NET Cloudflare margins

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Relative Growth: Rel. Growth: 42
Relative Strength: Rel. Strength: 93
Relative Valuation: Rel. Valuation: 5
Relative Profitability: Rel. Profitability: 30
Gross margin
72.6%
Operating margin
-14.1%
EBITDA margin
4.7%
Net margin
-8.2%

Cloudflare records its operating margin is negative at -14.1%, and its net margin is negative at -8.2%, with a gross margin of 72.6%, an operating margin of -14.1%, an EBITDA margin of 4.7%, and a net margin of -8.2%. The company's available margins all weakened, with operating margin showing the strongest contraction of 4.2 percentage points.

NET margin history

Gross, operating, EBITDA and net margin trends

Looking back over the last 3 years, Cloudflare recorded average margins of 75.8% gross, -10.97% operating, 5.62% EBITDA, and -7.04% net. Compared with their three-year averages, all four current margins are lower.

NET margin expansion

Year-over-year margin changes in percentage points

The largest decrease was in operating margin, which fell by 4.2 percentage points. The other available margins also declined.

Gross margin expansion
-3.5pp
Operating margin expansion
-4.2pp
EBITDA margin expansion
-1.1pp
Net margin expansion
-2pp

NET Gross margin

Across the last 3 years, Cloudflare's gross margin stood at 75.8%. The current gross margin stands at 72.6%, 3.2 percentage points below its three-year average. Gross margin was highest at 77.5% in Sep 2024 and lowest at 72.6% in Jun 2026.

NET Operating margin

Across the last 3 years, Cloudflare had an average operating margin of -10.97%. Against its three-year average, Cloudflare's operating margin is currently -14.1%, 3.1 percentage points below its three-year average. Looking back over the last 3 years, Cloudflare's operating margin reached -8.7% at its highest point in Mar 2025 and -14.3% at its lowest in Dec 2023.

NET EBITDA margin

Over the last 3 years, Cloudflare's EBITDA margin averaged 5.62%. The current EBITDA margin of 4.7% is 0.9 percentage points below its three-year average. During this period, EBITDA margin reached a high of 9% in Mar 2026 and a low of 0.7% in Dec 2023.

NET Net margin

Cloudflare's net margin averaged -7.04% over the last 3 years. Compared with its three-year average, Cloudflare's current net margin is -8.2% and is 1.2 percentage points below its three-year average. Over the last 3 years, Cloudflare's net margin peaked at -3.7% in Mar 2026 and reached a low of -14.2% in Dec 2023.

NET margin group comparison

Margins compared with peer-group, industry and sector averages

Cloudflare's gross margin of 72.6% is above the Technology sector and the industry average. Compared to its Technology sector average of 52.1%, Cloudflare's gross margin is 39% higher.

NET margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Cloudflare's gross margin?

The current gross margin for NET is 72.6% as of Jun 30, 2026.

What is Cloudflare's operating margin?

As of Jun 30, 2026, NET has a negative operating margin of -14.1%.

What is Cloudflare's EBITDA margin?

As of Jun 30, 2026, NET has an EBITDA margin of 4.7%.

What is Cloudflare's net margin?

As of Jun 30, 2026, NET has a negative net margin of -8.2%.

What are the average margins of NET?

Over the past 3 years, NET reported average margins of 75.8% gross, -11.0% operating, 5.6% EBITDA, and -7.0% net.

What are the highest historical margins of NET?

Cloudflare's highest recorded margins during the past 5 years were 77.8% gross in Mar 2022, -8.7% operating in Mar 2025, 9% EBITDA in Mar 2026, and -3.7% net in Mar 2026.

What are the lowest historical margins of NET?

Over this 5-year history, Cloudflare's margins fell as low as 72.6% gross in Jun 2026, -21.4% operating in Sep 2022, -16.3% EBITDA in Dec 2021, and -39.7% net in Dec 2021.