Cloudflare Gross Profit vs. Operating Margin
| NET Stock | USD 211.52 4.19 2.02% |
Gross Profit | First Reported 2018-03-31 | Previous Quarter 415.7 M | Current Value 456.2 M | Quarterly Volatility 127.7 M |
Macro event markers
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.61 | 0.7443 |
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The module aggregates profitability drivers for Cloudflare with ratios tied to revenue, assets, and equity.
Cloudflare | Build portfolio with Cloudflare Stock |
Macro event markers
Earnings Share -0.29 | Revenue Per Share | Quarterly Revenue Growth 0.336 | Return On Assets | Return On Equity |
Investors evaluate Cloudflare using market value and book value, each describing different facets of the business. Cloudflare's market capitalization is 72.98 B. Cloudflare P/B of 50.01 reflects a market valuation far exceeding accounting equity. Enterprise value stands at 72.39 B. The intrinsic value concept focuses on underlying worth, which can diverge from market price and book value. Valuation work aligns these measures into a single context.
The concept of value for Cloudflare differs from its quoted price, since each reflects a different lens. For Cloudflare, key inputs include a P/B ratio of 50.01, a profit margin of -4.72%, ROE of -8.16%, and revenue of 2.17 B. Where Cloudflare trades at any moment depends on the balance of buying and selling pressure.
Cloudflare Operating Margin vs. Gross Profit Fundamental Analysis
Peer-based valuation metrics position Cloudflare within its sector hierarchy. Cloudflare is rated below average in gross profit relative to competitors. It is rated below average in operating margin relative to competitors . Gross Profit is projected to change by approximately 4.76% year over year. Last year, Cloudflare recorded Gross Profit of 1.61 Billion. Comparative pricing ratios position Cloudflare within industry norms.Cloudflare Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Cloudflare |
| = | 1.62 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Cloudflare |
| = | -0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Cloudflare Operating Margin Comparison
Cloudflare is currently under evaluation in operating margin relative to competitors.
Cloudflare Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Cloudflare, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cloudflare will eventually generate negative long term returns. The profitability progress is the general direction of Cloudflare's change in net profit over the period of time. It can combine multiple indicators of Cloudflare, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 12.3 M | 12.9 M | |
| Net Interest Income | 122.5 M | 128.6 M | |
| Interest Income | 122.5 M | 128.6 M | |
| Operating Income | -203.3 M | -213.5 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Income Before Tax | -92.7 M | -97.3 M | |
| Total Other Income Expense Net | 110.6 M | 116.1 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Net Loss | -102.3 M | -107.4 M | |
| Income Tax Expense | 9.6 M | 10 M | |
| Non Operating Income Net Other | 17.8 M | 18.7 M | |
| Change To Netincome | 239.3 M | 251.3 M | |
| Net Loss | -0.29 | -0.31 | |
| Income Quality | -6.52 | -6.19 | |
| Net Income Per E B T | 1.10 | 1.07 |
Cloudflare Profitability Driver Comparison
Profitability drivers for Cloudflare are the financial and operational factors that most directly influence its earnings. Investors must contend with a wide range of external shocks - from regulatory changes to commodity price swings - that can disrupt Cloudflare's financial results.
Earnings Estimation Breakdown
For Cloudflare, the next projected earnings per share is 0.2679 based on current analyst consensus. The range of individual analyst forecasts runs from 0.24 to 0.32, reflecting varying views on Cloudflare's near-term business performance. Consensus EPS excludes non-recurring items and is calculated from trailing twelve-month operating results.Last Reported EPS
0.24 Lowest | Expected EPS | 0.32 Highest |
Earnings Projection Consensus
If consensus earnings estimates imply a fair value above Cloudflare's current price, the market may be discounting future earnings more aggressively than analysts. If the market price is ahead of the estimate, the implied premium may require strong execution to sustain. These valuation signals are best used as one input within a multi-method investment framework.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 30th of June 2026 | Current EPS (TTM) | |
| 35 | 86.01% | 0.0 | 0.2679 | -0.29 |
Earnings History
Professional analyst coverage of Cloudflare synthesizes management guidance, sector trends, and macro assumptions into a consensus EPS estimate. This consensus shapes investor expectations ahead of each earnings release and becomes the reference point for post-report reaction. We recommend reviewing consensus alongside fundamental valuation models before making allocation decisions.Cloudflare Quarterly Gross Profit | 456.2 Million |
Mean reversion in Cloudflare's price occurs when temporary dislocations - caused by sentiment extremes, news events, or liquidity shocks - correct back toward the stock's historical fair value.
