NETNYSEServices-Prepackaged SoftwareUS GAAP · USD

Cloudflare, Inc.

Cloudflare, Inc. builds a global cloud network that helps organizations secure, accelerate, and connect applications, APIs, and corporate infrastructure. Its platform combines application security, Zero Trust/SASE, developer tools like Workers, and consumer products such as 1.1.1.1 and WARP, with customers often starting on one product and expanding across the stack over time.

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Revenue2,168m USD
+29.8 %y/y
Operating profit (EBIT)-207m USD
−33.9 %y/y
EBIT margin-9.6%
−0.3 ppy/y
Net income-102m USD
−29.8 %y/y
Free cash flow287m USD
+47.1 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50005001,0001,5002,0002,500m USD2020: 431 m USD2020: EBIT -107 m USD20202021: 656 m USD2021: EBIT -128 m USD20212022: 975 m USD2022: EBIT -201 m USD20222023: 1,297 m USD2023: EBIT -185 m USD20232024: 1,670 m USD2024: EBIT -155 m USD20242025: 2,168 m USD2025: EBIT -207 m USD20252,168-207
RevenueOperating profit (EBIT)

Business

Share of revenue
Application Services40 %

Security, performance, and reliability tools for websites, APIs, and internet applications.

Zero Trust / SASE / Connectivity Cloud30 %

Identity-aware access, workplace security, and secure connectivity across cloud and branch environments.

Developer Solutions20 %

Workers and related platform services for building and deploying serverless and AI applications.

Consumer Offerings5 %

1.1.1.1 DNS, WARP VPN, and related consumer privacy and security products.

Registrar and Other Services5 %

Domain registration and smaller adjacent services tied to the network platform.

Customers

Cloudflare sells to a broad mix of organizations that need to secure and optimize internet-facing workloads, from small businesses using self-serve plans to large enterprises buying contracted solutions. The company also serves developers building serverless and AI applications, and a smaller consumer base using DNS and VPN products. Its customer base is highly diversified across industries, with no single customer representing more than 10% of revenue.

Self-serve SMB and digital-native customers

Buy pay-as-you-go application and security services to start quickly with low friction and expand later.

Large enterprise customers

Buy Zero Trust, SASE, and broader platform services for secure access, networking, and consolidation.

Developers and platform builders

Buy Workers and related compute/storage tools to build and deploy serverless and AI applications.

Public sector and regulated industries

Buy security and reliability services that support compliance, resilience, and government-grade use cases.

Consumers

Use DNS and VPN products for privacy, speed, and basic home-network protection.

Strategy

Cloudflare’s strategy is to expand from a single-product entry point into a broader infrastructure platform, increasing usage per customer through cross-sell and upsell. It is also investing in developer solutions, storage, compute, and AI workloads to open new markets beyond core security and delivery. The company continues to scale direct sales, channel partners, and brand awareness while using free and self-serve products to lower acquisition friction.

Cross-sell and upsell within the installed baseShort term

Customers often start with one service and expand as they consolidate security, performance, and reliability needs.

Develop Workers, storage, and compute into a larger platformMedium term

Developer adoption opens a new workload category and can deepen strategic relevance with builders and AI use cases.

Scale enterprise go-to-marketMedium term

Large customers require more structured sales coverage and can drive higher contract values and broader platform adoption.

Invest in global network infrastructure and automationLong term

Network breadth, reliability, and efficiency are core to product performance and competitive differentiation.

Geography

Q1/2026

Cloudflare operates a global network and sells in more than 190 countries, with revenue reported by billing address across the United States, EMEA, Asia Pacific, and Other. The United States remains the largest single market, but the business is structurally international because its services are delivered through a distributed network and sold digitally. This broad footprint supports scale, but it also exposes the company to regional regulation, tariffs, and cross-border customer demand shifts.

United States54 %
Europe, Middle East and Africa30 %
Asia Pacific17 %

Share of the revenue the company reports by geography.

Risks

Cloudflare’s growth depends on continued customer adoption of cloud-based security and networking, but customers may prefer on-premises alternatives or face switching costs that slow conversion. The company also faces execution risk in launching new products, maintaining security certifications, and keeping performance reliable as it scales a highly automated global network. Broader risks include regulation, privacy and data protection changes, tariffs, and intensifying competition from point-solution vendors and public cloud providers.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer preference for on-premises or appliance-based solutions1Product execution and launch delays2Competition from point solutions and public cloud vendors3Regulatory and privacy changes4Tariffs and retaliatory trade measures5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer preference for on-premises or appliance-based solutionsImpact: HighLikelihood: Medium

    Some buyers remain more comfortable with traditional infrastructure and may delay moving to cloud-based services.

    Exposure: Enterprise security and networking sales

  2. Product execution and launch delaysImpact: HighLikelihood: Medium

    The company must continuously ship new features that work as promised, especially for large customers and developer workloads.

    ExposureWorkersZero TrustNew platform features
  3. Competition from point solutions and public cloud vendorsImpact: HighLikelihood: Medium

    Rivals can bundle security, CDN, DNS, or cloud services and pressure pricing or win specific workloads.

    Exposure: Application services and developer platform

  4. Regulatory and privacy changesImpact: MediumLikelihood: Medium

    Laws affecting data protection, information security, and cloud usage can reduce demand or raise compliance costs.

    Exposure: Global operations and customer adoption

  5. Tariffs and retaliatory trade measuresImpact: MediumLikelihood: Medium

    Trade actions can affect customer purchasing behavior in countries where Cloudflare sells services.

    Exposure: International demand

Accounting

Judgemental items
Revenue recognition across mixed contract types

Cloudflare sells subscriptions, usage-based developer services, and add-ons, so recognition timing depends on service delivery and billing terms.

Impact: Affects revenue timing, deferred revenue, and quarterly comparability

Seasonality and usage variability

Customer additions, product expansion, and usage-based consumption can vary by quarter.

Impact: Can move reported growth, margins, and cash flow between periods

Stock-based compensation

The company uses equity awards to attract and retain talent in engineering and sales.

Impact: Impacts operating expenses, non-GAAP adjustments, and dilution

Capitalized network infrastructure and depreciation

Ongoing investment in servers, storage, and GPUs drives large fixed-asset balances and depreciation expense.

Impact: Affects gross margin, operating margin, and capex intensity

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Last updated: 24/09/2026