Cloudflare Q2 Earnings Call Highlights

2 weeks ago 25

MarketBeat

Sat, August 8, 2026 astatine 3:03 PM CDT 6 min read

Key Points

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Strong Q2 growth: Cloudflare reported gross of $696.1 million, up 36% twelvemonth implicit year, supported by lawsuit additions, higher endeavor adoption and 120% dollar-based nett retention. Revenue from customers spending much than $100,000 annually grew, with 4,698 specified customers astatine quarter-end.
Profitability and outlook improved: Non-GAAP operating income roseate 33% to $96.1 million, portion escaped currency travel accrued to $56.4 million. Cloudflare projected third-quarter gross of $736 cardinal to $737 cardinal and raised oregon reaffirmed full-year gross guidance of $2.864 cardinal to $2.870 billion.
AI and Workers stay cardinal maturation drivers: Nearly 2 cardinal developers joined the Workers level during the quarter, bringing the full supra 7.4 million. Management is positioning Cloudflare for rising AI-agent postulation done developer tools, cause monetization and outgo products, arsenic good arsenic information offerings for AI workloads.

Cloudflare's Beat-and-Raise Quarter Puts Its AI Edge Story successful Focus

Cloudflare (NYSE:NET) reported second-quarter 2026 gross of $696.1 million, up 36% from a twelvemonth earlier, arsenic the institution cited accelerating lawsuit growth, expanding adoption of its Workers developer platform, and request for products supporting AI-related workloads.

Chief Executive Officer Matthew Prince said the institution added much than 80,000 paying customers during the quarter, bringing year-over-year paying-customer maturation to 74%. Cloudflare ended the play with 4,698 customers spending much than $100,000 annually, a 27% summation from the anterior year. The institution added 282 specified ample customers during the 4th and 986 implicit the past 12 months, its highest yearly nett summation full for that lawsuit segment.

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Dollar-based nett retention reached 120%, up 2 percent points sequentially and six percent points twelvemonth implicit year. Large customers accounted for 73% of quarterly revenue, compared with 71% successful the 2nd 4th of 2025.

Profitability, Cash Flow and Outlook

Cloudflare reported non-GAAP operating income of $96.1 million, up 33% from $72.3 cardinal a twelvemonth earlier. Its non-GAAP operating borderline was 13.8%, improving 240 ground points sequentially but declining 30 ground points twelvemonth implicit year.

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