Earnings per Share Projection vs Actual
For Cloudflare, actual EPS provides a historical record of per-share profitability that investors use to identify trends. Expected EPS for Cloudflare projects this figure forward using guidance, industry dynamics, and financial analysis. The higher Cloudflare's EPS trajectory, the stronger its implied earnings quality relative to peers.Estimated Months Earnings per Share
Investors seeking income from Cloudflare should track EPS trends alongside dividend history to assess payout sustainability. EPS that outpaces dividend growth signals expanding coverage; EPS that lags dividend growth raises cut risk. Always complement EPS analysis with a review of operating leverage, working capital trends, and competitive positioning.Quarterly Analyst Estimates and Surprise Metrics
EPS surprise events for Cloudflare's have historically correlated with short-term return outliers - both upside and downside. The post-earnings drift effect means that initial surprise reactions can persist over subsequent trading sessions. Analyst estimates contributing to consensus are derived from fundamental models trained on trailing performance and management guidance.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
null | null | null | null | null | 0 | ||
2026-02-10 | 2025-12-31 | 0.27 | 0.28 | 0.01 | 3 | ||
2025-10-30 | 2025-09-30 | 0.23 | 0.27 | 0.04 | 17 | ||
2025-07-31 | 2025-06-30 | 0.18 | 0.21 | 0.03 | 16 | ||
2025-05-08 | 2025-03-31 | 0.16 | 0.16 | 0.0 | 0 | ||
2025-02-06 | 2024-12-31 | 0.18 | 0.19 | 0.01 | 5 | ||
2024-11-07 | 2024-09-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2024-08-01 | 2024-06-30 | 0.14 | 0.2 | 0.06 | 42 | ||
2024-05-02 | 2024-03-31 | 0.13 | 0.16 | 0.03 | 23 | ||
2024-02-08 | 2023-12-31 | 0.12 | 0.15 | 0.03 | 25 | ||
2023-11-02 | 2023-09-30 | 0.1 | 0.16 | 0.06 | 60 | ||
2023-08-03 | 2023-06-30 | 0.07 | 0.1 | 0.03 | 42 | ||
2023-04-27 | 2023-03-31 | 0.03 | 0.08 | 0.05 | 166 | ||
2023-02-09 | 2022-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2022-11-03 | 2022-09-30 | 0.0034 | 0.06 | 0.0566 | 1664 | ||
2022-08-04 | 2022-06-30 | -0.01 | -0.1954 | -0.1854 | 1854 | ||
2022-05-05 | 2022-03-31 | 0.0013 | 0.01 | 0.0087 | 669 | ||
2022-02-10 | 2021-12-31 | -0.0043 | -0.2419 | -0.2376 | 5525 | ||
2021-11-04 | 2021-09-30 | -0.04 | -0.3412 | -0.3012 | 753 | ||
2021-08-05 | 2021-06-30 | -0.04 | -0.02 | 0.02 | 50 | ||
2021-05-06 | 2021-03-31 | -0.03 | -0.03 | 0.0 | 0 | ||
2021-02-11 | 2020-12-31 | -0.04 | -0.02 | 0.02 | 50 | ||
2020-11-05 | 2020-09-30 | -0.05 | -0.02 | 0.03 | 60 | ||
2020-08-06 | 2020-06-30 | -0.06 | -0.03 | 0.03 | 50 | ||
2020-05-07 | 2020-03-31 | -0.06 | -0.04 | 0.02 | 33 | ||
2020-02-13 | 2019-12-31 | -0.07 | -0.06 | 0.01 | 14 | ||
2019-11-07 | 2019-09-30 | -0.15 | -0.16 | -0.01 | 6 | ||
2019-09-13 | 2019-06-30 | -0.2 | -0.06 | 0.14 | 70 |
Use Cloudflare in pair-trading
Using Cloudflare in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. The advantage is that adverse movement in one leg may be partly offset by the other when correlation and thesis alignment hold.
Cloudflare Pair Trading
Cloudflare Pair Trading Analysis
Using correlated positions as Cloudflare substitutes during tax-loss harvesting allows investors to capture a tax benefit without disrupting portfolio allocation. The key is finding instruments that track Cloudflare closely enough to maintain equivalent risk and return.
The correlation of Cloudflare with other assets is a key diversification metric. Pairing Cloudflare with uncorrelated or negatively correlated instruments can reduce overall portfolio volatility without necessarily reducing expected returns.
Pair evaluation and Correlation analysis for Cloudflare provide hedging context. This approach is commonly reviewed within sectors and across broader groups.Use Investing Themes to Complement your Cloudflare position
With 72.98 Billion market cap in the Software—Infrastructure industry, Cloudflare works well as a mid-cap core holding around which broader thematic baskets can be built. Cloudflare mid-cap scale (72.98 Billion) within Software—Infrastructure helps compare substitutes, complements, and diversifiers that strengthen the overall Technology allocation.
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