Q1 25 EPS

$0.16

MISS 1.54%

Est. $0.16

Q1 25 Revenue

$479.1M

BEAT +2.00%

Est. $469.7M

vs S&P Since Q1 25

+63.3%

BEATING MARKET

NET +97.0% vs S&P +33.6%

Market Reaction

Did NET Beat Earnings? Q1 2025 Results

Cloudflare posted a mixed but broadly encouraging first quarter for 2025, with revenue of $479.09 million rising 26.5% year-over-year and clearing the $469.70 million consensus by 2.00%, while non-GAAP EPS of $0.16 came in just shy of the $0.16 estim… Read more Cloudflare posted a mixed but broadly encouraging first quarter for 2025, with revenue of $479.09 million rising 26.5% year-over-year and clearing the $469.70 million consensus by 2.00%, while non-GAAP EPS of $0.16 came in just shy of the $0.16 estimate, a miss of 1.54%. The headline story, though, was the scale of enterprise momentum: the company closed the largest contract in its history, a deal exceeding $100 million anchored by its Workers developer platform, alongside the longest-term SASE contract to date, together signaling deepening confidence among large customers. Investors watching the print were rewarded with an aftermarket surge of roughly 8.6% as the market focused on top-line strength. Operating cash flow nearly doubled to $145.78 million, or 30% of revenue. Looking ahead, Cloudflare raised its full-year 2025 revenue outlook to approximately $2.09 billion and guided Q2 revenue to $500.00 to $501.00 million, with non-GAAP EPS of $0.18.

Key Takeaways

  • 27% year-over-year revenue growth
  • Highest year-over-year growth in net new ACV in three years
  • Largest contract in company history exceeding $100 million driven by Workers developer platform
  • Longest-term SASE contract to date
  • Operating cash flow nearly doubled year-over-year to $145.8 million (30% of revenue)
  • Non-GAAP operating margin expanded to 11.7% from 11.2% year-over-year
  • Free cash flow margin improved to 11% from 9% year-over-year
24/7 Wall St

NET YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“We kicked off 2025 with confidence, momentum, and strong results. In Q1, we landed the largest contract in Cloudflare's history, a more than $100 million deal driven by our Workers developer platform, and signed the longest-term SASE contract to date.”

— Matthew Prince, Q1 2025 Earnings Press Release