Cloudflare, Inc.

Cloudflare operates in the rapidly evolving market for cloud-based network services, which is undergoing a massive transition from on-premises hardware to cloud services. The company delivers a broad range of services to businesses of all sizes and geographies, making them more secure, enhancing performance, and eliminating the cost and complexity of managing individual network hardware. Cloudflare's network serves as a scalable, easy-to-use, unified control plane to deliver security, performance, and reliability across on-premises, hybrid, cloud, and SaaS applications, and increasingly, customers are building applications on top of its network, including those enhanced with artificial intelligence.

Cloudflare faces intense competition from on-premises network hardware vendors, point solution vendors (including cloud security, CDN, DNS, email security, and SD-WAN vendors), and traditional public cloud vendors. The company believes it is positioned favorably due to its cloud-based, multitenant approach, integrated solutions, unified control plane, and independence from public cloud providers. As of December 31, 2025, Cloudflare had approximately 332,000 ¹ paying customers across more than 190 countries, with large customer count increasing from 2,756 ² as of December 31, 2023 to 3,497 ³ as of December 31, 2024 to 4,298 ⁴ as of December 31, 2025. No single customer accounted for more than 10% of revenue in the years ended December 31, 2023, 2024, or 2025.

Cloudflare generates revenue primarily from subscriptions to its products, offering subscription plans with varying degrees of functionality and usage, as well as separate subscriptions to various add-on products and network functionality. The company serves a broad, global community of millions of free and paying customers, which manage millions of Internet properties on its network. Revenue is recognized ratably over the term of the subscription, which for contracted customers typically ranges from one to three years and for pay-as-you-go customers is typically monthly. Certain large customer agreements are structured on a 'pool of funds' model where the customer commits to spend at least a specified amount during the subscription period.

Cloudflare delivers a suite of deeply integrated products serving as a unified control plane, allowing customers to build, connect, and secure applications and corporate infrastructure. The full suite consists of application services (including application security products like Web Application Firewall, Bot Management, DDoS Mitigation, API Security, and SSL/TLS Encryption, and application performance products like Content Delivery, Load Balancing, and DNS), a SASE platform (combining network services like Magic WAN, Magic Transit, and Magic Firewall with Zero Trust and workplace security services like Cloudflare Zero Trust Network Access, Cloudflare Secure Web Gateway, and Cloud Email Security), developer-based solutions (including AI products like Workers AI and Vectorize, compute products like Cloudflare Workers, and storage and databases products like R2 Object Storage and D1), and consumer offerings (including 1.1.1.1 DNS and 1.1.1.1 with WARP).

Cloudflare's growth strategy includes acquiring new customers (contracted, pay-as-you-go, and free), expanding relationships with existing customers by upgrading plans and increasing usage, developing new products and solutions, and extending its developer solutions strategy. The company has launched various impact initiatives as part of its mission, including Project Galileo (providing free services to at-risk journalists and human rights defenders, now including more than 3,000 ⁵ domains in more than 120 ⁶ countries), the Athenian Project (protecting more than 440 ⁷ state and local election websites in 33 ⁸ U.S. states and election entities in six ⁹ additional countries), Cloudflare for Campaigns, and Project Cybersafe Schools (with more than 230 ¹⁰ school districts in 30 ¹¹ U.S. states receiving free services).

Cloudflare has experienced rapid revenue growth, with revenue of $2,167.9 million ¹², $1,669.6 million ¹³, and $1,296.7 million ¹⁴ for the years ended December 31, 2025, 2024, and 2023, respectively. The company has a history of net losses, with net losses of $102.3 million ¹⁵, $78.8 million ¹⁶, and $183.9 million ¹⁷ for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, Cloudflare had an accumulated deficit of $1,204.9 million ¹⁸. Headcount grew from 3,682 ¹⁹ employees as of December 31, 2023, to 4,263 ²⁰ as of December 31, 2024, to 5,156 ²¹ as of December 31, 2025.

