The Numbers
Cloudflare closed Q4 2025 with $614.5M in revenue, up 34% year over year. That is acceleration, not deceleration: they grew 27% in Q4 2024. Full year 2025 revenue hit $2.2B, up 30%.
For context: this is a $2B+ ARR business growing faster than it did last year. Most public B2B companies at this scale are decelerating or making excuses about elongated sales cycles.
What This Means for Sales Teams
New ACV grew nearly 50% year over year, the fastest rate since 2021. Cloudflare closed its largest ever ACV deal: $42.5M per year. They added 96 customers spending over $1M in 2025 alone, up from 55 in 2024. That is a 75% increase in million dollar customers added.
Net new paying customers: 37,000 added in Q4, bringing the total to 332,000. That is 40% year over year growth in customer count. At $2B+ revenue, most companies stop adding customers at this rate. Growth comes from expansion, not new logos. Cloudflare is doing both.
Dollar based net retention hit 120%, up from 111% a year ago. Nine points of NRR expansion at this scale is rare. It means customers are buying more products, not just more of the same one.
The Sales Productivity Story
Global sales productivity increased year over year for eight consecutive quarters. Q4 2025 surpassed the all time productivity high set in Q4 2021. Quota attainment was the highest in four years.
This matters because most companies ramping sales headcount see declining productivity per rep. Cloudflare grew the sales org with a heavy tilt toward enterprise while productivity went up, not down.
Implication: they are likely hiring aggressively into 2026. When new ACV grows 50% and productivity is at all time highs, you expand the team.
Market Context
Cloudflare projects fiscal 2026 revenue of $2.79B, implying 28-29% growth. Non GAAP operating margin hit 14.6%, up from 4% in 2022. Free cash flow reached 16% of revenue in Q4.
The company serves 38% of the Fortune 500 and processes 215 billion cyber threats daily. CEO Matthew Prince says the shift toward AI and digital agents is driving demand for security, performance, and networking infrastructure.
While most enterprise software vendors are navigating budget freezes, Cloudflare is posting record ACV. Worth watching: sales team expansion, territory splits, and whether they shift comp structures to support the enterprise motion. When productivity is this strong, CROs typically hire into it.