Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 436

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 436
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 ended June 30, 2024. The increase was primarily driven by $55.4 million in increased employee-related costs due to a 17% increase in headcount in our research and development organization, including an increase of $17.5 million in stock-based compensation expense, partially offset by increased capitalized internal-use software development costs of $1.5 million.

General and Administrative

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024$%20252024$%(dollars in thousands)(dollars in thousands)General and administrative$96,987 $69,635 $27,352 39 %$184,645 $135,944 $48,701 36 %

General and administrative expenses increased by $27.4 million, or 39%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily driven by $22.2 million in increased employee-related costs due to a 15% increase in headcount in our general and administrative organization, including an increase of $15.8 million in stock-based compensation expense. This increase was partially offset by $2.4 million of decreased allocated overhead costs.

General and administrative expenses increased by $48.7 million, or 36%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by $38.8 million in increased employee-related costs due to a 15% increase in headcount in our general and administrative organization, including an increase of $27.9 million in stock-based compensation expense. The remainder of the increase was primarily due to an increase of $5.3 million in travel-related expenses and an increase of $3.8 million in lease impairment charges. These increases were partially offset by $4.3 million of decreased allocated overhead costs.

Non-Operating Income (Expense)

Interest Income

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024$%20252024$%(dollars in thousands)(dollars in thousands)Interest income$25,406 $21,715 $3,691 17 %$46,805 $42,967 $3,838 9 %

Interest income did not significantly fluctuate during the three and six months ended June 30, 2025, as compared to the