During the Fourth Quarter of Fiscal Year 2025, which ended January 31, 2025, SentinelOne, Inc. reported a revenue increase of 29% year-over-year, totaling $225.5 million compared to $174.2 million in the same quarter of the previous fiscal year. Annualized recurring revenue (ARR) also saw significant growth of 27%, reaching $920 million from $724 million.

For the full fiscal year 2025, SentinelOne achieved total revenue of $821.5 million, up 32% from $621.2 million in the prior year. The gross margin for the fourth quarter was reported at 79%, slightly higher than the 78% recorded a year prior, while the full year gross margin increased to 79% compared to 77% the year before. The company delivered its first quarter of positive operating margin in Q4, achieving a non-GAAP operating margin of 1%, compared to a loss of 9% a year ago.

Net income for the fourth quarter was reported at $12.2 million, translating to a net income margin of 5%, marking an improvement over a loss margin of 4% the previous year. The net income margin for the full fiscal year was 2%, an increase from a net loss margin of 13% in fiscal year 2024. The fourth quarter also showed significant progress in cash flow, with free cash flow margin increasing to 1% from a negative 13% a year prior.

Between Q4 and the year-end, SentinelOne increased its customer base such that the number of customers generating an ARR of $100,000 or more grew 25% to 1,411. Additionally, net new ARR for Q4 reached $60 million, significantly contributing to the overall ARR growth.

SentinelOne’s guidance for the first quarter of Fiscal Year 2026 anticipates revenue of approximately $228 million, representing growth of 23% year-over-year. For the full fiscal year 2026, revenue is expected to reach between $1.07 billion and $1.12 billion, showcasing a continuous upward trajectory as the company projects a growth of 28% to 30% from the previous fiscal year.

The guidance also expects to achieve a non-GAAP operating margin of between 3% and 4% for the full year, along with gross margins sustaining around 79%. However, the company anticipates a downturn in net new ARR growth to around $200 million due to the planned retirement of its legacy deception product, which is expected to cause around $10 million in churn for the year. Excluding this impact, net new ARR growth is viewed to be in the mid- to high single-digit percentage range.

With cash reserves of $1.1 billion, SentinelOne is well-positioned for strategic investments, continuing to focus on enhancing its product offerings, particularly in data and AI-driven security solutions, and maximizing operational efficiency for sustained financial performance.