Company: NET
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001477333-25-000141
Chunk: 19

Company: Cloudflare, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 %$280,551 $204,721 $75,830 37 %

General and administrative expenses increased by $27.1 million, or 39%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily driven by $23.6 million in increased employee-related costs due to a 9% increase in headcount in our general and administrative organization, including an increase of $18.5 million in stock-based compensation expense. This increase was partially offset by $1.9 million of decreased allocated overhead costs.

General and administrative expenses increased by $75.8 million, or 37%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily driven by $62.4 million in increased employee-related costs due to a 9% increase in headcount in our general and administrative organization, including an increase of $46.5 million in stock-based compensation expense. The remainder of the increase was primarily due to an increase of $6.0 million in bad debt expense, an increase of $5.6 million in travel-related expenses, and an increase of $4.0 million in third-party technology services costs. These increases were partially offset by $6.2 million of decreased allocated overhead costs.

Non-Operating Income (Expense)

Interest Income

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024$%20252024$%(dollars in thousands)(dollars in thousands)Interest income$42,529 $22,471 $20,058 89 %$89,334 $65,438 $23,896 37 %

Interest income increased by $20.1 million and $23.9 million, or 89% and 37%, respectively, during the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024. The increase in interest income was primarily driven by the increase in investment balance.

Interest Expense

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024$%20252024$%(dollars in thousands)(dollars in thousands)Interest expense$(2,912)$(1,433)$(1,479)103 %$(5,879)$(3,751)$(