Financial Analysis

ACQUISITIONS Fiscal 2026 Acquisitions Prompt On September 5, 2025, we completed the acquisition of Prompt Security, Inc (Prompt), a provider of security solutions focused on the generative and agentic artificial intelligence (AI) security space, to enhance our overall product offerings. We acquired 100% of the shares of Prompt for a total consideration of approximately $133.6 million in cash, 1,555,099 shares of our Class A common stock, and 415,109 assumed options, subject to customary adjustments set forth in the purchase agreement. Observo On September 22, 2025, we completed the acquisition of Observo, Inc. (Observo), a provider of AI-ready data pipeline technology, to complement our existing product offerings and expand our data business portfolio. We acquired 100% of the shares of Observo for total consideration of approximately $130.2 million in cash and 5,263,156 shares of our Class A common stock, subject to customary adjustments set forth in the purchase agreement. Preliminary Purchase Price Allocation and Acquisition Accounting The acquisitions completed during the nine months October 31, 2025 were preliminarily accounted for as business combinations, and the purchase prices were preliminarily allocated to the assets acquired and liabilities assumed based on their respective fair values as of the acquisition dates, as presented below (in thousands): Prompt Observo Total Consideration: Cash $ 133,614 $ 130,197 $ 263,811 Common stock 17,196 53,590 70,786 Assumed optio …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Legal Contingencies From time to time, we may be a party to various legal proceedings and subject to claims in the ordinary course of business. Securities Litigation On June 6, 2023, a securities class action was filed against us, our Chief Executive Officer and our former Chief Financial Officer, in the Northern District of California, captioned Johansson v. SentinelOne, Inc., Case No. 4:23-cv-02786. The suit is brought on behalf of an alleged class of stockholders who purchased or acquired shares of the Companys Class A common stock between June 1, 2022 and June 1, 2023. The complaint alleged that defendants made false or misleading statements about our business, operations and prospects, including its annual recurring revenues and internal controls, and purports to assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (Exchange Act). A substantially similar suit was filed on June 16, 2023 in the same court against the same defendants asserting the same claims, captioned Nyren v. SentinelOne, Inc., Case No. 4:23-cv-02982. On October 4, 2023, the court issued an order consolidating both cases under the caption In re SentinelOne, Inc. Securities Litigation Case No. 4:23-cv-02786 (Securities Litigation) and appointing a lead plaintiff. Defendants filed a motion to dismiss the consolidated complaint. On July 2, 2024, the District Court granted defendants motion, dismissing the consolidated complaint with le …

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STOCKHOLDERS EQUITY Stock-Based Compensation Expense The components of stock-based compensation expense recognized in the condensed consolidated statements of operations consisted of the following (in thousands): Three Months Ended October 31, Nine Months Ended October 31, 2025 2024 2025 2024 Cost of revenue $ 5,644 $ 5,810 $ 15,708 $ 16,243 Research and development 24,952 22,816 70,182 61,092 Sales and marketing 22,483 18,612 66,736 55,568 General and administrative 22,809 22,950 65,837 60,515 Restructuring (547) (583) Total $ 75,341 $ 70,188 $ 217,880 $ 193,418 Restricted Stock Units A summary of our RSU activity is as follows: Number of RSUs Weighted-Average Grant Date Fair Value Outstanding as of January 31, 2025 27,357,828 $ 21.60 Granted 21,447,547 18.25 Released (8,740,428) 21.95 Forfeited (5,543,589) 20.29 Outstanding as of October 31, 2025 34,521,358 $ 19.64 As of October 31, 2025, we had unrecognized stock-based compensation expense related to unvested RSUs of $610.1 million that is expected to be recognized on a straight-line basis over a weighted-average period of 2.9 years. Performance Stock Units During the nine months ended October 31, 2025, we granted PSUs to certain executives subject to predetermined service-based and performance-based vesting conditions. These PSUs may vest from 0% to 225% of the number of target shares based on the achievement of certain financial performance metrics and will vest contingently over a period of one to four years, subject to …

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CASH AND CASH EQUIVALENTS, INVESTMENTS, AND FAIR VALUE MEASUREMENTS The following tables summarize information about our cash, cash equivalents, and investments by investment category as of October 31, 2025 and January 31, 2025 (in thousands): As of October 31, 2025 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Assets Cash and cash equivalents: Cash $ 106,456 $ $ $ 106,456 Money market funds Level 1 43,750 43,750 Total cash and cash equivalents $ 150,206 $ $ $ 150,206 Short-term investments: U.S. treasury securities Level 1 $ 291,123 $ 853 $ (5) $ 291,971 Corporate notes and bonds Level 2 198,660 553 (35) 199,178 U.S. agency securities Level 2 8,500 (9) 8,491 Total short-term investments $ 498,283 $ 1,406 $ (49) $ 499,640 Long-term investments: U.S. treasury securities Level 1 $ 93,748 $ 445 $ $ 94,193 Corporate notes and bonds Level 2 98,588 439 99,027 Total long-term investments $ 192,336 $ 884 $ $ 193,220 Total assets measured at fair value $ 840,825 $ 2,290 $ (49) $ 843,066 As of January 31, 2025 Fair Value Level Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Assets Cash and cash equivalents: Cash $ 94,728 $ $ $ 94,728 Money market funds Level 1 61,962 61,962 U.S. treasury securities Level 1 9,969 3 9,972 Commercial paper Level 2 19,914 (2) 19,912 Total cash and cash equivalents $ 186,573 $ 3 $ (2) $ 186,574 Short-term investments: U.S. treasury securities Level 1 $ 208,918 $ 284 $ ( …

