AI Earnings Predictions for Cloudflare Inc. (NET)

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Cloudflare Announces Second Quarter 2026 Financial Results

•Second quarter revenue totaled $696.1 million, representing an increase of 36% year-over-year

•GAAP loss from operations of $205.7 million, or 30% of total revenue, and non-GAAP income from operations of $96.1 million, or 14% of revenue

•Delivered Current RPO year-over-year growth of 35%

San Francisco, CA, August 6, 2026 — Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its second quarter ended June 30, 2026.

“We delivered a stellar second quarter, highlighted by revenue accelerating to $696.1 million, up 36% year-over-year, and record growth in total paying customers, large customers, and developers on our platform,” said Matthew Prince, co-founder & CEO of Cloudflare. “As the web shifts to AI answer engines and agent-driven commerce, we are seeing a fundamental rewrite of the Internet for machine-to-machine traffic. Cloudflare sits at the center of this paradigm shift—building the infrastructure, controls, developer tools, and payment rails for the Agentic Internet. The business model of the web is changing, and no company is better positioned than Cloudflare to help define its future.”

Second Quarter Fiscal 2026 Financial Highlights

•Revenue: Total revenue of $696.1 million, representing an increase of 36% year-over-year.

•Gross Profit: GAAP gross profit was $499.5 million, or 71.8% gross margin, compared to $383.6 million, or 74.9%, in the second quarter of 2025. Non-GAAP gross profit was $508.9 million, or 73.1% gross margin, compared to $390.7 million, or 76.3%, in the second quarter of 2025.

•Operating Income (Loss): GAAP loss from operations was $205.7 million, or 29.6% of revenue, compared to $67.3 million, or 13.1% of revenue, in the second quarter of 2025. Non-GAAP income from operations was $96.1 million, or 13.8% of revenue, compared to $72.3 million, or 14.1% of revenue, in the second quarter of 2025.

•Net Income (Loss): GAAP net loss was $170.0 million, compared to $50.4 million in the second quarter of 2025. GAAP net loss per basic and diluted share was $0.48, compared to $0.15 in the second quarter of 2025. Non-GAAP net income was $107.8 million, compared to $75.1 million in the second quarter of 2025. Non-GAAP net income per diluted share was $0.29, compared to $0.21 in the second quarter of 2025.

•Cash Flow: Net cash flow from operating activities was $117.6 million, compared to $99.8 million for the second quarter of 2025. Free cash flow was $56.4 million, or 8% of revenue, compared to $33.3 million, or 6% of revenue, in the second quarter of 2025.

•Cash, cash equivalents, and available-for-sale securities were $4,162.8 million as of June 30, 2026.

The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Financial Outlook

For the third quarter of fiscal 2026, we expect:

•Total revenue of $736.0 to $737.0 million

•Non-GAAP income from operations of $129.0 to $130.0 million

•Non-GAAP net income per share of $0.34, utilizing weighted average common shares outstanding of approximately 374 million

For the full year fiscal 2026, we expect:

•Total revenue of $2,864.0 to $2,870.0 million

•Non-GAAP income from operations of $443.0 to $445.0 million

•Non-GAAP net income per share of $1.25 to $1.26, utilizing weighted average common shares outstanding of approximately 374 million

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Conference Call Information

Cloudflare will host an investor conference call to discuss its second quarter ended June 30, 2026 earnings results today at 2:00 p.m. Pacific time (5:00 p.m. Eastern time). Interested parties can access the call by dialing (646) 968-2727 or toll-free at (888) 596-4244 with conference ID 3723782. A live webcast of the conference call will be accessible from the investor relations website at https://cloudflare.NET. A replay will be available approximately two hours after the conclusion of the live event and will remain available for approximately one year.

Supplemental Financial and Other Information

Supplemental financial and other information can be accessed through the Company’s investor relations website at https://cloudflare.NET.

