It's kind of past that phase, according to Gemini, it's a tax play:

The "No" (Non-GAAP & Free Cash Flow)

If you look at Non-GAAP (adjusted) figures—which many investors use to judge the actual "engine" of the business—Cloudflare is solidly profitable.

Adjusted Income: They reported a non-GAAP net income of $102.6 million for Q3 2025.

Cash Flow: Cloudflare is Free Cash Flow (FCF) positive. They are generating more cash from their operations than they are spending to keep the business running, reporting $75 million in FCF in their most recent quarter.

Why the difference?

The main reason Cloudflare still shows a "loss" on paper is Stock-Based Compensation (SBC). Like many high-growth tech companies, they pay a significant portion of employee salaries in stock rather than cash.

The GAAP view counts that stock as an expense (creating a "loss"). The Investor view often ignores it because it doesn't drain the company's bank account (showing "profit").