- SentinelOne delivered strong top-line momentum in QQ2 2025, with revenue of $199.0 million (+33% YoY) and total ARR of $806 million (+32% YoY). Net new ARR in the quarter was $44 million, and international revenue grew 36% YoY, representing 37% of quarterly revenue. Management framed these results within a durable growth framework supported by AI-driven platform advantages and expanding go-to-market momentum.
- The company achieved a record gross margin of 80% and a near-breakeven operating margin, marking a material improvement in unit economics and an important profitability milestone highlighted by management as the first time in company history that net income and earnings per share were positive. The quarterly GAAP net income figure in the data set reflects a net loss, underscoring a potential discrepancy between reported GAAP results and management commentary on profitability in the call. Investors should reconcile these figures with the company’s GAAP vs non-GAAP disclosures and the shareholder letter guidance.
- Management raised full-year revenue guidance to about $815 million (up ~31% YoY) and provided Q3 revenue guidance of ~$209.5 million (up ~28% YoY). Gross margin guidance for the year was raised to 79%. The trajectory implies continued margin expansion and a deliberate reinvestment stance to scale, with the company citing catalysts from CNAPP, AI, and Data offerings, Purple AI adoption, and expanding cloud security and SIEM capabilities.
- Strategic momentum is underpinned by a broad and expanding partner ecosystem (Google/Mandiant, cyber insurers, MSSPs) and notable enterprise wins across endpoints, cloud, and data, with CNAPP and Purple AI cited as accelerants of new business expansion and higher ARR per customer. The outlook contemplates improved H2 net new ARR growth, supported by a stronger pipeline and improved competitive positioning.
- The investment thesis centers on SentinelOne’s differentiated platform architecture (autonomous AI security that reduces reliance on kernel-level updates), an expanding data lake strategy, and an open ecosystem approach that aims to capture a large share of a multi-hundred-billion cybersecurity and data market. Investors should monitor: (1) the pace of H2 ARR acceleration, (2) the trajectory of profitability and free cash flow as the company balances growth investments with margin enhancement, and (3) the durability of large enterprise and federal/insurer partnerships over multi-year contract cycles.