Cloudflare Q3 Earnings: How Its AI Edge Network & SASE Focus Could Be the Game Changer Wall Street Missed!

Cloudflare’s Q3 2025 results show a strong financial and operational performance, marked by a year-over-year revenue increase of 30.7% to $562 million. The company attributes this growth to effective innovation and execution, particularly in transitioning from a product-led growth model to a full-fledged enterprise sales strategy. Large customers, defined as those contributing more than $100,000 annually, increased by 23%, making up 73% of the total revenue. This shift illustrates Cloudflare’s success in capturing and expanding its major customer base. The dollar-based net retention rate improved to 119%, a 5-percentage point increase from the previous quarter, underscoring the efficacy of its customer retention and growth strategies. A notable highlight of the quarter was Cloudflare’s gross margin, which remained strong at 75.3%, within the target range of 75-77% despite a slight decrease from the previous year. The operating profit was reported at $85.9 million, translating to an operating margin of 15.3%.