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Cloudflare, Inc. NET Operating margin

Operating margin at other companies

Microsoft logo
MicrosoftMSFT
46.8%+1.6pp
Amazon logo
AmazonAMZN
11.5%+0.5pp
F5, Inc. logo
F5, Inc.FFIV
24.7%+0.2pp
Akamai Technologies logo
Akamai TechnologiesAKAM
12.3%-0.6pp
Zscaler logo
ZscalerZS
-4.7%-0.1pp
Alphabet Inc. logo
Alphabet Inc.GOOGL

Other financials

Income statement

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Revenue$639.8M+33.5%
Gross profit$455.6M+25.3%
Operating income-$62.0M-16.4%
Net income-$22.9M+40.4%
EPS (diluted)-$0.07+36.4%

Balance sheet

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Cash & equivalents$944.4M+347%
Total debt$256.7M+36.9%
Total equity$1.5B+7.1%
Total assets$6.2B+65.6%

Cash flow

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Operating cash flow$158.3M+8.6%
CapEx$65.2M-24.1%
Free cash flow$93.1M+55.4%

Valuation

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Market cap$80.53B+86.8%
Enterprise value$79.84B+85.1%
P/S34.6×+10.2×

Profitability

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Gross margin73.3%-3.6pp
Net margin-3.7%-0.6pp

Returns & leverage

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Return on equity-5.9%-1.0pp
Debt / equity0.2×0.0×
Current ratio-1.2×

Where this comes from

Calculated from Cloudflare, Inc.’s reported figures.

Based on trailing twelve months.

The official record: Cloudflare, Inc.’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cloudflare, Inc.'s operating margin?
Cloudflare, Inc. (NET) reported operating margin of -9.3% in Q1 2026.
How has Cloudflare, Inc.'s operating margin changed year-over-year?
Cloudflare, Inc.'s operating margin decreased by 7.0% year-over-year, from -8.7% to -9.3%.
What is the long-term trend for Cloudflare, Inc.'s operating margin?
Over 4 years (2021 to 2025), Cloudflare, Inc.'s operating margin has grown at a -17.1% compound annual growth rate (CAGR), from -79.7% to -37.7%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.