Cloudflare Inc (XSWX:NET)
CHF 195.52 (0%) Market Cap: 69.63 Bil Enterprise Value: 69.11 Bil PE Ratio: 0 PB Ratio: 54.42 GF Score: 78/100

Q3 2025 Cloudflare Inc Earnings Call Transcript

Oct 30, 2025 / 09:00 PM GMT

Key Points

Positve
  • Cloudflare Inc (NET) achieved a revenue of $562 million, marking a 30.7% year-over-year increase.
  • The company reported a 23% increase in large customers, with revenue contribution from these customers growing 42% year-over-year.
  • Cloudflare Inc (NET) delivered an operating profit of $85.9 million, representing an operating margin of 15.3%.
  • The company's dollar-based net retention rate improved to 119%, up 5 percentage points quarter-over-quarter.
  • Cloudflare Inc (NET) generated strong free cash flows of $75 million during the quarter, exceeding expectations.
Negative
  • The departure of a key executive, CJ Desai, who is leaving to become CEO of another technology company, could impact leadership continuity.
  • Gross margin decreased by 100 basis points sequentially and 350 basis points year-over-year, indicating potential cost pressures.
  • Despite strong revenue growth, the company faces challenges in maintaining high gross margins for newer products like Workers.
  • The transition from a product-led growth model to an enterprise sales model may introduce complexities and require adjustments.
  • There is a risk of increased competition from hyperscalers in the AI inference workload space, which could impact market share.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

NET.N - Cloudflare Inc
Q3 2025 Cloudflare Inc Earnings Call
Oct 30, 2025 / 09:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Is the

You.

Little.

I

I can't find one today.

To

To take a

And I

You

And

I

So there is nobody's fault.

Daddy wasn't what I thought it'd be, and it's okay cause H1stly, I don't blame you for your H1sty and it's such a shame that I didn't think the blame

Falling

Thank you for standing by

My name is Greg and I will be your conference operator today.

This time, I would like to welcome everyone to today's cloud flare.

Q3 2025 earnings call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and
Already have an account? Log in
Get the full story
Access to All Earning Calls and Stock Analysis
30-Year Financial on one screen
All-in-one Stock Screener with unlimited filters
Customizable Stock Dashboard
Real Time Insider Trading Transactions
8,000+ Institutional investors’ 13F holdings
Powerful Excel Add-in and Google sheets Add-on
All data downloadable
Quick customer support
And much more...
30-Day 100% money back guarantee
Subscription fee may be tax deductible.
Excellent
4.6 out of 5 Trustpilot