Earnings release

Cloudflare, Inc. Cloudflare, Inc. · Q2 2026

ReportedAug 6, 2026
Period endedJun 30, 2026
Rule of 40+46

Consensus vs reported

EPS · ADJUSTED MISS −67%
-$0.05
vs -$0.03 expected
QoQ—
YoY—
Revenue
$696M
reported · no published consensus
QoQ+8.8%
YoY+35.9%

QoQ and YoY are measured on the same basis as each panel's own consensus, so no panel compares two different measures.

The quarter in short

Revenue $696M, up 35.9% year over year and 8.8% on the quarter. Adjusted EPS -$0.05. GAAP EPS −$0.48. Free cash flow $68M, up 69.4% year over year and down 27.4% on the quarter. Adjusted EPS missed consensus by 67%. Rule of 40 score +46.

Reported this quarter

Each tile opens the full quarterly series. Download the numbers as CSV or JSON.

What we learned

  1. Without the restructuring charges, the GAAP net loss would have been about $18 million. CFO Thomas Seifert's own reconciliation settles the update note above: most of the widened $170.0 million loss is the announced workforce cut, not deteriorating unit economics.
  2. Restructuring charges ran $151 million this quarter, $99 million of it paid in cash. Seifert raised the full-year estimate to as much as $165 million, with up to $130 million cash — the company chose speed over cost control internationally.
  3. Cloudflare added a record 986 net new $100,000-plus customers over the trailing year. CEO Matthew Prince said that took the base to 4,698 such customers, up 27% year over year — the growth-quality metric the revenue and Rule of 40 figures don't show.
  4. Network capex ran 7% of revenue this quarter but is guided to 14-15% for the full year. Seifert's own split quantifies the AI buildout the article says is compressing gross margin, and implies a heavier capex quarter is still to come.

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Coverage around this release

Estimate against reported

$0.02−$0.07−$0.172024 Q4 reported −$0.042024 Q42025 Q1 reported −$0.112025 Q12025 Q2 reported −$0.152025 Q22025 Q3 reported $0.002025 Q32025 Q4 reported −$0.032025 Q42026 Q1 reported −$0.072026 Q12026 Q2 estimate −$0.032026 Q2 reported −$0.052026 Q22026 Q3
Our published estimate Reported EPS
QuarterEstimateReportedSurprise
2024 Q4 — −$0.04 —
2025 Q1 — −$0.11 —
2025 Q2 — −$0.15 —
2025 Q3 — $0.00 —
2025 Q4 — −$0.03 —
2026 Q1 — −$0.07 —
2026 Q2 −$0.03 −$0.05 −67%
2026 Q3 — not yet reported —

Estimates are the consensus we published on our own preview for that quarter; quarters we did not preview carry the reported figure only. Where a consensus was set on a non-GAAP basis, the reported column shows that same measure.

Sources & downloads

Company Published by the company on the day of the release.
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Q2 2026 across the sector

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