Cloudflare's growth strategy includes acquiring new customers across all offerings—contracted, pay-as-you-go, and free. The company is focused on continued growth of its paying customer base, particularly contracted customers and large customers, and will continue to invest in awareness and functionality to drive overall customer growth beyond the millions of Internet properties using Cloudflare today. The company also plans to expand relationships with existing customers by improving customer experience through product offerings and support, and by developing new products and solutions.

Cloudflare is extending its developer solutions strategy, having seen a growing number of customers choosing to bring applications to market using developer-based solutions like Cloudflare Workers, which has opened up an entirely new market for storage and compute. The company believes adoption of these offerings will continue to grow as it further invests in them. Additionally, Cloudflare is deploying GPUs across its global network of servers to help customers build performant AI into their applications natively.

The filing does not contain specific margin or cost outlook figures for the upcoming period.

Cloudflare expects operating expenses to increase over the next several years as it continues to hire additional personnel, expand operations and infrastructure both domestically and internationally, and continue to develop products. The company's network spans more than 330 ²² cities in over 125 ²³ countries worldwide and interconnects with over 13,000 ²⁴ networks globally. Cloudflare expects to continue to increase the size of its network in the future.

Cloudflare prioritizes investment in research and development, which has resulted in the launch of new products that have helped attract new customers and sell more products to existing customers. The company has a $400 million ²⁵ revolving credit facility (the Revolving Credit Facility) entered into in May 2024. The filing does not specify R&D spending levels, capital expenditure plans, share repurchase authorization amounts, or dividend policy for the upcoming period.

Cloudflare faces structural headwinds including adverse economic conditions that may reduce spending on network security, performance, and reliability products. The company has experienced lengthening of average sales cycles for certain types of customers and sales, slowdowns in pipeline conversion, increases in days sales outstanding, higher levels of churn, and lengthening of payment timing from customers, which may have contributed to a slowdown in revenue growth. Conflicts and geopolitical tension around the world, including the implementation or threat of tariffs, could decrease spending by existing and potential customers, adversely affect demand, and negatively impact collections of accounts receivable.

Cloudflare's operations and financial performance depend on worldwide economic conditions, and the company faces risks from the implementation or threat of tariffs on goods imported into the United States and retaliatory measures from other countries. These tariffs could cause costs of products to increase, corporate spending to become delayed or curtailed, increase rates of inflation, reduce economic growth rates, or create an economic downturn. The company also faces risks from conflicts and geopolitical tension, which could decrease spending, cause customers to fail to renew or seek to renegotiate contracts, and impact expected spending from existing and potential new customers.

Cloudflare has a history of net losses, with an accumulated deficit of $1,204.9 million ²⁶ as of December 31, 2025, and may not achieve or sustain profitability. The company faces intense competition from on-premises hardware vendors, point solution vendors, and public cloud vendors, many of which have greater resources and could engage in predatory pricing or bundling. A significant portion of revenue depends on retaining and upgrading paying customers, particularly large customers, and any decline in renewals or expansions could materially harm results. The company's network and products are subject to security threats, and actual or perceived breaches could damage its reputation and lead to significant costs; for example, in November 2023, a likely nation-state threat actor gained unauthorized access to internal systems. Cloudflare also faces risks from adverse economic conditions and geopolitical tensions, including tariffs, which could reduce customer spending and lengthen sales cycles.

Management's message emphasizes Cloudflare's mission to help build a better Internet and its position as a leader in the Connectivity Cloud category. The company is focused on long-term growth and reinvesting cash flow from operations into the business, including expansion of the global network, development of new products and features, expansion of the global workforce, and potential acquisition of complementary businesses. Key strategic priorities include acquiring new customers across all offerings, expanding relationships with existing customers, developing new products and solutions, and extending the developer solutions strategy, particularly as customers build applications on top of the network, including those enhanced with AI.