Market Incident
Public · Developing
AI compiled from Infoway · 3 analyzed stories
NET: Revenue grew 39% as non-GAAP operating margin expanded to 17.5%
Revenue rose 39% year over year to $782.5 million, while non-GAAP operating margin, a measure of operating profit excluding certain items, increased to 17.5%. The company provided revenue guidance of $2.963–$2.964 billion for FY26, while GAAP gross margin and free cash flow margin declined year over year.
Published:
Updated:
What happened
Cloudflare reported third-quarter revenue of $782.5 million, up 39% from a year earlier. Its GAAP gross margin fell to 71%, while its non-GAAP gross margin was 72%. GAAP operating and net losses widened, though adjusted operating income and free cash flow remained positive.
Global impact / market context
Revenue growth shows the business expanded, but lower gross margin and wider reported losses show that growth came with pressure on profitability. Positive adjusted results offer a contrasting measure, but do not erase the reported losses.
What to watch
- Check the next revenue report; it will show whether the reported growth continues.
- Check the next gross margin figures; they will show whether direct costs keep weighing on the share of sales left after those costs.
- Check the next GAAP operating and net losses; they will show whether reported losses continue to widen.
Affected assets
- Cloudflare, Inc.
Evidence
- Infoway News — NET: Revenue grew 39% as enterprise expansion and AI-agent activity advanced
- Infoway News — NET: Revenue grew 39%, but gross margin narrowed and GAAP losses widened
- Infoway News — NET: Revenue grew 39% as non-GAAP operating margin expanded to 17.5%
- Incident timeline — NET: Revenue grew 39% as enterprise expansion and AI-agent activity advanced
- Incident timeline — NET: Revenue grew 39%, but gross margin narrowed and GAAP losses widened
- Incident timeline — NET: Revenue grew 39% as non-GAAP operating margin expanded to 17.5%