Cloudflare (NET) reported a GAAP net loss of US$ 34.1 mi in the third quarter of 2026, compared with a net loss of US$ 1.3 mi in the same period of 2025. Revenue totaled US$ 782.5 mi, up 39% year over year. The loss per share was US$ 0.10.
The GAAP operating loss was US$ 67.9 mi, or 8.7% of revenue, compared with US$ 37.5 mi in Q3 2025. Non-GAAP operating income (excluding items such as stock-based compensation and restructuring costs) was US$ 137.1 mi, or 17.5% of revenue. Non-GAAP net income was US$ 143.7 mi, or US$ 0.38 per diluted share, compared with US$ 102.6 mi and US$ 0.27 a year earlier.
GAAP gross profit was US$ 557.2 mi, with a gross margin of 71.2%, compared with 74.0% in Q3 2025. Operating cash flow was US$ 215.4 mi, and free cash flow was US$ 82.1 mi, or 10% of revenue, compared with US$ 75.0 mi in Q3 2025. Cash, cash equivalents and available-for-sale securities totaled US$ 5.1 bi as of September 30, 2026. CEO Matthew Prince said it was "the best quarter in Cloudflare's history."
For the fourth quarter of 2026, the company projects revenue of US$ 845.0 mi to US$ 846.0 mi, non-GAAP operating income of US$ 156.0 mi to US$ 157.0 mi and non-GAAP net income of US$ 0.43 per share. For full-year 2026, the guidance is revenue of US$ 2.963 bi to US$ 2.964 bi, non-GAAP operating income of US$ 462.0 mi to US$ 463.0 mi and non-GAAP net income of US$ 1.35 per share.
Cloudflare also announced Christian Smith as president of revenue, effective November 2, 2026. He will lead global sales and revenue operations and succeeds Mark Anderson, who will retire from his full-time role at the end of 2026 and serve as an advisor through December. Smith was chief revenue officer at Splunk and, most recently, an operating partner at TCV.
