Company: NET
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001477333-25-000141
Chunk: 367

Company: Cloudflare, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 367
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. dollars, becoming relatively more expensive for such customers due to the higher value of the U.S. dollar relative to certain other currencies, and increased costs for employee compensation and equipment purchases resulting from continued inflationary cost pressures. 

For further discussion of the challenges and risks we confront related to macroeconomic conditions and geopolitical tension around the world, please refer to Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.

Financial Measures and Key Business Metrics

We review a number of financial and operating metrics, including the following non-GAAP financial measures and key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024(dollars in thousands)(dollars in thousands)Gross profit$415,711 $334,115 $1,162,861 $939,664 Gross margin74 %78 %75 %78 %Loss from operations$(37,460)$(30,794)$(157,971)$(120,042)Non-GAAP income from operations$85,938 $63,468 $214,254 $162,864 Operating margin(7)%(7)%(10)%(10)%Non-GAAP operating margin15 %15 %14 %13 %Net cash provided by operating activities$167,123 $104,727$412,703$253,121Net cash used in investing activities$(629,518)$(76,400)$(1,514,981)$(163,192)Net cash provided by (used in) financing activities$(3,569)$(2,411)$2,007,556$4,753Free cash flow$74,971 $45,279$161,118$119,161Net cash provided by operating activities (as a percentage of revenue)30 %24 %27 %21 %Free cash flow margin13 %11 %10 %10 %Paying customers(1)295,552 221,540 Paying customers (> $100,000 Annualized Revenue)(1)4,009 3,265 

(1)Key business metrics are derived on a quarterly basis. Refer to Key Business Metrics section below for further detail. 

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The following table summarizes the revenue by region based on the billing address