v3.26.1
Incremental Costs to Obtain a Contract with a Customer
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Incremental Costs to Obtain a Contract with a Customer Incremental Costs to Obtain a Contract with a Customer
Deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of June 30, 2026 and December 31, 2025 were as follows (in thousands):

June 30,
2026		December 31,
2025
Deferred costs included in prepaid expenses and other current assets$78,684 $69,983 
Deferred costs included in other assets83,524 92,525 
Total deferred costs$162,208 $162,508 

Information related to incremental costs to obtain a contract with a customer for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):

For the Three Months
Ended June 30,		For the Six Months
Ended June 30,
2026202520262025
Amortization expense related to deferred costs
$22,420 $15,375 $43,151 $29,164 
Incremental costs capitalized
$24,728 $17,783 $43,569 $32,084 

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the interim condensed consolidated statements of income.
Revenue from Contracts with Customers
The Company sells its services through a sales force located both domestically and internationally. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. Revenue by geography included in the Company’s interim condensed consolidated statements of income for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):

For the Three Months
Ended June 30,		For the Six Months
Ended June 30,
2026202520262025
U.S.$550,426 $527,607 $1,093,573 $1,056,346 
International549,256 515,887 1,079,719 1,002,287 
Total revenue$1,099,682 $1,043,494 $2,173,292 $2,058,633 

Beginning with the first quarter of 2026, the Company began reporting its revenue in three solution categories: security, delivery and other cloud applications and cloud infrastructure services. Recognizing cloud infrastructure services as a primary growth area and a significant focus of investment in the Company's cloud computing portfolio, the Company began reporting its revenue separately. Prior period amounts reported in the table below for revenue by solution category have been recast to reflect this change.

Security includes solutions that are designed to protect business online by keeping infrastructure, websites, applications, APIs, networks and users safe. Delivery and other cloud applications is comprised of delivery solutions that are designed to enable business online, including media delivery and web and mobile performance, as well as other cloud applications. Cloud infrastructure services includes compute and storage solutions, EdgeWorkers product and the compute partner solutions running on the Company's platform. Revenue by solution category included in the Company’s interim condensed consolidated statements of income for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):

For the Three Months
Ended June 30,		For the Six Months
Ended June 30,
2026202520262025
Security$604,436 $551,914 $1,194,226 $1,082,609 
Delivery and other cloud applications395,927 420,117 785,135 836,960 
Cloud infrastructure services
99,319 71,463 193,931 139,064 
Total revenue$1,099,682 $1,043,494 $2,173,292 $2,058,633 

Most of the Company's solutions represent stand-ready obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly usage
commitments that expire each period. Any usage over a given commitment is recognized in the period in which the units are served. A small percentage of the Company's contracts are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation.

During the six months ended June 30, 2026 and 2025, the Company recognized $116.5 million and $112.7 million of revenue that was included in deferred revenue as of December 31, 2025 and 2024, respectively.

As of June 30, 2026, the aggregate amount of remaining performance obligations from contracts with customers was $7.6 billion. The Company expects to recognize approximately 40% of its remaining performance obligations as revenue over the next 12 months and approximately 40% over the next two to three years, with the remaining thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially unsatisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current noncancellable contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during the six months ended June 30, 2026 and 2025, related to performance obligations satisfied in previous periods was not material.