Cloudflare (NET) Company Report

Cloudflare experienced a "spectacular year" in 2025, achieving its largest-ever contract at $130 million over seven years, its highest ACV deal at $42.5 million, and 30% revenue growth that accelerated in each of the last three quarters. The company's RPO grew 48%, its net revenue retention rate improved from 111% in Q1 to 120% in Q4, and the number of paying customers increased 40% year-over-year.
The company attributes its 2025 success to the compounding effects of a sales transformation and the innovation of its platform. Cloudflare anticipates AI will be a significant tailwind in 2026 and beyond, as it re-platforms the internet.
Cloudflare's unique network architecture, spanning 330 cities and 125 countries, enables rapid product innovation and has positioned it as a preferred platform for developers, ranking #4 in a Stack Overflow survey. To strengthen its developer platform, particularly for agentic AI development, Cloudflare acquired Replicate and Astro.
AI traffic is rapidly increasing on the platform, with weekly AI agent requests more than doubling in January 2026. Cloudflare notes that 80% of the top 50 AI native companies are already utilizing its network, driving business into its core services. The company is also developing an ecosystem for monetizing agentic AI workflows and microtransactions.
Gross margins remain within the 75%-77% long-term target, despite some impact from a mix shift of free to paid customers and the growth of developer products, which have a lower gross margin but strong unit economics. Cloudflare's SASE development is strong, with partner-driven revenue share reaching 29% in Q4.

Mar 3, 2026, 9:50 PM

Transcript

Cloudflare Reports Strong 2025 Performance and Anticipates AI-Driven Growth in 2026

NET

Revenue Acceleration/Inflection

New Projects/Investments

M&A

Cloudflare reported a spectacular 2025, marked by 30% revenue growth (accelerating each quarter), 48% RPO growth, and net revenue retention improving from 111% in Q1 to 120% in Q4. This performance was bolstered by a sales transformation and significant platform innovation, including a $130 million seven-year contract and a $42.5 million ACV deal.
Looking into 2026, Cloudflare expects AI to be a significant tailwind, noting that weekly AI agent requests more than doubled in January 2026. The company's unique network architecture and developer platform, supporting 4.5 million human developers, are strategically positioned to monetize this growing agentic traffic.
The company's SASE and Zero Trust offerings are gaining traction, with partner-driven revenue share reaching 29% in Q4, and "pool of funds" contracts now comprising 20% of ACV, facilitating frictionless product expansion for large customers. While gross margins remain within the 75%-77% long-term target, they face pressure from a shift of free to paid customers and the rapid growth of lower-margin developer products.

Mar 3, 2026, 9:50 PM

Transcript

Cloudflare Reports Strong 2025 Performance and Outlines 2026 Growth Drivers

NET

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Cloudflare experienced a "spectacular year" in 2025, marked by a $130 million, seven-year contract, a $42.5 million highest ACV deal, 48% RPO growth, 30% revenue growth, and an improved net revenue retention rate from 111% in Q1 to 120% in Q4.
The company's competitive advantage stems from its unique network architecture, spanning 330 cities and handling 20%-30% of all web traffic, which allows for rapid innovation and efficient support for AI agent workflows.
Cloudflare is a preferred platform for developers, with 4.5 million human developers and significant growth in AI agent-driven traffic, which more than doubled in weekly requests in January 2026.
The company is making strong progress in its SASE/Zero Trust offerings, with partner-driven revenue share reaching 29% in Q4, and is leveraging "pool of funds" contracts, which now represent 20% of ACV, to drive frictionless product adoption and expansion.
Gross margins remain within the 75%-77% long-term target, despite temporary pressure from the significant shift of free customers becoming paying customers and the rapid growth of lower-margin developer products.

Mar 3, 2026, 9:50 PM

Transcript

Cloudflare's SASE Platform Achieves Post-Quantum Cryptography Support

NET

Product Launch

New Projects/Investments

Cloudflare's Cloudflare One SASE platform has become the first and only SASE platform to support modern post-quantum (PQ) cryptography standards.
This update extends post-quantum cryptography compatibility to Wide Area Network (WAN) environments via Cloudflare IPsec and the Cloudflare One Appliance, completing the Cloudflare One SASE offering.
The integration protects sensitive data against future quantum computing threats, including "harvest now, decrypt later" (HNDL) attacks, without additional cost.
Cloudflare has been integrating post-quantum standards into its network architecture since 2017, with initial cloud-native SWG and Zero Trust solutions launched in 2025.

Feb 23, 2026, 10:13 PM

Press Release

Cloudflare Launches World's First Full SASE Platform with Post-Quantum Encryption Support

NET

Product Launch

New Projects/Investments

Cloudflare (NET) has launched the world's first full Secure Access Service Edge (SASE) platform to support modern Post-Quantum (PQ) encryption standards.
This update extends post-quantum encryption to all major network configurations, including Wide Area Networking (WAN) use cases, ensuring protection against future quantum computing threats.
The quantum-safe SASE platform is available without additional costs or complex configurations, making post-quantum security a standard for customers.
This initiative addresses the National Institute of Standards and Technology (NIST) warning for cryptographic algorithm updates by 2030 to counter quantum computing vulnerabilities.

Feb 23, 2026, 9:10 PM

Press Release

Cloudflare and Mastercard Announce Cybersecurity Partnership

NET

New Projects/Investments

Product Launch

Cloudflare (NYSE: NET) and Mastercard (NYSE: MA) have formed a strategic alliance to provide comprehensive cybersecurity defense for small businesses, critical infrastructure, and governments.
The partnership integrates Mastercard's Recorded Future and RiskRecon capabilities with Cloudflare's application security portfolio to identify, assess, and automate protections against cyber threats.
This collaboration aims to eliminate digital blind spots, offer real-time cybersecurity posture insights with an "A to F" rating, and enable the activation of practical security measures such as Web Application Firewalls (WAF).

Feb 18, 2026, 1:31 AM

Press Release

Cloudflare and Mastercard Partner for Comprehensive Cyber Defense

NET

New Projects/Investments

Product Launch

Cloudflare (NET) and Mastercard (MA) have announced a strategic partnership to provide comprehensive cyber defense solutions.
The collaboration aims to protect small and medium-sized businesses (SMBs), critical infrastructure, and governments from cyber threats.
The partnership combines Mastercard's Recorded Future and RiskRecon attack surface monitoring with Cloudflare's Application Security portfolio to identify, prioritize, and remediate internet-exposed risks.

Feb 18, 2026, 1:30 AM

Press Release

Cloudflare and Mastercard Partner for Cyber Defense

NET

Product Launch

New Projects/Investments

Cloudflare and Mastercard have announced a strategic partnership to develop tools for comprehensive cyber defense, targeting small businesses, critical infrastructure, and governments.
The collaboration integrates Mastercard's attack surface monitoring capabilities (from Recorded Future and RiskRecon) with Cloudflare's Application Security portfolio.
This combined offering is designed to help organizations map, prioritize, and automate remediation of hidden risks across their internet-facing environments.
The partnership aims to protect underserved organizations by eliminating blind spots, providing real-time, accurate views of cyber posture, and translating risk insights into actionable protection.

Feb 17, 2026, 1:00 PM

Press Release

Cloudflare Reports Strong Q4 2025 Results and Provides 2026 Guidance

NET

Earnings

Guidance Update

Revenue Acceleration/Inflection

Cloudflare reported Q4 2025 revenue of $614.5 million, marking a 34% year-over-year increase, with an operating profit of $89.6 million and free cash flow of $99.4 million.
The company experienced strong customer expansion, with 4,298 customers paying over $100,000 per year (up 23% year-over-year) contributing 73% of revenue, and 269 customers spending over $1 million (a 55% year-over-year increase).
Dollar-based net retention accelerated to 120% in Q4 2025, reflecting strong growth from existing customers.
For Q1 2026, Cloudflare expects revenue between $620 million and $621 million, and for full-year 2026, revenue is projected to be between $2.785 billion and $2.795 billion.
The company emphasized the "Agentic Internet" and AI adoption as significant drivers for its Workers developer platform and overall network services, positioning Cloudflare as a critical platform for AI companies.

Feb 10, 2026, 10:00 PM

Transcript

Cloudflare Announces Strong Q4 2025 Results and Provides 2026 Guidance

NET

Earnings

Guidance Update

Revenue Acceleration/Inflection

Cloudflare reported Q4 2025 revenue of $614.5 million, an increase of 34% year-over-year, and achieved an operating profit of $89.6 million, representing a 14.6% operating margin.
The company saw significant growth in its customer base, ending Q4 2025 with 4,298 customers paying over $100,000 per year (up 23% year-over-year) and 269 customers spending over $1 million (a 55% increase year-over-year).
Cloudflare provided Q1 2026 revenue guidance in the range of $620 million-$621 million and full-year 2026 revenue guidance of $2.785 billion-$2.795 billion, projecting a 28%-29% year-over-year increase.
Management highlighted a reaccelerating go-to-market engine with record new Annual Contract Value (ACV) growth and identified the shift to AI as a significant tailwind driving increased demand for its services.