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Sep 30, 2025
Cloudflare Q3 2025 Earnings Report
Cloudflare posted strong revenue growth and returned to near breakeven with reduced net losses in Q3 2025.
Key Takeaways
Cloudflare delivered a solid Q3 2025, with revenue reaching $562 million and notable improvements in non-GAAP profitability, showcasing operational strength despite a small GAAP net loss.
Revenue grew to $562 million, reflecting strong demand.
Non-GAAP net income surged to $102.6 million.
EPS held flat at $0.00, but adjusted EPS improved to $0.27.
Free cash flow reached $74.97 million, indicating strong cash generation.
Forward Guidance
Cloudflare expects continued growth with Q4 revenue between $588.5M–$589.5M and non-GAAP EPS of $0.27.
Positive Outlook
- Projected Q4 revenue up to $589.5 million.
- Non-GAAP operating income expected to reach up to $84 million.
- Non-GAAP EPS guidance at $0.27.
- Annual revenue guidance reaffirmed at over $2.14 billion.
- Strong customer demand and product momentum forecasted.
Challenges Ahead
- GAAP profitability still not achieved.
- Gross margin declined YoY.
- High operating expenses continue to pressure margins.
- Q4 expectations show modest sequential growth.
- Leadership change with President of Product & Engineering stepping down.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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