Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 18

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 Development

Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20252024$%20252024$%(dollars in thousands)(dollars in thousands)Research and development$134,557 $102,547 $32,010 31 %$249,646 $190,250 $59,396 31 %

Research and development expenses increased by $32.0 million, or 31%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily driven by $30.4 million in increased employee-related costs due to a 17% increase in headcount in our research and development organization, including an increase of $10.6 million in stock-based compensation expense.

45

Research and development expenses increased by $59.4 million, or 31%, for the six months ended June 30, 2025 compared to the six months 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