Cloudflare reported a strong finish to 2025 with accelerating revenue growth driven by AI and the rise of the Agentic Internet. The company demonstrated significant improvements in cash flow generation and non-GAAP operating income, underscoring its ability to scale effectively.
Fourth quarter revenue increased 33.6% year-over-year to $614.5 million, accelerating from prior periods.
positiveFull year 2025 revenue grew 29.8% year-over-year to $2,167.9 million.
positiveNon-GAAP income from operations increased to $89.6 million in Q4 2025, maintaining a 14.6% margin, and grew to $303.9 million for the full year.
positiveFree cash flow significantly improved, reaching $99.4 million in Q4 2025 (16.2% margin) and $260.6 million for the full year (12.0% margin).
positiveNet cash from operating activities increased substantially to $190.4 million in Q4 and $603.1 million for the full year.
positiveGAAP loss from operations widened to $49.2 million in Q4 2025 (8.0% of revenue) from $34.7 million (7.5% of revenue) in Q4 2024.
attentionGAAP net loss for the full year 2025 was $102.3 million, an increase from $78.8 million in fiscal 2024.
attentionGAAP gross margin decreased to 73.6% in Q4 2025 from 76.4% in Q4 2024, and full-year GAAP gross margin declined to 74.5% from 77.3%.
attentionNon-GAAP gross margin also compressed to 74.9% in Q4 2025 from 77.6% in Q4 2024, and to 75.8% for the full year from 78.7%.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
| Metric | Value | Period | Specificity | vs Prior |
|---|---|---|---|---|
| revenue | $620 to $621 million | Q1 FY2026 | — | — |
| operating_income | $70 to $71 million | Q1 FY2026 | — | — |
| diluted_net_income_per_share | 23 cents | Q1 FY2026 | — | — |
| revenue | $2,785 million to $2,795 million | FY2026 | — | — |
| operating_income | $378 to $382 million | FY2026 | — | — |
| diluted_net_income_per_share | $1.11 to $1.12 | FY2026 | — | — |
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Cloudflare experienced an exceptionally strong end to 2025, closing its largest annual contract value deal ever.
The shift towards AI and agents represents a fundamental re-platforming of the Internet, driving demand across Cloudflare's services.
Cloudflare is positioned as the platform for the 'Agentic Internet', creating a virtuous flywheel effect.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.