TLDR: Cloudflare, Inc. announced robust financial results for its second quarter ended June 30, 2025, with total revenue reaching $512.3 million, marking a 28% increase year-over-year. The company also reported a non-GAAP income from operations of $72.3 million and highlighted significant growth in remaining performance obligations.
SAN FRANCISCO – Cloudflare, Inc. (NYSE: NET), a leading connectivity cloud company, has reported impressive financial outcomes for its second quarter, which concluded on June 30, 2025. The company’s total revenue for the quarter reached $512.3 million, demonstrating a substantial 28% increase compared to the same period last year.
Key financial highlights for Q2 2025 include a GAAP loss from operations of $67.3 million, or 13% of total revenue, alongside a non-GAAP income from operations of $72.3 million, representing 14% of revenue. Cloudflare also saw its Current Remaining Performance Obligations (RPO) grow by 33% year-over-year, with total RPO increasing by 39%.
Matthew Prince, co-founder and CEO of Cloudflare, expressed satisfaction with the results, stating, “We had an excellent second quarter, exceeding $2 billion in annualized revenue while also reaccelerating revenue growth to 28% year-over-year. We’re innovating faster than ever, and demand remains strong, as our largest customers grow their investments with Cloudflare at the highest levels we’ve seen since 2022.” Prince further emphasized the company’s strategic focus, noting, “While we’ve continued to sign even bigger and longer deals, some of our most strategic wins have been centered around our work to help invent the new business model for content creators on the AI-driven Internet. Sitting in front of more than 20% of all websites—with more than half of our dynamic traffic flowing through APIs—Cloudflare is uniquely positioned to enable the agentic web of the future. We are firing on all cylinders, with the right technology, strategy, and team to accelerate the next phase of growth for Cloudflare and for the Internet at-large.”
Additional financial details show GAAP gross profit at $383.6 million (74.9% gross margin) and non-GAAP gross profit at $390.7 million (76.3% gross margin). The company reported a GAAP net loss of $50.4 million, or $0.15 per basic and diluted share, while non-GAAP net income stood at $75.1 million, or $0.21 per diluted share. Cloudflare’s net cash flow from operating activities was $99.8 million, with free cash flow at $33.3 million, or 6% of revenue. As of June 30, 2025, cash, cash equivalents, and available-for-sale securities totaled $3,959.7 million.
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Looking ahead to the third quarter of fiscal 2025, Cloudflare anticipates total revenue between $543.5 million and $544.5 million, non-GAAP income from operations ranging from $75.0 million to $76.0 million, and non-GAAP net income per share of $0.23. For the full fiscal year 2025, the company projects total revenue of $2,113.5 million to $2,115.5 million, non-GAAP income from operations of $284.0 million to $286.0 million, and non-GAAP net income per share between $0.85 and $0.86.