Non-GAAP Financial Information

Cloudflare believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations. Reconciliations of

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Cloudflare Announces First Quarter 2026 Financial Results

•First quarter revenue totaled $639.8 million, representing an increase of 34% year-over-year

•GAAP loss from operations of $62.0 million, or 10% of total revenue, and non-GAAP income from operations of $73.1 million, or 11% of revenue

•Delivered Current RPO year-over-year growth of 34%

San Francisco, CA, May 7, 2026 — Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its first quarter ended March 31, 2026.

“We had a very strong start to 2026. AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it's shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history,” said Matthew Prince, co-founder & CEO, Cloudflare. “At Cloudflare, we don’t just build and sell AI tools and platforms, we're our own most demanding customer. With AI and agents now core parts of our workforce, the way we work at Cloudflare has fundamentally changed. As a result, we're being intentional in how we architect our company to supercharge the value we deliver to our customers. By embracing an agentic AI-first operating model, Cloudflare will be even faster and more innovative as we continue to help build a better Internet.”

First Quarter Fiscal 2026 Financial Highlights

•Revenue: Total revenue of $639.8 million, representing an increase of 34% year-over-year.

•Gross Profit: GAAP gross profit was $455.6 million, or 71.2% gross margin, compared to $363.5 million, or 75.9%, in the first quarter of 2025. Non-GAAP gross profit was $465.7 million, or 72.8% gross margin, compared to $369.3 million, or 77.1%, in the first quarter of 2025.

•Operating Income (Loss): GAAP loss from operations was $62.0 million, or 9.7% of revenue, compared to $53.2 million, or 11.1% of revenue, in the first quarter of 2025. Non-GAAP income from operations was $73.1 million, or 11.4% of revenue, compared to $56.0 million, or 11.7% of revenue, in the first quarter of 2025.

•Net Income (Loss): GAAP net loss was $22.9 million, compared to $38.5 million in the first quarter of 2025. GAAP net loss per basic and diluted share was $0.07, compared to $0.11 in the first quarter of 2025. Non-GAAP net income was $94.0 million, compared to $58.4 million in the first quarter of 2025. Non-GAAP net income per diluted share was $0.25, compared to $0.16 in the first quarter of 2025.

•Cash Flow: Net cash flow from operating activities was $158.3 million, compared to $145.8 million for the first quarter of 2025. Free cash flow was $84.1 million, or 13% of revenue, compared to $52.9 million, or 11% of revenue, in the first quarter of 2025.

•Cash, cash equivalents, and available-for-sale securities were $4,163.9 million as of March 31, 2026.

The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Operating Model Evolution

This afternoon, we announced actions designed to further accelerate Cloudflare’s evolution to an agentic AI-first operating model. A letter from our founders can be viewed at https://blog.cloudflare.com/building-for-the-future/.

As part of the plan, we expect to reduce our current workforce by approximately 1,100 people. We currently estimate that we will incur charges of $140.0 to $150.0 million in connection with the plan, consisting primarily of cash expenditures for notice period, severance payments, employee benefits and related costs of $105.0 to $110.0 million and non-cash expenses related to vesting of share-based awards of $35.0 to $40.0 million. We expect that the majority of the restructuring charges will be incurred in the second quarter of fiscal 2026, and that the execution of

the plan will be substantially complete by the end of the third quarter of fiscal 2026. Our estimates are subject to a number of assumptions, and the actual costs incurred may differ materially from those initial estimates.

Financial Outlook

For the second quarter of fiscal 2026, we expect:

•Total revenue of $664.0 to $665.0 million

•Non-GAAP income from operations of $90.0 to $91.0 million

•Non-GAAP net income per share of $0.27, utilizing weighted average common shares outstanding of approximately 377 million

For the full year fiscal 2026, we expect:

•Total revenue of $2,805.0 to $2,813.0 million

•Non-GAAP income from operations of $418.0 to $421.0 million

•Non-GAAP net income per share of $1.19 to $1.20, utilizing weighted average common shares outstanding of approximately 375 million

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially

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Cloudflare Announces First Quarter 2026 Financial Results

•First quarter revenue totaled $639.8 million, representing an increase of 34% year-over-year

•GAAP loss from operations of $62.0 million, or 10% of total revenue, and non-GAAP income from operations of $73.1 million, or 11% of revenue

•Delivered Current RPO year-over-year growth of 34%

San Francisco, CA, May 7, 2026 — Cloudflare, Inc. (NYSE: NET), the leading connectivity cloud company, today announced financial results for its first quarter ended March 31, 2026.

