET, SentinelOne reported exceeding expectations across all guided metrics. This success was attributed to strong win rates and the increasing adoption of its platform solutions, particularly in the realms of data, AI, and cloud security. The company’s performance highlights its accomplished transition from a primarily endpoint-focused model to a comprehensive AI-native cybersecurity platform, positioning it for continued growth and innovation in the evolving threat landscape.

Doug Clark, Vice President of Investor Relations, began the call by clarifying that all data shared was current as of March 12, 2025, and that sentinelone assumes no obligation to update any forward-looking statements. Tomer Weingarten,CEO of SentinelOne,then took the stage to emphasize the company’s significant achievements. These included the first quarter of positive operating income in Q4, the first full year of positive net income and earnings per share, and the first full year of positive free cash flow, signaling a turning point in the company’s financial trajectory.

According to Weingarten, “Fiscal year ’25 was a transformative year for SentinelOne, ending with a strong Q4 that exceeded our expectations across all guided metrics.” He further added, “We expect to surpass 1 billion in both ARR and revenue this year, an crucial milestone in our growth journey.” This statement underscores the company’s confidence in its strategic direction and its ability to capitalize on the growing demand for AI-powered cybersecurity solutions.

Key Highlights from the Earnings Call

sentinelone’s Q4 2025 earnings call provided a detailed look at the company’s performance and strategic direction.Several key themes emerged, highlighting the company’s focus on AI-driven security and its expanding platform capabilities. These highlights demonstrate SentinelOne’s commitment to innovation and its ability to deliver value to its customers in a rapidly evolving threat landscape.

• Financial Performance: SentinelOne achieved industry-leading revenue growth and margin enhancement,with over 30% top-line growth and over 15 percentage points of operating margin expansion.
• Customer Growth: The company set a new customer growth record and scaled its emerging platform solutions to new highs, with known endpoint solutions crossing 50% of full-year bookings.
• Platform Expansion: SentinelOne successfully transformed its business from an endpoint-focused model to a comprehensive AI-native cybersecurity platform.
• Profitability Milestones: The company achieved its first quarter of positive operating income in Q4, its first full year of positive net income and earnings per share, and its first full year of positive free cash flow.

Weingarten emphasized the pivotal role of AI in reshaping the security landscape, stating, “Our AI native autonomous security is fundamentally redefining how cybersecurity challenges are addressed, setting us apart in the industry.” He also announced that SentinelOne is the first company to embed foundational generative AI capabilities into every platform solution by default, further solidifying its position as a leader in AI-powered cybersecurity.

Our AI native autonomous security is fundamentally redefining how cybersecurity challenges are addressed, setting us apart in the industry.
Tomer Weingarten, CEO of SentinelOne

The Singularity Platform, SentinelOne’s unified AI security platform, integrates data, endpoint, cloud, identity, and third-party solutions. It is designed to deliver real-time protection and actionable insights, enhancing security analysts’ capabilities with generative and agentic AI. This integration allows for a more holistic and proactive approach to cybersecurity, enabling organizations to better defend against increasingly sophisticated threats.

The company’s performance in the latest MITRE ATT&CK evaluations further validates its technology leadership. For the fifth consecutive year, Singularity achieved 100% detection. Moreover, it delivered zero detection delays and 88% fewer alerts compared to competing solutions.These results demonstrate the effectiveness and efficiency of SentinelOne’s AI-powered platform in detecting and responding to real-world cyberattacks.

Expanding Platform Solutions and Customer Adoption

SentinelOne’s platform solutions encompass seven key categories: AI and automation; data, endpoint, cloud, and identity security; exposure management; and threat services. These solutions address over 30 distinct use cases, with cloud security solutions representing one of the broadest portfolios in the industry. This comprehensive suite of solutions allows SentinelOne to cater to a wide range of customer needs and use cases, further driving adoption and expansion.

The company has experienced robust adoption and expansion of its platform solutions. as of Q4 2025, SentinelOne has tripled the number of customers with three or more solution categories and quadrupled the number of customers with four or more solutions. Approximately 40% of enterprise customers have adopted three or more platform solutions, and about 20% have adopted four or more solutions. This increasing adoption rate demonstrates the value that customers are deriving from SentinelOne’s integrated platform approach.

Data and AI were SentinelOne’s fastest-growing solutions, fueled by the adoption of its Singularity AI SIEM. This solution is redefining security data management with enhanced visibility, real-time detection, and autonomous responses. By leveraging AI to automate and streamline security operations, Singularity AI SIEM enables organizations to improve their security posture while reducing costs and complexity.

Weingarten provided examples of significant customer wins, including:

• A customer in the APAC region expanded endpoint and cloud coverage, added CNAPP, and fully replaced their legacy SIEM with AI SIEM.
• A leading financial institution switched from splunk to AI SIEM, reducing costs and improving performance.
• One of the largest retailers selected AI SIEM to replace an incumbent vendor, resulting in savings of more then $1 million per year.

Strategic Focus and Future Outlook

Looking ahead to fiscal year 2026, SentinelOne remains focused on execution and advancing Singularity as the preeminent AI-powered cybersecurity platform.The company is sharpening its innovation focus toward AI-native data and security solutions. This strategic focus will enable SentinelOne to continue to differentiate itself in the market and drive further growth.

Despite economic and political uncertainties,SentinelOne is optimistic about its growth prospects.The company’s product, sales, and marketing teams are aligned to expand the reach and scale of its platform through new customer growth and expansions. SentinelOne is also focused on deeper engagement across its partner ecosystem. By strengthening its partnerships, SentinelOne can extend its reach and provide even greater value to its customers.

barbara Larson, CFO of sentinelone, is expected to provide further details on the company’s financial outlook during the earnings call.

in closing, Tomer Weingarten expressed gratitude to SentinelOne’s customers and employees, stating, “I’m proud of all Sentinels for their dedication and relentlessness over the past year and for their enthusiasm for what’s to come.” This sentiment reflects the company’s strong culture and its commitment to innovation and customer success.

Financial Highlights and Growth Drivers

SentinelOne’s fiscal year ’25 results showcase significant improvements in profitability and cash flow. The company attributes this success to increasing scale, operational efficiencies, and a disciplined investment strategy. Barbara Larson, Chief Financial Officer, highlighted the positive financial outcomes, stating the company achieved a “positive net income margin of 2% and a positive free cash flow margin of 1% for the full year.”

Larson emphasized that these improvements are a result of “increasing scale, operational efficiencies, and a disciplined investment strategy,” and that the company will continue to build on this momentum in fiscal year ’26.

The company’s Remaining Performance Obligation (RPO) growth reaccelerated to 30%, reaching a new record of $1.2 billion, driven by long-term growth commitments from leading MSSP partners.

customer Growth and Expansion

SentinelOne’s customer base continues to expand, with over 14,000 direct customers protected as of the end of fiscal year ’25. This figure excludes the numerous businesses served through strategic partnerships with Managed Security service providers (MSSPs). The company has strengthened its relationships with leading MSSP partners, securing long-term growth commitments that contributed to a strong Remaining Performance Obligation (RPO) growth, which reaccelerated to 30% and reached a new record of $1.2 billion.

The company is also experiencing success with both new and existing customers.The number of customers with ARR of $100,000 or more grew by 25% year-over-year in Q4, reaching 1,411. This includes over 100 net new customer additions in the quarter, marking the largest net adds for the year. The average deal size and ARR per customer are also increasing, reflecting the company’s platform momentum and its move upmarket.

SentinelOne has maintained healthy expansion rates, achieving a dollar-based net retention rate of 110% for the full year. This indicates that enterprises are increasingly adopting more of the Singularity platform, even amidst a challenging macroeconomic surroundings.

Strategic Outlook and guidance

Looking ahead to fiscal year ’26, SentinelOne anticipates significant growth and continued profitability improvements. The company expects to surpass $1 billion in both ARR and revenue and deliver its first full year of positive operating margin. Specific guidance includes:

• Revenue: $1.07 billion to $1.12 billion,representing 23% growth.
• Net New ARR: Approximately $200 million.
• Operating Margin: between positive 3% and 4%.

The company is also focused on delivering efficiencies by prioritizing investments in data, cloud, and AI. As part of this strategy,SentinelOne has made the strategic decision to retire its legacy deception solution,which is expected to result in up to $10 million of churn in fiscal year ’26.

