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Operating Expense Breakdown
Breaks down Cloudflare’s core costs — R&D, sales & marketing, and general & administrative — showing how the company allocates spending to build its edge network, attract customers, and scale operations, and revealing pressure points for margins and cash flow.Cloudflare has reallocated spending toward growth and product build: Sales & Marketing ramped sharply to monetize a booming developer and enterprise pipeline, outpacing R&D increases, while R&D itself remains elevated to fund the agentic‑AI replatform. The recent G&A spike reflects one‑time severance and restructuring, and its subsequent pullback masks a permanent shift—higher go‑to‑market and R&D base with near‑term margin and CapEx pressure from lower‑margin developer mix and AI infrastructure, but positioned to drive the revenue and operating‑leverage guidance.
Date | Sales and Marketing | Research and Development | General and Administrative |
|---|---|---|---|
Jun 30, 2026 | $276.12M | $159.49M | $118.91M |
Mar 31, 2026 | $271.60M | $150.97M | $95.02M |
Dec 31, 2025 | $251.14M | $141.89M | $108.76M |
Sep 30, 2025 | $236.31M | $120.96M | $95.91M |
Jun 30, 2025 | $219.36M | $134.56M | $96.99M |
Mar 31, 2025 | $214.01M | $115.09M | $87.66M |
Dec 31, 2024 | $191.97M | $120.21M | $73.80M |
Sep 30, 2024 | $185.22M | $110.91M | $68.78M |
Jun 30, 2024 | $174.50M | $102.55M | $69.64M |
Mar 31, 2024 | $194.10M | $87.70M | $66.31M |