NET Cloudflare, Inc.

Overview and Growth

Cloudflare, Inc. generated $2.17B of revenue in fiscal 2025, with net loss of $102.27M and an operating cash inflow of $603.11M. Revenue of $2.17B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $1.67B in fiscal 2024, revenue recorded a 29.8% year-over-year increase. The company reported diluted EPS of -$0.29, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $6.04B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.36x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $1.62B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 74.5% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced a $207.21M operating loss before non-operating and tax effects. An operating margin of -9.6% reflected costs exceeding revenue-level gross profit by 9.6% of sales. After all below-operating-line items, the company recorded a net loss of $102.27M for the fiscal year. Net margin was -4.7%, reflecting a loss equal to 4.7% of reported revenue. The company reported negative EBITDA of $17.46M, adding a pre-interest, tax, depreciation, and amortization view of the operating shortfall. The company reported a pretax loss of $92.71M, before the effect of income taxes. Measured against revenue, the pretax deficit represented 4.3%. The company recognized $9.56M of income tax for the period, completing the transition from pretax income to net income. Relative to period-end equity, the net loss represented 7.0%. The loss-to-assets relationship was 1.7%, placing the bottom-line deficit against the company’s resource base. The net loss widened to $102.27M from $78.80M in fiscal 2024.

Liquidity and Capital Structure

Total assets were $6.04B, supported by $4.58B of liabilities and $1.46B of shareholder equity. At period end, current assets of $4.64B compared with current liabilities of $2.35B, defining the company’s short-term resource position. At 1.98x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $943.54M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 40.1% of current liabilities, showing how much near-term coverage came from cash alone. Equity equaled 24.2% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 75.8%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 15.6%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 82.9% higher than fiscal 2024 assets of $3.30B, measuring the company’s own balance-sheet change. Against $1.05B of equity in fiscal 2024, the current book-equity balance moved 39.5% and ended higher. The reported cash balance changed 538.9% from $147.69M in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

The company reported $603.11M of operating cash flow, a cash inflow that shows the cash generated by operations. The cash-flow statement records $315.62M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 52.3% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $287.50M of positive free cash flow for the period. The free-cash-flow margin was 13.3%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 4.8% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.