Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 432

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 432
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 and our investment holdings.

Interest Expense

Interest expense consists primarily of contractual interest expense and amortization of the debt issuance costs on our 0% Convertible Senior Notes due 2026 (the 2026 Notes) and our 0% Convertible Senior Notes due 2030 (the 2030 Notes, and together with the 2026 Notes, the Notes).

Other Income (Expense), Net

Other income (expense), net consists primarily of gain on sale of property and equipment and foreign currency transaction gains and losses. 

Provision for (Benefit from) Income Taxes

Provision for (benefit from) income taxes consists primarily of income taxes in certain foreign jurisdictions in which we conduct business, as well as state income taxes in the United States. We have a full valuation allowance on our U.S. federal, U.S. state, and U.K. deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will not be realized.

42

Results of Operations

The following tables set forth our condensed consolidated results of operations for the periods presented in dollars and as a percentage of our revenue for those periods:Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024(dollars in thousands)(dollars in thousands)Revenue$512,316 $400,996 $991,403 $779,598 Cost of revenue128,677 89,011 244,253 174,049 Gross profit383,639 311,985 747,150 605,549 Operating expenses:Sales and marketing219,359 174,501 433,370 368,603 Research and development134,557 102,547 249,646 190,250 General and administrative96,987 69,635 184,645 135,944 Total operating expenses450,903 346,683 867,661 694,797 Loss from operations(67,264)(34,698)(120,511)(89,248)Non-operating income (expense):Interest income25,406 21,715 46,805 42,967 Interest expense(1,524)(1,218)(2,967)(2,318)Other income (expense), net(3,907)269 (7,375)1,393 Total non-operating income, net19,975 20,766 36,463 42,042