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INCOME TAXES We compute our tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from continuing operations and adjusting for discrete items arising in that quarter. During the three and nine months ended October 31, 2025, we recorded a U.S. net deferred tax liability primarily attributable to identifiable acquired intangibles in connection with the Observo acquisition. This net deferred tax liability is considered an additional source of income to support the realizability of the Companys U.S. deferred tax asset, and as a result we released a portion of U.S. valuation allowance and recorded a discrete tax benefit of $5.4 million. During the nine months ended October 31, 2025, we incurred a discrete tax expense upon recording a long-term tax contingency of $136.0 million, partially offset by a discrete tax benefit of $4.7 million from releasing a valuation allowance to recognize the Israeli deferred tax assets in relation to the APA matter, as discussed further below. Without respect to these three discrete items, we had an effective tax rate of (3.5)% and (2.0)% for the three months ended October 31, 2025 and 2024, respectively, and (3.7)% and (2.5)% for the nine months ended October 31, 2025 and 2024, respectively. The effective tax rate is primarily attributable to minimum taxes and profits in our foreign jurisdictions. On July 4, 2025, the United States enacted the One Big Beautiful Bill Act (OBBBA), which restores t …

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Recently Issued Accounting Pronouncement s Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. We are currently assessing its impact on related disclosures, with adoption planned for the annual period ending January 31, 2026. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This ASU requires additional disclosure in the notes to the financial statements of specified information about certain income statement line items. Additionally, in January 2025, the FASB further issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The ASU is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied either prospectively to financial statements issued for reporting period …

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RESTRUCTURING In March 2025, we executed a restructuring plan (March Plan) as a result of a review of current strategic priorities, resource allocation, and cost reduction intended to reduce operating costs, improve operating margins and continue advancing our ongoing commitment to profitable growth. We incurred approximately $5.2 million in charges in connection with the March Plan for the nine months ended October 31, 2025, which primarily consists of $3.0 million in charges related to severance payments and employee benefits and $2.2 million of asset impairment charges related to facilities. These costs were substantially paid as of October 31, 2025 and the actions associated with the March Plan were completed as of July 31, 2025. In July 2025, we initiated a subsequent restructuring plan (July Plan). For the three months ended October 31, 2025, we incurred restructuring charges of $3.2 million, which consisted of $3.7 million in severance payments and employee benefits, partially offset by $0.5 million in savings related to the reversal of stock-based compensation expense. For the nine months ended October 31, 2025, total charges incurred under this plan were $7.1 million, which included $3.9 million related to contract terminations and $3.7 million for severance payments and employee benefits, partially offset by $0.5 million in savings related to the reversal of stock-based compensation expense. As of October 31, 2025, $6.1 million of the total charges had been paid and …

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REVENUE AND CONTRACT BALANCES Disaggregation of Revenue The following table summarizes revenue by geography based on the shipping address of end customers who have contracted to use our platform for the periods presented (in thousands, except percentages): Three Months Ended October 31, 2025 Three Months Ended October 31, 2024 Amount % of Revenue Amount % of Revenue United States $ 154,804 60 % $ 133,012 63 % International 104,109 40 77,636 37 Total $ 258,913 100 % $ 210,648 100 % Nine Months Ended October 31, 2025 Nine Months Ended October 31, 2024 Amount % of Revenue Amount % of Revenue United States $ 446,895 61 % $ 377,514 63 % International 283,230 39 218,426 37 Total $ 730,125 100 % $ 595,940 100 % No single country other than the United States represented 10% or more of our revenue during the three and nine months ended October 31, 2025 and 2024. Substantially all of our sales are fulfilled through our channel partners, including distributors, resellers, managed security service providers, and others. Contract Balances Contract assets consist of unbilled accounts receivable, which arise when a right to consideration for our performance under the customer contract occurs before invoicing the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the condensed consolidated balance sheets was $11.9 million and $5.5 million as of October 31, 2025 and January 31, 2025, respectively. Contract liabilities consist of deferred revenue, …

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and applicable rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 filed with the SEC on March 26, 2025 (Annual Report). In managements opinion, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which reflect all normal recurring adjustments necessary to present fairly the results for the interim periods, but are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Principles of Consolidation The condensed consolidated financial statements include the accounts of SentinelOne and our wholly-owned subsidiaries. All intercompany balances and transactions have been …

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