NET Technology

Cloudflare, Inc.

$273.62+3.19%

Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026

Basics

Sector: Technology
Industry: Software - Infrastructure
Country: United States
Market cap: 97.4B USD
Enterprise value: 96.8B USD
Full-time employees: 5,156

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.65 vs a peer median of 0.87) and more debt relative to equity (2.18× vs a peer median of 0.25×)higher risk: bigger price swings (beta 1.65 vs peers 0.87) and more debt vs equity (2.18× vs peers 0.25×)

Ranks #1,402 of 1,612 technology companies (bottom 14%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $1.1B vs $0M spent repurchasing shares over the 3 fiscal years to 2025.
Over three fiscal years Cloudflare recorded $1.1B of stock-based pay expense and spent $0M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Cloudflare recorded $1.1B of stock-based pay expense and spent $0M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Much more borrowing than peers. Debt is 2.2× equity vs a peer median of 0.2×.Debt is 2.2× equity vs peers 0.2×.
Debt is 2.2× shareholders' equity, against a peer median of 0.2×, among the highest 10% of its peer group.Debt is 2.2× shareholders' equity, vs peers 0.2×, among the highest 10% of its peer group.
Stock-based pay is a large cost. Stock pay was 21% of revenue in 2025.
Cloudflare paid employees $451M in stock in 2025, 21% of its $2.2B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Growing fast, still losing money. Revenue grew faster than 89% of peers, at an operating loss.
Revenue grew faster than 89% of peers, but the business runs at an operating loss (margin -14%).

StockQuotient Score

28/ 100

Oct 5 28 → Nov 4 28

Valuation

Is the price right?

15/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-0.2%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0225 · MAD: 0.0225

EBITDA yield-0.0%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsNegative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.17Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield0.4%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingReported value20% base weight · Z-score -0.87Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield1.7%

SEC filings · latest balance sheetOutlier capped at sector 5th/95th percentileInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

82/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 7.9%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

The loss per share widened33% base weight · Z-score -1.13Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth30.6%

SEC filings · 3 years to Jun 2026Reported value33% base weight · Z-score 3.25Sector median: 0.0483 · MAD: 0.0793

Revenue growth33.5%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 2.46Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

11/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▼ Weaker

Operating margin fell 4.8 points to -14.1%

Why

Weaker than most peers on:

▼ ROIC
▼ Operating margin
▼ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-14.1%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -2.88Sector median: 0.0631 · MAD: 0.0710

Return on assets-3.2%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score -1.69Sector median: 0.0293 · MAD: 0.0362

Return on invested capital-18.1%

Yahoo Finance fallback · SEC operating income or invested capital unavailable · trailing 12 monthsReported value33% base weight · Z-score -2.90Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin72.6%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity-12.7%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Weaker than most peers on:

▼ Debt / equity
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta1.65

Yahoo Finance · 5-year monthly beta vs the marketReported value33% base weight · Z-score -2.09Sector median: 0.8710 · MAD: 0.3700

Current ratio1.82×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.02Sector median: 1.8295 · MAD: 0.6848

Debt / equity2.18×

Yahoo Finance fallback · no standard SEC debt tagOutlier capped at sector 5th/95th percentile33% base weight · Z-score -7.82Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Cloudflare

Is Cloudflare getting weaker?: Its latest SEC filing (Aug 6, 2026) got weaker in some ways: operating margin fell 4.8 points to -14.1%. Its overall score is unchanged at 28/100 since Oct 28, 2026.
How is Cloudflare valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 15/100 against 1,711 technology peers. Earnings yield -0.2% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -0.2% vs peers 2.2% (weaker than 100% of peers).
Is Cloudflare growing?: Yes, faster than most of its peers. Growth scores 82/100 against 1,711 technology peers. 3-year revenue growth 30.6% vs a peer median of 4.8% (stronger than 94% of peers).3-year revenue growth 30.6% vs peers 4.8% (stronger than 94% of peers).
How profitable is Cloudflare?: Less profitable than most of its peers. Profitability scores 11/100 against 1,711 technology peers. Return on invested capital -18.1% vs a peer median of 6.8% (weaker than 92% of peers).Return on invested capital -18.1% vs peers 6.8% (weaker than 92% of peers).
How risky is Cloudflare?: Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 2.18× vs a peer median of 0.25× (weaker than 100% of peers).Debt / equity 2.18× vs peers 0.25× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 6, 2026 · compared with the quarter ended Mar 31, 2026

Got weaker

Operating margin fell 4.8 points to -14.1%

Worth watching: Cloudflare is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	2.3B USD	2.5B USD	+7.9%
Net income (12 months)	−86.7M USD	−206.3M USD	+137.8%
Operating margin	-9.3%	-14.1%	−4.8 pts
Free cash flow (12 months)	320.7M USD	348.4M USD	+8.6%
Cash	932.2M USD	1.7B USD	+78.5%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Infrastructure · 71 companies

Valuations in Software - Infrastructure are above their usual range since 2016.

