Cloudflare FY 2025 earnings: revenue momentum meets persistent losses

Cloudflare (NET) has wrapped up FY 2025 with Q4 revenue of US$614.5 million and a basic EPS loss of US$0.03, alongside net income excluding extra items of a US$12.1 million loss. The latest trailing twelve month figures show revenue of US$2.0 billion and a basic EPS loss of US$0.30. Over recent periods, the company has seen quarterly revenue move from US$459.9 million in Q4 2024 to US$614.5 million in Q4 2025. Basic EPS shifted between a loss of US$0.04 in Q4 2024 and a loss of US$0.03 in Q4 2025, while trailing net income excluding extra items remained in loss territory at US$103.0 million. For investors, the headline is simple: Cloudflare is still loss making, but the scale of revenue versus EPS pressure keeps margins front and center.

See our full analysis for Cloudflare.

With the numbers on the table, the next step is to see how this earnings profile lines up with the dominant narratives around Cloudflare's growth potential, margin path, and eventual move toward profitability.

20.3% revenue growth versus ongoing losses

• Over the last 12 months, Cloudflare generated about US$2.0b in revenue, growing around 20.3% annually, while trailing net income excluding extra items stayed in loss territory at US$103.0 million.
• Bulls point to this combination of solid top line growth and improving loss profile as a foundation for earnings progress. However, the trailing loss today sits against forecasts that earnings could grow around 50.09% per year and turn positive within three years, so the current US$103.0 million loss has to close meaningfully for that bullish path to play out.

Curious how that growth story could evolve if things go right for Cloudflare over the next few years? 🐂 Cloudflare Bull Case

Premium P/S multiple and DCF gap

• The shares trade on a P/S of 33.1x versus a peer average of 13.3x and a US IT industry average of 2.1x. The current share price of US$189.41 also sits well above the DCF fair value of about US$103.54.
• Bears argue that paying this kind of premium only works if future earnings justify it. They point to the DCF fair value being materially below the market price and the company still recording a trailing net loss of US$103.0 million as clear hooks to highlight execution risk if growth or profitability trends differ from expectations.

Want to see why some investors think that rich multiple could be hard to support if growth cools? 🐻 Cloudflare Bear Case

Quarterly losses swing despite narrowing trend

• Within FY 2025 alone, net income excluding extra items ranged from a loss of US$1.3 million in Q3 to a loss of US$50.4 million in Q2 and US$12.1 million in Q4, even as longer term data shows losses narrowing by about 12.9% per year over the past five years.
• Analysts' consensus view sees this pattern as part of a gradual march toward profitability. That 12.9% annual loss reduction and forecasts for earnings to grow around 50.09% a year fit a story where quarter to quarter swings are considered acceptable as long as the multi year direction of the loss line keeps improving.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Cloudflare on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? If this earnings story sparks a different angle for you, you can shape that into your own narrative in minutes with Do it your way.

A great starting point for your Cloudflare research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

Explore Alternatives

Cloudflare's combination of ongoing losses, quarterly earnings swings, and a premium P/S multiple versus peers highlights meaningful risk if expectations around future profits are not met.

If that level of uncertainty feels uncomfortable, shift your research toward companies flagged in our 85 resilient stocks with low risk scores that aim for more stable fundamentals and risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.