Cloudflare (NET) Q1 2025 Earnings
How Did NET Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +6.56%.
Did NET Beat Earnings? Q1 2025 Results
No. Cloudflare reported Q1 2025 earnings of $0.16 a share on May 8, 2025, missing the $0.16 consensus estimate by 1.5%. Revenue was $479.1M against a $469.7M estimate.
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. <a href="https://247wallst.com/investing/2025/05/08/cloudflare-nyse-net-earnings-live-what-you-need-to-follow/">Investors watching the print</a> 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.
- 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
“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.”
Cloudflare CEO, on the earnings call
What Was Cloudflare's Outlook in Q1 2025?
For Q2 2025, Cloudflare expects revenue of $500.0–$501.0 million, non-GAAP operating income of $62.5–$63.5 million, and non-GAAP EPS of $0.18 on approximately 364 million diluted shares. For full-year 2025, the company expects revenue of $2,090.0–$2,094.0 million, non-GAAP operating income of $272.0–$276.0 million, and non-GAAP EPS of $0.79–$0.80 on approximately 364 million diluted shares.
NET YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $479.1M | $378.6M | +26.5% |
| Gross Profit | $363.5M | $293.6M | +23.8% |
| Operating Income | −$53.2M | −$52.0M | +2.4% |
| Net Income | −$38.5M | −$41.9M | −8.2% |
Figures from SEC filings and company reports. Not investment advice.