AI and Platform-Based solutions

SentinelOne is placing a significant emphasis on its AI capabilities, particularly its Purple AI offering, and its AI SIEM (Security Information and Event Management) solution. Tomer Weingarten, Chief Executive Officer, highlighted the company’s success in the AI space, stating, “We’ve done more than 300 AI deals in Q4. I mean that is most likely more than any other security vendor out there. And we definitely see more traction for these solutions.” This focus on AI is not just about adding new features, but also about consolidating existing capabilities into a more streamlined and efficient platform.

Weingarten elaborated on this point, explaining that AI is expected to consolidate various security functions, potentially replacing standalone products with AI-driven agents.You can think about identity. You can think about many elements of the broader security platform you’re seeing out there as capabilities that can be delivered as agentic AI rather of a fully fledged product. This approach is designed to make security solutions more accessible and easier to manage for customers.

Legacy Deception Solution Retirement

The decision to retire the legacy deception solution, acquired with Attivo, is primarily driven by its aging infrastructure and increasing maintenance costs. Weingarten explained, The biggest thing with deception is just it’s a legacy code base that we acquired, you know, with Attivo. Actually, it actually has even hardware components. He added that the cost of maintaining the legacy system was no longer justified by its return on investment, prompting the company to realign resources towards higher-growth areas.

Barbara Larson, Chief Financial Officer, quantified the impact of this retirement, noting that it would result in approximately $10 million in churn for fiscal year ’26, with about half of that impact occurring in Q1.Despite this headwind, SentinelOne anticipates sequential improvement in net new ARR growth throughout the remainder of the fiscal year.

Larson added clarity regarding the impact of the deception solution retirement on Q4 ’25 ARR:

we did have some impact from churn in this Q4 related to deception. And if we adjust that out, our Q4 net new ARR would have grown in mid single digits.

Federal Government Opportunities

SentinelOne views the federal government sector as a significant source of demand, despite some uncertainties surrounding budgets and deal timing. Weingarten noted that their federal pipeline has expanded, and the company is well-positioned to serve federal agencies due to its FedRAMP high authorization, particularly for AI solutions. We’re one of the only security vendors that can sell AI into a FedRAMP High type of an environment. In many cases, we actually create cost synergies. We allow these agencies to actually save on their data ingestion costs. We allow them to save on operational costs, and that positions us really well even in a macro in that arena that cause for more cost saving and prudence.

The ability to offer cost-effective AI solutions is particularly appealing to federal agencies seeking to optimize their security spending. While acknowledging potential delays in deal closures, SentinelOne remains optimistic about its prospects in the federal market.

Flexible Platform Solutions

SentinelOne is also focused on expanding its platform capabilities and offering more flexible pricing options to customers. With a platform that now includes seven core capabilities and over 30 modules, the company is aiming to provide customers with access to a broader range of security solutions.

Weingarten emphasized that the company is not engaging in widespread discounting but is exploring ways to provide customers with more flexible procurement options. Customers are looking for more flexible ways to procure. And I think that’s where we, you know, don’t see a lot of downside in going down the path of allowing some of these more flexible terms, given that the expansion you seen in our capabilities set is significant. This approach is designed to encourage greater adoption of the platform and its various modules.

Tomer Weingarten,Chief Executive officer,emphasized this approach,stating:

I think the biggest thing is that we want to provide flexibility. I think unlike some other vendors, we don’t force customers to take kind of an all or nothing approach.
Tomer Weingarten, Chief Executive Officer

conclusion

SentinelOne’s strong fiscal year ’25 results demonstrate its growing market presence and the increasing demand for its cybersecurity solutions.The company’s focus on innovation, strategic partnerships, and operational efficiency positions it well for continued growth and profitability in fiscal year ’26 and beyond. With a clear vision and a commitment to delivering cutting-edge security solutions, SentinelOne is poised to solidify its position as a leader in the cybersecurity industry.

Financial Performance Highlights

SentinelOne’s financial performance in FY25 demonstrates considerable growth across key metrics. The company achieved several profitability milestones, including positive operating income, net income, earnings per share, and free cash flow for the first time. The FY25 net income margin was 2%, and the free cash flow margin was 1%.Projections for FY26 anticipate a positive operating margin between 3% and 4%.

The company’s Q4 2025 revenue reached $226 million, marking a 29% increase year-over-year. annual recurring Revenue (ARR) stood at $920 million at the end of FY25,reflecting a 27% increase. The gross margin reached a new full-year high in FY25,and the operating margin improved by 16 percentage points year-over-year. The Remaining Performance Obligation (RPO) reached a record of $1.2 billion, with 30% growth.

Customer Growth and Platform Adoption

SentinelOne has experienced significant expansion in its customer base, with over 14,000 direct customers at the end of FY25, excluding MSSP partners. The number of customers with ARR of $100,000+ grew by 25% year-over-year in Q4, reaching 1,411, with over 100 net new customers added in Q4.

Platform expansion is also a key driver of growth. The company has seen significant growth in customers using multiple SentinelOne platform solutions. The number of customers using three or more solution categories has tripled, and the number using four or more has quadrupled. Approximately 40% of enterprise customers use three or more solutions, and 20% use four or more. The fastest-growing solutions are in data and AI, driven by the adoption of Singularity AI SIEM. The net retention rate for the full year was 110%, indicating strong customer retention and expansion.

SentinelOne’s strategy allows it to offer a comprehensive cloud security suite with CNAPP (Cloud Native Request Protection Platform) capabilities and runtime workload protection. This adaptability has proven successful, as evidenced by customer adoption of multiple capabilities. As noted, we’re seeing customers adopt more and more of our capabilities once they’ve experimented with at least one capability.

AI Innovation at the Forefront

SentinelOne is positioning itself as a leader in AI-driven cybersecurity. The company’s commitment to AI is backed by industry recognition, including Gartner customer choice awards for endpoint protection and cloud security, and also Gartner customer choice for MDR (Managed Detection and Response) and Product of the Year for AI.

The company’s unified AI security platform, Singularity, delivers real-time protection and actionable insights. It achieved 100% detection in MITRE ATT&CK evaluations for the fifth consecutive year, with zero detection delays and 88% fewer alerts compared to competitors. SentinelOne is the first company to embed foundational generative AI capabilities into every platform solution by default.

The platform covers seven key categories: AI & automation; data, endpoint, cloud, and identity security; exposure management; and threat services, addressing over 30 distinct use cases. According to SentinelOne, what we do is at the forefront in each and every one of these fields. And we have fully inclusive capabilities that are akin to every other platform — and every other leading platform, I should say, in the market today.

Expansion and Flexible Pricing Structures

To further facilitate growth, SentinelOne is implementing more flexible pricing platform structures. These structures are designed to allow customers to gradually consume more of SentinelOne’s capabilities over time, aligning costs with their evolving needs.

We’re definitely seeing the expansion coming as evidenced in the numbers, and that’s why we’re also moving toward those more flexible pricing platform structures that can allow customers to then, over time, consume more from our capability set, the company stated.

Deception Product End-of-Sale Impact on NRR

During the Q&A session, an analyst inquired about the impact of the deception products’ end-of-sale on SentinelOne’s Net Revenue Retention (NRR). while there was no material impact on the Q4 NRR, the end-of-sale of the deception products is expected to be a headwind in Q1.

on the NRR front, there was no, I would say, material impact on Q4 NRR. We do expect that that’s going to be a headwind to NRR, the deception, end-of-sale, you know, specifically in Q1, the company clarified. It is anticipated that once this headwind is cleared, the NRR will return to a healthier level. The retirement of the legacy deception solution is expected to cause up to $10 million churn in FY26.

Looking ahead to Fiscal Year ’26

SentinelOne is optimistic about its prospects for fiscal year ’26. The company aims to continue leading the industry with its technology and is particularly focused on leveraging AI to transform cybersecurity. The company projects surpassing $1 billion in both ARR and revenue, with significant growth and continued profitability improvements.

Strategic priorities include continued investment in data, cloud, and AI solutions.Strong relationships with MSSPs and Lenovo are also key, with expectations of a more significant impact from the Lenovo partnership in FY26.

in closing, the company stated, We delivered a strong end to fiscal year ’25 and see significant chance ahead in fiscal ’26. We continue to lead the industry with best-in-class technology…We’re delivering strong revenue growth and margin expansion and achieved new profitability milestones with more to come.