> Cloudflare is an outlier because the company doesn't actually make money at present; their past three annual statements show net losses in the tens to hundreds of millions of dollars.

Their free cashflow is high; they're choosing not to report a profit. I don't think it's useful/accurate to say they don't make money.

Don't get me wrong, they may be doing a layoff to boost margins or enter GAAP profitability but the company revenue exceeds its operating cost by quite a bit.

See in their latest quarterly report: https://cloudflare.net/news/news-details/2026/Cloudflare-Ann...

> First quarter revenue totaled $639.8 million, representing an increase of 34% year-over-year

So they're growing 34% annually.

> Free cash flow was $84.1 million, or 13% of revenue, compared to $52.9 million, or 11% of revenue, in the first quarter of 2025. Cash, cash equivalents, and available-for-sale securities were $4,163.9 million as of March 31, 2026.

...and they have $84 million free cash flow in one quarter, and it's consistently pretty good cashflow.

And they have $4b of cash or cash equivalents stockpiled. It seems pretty healthy to me.

Its quite filthy but it benefits them all to lay off lots of people to reset the wage rate in the market... Im sure we will see a wave of re-hiring when this stuff starts to blow over but many initially will be at a much lower wage rate.

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