Cloudflare, Inc. (NET), the connectivity cloud company, reported third-quarter revenue of $782.5 million, up 39% from a year earlier, and raised its full-year 2026 revenue outlook to $2,963.0 to $2,964.0 million.

That growth rate followed 36% year-over-year growth in the second quarter and 34% in the first quarter. Co-founder and Chief Executive Officer Matthew Prince said the company crossed $3 billion in annualized revenue and delivered its fastest revenue growth in nearly four years.

Current remaining performance obligations grew 37% year over year, after 35% growth in the second quarter and 34% in the first.

GAAP loss from operations was $67.9 million, or 8.7% of revenue, after a $205.7 million GAAP operating loss, or 29.6% of revenue, in the second quarter. Non-GAAP income from operations was $137.1 million, or 17.5% of revenue, compared with $96.1 million, or 13.8% of revenue, in the second quarter.

GAAP net loss was $34.1 million, or $0.10 a share, compared with a $170.0 million GAAP net loss in the second quarter. Non-GAAP net income was $143.7 million, or $0.38 a share, versus $107.8 million, or $0.29 a share, in the second quarter.

The GAAP operating loss included $11.0 million of restructuring and other charges. In the first quarter the company said it expected to reduce its workforce by about 1,100 people and estimated charges of $140.0 to $150.0 million in connection with that plan.

GAAP gross margin was 71.2%, compared with 71.8% in the second quarter. Non-GAAP gross margin was 72.4%.

Net cash from operating activities was $215.4 million. Free cash flow was $82.1 million, or 10% of revenue, compared with $56.4 million, or 8% of revenue, in the second quarter. Cash, cash equivalents, and available-for-sale securities were $5,128.7 million as of September 30, 2026.

For the fourth quarter of 2026, Cloudflare expects total revenue of $845.0 to $846.0 million, non-GAAP income from operations of $156.0 to $157.0 million, and non-GAAP net income of $0.43 a share, using about 379 million weighted-average shares. Full-year non-GAAP income from operations is expected at $462.0 to $463.0 million and non-GAAP net income of $1.35 a share on about 376 million shares.

The company appointed Christian Smith as President of Revenue, saying the hire is aimed at scaling to $5 billion in annual recurring revenue and beyond. Smith will lead worldwide go-to-market, including global sales and revenue operations.