Cloudflare vs Vercel: Revenue, Profit and Business Model
Cloudflare reported $2.2B of revenue in FY2025 and — of net income. Vercel does not publish annual revenue.
Latest financial snapshot
Cloudflare
- Latest revenue
- $2.2B (FY2025)
- Net income
- —
- Net margin
- 0.0%
- Revenue growth
- +38.1% a year, FY2020–FY2025
Vercel
Vercel does not publish annual revenue or profit.
Financial summary
Cloudflare
Cloudflare's revenue has compounded from $431.1 million in 2020 to $2.17 billion in 2025. In 2025 it posted 29.8% growth, 75.8% non-GAAP gross margin, $303.9 million of non-GAAP operating income (14.0% of revenue), $603.1 million of operating cash flow, and $260.6 million of free cash flow, while still reporting a $102.3 million GAAP net loss driven by stock-based compensation. Growth accelerated in 2026: Q2 2026 revenue was $696.1 million (+36% year over year), with a $170.0 million GAAP net loss and $107.8 million of non-GAAP net income. Cash and securities stood at $4.16 billion on June 30, 2026. Management raised full-year 2026 revenue guidance to $2.864-$2.870 billion in August 2026.
Vercel
As a private company, Vercel does not file public financial statements, so all revenue figures are press estimates or numbers shared by the company. TechCrunch, citing Forbes, reported in April 2026 that annual recurring revenue rose from about $100 million at the start of 2024 to a run rate of about $340 million by the end of February 2026. A September 2026 report said annualized revenue had reached about $600 million, up 148% year on year and up from $500 million in July. On funding, Vercel raised $102 million in a Series C in June 2021 and $250 million at a $3.25 billion valuation in May 2024. In September 2025 it raised a $300 million Series F at a $9.3 billion post-money valuation, co-led by Accel and GIC, together with a secondary tender offer for existing shareholders.
Revenue and profit by year
Cloudflare
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2.2B | — | 0.0% | +29.8% | Source |
| FY2024 | $1.7B | — | 0.0% | +28.8% | Source |
| FY2023 | $1.3B | — | 0.0% | +33.0% | Source |
| FY2022 | $975.2M | — | 0.0% | +48.6% | Source |
| FY2021 | $656.4M | — | 0.0% | +52.3% | Source |
| FY2020 | $431.1M | — | 0.0% | — | Source |
Vercel
Vercel does not publish annual revenue. What is known about its finances is in the summary above.
Full Vercel financialsWhere the revenue comes from
Cloudflare
- Enterprise and large-customer contracts
Majority of revenue (exact split not stated here)
Annual and multi-year contracts with large organizations covering application security, Cloudflare One Zero Trust, email security, and network services.
- Self-serve and developer usage
Not separately disclosed
Monthly Pro and Business subscriptions plus usage-based billing for Workers, R2, D1, and Workers AI.
Vercel
- Usage-based platform fees
Majority (not disclosed)
Metered charges for compute, data transfer, requests and AI model usage. Reported in 2026 to be most of revenue.
- Pro and Enterprise plans
Not disclosed
Per-member Pro plans and negotiated Enterprise contracts with added security and support terms.
Business model and strategy
Cloudflare
How it makes money
Cloudflare makes money by selling subscriptions and usage-based services that run on a single global network. Millions of websites use a free plan; paying customers move up to Pro, Business, and Enterprise plans for advanced DDoS mitigation, web application firewall, bot management, and support.
Growth strategy
Cloudflare grows by landing customers with free or low-cost plans and expanding into more products per account. Its main growth vectors are larger enterprise contracts (it signed its largest-ever deal in Q4 2025, averaging $42.5 million per year in annual contract value), Cloudflare One Zero Trust, and the developer platform.
Competitive advantage
Cloudflare's advantage is its network: data centers in more than 330 cities that run every product on every server, combined with a free tier that brings an enormous volume of diverse traffic onto the platform. That traffic gives Cloudflare broad visibility into attacks, and the shared architecture lets it launch new security, AI, and developer products to its whole customer base at low marginal cost.
Vercel
How it makes money
Vercel sells a hosted platform for deploying web applications. A free Hobby tier covers personal, non-commercial projects. The Pro plan charges per team member and includes a monthly usage allowance, and Enterprise contracts are negotiated individually and add security, compliance and support terms.
Growth strategy
Vercel's strategy is to become the default place where AI-built applications run. It markets itself as an "AI Cloud", combining hosting, Fluid compute (introduced in 2025), the AI SDK, an AI Gateway for calling third-party models, and v0 for building apps from prompts.
Competitive advantage
Vercel's edge comes from being the steward of Next.js, a widely used React framework, which lets it support new framework features on its own platform first. Git-based deployments with a preview link for every pull request make the product part of daily team review. Its AI products, v0 and the AI SDK, bring in developers and coding agents that build new apps and deploy them to Vercel by default.
Questions about Cloudflare vs Vercel
Which company has higher revenue — Cloudflare, Inc. or Vercel Inc.?
Cloudflare, Inc. reported $2.2B (FY2025). A verified revenue figure for Vercel Inc. was not available at the time of this comparison.
What is the market cap of Cloudflare, Inc. vs Vercel Inc.?
Cloudflare, Inc. has a market capitalisation of $122.5B. A public market cap figure for Vercel Inc. was not available (it may be privately held).
Which is more financially efficient — Cloudflare, Inc. or Vercel Inc.?
Cloudflare, Inc. generates $420k / employee in revenue per employee. A comparable figure for Vercel Inc. requires matching employee and revenue data from the same reporting period.
How do Cloudflare, Inc. and Vercel Inc. make money?
Cloudflare, Inc. and Vercel Inc. generate revenue in fundamentally different ways. Cloudflare, Inc.: Cloudflare makes money by selling subscriptions and usage-based services that run on a single global network. Vercel Inc.: Vercel sells a hosted platform for deploying web applications.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Cloudflare vs Vercel overview