Cloudflare

NET · NYSE · Information Technology · Financials, fiscal 2017 to 2025

NET · Last close · October 26, 2026

$331.86

Cloudflare's revenue rose 29.9% to $2.2 billion in fiscal 2025. Its operating margin was −9.6%, down from −9.3% a year earlier. Free cash flow was $288 million, up 47.1%. The diluted share count rose 2.0%.

Cloudflare, Inc. Latest fiscal year ended December 31, 2025 10-K filed February 26, 2026 · 0001477333-26-000016 Updated October 11, 2026

Revenue

$2.2B

29.9%

Operating margin

−9.6%

0.3 pts

Net income

−$102M

Free cash flow

$288M

47.1%

Return on capital

−29.7%

1.0 pts

Market cap

$117.6B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Cloudflare does

Cloudflare runs a global network that businesses and other organizations use to protect their websites, apps and internal networks from attacks, make them load faster and keep them online. Developers can also build and run software, including AI applications, directly on that network. It also offers consumer apps. At the end of 2025 it had about 332,000 paying customers in more than 190 countries, from small businesses to large companies and governments. It also offers a free plan for some of its products.

Cloudflare earns money mainly from subscriptions to its network and products, and it reports a single business segment. Larger customers sign contracts on its Enterprise plan; smaller ones pay as they go on its Pro and Business plans. Customers outside the United States brought in 51% of 2025 revenue, and no single customer accounted for more than 10%. It competes with makers of on-premises network hardware, with firms that sell cloud services for a single task such as content delivery or email security, and with parts of the big public cloud providers.

Its network spans more than 330 cities in over 125 countries and connects with over 13,000 other networks. Customers with more than $100,000 in annualized revenue (a quarter’s revenue times four), which it calls large customers, grew to 4,298 at the end of 2025 from 3,497 a year earlier. Cloudflare had 5,156 full-time employees at the end of 2025, 2,452 of them outside the United States, and its headquarters is in the San Francisco Bay Area.

Its biggest risks, as it describes them

Its history of net losses, and the chance that it does not reach or keep profitability.
Failing to win and keep large customers, or to handle the extra demands of serving them.
Its free plan may cost more than the benefits it brings from free customers.
Backlash or legal trouble over the activities or content of the websites it serves.
Changes in, or the end of, its co-location deals and partnerships with internet service providers.

From Cloudflare's annual report on Form 10-K, filed February 26, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

Cloudflare lost money in fiscal 2025: a net loss of $102 million.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Cloudflare yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Cloudflare's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Cloudflare's cash from operations minus depreciation in fiscal 2025 (free cash flow before spending to grow: capital spending was 1.7 times depreciation, which holds its free cash flow down) of $413M, net cash of $836M at December 31, 2025 and 348 million diluted shares, from its filings. The scenarios are fitted to Cloudflare: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 30.5% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Internet Services & Infrastructure), plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2025: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Cloudflare's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 11% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $331.86
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Cloudflare's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	1,822	1,650	1,674	1,856	4,101
Debt incl. finance leases	1,159	1,436	1,283	1,287	3,265
Net debt (negative means net cash)	−663	−214	−390	−569	−836
Net debt to EBITDA	—	—	—	—	—
Debt to equity	1.4x	2.3x	1.7x	1.2x	2.2x
Interest coverage	−2.6x	−40.4x	−31.6x	−29.8x	−23.6x
Current ratio	6.8x	4.7x	3.5x	2.9x	2.0x
Quick ratio	6.8x	4.7x	3.5x	2.9x	2.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Cloudflare shares on the open market, and 10 insiders sold $664.8 million, all of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 19, 2026	Thomas J SeifertChief Financial Officer	Sold plan	12,500	$299.59	$3.7 million	Form 4
Oct 19, 2026	Carl LedbetterDirector	Sold plan	5,000	$304.40	$1.5 million	Form 4
Sep 22, 2026	Carl LedbetterDirector	Sold plan	5,000	$353.15	$1.8 million	Form 4
Sep 17, 2026	Thomas J SeifertChief Financial Officer	Sold plan	10,000	$332.46	$3.3 million	Form 4
Sep 14, 2026	Carl LedbetterDirector	Sold plan	5,000	$312.22	$1.6 million	Form 4
Sep 8, 2026	Michelle ZatlynPresident & Board Co-chair, Director	Sold plan	33,003	$277.43	$9.2 million	Form 4
Sep 4, 2026	Michelle ZatlynPresident & Board Co-chair, Director	Sold plan	33,003	$281.67	$9.3 million	Form 4
Sep 3, 2026	Michelle ZatlynPresident & Board Co-chair, Director	Sold plan	33,003	$278.92	$9.2 million	Form 4
Aug 21, 2026	Michelle ZatlynPresident and Board Co-Chair, Director	Sold plan	33,003	$277.43	$9.2 million	Form 4
Aug 20, 2026	Michelle ZatlynPresident and Board Co-Chair, Director	Sold plan	33,003	$285.06	$9.4 million	Form 4
Aug 19, 2026	Michelle ZatlynPresident and Board Co-Chair, Director	Sold plan	33,003	$294.63	$9.7 million	Form 4
Aug 18, 2026	Janel RileyChief Accounting Officer	Sold plan	3,481	$305.27	$1.1 million	Form 4

