Cloudflare, Inc., a leading connectivity cloud company, announced its second quarter 2025 financial results on July 31, 2025, reporting strong revenue growth and strategic advancements in AI-driven solutions. The results highlight Cloudflare’s pivotal role in enabling the agentic web, aligning with broader cybersecurity trends exemplified by Intel 471’s Verity471 platform launch.
Q2 revenue of $512.3M, up 28% year-over-year, surpassing $2B in annualized revenue.
Non-GAAP net income of $75.1M, or $0.21 per share, beating estimates of $0.18.
GAAP operating loss of $67.3M; non-GAAP operating income of $72.3M (14.1% of revenue).
Revenue from large customers (>$100K annually) grew 35%, contributing 71% of revenue.
Stock (NET) at $201.875 on August 4, 2025, with a 6.5% after-hours rise post-earnings.
Q3 2025 revenue guidance: $543.5M–$544.5M; full-year: $2,113.5M–$2,115.5M.
Cloudflare reported Q2 2025 revenue of $512.3 million, a 28% increase from $400.7 million in Q2 2024, exceeding analyst estimates of $501.3 million. Key metrics include:
Gross Profit: GAAP gross profit was $383.6 million (74.9% margin) vs. $312.0 million (77.8% margin) in Q2 2024. Non-GAAP gross profit was $390.7 million (76.3% margin) vs. $316.6 million (79.0% margin).
Operating Income/Loss: GAAP operating loss widened to $67.3 million (13.1% of revenue) from $34.7 million (8.7% of revenue) due to increased operating costs. Non-GAAP operating income rose to $72.3 million (14.1% of revenue) from $57.0 million (14.2% of revenue).
Net Income/Loss: GAAP net loss was $50.4 million ($0.15 per share) vs. $15.1 million ($0.04 per share) in Q2 2024. Non-GAAP net income was $75.1 million ($0.21 per share) vs. $69.5 million ($0.20 per share), surpassing estimates.
Cash Flow: Operating cash flow increased to $99.8 million from $74.8 million; free cash flow was $33.3 million (6% of revenue) vs. $38.3 million (10% of revenue).
Liquidity: Cash, cash equivalents, and available-for-sale securities totaled $3,959.7 million as of June 30, 2025.
Customer Metrics: Revenue from large customers grew 35%, comprising 71% of revenue (up from 67%). Dollar-based net retention reached 114%, up 3% quarter-over-quarter.
Cloudflare’s CEO, Matthew Prince, emphasized the company’s innovation in supporting content creators on the AI-driven Internet. With over 20% of websites and more than 50% of dynamic traffic via APIs, Cloudflare is positioned to lead the “agentic web.” Strategic wins include larger, longer-term deals, with demand from top customers at its highest since 2022. The company’s focus on AI infrastructure aligns with industry trends, such as Intel 471’s Verity471 platform, which enhances proactive cyber threat management.
“We’re innovating faster than ever, and demand remains strong,” said Prince. “Cloudflare is uniquely positioned to enable the agentic web of the future.”
For Q3 2025, Cloudflare projects:
Revenue: $543.5–$544.5 million.
Non-GAAP operating income: $75.0–$76.0 million.
Non-GAAP net income per share: $0.23, with ~376.5 million shares outstanding.
For full-year 2025:
Revenue: $2,113.5–$2,115.5 million.
Non-GAAP operating income: $284.0–$286.0 million.
Non-GAAP net income per share: $0.85–$0.86, with ~370 million shares outstanding.
Cloudflare’s stock (NET) closed at $201.875 on August 4, 2025, with a market cap of $68.87 billion, per the finance card. A 6.5% after-hours stock surge post-earnings reflects positive market response to beating revenue and earnings estimates. Posts on X highlight Cloudflare’s outperformance, with analysts noting its accelerating growth and strategic AI focus.
Cloudflare’s connectivity cloud complements Intel 471’s Verity471 platform, launched on July 31, 2025. Verity471’s Cyber Threat Exposure modules (Attack Surface and Third-Party Exposure) provide actionable intelligence to manage external vulnerabilities, aligning with Cloudflare’s role in securing over 20% of websites. Both companies address the rising threat landscape, including a 43% increase in zero-day vulnerabilities, by integrating AI-driven solutions to enhance security and resilience.
Cloudflare, Inc. is the leading connectivity cloud company on a mission to help build a better Internet. It empowers organizations to make their employees, applications and networks faster and more secure everywhere, while reducing complexity and cost. Cloudflare’s connectivity cloud delivers the most full-featured, unified platform of cloud-native products and developer tools, so any organization can gain the control they need to work, develop, and accelerate their business.
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