Cloudflare(NYSE) NET

Cloudflare makes the internet fast and safe for everyone. It helps companies block cyberattacks and manage digital traffic. Its platform lets developers build apps without buying expensive hardware.

Tools for a Faster Web

• Security Services: Tools like firewalls and bot mitigation that protect websites from digital threats.
• Performance and Reliability: Solutions such as content delivery networks and intelligent routing that speed up website loading.
• Developer Platform: Serverless computing and programmable networks that allow engineers to build applications directly on the network.
• Zero Trust Solutions: Security tools that verify every user and device trying to access private corporate resources.
• Consumer Products: A safe DNS resolver and a mobile app called WARP that secures individual internet traffic.

Scaling the Global Network

• Announced a plan on May 7, 2026, to shift to an agentic AI-first operating model.
• Reduced the total workforce by approximately 20% to accelerate its new artificial intelligence strategy.
• Installed graphics processing units (GPUs) across its network to support AI-related software development.
• Expanded physical network operations to more than 335 cities and over 125 countries worldwide.

What Makes Cloudflare Different?

Cloudflare uses a unified network that acts as a single control plane for security and performance across different cloud environments. Its large free user base provides early data on new security threats and global internet traffic patterns.

The Financial Scorecard

• Revenue was $696.1 million in the three months ended June 30, 2026, up 36% year over year.
• Large customers paying over $100,000 annually reached 4,698 as of June 30, 2026, compared to 3,712 one year earlier.
• Dollar-based net retention rate was 120% during the three months ended June 30, 2026.
• Free cash flow was $56.4 million in the three months ended June 30, 2026, up from $33.3 million in 2025.
• International markets accounted for 49% of total revenue during the three-month period ended June 30, 2026.

The Bottom Line

Cloudflare has evolved from a security tool into a global infrastructure platform for internet traffic and AI development. Its massive network scale and software focus allow the company to adapt quickly to changing digital needs.