Cloudflare (NET) Q4 2025 earnings summary

Executive summary

• Q4 revenue reached $615 million, up 34% year-over-year, with full-year revenue at $2.17 billion, driven by strong enterprise and AI customer demand, record new annual contract value growth, and expansion in large customers.

• Large customers (>$100K/year) grew 23% year-over-year, now contributing 73% of revenue, with total paying customers up 40% year-over-year to 332,466.

• Dollar-based net retention reached 120% in Q4, indicating strong expansion within the customer base.

• Significant wins included the largest annual contract in company history ($42.5 million/year) and multiple strategic deals with AI and Fortune 500 companies.

• Cloudflare's platform is increasingly critical as AI and agentic workloads reshape internet traffic and business models.

Financial highlights

• Q4 revenue: $615 million, up 34% year-over-year; full-year revenue: $2.17 billion, up 30% year-over-year.

• Q4 non-GAAP gross margin: 74.9%; full-year non-GAAP gross margin: 75.8%.

• Q4 non-GAAP operating income: $89.6 million (14.6% margin); full-year: $303.9 million (14% margin).

• Q4 non-GAAP net income: $106.8 million ($0.28/share); full-year: $342.9 million ($0.93/share).

• Q4 free cash flow: $99.4 million (16% of revenue); full-year: $260.6 million (12% of revenue).

• Ended Q4 with $4.1 billion in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Q1 2026 revenue expected at $620–$621 million; non-GAAP income from operations $70–$71 million.

• Full-year 2026 revenue guidance: $2.785–$2.795 billion (28–29% growth), non-GAAP income from operations $378–$382 million, EPS $1.11–$1.12.

• Network capex as a percentage of revenue projected at 12–15% for FY 2026.