61% of months since 2016 were valued lower than now.
22% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values +19% and earnings +22% (medians): prices and earnings moved broadly together.
Median price-to-sales is +97% vs the whole market, against a usual +103%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	77.6%	76.1%	76.3%	77.3%	74.5%	▼ 2.8 pts
Operating margin	-19.5%	-20.6%	-14.3%	-9.3%	-9.6%	▼ 0.3 pts
Net margin	-39.7%	-19.8%	-14.2%	-4.7%	-4.7%	▲ 0.0 pts
Return on assets (ROA)	-11.0%	-7.5%	-6.7%	-2.4%	-1.7%	▲ 0.7 pts
Return on equity (ROE)	-32.1%	-31.0%	-24.1%	-7.5%	-7.0%	▲ 0.5 pts
Free cash flow margin	-4.3%	-2.1%	10.8%	11.7%	13.3%	▲ 1.6 pts
Current ratio	6.78×	4.74×	3.50×	2.86×	1.98×	▼ 31%
Interest coverage	-2.59×	-40.37×	-31.59×	-29.78×	-23.64×	▲ 21%

NET price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 1.65 vs a peer median of 0.87) and more debt relative to equity (2.18× vs a peer median of 0.25×)higher risk: bigger price swings (beta 1.65 vs peers 0.87) and more debt vs equity (2.18× vs peers 0.25×)

Ranks #1,402 of 1,612 technology companies (bottom 14%)

See how it ranks against its peers

Worth knowing

Stock pay outran buybacks. Stock-based pay expense $1.1B vs $0M spent repurchasing shares over the 3 fiscal years to 2025.

Over three fiscal years Cloudflare recorded $1.1B of stock-based pay expense and spent $0M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Cloudflare recorded $1.1B of stock-based pay expense and spent $0M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Much more borrowing than peers. Debt is 2.2× equity vs a peer median of 0.2×.Debt is 2.2× equity vs peers 0.2×.

Debt is 2.2× shareholders' equity, against a peer median of 0.2×, among the highest 10% of its peer group.Debt is 2.2× shareholders' equity, vs peers 0.2×, among the highest 10% of its peer group.

Stock-based pay is a large cost. Stock pay was 21% of revenue in 2025.

Cloudflare paid employees $451M in stock in 2025, 21% of its $2.2B revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Growing fast, still losing money. Revenue grew faster than 89% of peers, at an operating loss.

Revenue grew faster than 89% of peers, but the business runs at an operating loss (margin -14%).

Questions investors ask about Cloudflare

Is Cloudflare getting weaker?

Its latest SEC filing (Aug 6, 2026) got weaker in some ways: operating margin fell 4.8 points to -14.1%. Its overall score is unchanged at 28/100 since Oct 28, 2026.

How is Cloudflare valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 15/100 against 1,711 technology peers. Earnings yield -0.2% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -0.2% vs peers 2.2% (weaker than 100% of peers).

Is Cloudflare growing?

Yes, faster than most of its peers. Growth scores 82/100 against 1,711 technology peers. 3-year revenue growth 30.6% vs a peer median of 4.8% (stronger than 94% of peers).3-year revenue growth 30.6% vs peers 4.8% (stronger than 94% of peers).

How profitable is Cloudflare?

Less profitable than most of its peers. Profitability scores 11/100 against 1,711 technology peers. Return on invested capital -18.1% vs a peer median of 6.8% (weaker than 92% of peers).Return on invested capital -18.1% vs peers 6.8% (weaker than 92% of peers).

How risky is Cloudflare?

Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 2.18× vs a peer median of 0.25× (weaker than 100% of peers).Debt / equity 2.18× vs peers 0.25× (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

2.3B USD

2.5B USD

+7.9%

Net income (12 months)

−86.7M USD

−206.3M USD

+137.8%

Operating margin

-9.3%

-14.1%

−4.8 pts

Free cash flow (12 months)

320.7M USD

348.4M USD

+8.6%

Cash

932.2M USD

1.7B USD

+78.5%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

77.6%

76.1%

76.3%

77.3%

74.5%

▼ 2.8 pts

Operating margin

-19.5%

-20.6%

-14.3%

-9.3%

-9.6%

▼ 0.3 pts

Net margin

-39.7%

-19.8%

-14.2%

-4.7%

▲ 0.0 pts

Return on assets (ROA)

-11.0%

-7.5%

-6.7%

-2.4%

-1.7%

▲ 0.7 pts

Return on equity (ROE)

-32.1%

-31.0%

-24.1%

-7.5%

-7.0%

▲ 0.5 pts

Free cash flow margin

-4.3%

-2.1%

10.8%

11.7%

13.3%

▲ 1.6 pts

Current ratio

6.78×

4.74×

3.50×

2.86×

1.98×

▼ 31%

Interest coverage

-2.59×

-40.37×

-31.59×

-29.78×

-23.64×

▲ 21%