Cloudflare, Inc.
- Open
- 263.06
- Day high
- 281.99
- Day low
- 261.73
- Prev close
- 272.51
- Volume
- 2.5M
- Mkt cap
- $98.1B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 64.3
- P/S
- 42.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$154.2M over the last 3 months (0 open-market buys, 185 sales)
- 🏛Institutions accumulating (13F)
Cloudflare, Inc. (NET) is a Technology company listed on NYSE. The stock is up 41% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 185 sales (SEC Form 4).
Cloudflare, Inc. (NET) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 15 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
NET earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.23 | $0.25 | +8.4% | $640M | +3.0% |
| Oct 30, 2025 | $0.23 | $0.27 | +17.3% | $562M | +3.2% |
| Jul 31, 2025 | $0.18 | $0.21 | +14.5% | $512M | +2.2% |
| May 8, 2025 | $0.16 | $0.16 | -2.3% | $479M | +2.1% |
| Feb 6, 2025 | $0.18 | $0.19 | +5.6% | $460M | +1.7% |
| Nov 7, 2024 | $0.18 | $0.20 | +11.5% | $430M | +1.4% |
| Aug 1, 2024 | $0.14 | $0.20 | +42.0% | $401M | +1.7% |
| May 2, 2024 | $0.13 | $0.16 | +21.4% | $379M | +1.4% |
| Feb 8, 2024 | $0.12 | $0.15 | +23.9% | $362M | +2.7% |
| Nov 2, 2023 | $0.10 | $0.16 | +60.0% | $336M | +1.5% |
| Aug 3, 2023 | $0.07 | $0.10 | +42.9% | $308M | +1.0% |
| Apr 27, 2023 | $0.03 | $0.08 | +133.4% | $290M | -5.5% |
NET insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 8, 2026 | Ledbetter Carldirector | Sell | 5,000 | $268.11 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 686 | $247.44 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 12 | $250.15 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 940 | $246.28 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 562 | $248.44 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Option | 2,520 | $44.72 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 182 | $249.38 |
| Jul 7, 2026 | Graham-Cumming Johndirector | Sell | 138 | $245.60 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 2,510 | $245.49 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 77 | $247.45 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 6,173 | $249.51 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 3,624 | $248.62 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 4,686 | $246.63 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 320 | $249.99 |
| Jul 6, 2026 | Prince Matthewdirector, 10 percent owner, officer: CEO & Board Co-Chair | Sell | 39 | $252.14 |
Source: NET SEC Form 4 filings, latest Jul 8, 2026. For informational purposes only — not investment advice.
See the full NET insider & 13F page →Cloudflare, Inc. company profile
Overview
Cloudflare, Inc. (NYSE:NET) is a cloud services provider founded in 2009 and headquartered in San Francisco, California. The company went public in September 2019 and has grown to become a major player in the internet infrastructure and security space. Cloudflare operates one of the world's largest networks, spanning over 320 cities in more than 120 countries, providing a comprehensive suite of cloud-based services that help organizations secure, accelerate, and optimize their internet presence and applications.
Business
Cloudflare operates in the cloud infrastructure and internet security industry, providing what it calls a "connectivity cloud" platform. The company's core offering revolves around making websites, applications, and internet services faster, more secure, and more reliable by routing traffic through its global network of data centers. The company's business is organized around three main product categories, which it refers to as "acts": **Act 1: Application Services (Core Revenue Driver)** - This includes content delivery network (CDN) services that cache and deliver web content from locations closer to end users, making websites load faster. It also encompasses DNS (Domain Name System) services that translate website names into IP addresses, and DDoS (Distributed Denial of Service) protection that shields websites from malicious traffic attacks. These foundational services represent the majority of Cloudflare's current revenue base. **Act 2: Zero Trust Security Solutions (High Growth Segment)** - This encompasses modern cybersecurity products including cloud firewalls, secure web gateways, and SASE (Secure Access Service Edge) solutions. Zero Trust operates on the principle of "never trust, always verify," meaning every user and device must be authenticated before accessing network resources. This segment has been experiencing rapid growth as enterprises modernize their security infrastructure, particularly with the shift to remote work and cloud adoption. **Act 3: Developer Platform and Edge Computing (Emerging Growth Area)** - Centered around Cloudflare Workers, this allows developers to run code at the edge of Cloudflare's network, closer to end users. This includes serverless computing capabilities, edge databases (D1), object storage (R2), and AI inference services. The platform has attracted over 3 million active developers and represents Cloudflare's expansion into the broader cloud computing market. The company also offers consumer services including a public DNS resolver (1.1.1.1) and a consumer VPN service, though these represent a small portion of overall revenue. Cloudflare serves customers across technology, healthcare, financial services, retail, government, and non-profit sectors, with approximately 35% of Fortune 500 companies as paying customers.
Revenue model
Cloudflare generates revenue primarily through subscription-based software-as-a-service (SaaS) model, where customers pay recurring fees based on their usage levels and feature requirements. The company offers tiered pricing plans ranging from free basic services to enterprise contracts worth millions of dollars annually. **Revenue Streams and Customer Segmentation:** The company serves over 251,000 paying customers, with large customers (those spending over $100,000 annually) representing approximately 69% of total revenue despite being only about 3,500 customers. This demonstrates the company's success in landing and expanding within enterprise accounts. The remaining revenue comes from small and medium-sized businesses paying for various service tiers. **Business Model Mechanics:** