Filing Flows › Cloudflare (NET) › Q1 2025
Cloudflare (NET) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Cloudflare (NET) reported revenue of $479M for the first quarter 2025 (Q1 2025), +27% from a year earlier and +4% from the quarter before. Operating margin was -11.1%, net loss $38.5M (8.0% of revenue).
Cloudflare, Q1 2025: revenue $479M (+26% year over year), operating margin -11.1%, net loss $38.5M, operating cash flow $146M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $479M | +4% | +27% |
| Operating profit | −$53.2M | — | — |
| Net earnings | −$38.5M | — | — |
| Operating cash flow | $146M | +15% | +98% |
| Free cash flow | $52.9M | — | +48% |
What changed
Revenue was $479.1M in Q1 2025, up 27% year over year and up 4% from the previous quarter.
Gross margin was 75.9%, down 1.7 points from a year earlier. Operating costs exceeded revenue by $53.2M, an operating margin of -11.1%. Operating expenses grew 20% against revenue growth of 27%. The fastest-growing cost line was General & admin (+32%). The quarter ended with a net loss of $38.5M, wider than the previous quarter's $12.8M loss. Non-operating items added $16.5M, -45% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $145.8M (up 98% year over year). Non-cash charges added back $42.2M of depreciation and amortization and $95.5M of share-based compensation. Working capital and other items added $46.5M. After purchases of property and equipment ($85.9M) and capitalized internal-use software ($7.0M), free cash flow as the company reports it was $52.9M.
Questions
What was Cloudflare's revenue in the first quarter 2025?
Cloudflare (NET) reported revenue of $479M for the first quarter 2025 (Q1 2025), +27% from a year earlier and +4% from the quarter before.
Was Cloudflare profitable in the first quarter 2025?
Operating loss was $53.2M (-11.1% of revenue) and net loss $38.5M.
Source: Cloudflare 10-Q on SEC EDGAR.