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Jun 30
Cloudflare Q2 2025 Earnings Report
Cloudflare reported strong Q2 results, surpassing $2 billion in annualized revenue with accelerated growth from large customers.
Key Takeaways
Cloudflare delivered solid Q2 performance with revenue of $512.3 million and non-GAAP net income of $75.1 million. Growth reaccelerated to 28% YoY, driven by strategic wins and customer expansion.
Revenue reached $512.3 million, a 28% increase YoY.
Non-GAAP net income was $75.1 million with EPS of $0.21.
Cloudflare achieved over $2 billion in annualized revenue run rate.
Strong demand from large customers contributed to the reacceleration in growth.
Cloudflare
Cloudflare
Forward Guidance
Cloudflare expects continued momentum into Q3 with revenue guidance up to $544.5 million and strong non-GAAP profitability.
Positive Outlook
- Q3 revenue guidance of $543.5M to $544.5M
- Non-GAAP operating income forecast of $75M to $76M
- Expected non-GAAP EPS of $0.23 for Q3
- Full-year revenue expected to surpass $2.1 billion
- Strong customer demand expected to persist
Challenges Ahead
- Decline in gross margin compared to previous year
- Continued GAAP net losses expected
- Free cash flow margin declined YoY
- Ongoing operating losses on a GAAP basis
- Stock-based compensation remains high, affecting GAAP profitability