Companies /Technology

Cloudflare Inc - Class A

NYSE: NET Software - Infrastructure
$299.84
▼ $8.39 (−2.72%) today
Markets closed · 8:06pm ET

Q2 2025 Earnings

Reported Jul 31, 2025, 4:18pm ET · SEC source
$0.21
Beat +15.51%
EPS · est. $0.18
$512.3M
Beat +2.14%
Revenue · est. $501.6M
−0.7%
Trailing market
NET vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Jul 31Aug 1report 4:18pm ETearnings−1.6%−9.2%
−8%−4%0Jul 31Aug 1earnings−1.6%−9.2%
NET −9.2%S&P 500 −1.6%
−8%−4%0Jul 31Aug 1report 4:18pm ETearnings−1.9%−9.2%
−8%−4%0Jul 31Aug 1earnings−1.9%−9.2%
NET −9.2%NASDAQ −1.9%
−6%−3%0Jul 30Aug 8report 4:18pm ETearnings+1.0%−5.3%
−6%−3%0Jul 30Aug 8earnings+1.0%−5.3%
NET −5.3%S&P 500 +1.0%
−6%−3%0Jul 30Aug 8report 4:18pm ETearnings+2.0%−5.3%
−6%−3%0Jul 30Aug 8earnings+2.0%−5.3%
NET −5.3%NASDAQ +2.0%
−3.65%
Day of report
+4.34%
Next session
+2.24%
One week
+2.80%
30 days

S&P 500 over the same 30 days: +3.54%.

Did NET Beat Earnings? Q2 2025 Results

Cloudflare posted a standout second quarter for fiscal 2025, delivering results that beat on both top and bottom lines as the network security and cloud services company crossed $2 billion in annualized revenue. Non-GAAP EPS of $0.21 exceeded the $0.18 consensus estimate by 15.51%, while revenue of $512.32 million topped expectations of $501.59 million by 2.14%, representing 27.8% growth year-over-year. The most telling signal beneath the headline numbers may be the RPO figures, with current RPO growing 33% and total RPO surging 39% year-over-year, pointing to robust deal momentum that underpins the company's raised full-year revenue guidance of $2.11 billion to $2.12 billion. CEO Matthew Prince noted that the company's largest customers are expanding investments at the highest levels since 2022, with Cloudflare's position in front of more than 20% of all websites making it a natural beneficiary of AI-driven internet infrastructure demand. For Q3, the company guided revenue of $543.50 million to $544.50 million, and <a href="https://247wallst.com/investing/2025/07/31/live-is-cloudflare-net-the-next-ai-stock-to-top-earnings-expectations-2/">shares rose sharply</a> on the news.

Key Takeaways
  • Revenue growth reaccelerated to 28% year-over-year
  • Largest customers growing investments at highest levels since 2022
  • Current RPO year-over-year growth of 33%
  • Total RPO year-over-year growth of 39%
  • Signing bigger and longer deals
  • More than 20% of all websites sit behind Cloudflare's network
  • More than half of dynamic traffic flowing through APIs

“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.”

Cloudflare CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Cloudflare expects total revenue of $543.5 to $544.5 million, non-GAAP income from operations of $75.0 to $76.0 million, and non-GAAP net income per share of $0.23 on approximately 376.5 million weighted average diluted shares. For full year fiscal 2025, the company expects total revenue of $2,113.5 to $2,115.5 million, non-GAAP income from operations of $284.0 to $286.0 million, and non-GAAP net income per share of $0.85 to $0.86 on approximately 370 million weighted average diluted shares. Current RPO grew 33% and total RPO grew 39% year-over-year, indicating strong future revenue visibility.

NET YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$-1,200,000,000$-600,000,000$0$401.0M$512.3MRevenue$312.0M$383.6MGross Profit$-1,283,664,122$-67,264,000Operating Income
$-1,200,000,000$-600,000,000$0RevenueGross ProfitOperating Income

Figures from SEC filings and company reports. Not investment advice.