AI Takeaway
Cloudflare (NET) delivered strong FY2025 revenue growth of 29.8% to $2.17B, but operating losses widened to -$207.2M as cost of revenue surged 45.9%, while a large financing raise boosted cash to $943.5M and total assets grew 82.9%.
Revenue
$2.17B
++29.85% YoY
EPS (Basic)
$-0.29
-26.09% YoY
Gross Margin
74.5%
-2.80% YoY
Operating Income
$-207.21M
-33.89% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 29.8% year-over-year from $1.67B to $2.17B in FY2025, reflecting continued demand for Cloudflare's network security and connectivity services and expansion within its existing customer base.
Source: Source: 10-K Income Statement
Gross margin declined 2.8 percentage points to 74.5% as cost of revenue surged 45.9% YoY to $552.5M, outpacing revenue growth and indicating higher infrastructure or delivery costs to support the expanding platform.
Source: Source: 10-K Income Statement
Operating loss deepened to -$207.2M (operating margin of -9.6%) from -$154.8M in the prior year, as total operating expenses — including R&D up 21.6% to $512.5M — continued to outpace gross profit growth of 25.1%.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockCloudflare has continued to report GAAP net losses, with net loss widening to -$102.3M in FY2025 from -$78.8M in FY2024. The company's ability to achieve sustained profitability depends on revenue growth outpacing operating expense growth, which has not yet occurred at the GAAP level.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.28 versus the $0.27 analyst consensus — a +2.4% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.17B | $1.67B | +29.85% |
Cost of Revenue | $552.52M | $378.7M | +45.90% |
Gross Profit | $1.62B | $1.29B | +25.14% |
Operating Income | $-207.21M | $-154.76M | -33.89% |
Net Income | $-102.27M | $-78.8M | -29.78% |
EPS (Basic) | $-0.29 | $-0.23 | -26.09% |
EPS (Diluted) | $-0.29 | $-0.23 | -26.09% |
R&D Expense | $512.49M | $421.37M | +21.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.04B | $3.3B | +82.85% |
Current Assets | $4.64B | $2.27B | +104.71% |
Total Liabilities | $4.58B | $2.25B | +102.98% |
Current Liabilities | $2.35B | $793.65M | +196.17% |
Stockholders' Equity | $1.46B | $1.05B | +39.47% |
Cash & Equivalents | $943.54M | $147.69M | +538.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $603.11M | $380.43M | +58.54% |
Investing Cash Flow | $-1.81B | $-330.22M | -447.11% |
Financing Cash Flow | $2B | $12.79M | +15572.50% |
Share Buybacks | $0 | $0 | — |
D&A | $189.74M | $127.72M | +48.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 74.5% | 77.3% | -2.80% |
Operating Margin | -9.6% | -9.3% | -0.29% |
Net Margin | -4.7% | — | — |
ROE | -7.0% | — | — |
ROA | -1.7% | — | — |
Current Ratio | $1.976 | — | — |
Debt to Equity | $3.137 | — | — |
Cloudflare's revenue grew 29.8% year-over-year to $2.17B in FY2025, up from $1.67B in FY2024. This growth reflects continued expansion of its cloud networking and cybersecurity platform across enterprise and commercial customers.
Cloudflare is not yet GAAP profitable — it reported a net loss of -$102.3M and an operating loss of -$207.2M in FY2025. However, the company generated positive operating cash flow of $603.1M, showing its business model produces real cash despite accounting losses.
Cloudflare's gross margin fell from 77.3% to 74.5% in FY2025 because cost of revenue grew 45.9% — far faster than revenue growth of 29.8%. This suggests rising infrastructure or delivery costs as the company scales its global network.
Cloudflare's total assets surged 82.9% to $6.04B, driven by a massive financing raise that brought in $2.00B in cash and pushed cash and equivalents up 538.9% to $943.5M. Total liabilities also more than doubled to $4.58B, resulting in a debt-to-equity ratio of 3.14x.
Key risks include persistent GAAP losses with net loss widening to -$102.3M, gross margin compression as cost of revenue grows faster than revenue, and a sharp increase in current liabilities (up 196.2% to $2.35B). Additionally, investing outflows of -$1.81B reflect heavy capital deployment that investors should monitor for returns.