Cloudflare Q2: Significant Margin Expansion, Customer Acceleration

Cloudflare’s adjusted operating margin reported significant expansion and the company is nearing GAAP profitability. In addition, its free cash flow grew 92% YoY and there was noticeable customer acceleration in the key metrics. Cloudflare is going through a transition in customer contracts, transitioning from annual recurring contracts to offering more platform deals that are on monthly, pay-as-you-go terms with 3+ year duration. This is causing DBNRR and RPO to look lumpy, yet the company’s beat/raise is helping to shrug off any concerns from this transition.

Members receive institutional-grade context on positioning, risk, and catalysts — not just headlines.

Our research team publishes deep dives on sector themes, earnings setups, and portfolio actions as conditions change.