10-K · April 29, 2026
Cloudflare (NET) has reported strong revenue growth with Q4 revenue reaching $614.5M, surpassing estimates, and achieving a total of $2,168.0M in annual revenue for 2025. However, profit margins have seen a decline as…
Earnings analysis · 10-Q
NET earnings analysis
Filed May 8, 2026 · Our reading of the company's report
The latest report
Cloudflare (NET) reported strong Q1 2026 results with revenue exceeding estimates at $639.8 million, reflecting 34% growth year-over-year. EPS of $0.25 surpassed the expected $0.17 by 47%, supported by improved free…
Read full summary
Cloudflare (NET) reported strong Q1 2026 results with revenue exceeding estimates at $639.8 million, reflecting 34% growth year-over-year. EPS of $0.25 surpassed the expected $0.17 by 47%, supported by improved free cash flow of $84.1 million, although management anticipates restructuring costs of $150 million going forward. Segment performance was driven primarily by robust demand in cybersecurity and network services. Looking ahead, management provided positive guidance for Q2, expecting revenue between $664-665 million and an EPS of $0.27.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.25
What stood out
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Q1 Revenue Beat Expectations
Cloudflare's actual revenue of $639.8 million exceeded estimates of $622.5 million, marking a 34% year-over-year growth.
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Strong EPS Growth
EPS for Q1 2026 was reported at $0.25, surpassing the consensus estimate of $0.17 by 47%.
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Positive Free Cash Flow
The company reported free cash flow of $84.1 million, indicating robust operational efficiency.
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Clear Forward Guidance
Management expects Q2 2026 revenue between $664 million and $665 million, along with a projected EPS of $0.27.
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Operational Adjustments
Amid restructuring efforts, Cloudflare anticipates approximately $150 million in related costs.
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Segment Growth in Key Areas
Significant growth reported in cybersecurity and network services, contributing to overall revenue increases.
What to watch
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Workforce Reductions
Recent announcements indicate potential layoffs as part of organizational restructuring, which may affect morale and operational efficiency.
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Declining Gross Margins
Gross margins decreased to 74.5% in Q1 2026, down from 75.9% year-on-year, raising concerns about long-term profitability.
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Increased Operating Losses
Operating losses of $22.9 million were reported for Q1 2026, compared to $38.5 million for the year-ago period.
Management's outlook
Management provided guidance of expected Q2 2026 revenue between $664 million and $665 million, with EPS projected at $0.27.
Earlier filings 4
10-K · February 26, 2026
Cloudflare (NET) reported continued top-line acceleration in 2025 with quarterly revenue reaching $614.5M in Q4 and full-year revenue of $2,168.0M (sum of quarterly results). Gross margin compressed through the year…
10-Q · October 30, 2025
Cloudflare reported Q3 revenue of $562.0M (up from $430.1M a year ago, +$131.945M, +30.7%) with gross margin compressing to 74% from 78% a year ago. The company generated strong operating cash flow of $167.123M for the…
10-Q · July 31, 2025
Cloudflare reported quarter revenue of $512,316,000, up from $400,996,000 a year ago, with gross margin compressing to 75% from 78% and a wider GAAP operating loss of $(67,264,000) vs $(34,698,000) in Q2 2024. Operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.