Cloudflare shares jump 18% on revenue beat and raised full-year outlook
Shares in Cloudflare Inc. were up more than 18% in late trading today after the content delivery network and security company beat second-quarter estimates and raised its full-year forecast.
For the quarter that ended on June 30, Cloudflare reported adjusted earnings per share of 29 cents, up from 21 cents in the same quarter of 2025, on revenue of $696.1 million, up 36% year-over-year. Analysts had been expecting 27 cents per share and revenue of $664.8 million.
Sitting underneath the beat was a large one-time cost. Cloudflare booked $150.7 million in restructuring and other charges in the quarter, tied to the 1,100 job cuts it announced in May. That is slightly above the $140 million to $150 million it had estimated for the whole plan. The charge widened the company’s unadjusted net loss to $170 million, or 48 cents a share, from $50.4 million, or 15 cents, a year earlier. Adjusted net income, which strips out the restructuring and stock-based compensation, came in at $107.8 million.
Adjusted income from operations was $96.1 million, or 13.8% of revenue, a slightly thinner margin than the 14.1% Cloudflare managed a year ago. Free cash flow reached $56.4 million, up from $33.3 million. The company closed the quarter with $4.16 billion in cash, cash equivalents and available-for-sale securities.
