Cloudflare, Inc. reported significant financial growth in its latest quarterly filing, with revenue reaching $562.0 million for the three months ended September 30, 2025, a 31% increase from $430.1 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $1.55 billion, up 28% from $1.21 billion in 2024. Despite this growth, the company recorded a net loss of $1.3 million for the third quarter, an improvement from a loss of $15.3 million in the prior year. The nine-month net loss also widened to $90.2 million from $66.0 million in 2024.
The increase in revenue was attributed to a 33% rise in the number of paying customers, which reached 295,552, and a dollar-based net retention rate of 119%. The company also noted that its customer base includes 4,009 clients generating over $100,000 in annualized revenue, up from 3,265 a year earlier. Cloudflare's gross margin decreased to 74% from 78% year-over-year, primarily due to rising costs associated with third-party technology services and increased operational expenses related to its expanding customer base.
In terms of operational developments, Cloudflare has continued to invest in its infrastructure, with total assets increasing to $5.79 billion as of September 30, 2025, compared to $3.30 billion at the end of 2024. The company’s cash and cash equivalents surged to $1.05 billion, bolstered by the issuance of $2 billion in convertible senior notes in June 2025. This capital is expected to support ongoing investments in product development and network expansion.
Strategically, Cloudflare has focused on enhancing its product offerings and expanding its global reach. The company has made significant investments in research and development, with expenses rising to $120.9 million for the third quarter, reflecting a 9% increase from the previous year. Additionally, Cloudflare's international revenue remained stable, accounting for 50% of total revenue, indicating a balanced growth strategy across different markets.
Looking ahead, Cloudflare anticipates continued growth driven by its expanding customer base and product innovations. However, the company acknowledges potential challenges from macroeconomic conditions, including inflation and geopolitical tensions, which could impact customer spending and operational costs. Despite these uncertainties, Cloudflare remains optimistic about its long-term growth trajectory and the ability to achieve profitability as it scales its operations.
About Cloudflare, Inc.
Cloudflare is a global provider of internet security, performance, and reliability services. Its core offerings include web application security, content delivery, Zero Trust network solutions, and developer tools for building and deploying serverless applications. Serving businesses, governments, and individual users worldwide, Cloudflare leverages a scalable, programmable, and distributed network to simplify internet infrastructure, enhance security, and optimize digital experiences.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.