The latest 12 of 133 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Fail	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	Fail	Fail	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Pass
F-score	6 of 9	6 of 9	3 of 9
Accruals ratio	−16.4%	−15.2%	−15.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Cloudflare side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Cloudflare	FY25	29.9%	−9.6%	13.3%	−29.7%	—	3
Wix.com	FY25	13.2%	0.1%	29.2%	—	9.9x	7	Compare
Verisign	FY25	6.4%	67.7%	64.5%	—	1.1x	8	Compare
Akamai Technologies	FY25	5.4%	13.5%	24.0%	6.3%	2.3x	6	Compare
GoDaddy	FY25	8.3%	22.8%	31.8%	30.6%	2.2x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

9 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	135	193	287	431	656	975	1,297	1,670	2,168
Revenue growth	—	42.8%	49.0%	50.2%	52.3%	48.6%	33.0%	28.8%	29.9%
Gross profit	106	149	224	330	509	743	990	1,291	1,615
Research and development	34	54	91	127	189	298	358	421	512
Operating income	−10	−85	−108	−107	−128	−201	−186	−155	−207
Net income	−11	−87	−106	−119	−260	−193	−184	−79	−102
Diluted EPS (US$)	−0.14	−1.08	−0.72	−0.40	−0.83	−0.59	−0.55	−0.23	−0.29
Diluted shares (millions)	77	81	146	300	312	326	334	341	348
Cash flow
Cash from operations	3	−43	−39	−17	65	124	254	380	603
Capital expenditure	19	26	43	56	93	144	114	185	316
Free cash flow	−16	−69	−82	−74	−28	−20	140	195	288
Dividends paid	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0
Acquisitions	0	0	0	14	6	88	6	0	0
Stock-based compensation	3	27	37	56	90	203	274	338	452
Balance sheet at fiscal year end
Cash and short-term investments	27	161	637	1,032	1,822	1,650	1,674	1,856	4,101
Debt incl. finance leases	—	—	0	383	1,159	1,436	1,283	1,287	3,265
Total assets	—	298	831	1,381	2,372	2,588	2,760	3,301	6,036
Total liabilities	—	80	105	564	1,556	1,964	1,997	2,255	4,577
Shareholders' equity	−60	−114	726	817	811	624	763	1,046	1,459
Margins and ratios
Gross margin	78.7%	77.4%	77.9%	76.6%	77.6%	76.2%	76.3%	77.3%	74.5%
Operating margin	−7.2%	−44.1%	−37.6%	−24.8%	−19.4%	−20.6%	−14.3%	−9.3%	−9.6%
Net margin	−8.0%	−45.2%	−36.9%	−27.7%	−39.7%	−19.8%	−14.2%	−4.7%	−4.7%
Free cash flow margin	−11.8%	−35.7%	−28.6%	−17.1%	−4.3%	−2.0%	10.8%	11.7%	13.3%
Return on capital	—	—	—	−65.6%	—	−56.9%	−37.4%	−28.8%	−29.7%
Return on equity	—	—	−34.6%	−15.5%	−32.0%	−26.9%	−26.5%	−8.7%	−8.2%
Return on assets	—	—	−18.7%	−10.8%	−13.9%	−7.8%	−6.9%	−2.6%	−2.2%
Net debt to EBITDA	—	—	—	—	—	—	—	—	—

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Cloudflare's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Cloudflare.