Cloudflare Reports Strong Q4 & FY2025 Results, Exceeding Expectations with Robust Growth and Profitability
NET has more than doubled off its 52-week low of $89.42 on elevated volume (2.7× avg).
Summary
Cloudflare announced strong fourth-quarter and full-year 2025 financial results, driven by significant revenue growth, improved non-GAAP profitability, and record-breaking new contract wins, alongside solid 2026 guidance.
Key Events · Earnings and Guidance · NET
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Strong Q4 2025 Performance
Reported Q4 revenue of $614.5 million, a 33.6% year-over-year increase, with non-GAAP net income per diluted share of $0.28, significantly up from $0.19 in Q4 2024.
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Record Contract Wins
Closed its largest annual contract value deal ever, averaging $42.5 million per year, and saw total new ACV grow nearly 50% year-over-year.
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Robust RPO and Free Cash Flow Growth
Remaining Performance Obligations (RPO) grew 48% year-over-year, and free cash flow reached $99.4 million (16.2% of revenue) in Q4 2025, demonstrating strong future revenue visibility and operational efficiency.
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Solid FY 2026 Outlook
Provided full-year 2026 revenue guidance of $2,785.0 million to $2,795.0 million and non-GAAP net income per share of $1.11 to $1.12, indicating continued growth and profitability.
Analysis · NET · Technology
Cloudflare's latest earnings report highlights robust performance, particularly in the fourth quarter of 2025, with revenue increasing over 33% year-over-year and non-GAAP net income per diluted share rising significantly. The company achieved its largest annual contract value deal ever, indicating strong enterprise adoption. Key metrics like Remaining Performance Obligations (RPO) and free cash flow also showed substantial growth, underscoring the company's operational efficiency and future revenue visibility. The positive momentum is expected to continue into 2026, with solid revenue and non-GAAP EPS guidance, suggesting sustained demand for its connectivity cloud services, especially with the increasing adoption of AI and agents.
At the time of this filing, NET was trading at $198.00 on NYSE in the Technology sector, with a market capitalization of approximately $63B. The 52-week trading range was $89.42 to $260.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.