Cloudflare, Inc.’s third-quarter revenue rose 39% to $782.5 million, but its GAAP net loss widened to $34.1 million, leaving the company with a larger accounting loss despite faster sales growth.
For the three months ended Sept. 30, the GAAP net loss compared with a $1.3 million loss a year earlier. Cloudflare reported $143.7 million in net income on a non-GAAP basis.
Its GAAP operating loss increased to $67.9 million from $37.5 million a year earlier. Under its non-GAAP measure, operating income rose to $137.1 million from $85.9 million. GAAP gross margin fell to 71.2% from 74.0%.
Cloudflare co-founder and CEO Matthew Prince said sales growth had reached its fastest pace in almost four years. The company filed a Form 8-K with the SEC on Nov. 5 covering its results and related exhibits.
In a separate announcement, Cloudflare appointed Christian Smith president of revenue. He succeeds outgoing President of Revenue Mark Anderson, who plans to leave his full-time position at the end of 2026 and remain an adviser through the end of December. Cloudflare linked the appointment to its effort to reach $5 billion in annual recurring revenue.
The company forecast revenue of $845 million to $846 million for the fourth quarter and $2.963 billion to $2.964 billion for full-year fiscal 2026.