“We had a very strong start to 2026. AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it's shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history,” said Matthew Prince, co-founder & CEO, Cloudflare. “At Cloudflare, we don’t just build and sell AI tools and platforms, we're our own most demanding customer. With AI and agents now core parts of our workforce, the way we work at Cloudflare has fundamentally changed. As a result, we're being intentional in how we architect our company to supercharge the value we deliver to our customers. By embracing an agentic AI-first operating model, Cloudflare will be even faster and more innovative as we continue to help build a better Internet.”

First Quarter Fiscal 2026 Financial Highlights

•Revenue: Total revenue of $639.8 million, representing an increase of 34% year-over-year.

•Gross Profit: GAAP gross profit was $455.6 million, or 71.2% gross margin, compared to $363.5 million, or 75.9%, in the first quarter of 2025. Non-GAAP gross profit was $465.7 million, or 72.8% gross margin, compared to $369.3 million, or 77.1%, in the first quarter of 2025.

•Operating Income (Loss): GAAP loss from operations was $62.0 million, or 9.7% of revenue, compared to $53.2 million, or 11.1% of revenue, in the first quarter of 2025. Non-GAAP income from operations was $73.1 million, or 11.4% of revenue, compared to $56.0 million, or 11.7% of revenue, in the first quarter of 2025.

•Net Income (Loss): GAAP net loss was $22.9 million, compared to $38.5 million in the first quarter of 2025. GAAP net loss per basic and diluted share was $0.07, compared to $0.11 in the first quarter of 2025. Non-GAAP net income was $94.0 million, compared to $58.4 million in the first quarter of 2025. Non-GAAP net income per diluted share was $0.25, compared to $0.16 in the first quarter of 2025.

•Cash Flow: Net cash flow from operating activities was $158.3 million, compared to $145.8 million for the first quarter of 2025. Free cash flow was $84.1 million, or 13% of revenue, compared to $52.9 million, or 11% of revenue, in the first quarter of 2025.

•Cash, cash equivalents, and available-for-sale securities were $4,163.9 million as of March 31, 2026.

The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Operating Model Evolution

This afternoon, we announced actions designed to further accelerate Cloudflare’s evolution to an agentic AI-first operating model. A letter from our founders can be viewed at https://blog.cloudflare.com/building-for-the-future/.

As part of the plan, we expect to reduce our current workforce by approximately 1,100 people. We currently estimate that we will incur charges of $140.0 to $150.0 million in connection with the plan, consisting primarily of cash expenditures for notice period, severance payments, employee benefits and related costs of $105.0 to $110.0 million and non-cash expenses related to vesting of share-based awards of $35.0 to $40.0 million. We expect that the majority of the restructuring charges will be incurred in the second quarter of fiscal 2026, and that the execution of

the plan will be substantially complete by the end of the third quarter of fiscal 2026. Our estimates are subject to a number of assumptions, and the actual costs incurred may differ materially from those initial estimates.

Financial Outlook

For the second quarter of fiscal 2026, we expect:

•Total revenue of $664.0 to $665.0 million

•Non-GAAP income from operations of $90.0 to $91.0 million

•Non-GAAP net income per share of $0.27, utilizing weighted average common shares outstanding of approximately 377 million

For the full year fiscal 2026, we expect:

•Total revenue of $2,805.0 to $2,813.0 million

•Non-GAAP income from operations of $418.0 to $421.0 million

•Non-GAAP net income per share of $1.19 to $1.20, utilizing weighted average common shares outstanding of approximately 375 million

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially