Cloudflare: revenue accelerates to +36%, but restructuring eats profit and flips cash flow

6 августа 2026 года Cloudflare, Inc. раскрыла результаты за второй квартал 2026 года. Выручка выросла на 35,9% год к году до 696,1 млн долл., что стало ускорением по сравнению с 27,8% годом ранее. Однако GAAP-убыток расширился до 170,0 млн долл. из-за разовых расходов на реструктуризацию в 150,7 млн долл., а свободный денежный поток остался положительным, но скромным. При текущей цене акции выглядят скорее привлекательно благодаря сильному росту и улучшению не-GAAP маржинальности, но с учётом высокой оценки и разовых факторов.

Key takeaways

— Revenue accelerated to +35.9% driven by large customer growth and platform model

— GAAP loss widened due to one-off restructuring charges of $150.7 million

— Non-GAAP operating income grew, but margin slightly declined due to investments

— Free cash flow increased, but operating cash flow slowed in Q2

— Net debt turned into net cash position, but after convertible notes issuance

— Company reaffirmed full-year guidance, expecting further acceleration

Attractiveness

Key figures, USD bn

Revenue accelerated to +35.9% driven by large customer growth and platform model

In Q2 2026, Cloudflare, Inc. revenue reached $696.1 million, up 35.9% year-over-year. This is an acceleration from 33.5% in Q1 2026 and 27.8% in Q2 2025. The company attributes the dynamics to growth in paying customers, especially large ones, and broader platform adoption.

CEO Matthew Prince noted that the company is at the center of the shift to the 'Agentic Internet' — infrastructure for machine traffic and AI answers. This creates additional demand for Cloudflare products, reflected in revenue acceleration.

GAAP loss widened due to one-off restructuring charges of $150.7 million

In Q2 2026, GAAP operating loss was $205.7 million versus $67.3 million a year earlier. The main driver was one-off restructuring charges of $150.7 million related to the plan to transition to an AI-first operating model and workforce reduction.

Excluding these charges, stock-based compensation and other non-cash items, non-GAAP operating income was $96.1 million, up from $72.3 million in Q2 2025. GAAP net loss reached $170.0 million, but non-GAAP net income rose to $107.8 million.

Non-GAAP operating income grew, but margin slightly declined due to investments

Non-GAAP operating margin in Q2 2026 was 13.8% versus 14.1% a year earlier. The decline is modest but shows the company continues to invest in sales and development despite revenue acceleration. Non-GAAP sales and marketing and R&D expenses grew faster than revenue.

Nevertheless, in absolute terms non-GAAP operating income increased 33% to $96.1 million, indicating operating leverage. The company expects further margin improvement in H2.

Free cash flow increased, but operating cash flow slowed in Q2

In Q2 2026, operating cash flow was $117.6 million versus $99.8 million a year earlier. Capital expenditures, including capitalized software, declined to $61.2 million from $66.5 million, allowing free cash flow to rise to $56.4 million (8% of revenue) from $33.3 million (6%) a year earlier.

Over the trailing twelve months, operating cash flow was $603.1 million, confirming the company's ability to generate cash despite growth investments. However, in Q2 operating cash flow slowed from Q1 2026 ($158.3 million), possibly reflecting seasonality or working capital changes.

Net debt turned into net cash position, but after convertible notes issuance

As of end-June 2026, cash and short-term investments were $4,162.8 million, and total debt was about $3,270 million (current and long-term portions of convertible notes). As a result, the company has a net cash position of roughly $890 million, contrasting sharply with net debt of $1,317 million a year earlier.

The change is due to the issuance of $2 billion convertible notes in 2025, which boosted the cash cushion. However, the balance sheet also reflects restructuring charges and acquisitions, increasing intangible assets and goodwill.

Company reaffirmed full-year guidance, expecting further acceleration

Cloudflare, Inc. expects Q3 2026 revenue in the range of $736–737 million, implying about 31% year-over-year growth. For full-year 2026, the company guides revenue of $2,864–2,870 million, corresponding to about 33% growth over 2025.

Non-GAAP operating income for the year is expected at $443–445 million, implying a margin of about 15.5% — higher than H1 level of 12.7%. This suggests management expects operating leverage in H2.

Valuation on the latest reported figures

Bottom line

Bottom line: Cloudflare, Inc. delivered a strong quarter with revenue acceleration to +35.9% and free cash flow growth. One-off restructuring charges distorted GAAP results, but non-GAAP metrics confirm operational efficiency. The company has a net cash position and reaffirmed ambitious full-year targets. However, at the current price, shares trade at a premium to their own historical multiples, limiting upside potential. Verdict: rather attractive — a strong business, but the valuation already prices in much of what needs to happen.