Cloudflare, Inc.NET

Cloudflare, Inc. Segments Disclosure

10-KFiled Feb 26, 20262 min read
Segment and Geographic Information
The Company’s chief operating decision maker (CODM) is its CEO, President, and CFO, collectively. The Company has no segment managers who are held accountable by the CODM for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has determined it has a single operating segment.
The CODM uses consolidated net loss for purposes of allocating resources and evaluating financial performance, including monitoring actual results versus historical periods. Adjusted cost of revenue, adjusted sales and marketing, adjusted research and development and adjusted general and administrative expenses are considered significant segment expenses that are regularly provided to the CODM and included within consolidated net loss. The measure of segment assets is the total assets on the Company’s consolidated balance sheets. Capital expenditures are reported on a consolidated basis on the Company’s consolidated statements of cash flows. The following table includes the Company's segment revenue, significant segment expenses, and other segment items to reconcile to net loss:
Year Ended December 31,
202520242023
Revenue$2,167,937 $1,669,626 $1,296,745 
Less:
Adjusted cost of revenue(1)
(524,748)(356,021)(280,943)
Adjusted sales and marketing expense(1)
(781,143)(633,365)(520,106)
Adjusted research and development expense(1)
(337,867)(269,438)(218,069)
Adjusted general and administrative expense(1)
(220,328)(180,691)(155,610)
Other segment items(2)
(406,118)(308,911)(305,966)
Net loss$(102,267)$(78,800)$(183,949)
(1) Cost of revenue, sales and marketing expense, research and development expense and general and administrative expense in the consolidated statements of operations are adjusted to exclude stock-based compensation and related employer payroll taxes, amortization of acquired intangible assets, acquisition-related and other expenses, lease impairment charges, and legal reserve and settlements during the years ended December 31, 2025, 2024, and 2023, and a one-time compensation charge during the three months ended March 31, 2024.
(2) Other segment items include the adjustments described in the notes above, as well as interest income, interest expense, loss on extinguishment of debt, other income (expense), net and provision for income taxes in the consolidated statements of operations.
Refer to Note 3 to these consolidated financial statements for revenue by geography.
The Company’s property and equipment, net, by geographic area were as follows:
December 31,
20252024
(in thousands)
United States$298,256 $233,818 
Rest of the world320,435 233,602 
Total property and equipment, net$618,691 $467,420 
No single country other than the United States accounted for more than 10% of total property and equipment, net as of December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 21, 2024
2022Feb 24, 2023
2021Mar 1, 2022
2020Feb 25, 2021
2019Mar 4, 2020

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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