What happened
Announced 7 May 2026 as the company shifted to an agentic-AI-first operating model. CEO Matthew Prince said the action was not an expense reduction but stemmed from AI use — an unusually direct denial of the usual cost-cutting framing.
Attribution and company response
Revenue held, staff cut. The published revenue comparison held or grew — $2.17bn in 2025, up 29.8%. This clears the tracker’s revenue screen; it does not prove AI substitution, completed departures or the absence of financial pressure.
What the figures show
WHO BENEFITS?
Revenue grew, but the record does not yet show whether workers shared in the gains.
- Business performance
- $2.17bn in 2025, up 29.8%
- Worker pay
- $151,522 median · 2025One year of pay data; no trend established.
- Workforce impact
- 1,100 · 20%MAY 2026 · Scope of the reported event, not net job losses.
- Cash flow / profitability
- $260.6m free cash flow2025 · Not a shareholder payout.
Two-year history · 8 quarters
Jul 2024–Jun 2026 · USD millions · 4 of 6 measures cover every quarter. Checked 2026-09-22.
Each chart uses its own scale. Financial gains do not establish gains for workers or an effect caused by AI.
| Quarter ended | Revenue | Net profit / loss | Operating cash | Cash investment (PP&E) | Buybacks paid | Dividends paid |
|---|---|---|---|---|---|---|
| 430.1 | -15.3 | 104.7* | 50.2* | 0* | — | |
| 459.9* | -12.8* | 127.3* | 73.2* | 0* | — | |
| 479.1 | -38.5 | 145.8 | 85.9 | — | — | |
| 512.3 | -50.4 | 99.8* | 59.9* | — | — | |
| 562 | -1.3 | 167.1* | 84.6* | — | — | |
| 614.5* | -12.1* | 190.4* | 85.2* | — | — | |
| 639.8 | -22.9 | 158.3 | 65.2 | — | — | |
| 696.1 | -170 | 117.6* | 50* | — | — |
Consolidated company figures. Acquisitions, disposals, taxes and changes in reporting scope can affect comparisons. This series does not isolate AI effects.
* Calculated by subtracting reported periods: usually cumulative total minus the previous cumulative total, or full year minus nine months for Q4. Monday.com Q1 is half year minus Q2. Click a value for its source; click * for the subtracted period. Some calculations use different filings and may be affected by restatements. Fiscal dates differ between companies; compare the same season a year earlier.
Worker pay remains annual in the compensation table. Missing quarterly pay or headcount is not interpolated. This is financial-history coverage, not a complete assessment of who benefits.
Sources & limits
Revenue is not profit. These figures may cover different periods and do not isolate the effects of AI. Median pay includes more than salary and can change with workforce composition; it does not track raises for the same employees.
That AI tools absorbed the work of every affected employee. Prince named AI as the reason for the action; he did not account for the work task by task.
CEO pay derived from median × ratio.
Allocation evidence: Cash generation, not a shareholder payout. Predates the May 2026 cuts; the beneficiary of any subsequent savings remains unverified. Checked 22 September 2026. Allocation source ↗
Executive pay & historical figures
Annual stock awards can make CEO pay and its ratio swing sharply. No fairness rating is assigned to this ratio.
| Year | Median employee | CEO | Named executives, avg. | CEO / median |
|---|---|---|---|---|
| 2025 | $151,522 | $2.1m* | — | 14:1 |
* Estimated from median compensation × reported ratio.
CEO pay derived from median × ratio.
Workforce and outcome context
Cloudflare reported 5,156 full-time employees in 2025, including 2,452 outside the US. Contractors and consultants are separately engaged.