Cloudflare's Q2 2025: Record Revenues Amidst Strategic Growth

Cloudflare’s Q2 2025: Record Revenues Amidst Strategic Growth

Cloudflare Reports Strong Q2 2025 Financial Results

Date: July 31, 2025

Cloudflare, Inc. (NYSE: NET) announced impressive financial results for the second quarter of fiscal 2025, reflecting a robust growth trajectory. Revenue surged to $512.3 million, marking a 28% increase compared to the same quarter last year.

Despite a GAAP loss from operations amounting to $67.3 million, which represents 13% of total revenue, the company demonstrated a solid non-GAAP income from operations of $72.3 million, equating to 14% of revenue. Cloudflare also reported a notable year-over-year growth in its Remaining Performance Obligations (RPO), showing an increase of 33%, while its Current RPO grew by 39%.

Matthew Prince, co-founder and CEO, expressed confidence in the company’s performance, stating, “We had an excellent second quarter, exceeding $2 billion in annualized revenue while also reaccelerating revenue growth. Demand remains strong as our largest customers expand their investments, which we have not seen at such high levels since 2022.” He emphasized that their recent strategic successes are centered around innovations to forge new business models for content creators in an AI-driven internet landscape.

In terms of gross profit, the GAAP gross profit stood at $383.6 million, with a gross margin of 74.9%. This represents a slight decrease from the prior year’s margin of 77.8%. Non-GAAP gross profit was reported at $390.7 million, or a 76.3% margin.

Looking ahead, Cloudflare provided a positive outlook for Q3 2025, expecting revenue between $543.5 and $544.5 million and a projected non-GAAP income from operations of $75.0 to $76.0 million. For the full fiscal year, the planned revenue stands at $2,113.5 to $2,115.5 million.

The results underscore the company’s resilience and adaptability in a competitive landscape, highlighting its commitment to innovation and the ongoing expansion of its services and customer base. As Cloudflare continues to build on its momentum, it effectively positions itself to harness the potential of emerging technological trends and customer needs.

The company will discuss these results in detail during an investor conference call slated for later today. The financial report is a testament to Cloudflare’s ability to innovate and its strategic importance in shaping the future of internet connectivity.

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