Cloudflare's 3.4 Stock Rally Driven by 28 Revenue Growth and AI Strategy but 1.42B Volume Surge Ranks 86th in Market Activity

On July 31, 2025, Cloudflare (NET) rose 3.40% to close, with a trading volume of $1.42 billion, a 157.75% surge from the prior day, ranking 86th in market activity. The stock’s performance followed the company’s Q2 2025 earnings report, which highlighted a 28% year-over-year revenue increase to $512.3 million and non-GAAP operating income of $72.3 million (14% of revenue). CEO Matthew Prince emphasized accelerated growth in large customer investments and strategic AI-driven initiatives, noting Cloudflare’s role in shaping the "agentic web."

Cloudflare reported $559.2 million in billings at quarter-end, a 32.6% year-on-year rise, reflecting strong customer retention and contract expansion. The firm raised full-year revenue guidance to $2.11 billion, up from $2.09 billion, and adjusted EPS expectations to $0.86. Non-GAAP gross margin stood at 76.3%, slightly below the prior year’s 79.0%, while free cash flow margin declined to 6% of revenue. The company maintained $3.96 billion in cash and equivalents as of June 30, 2025.

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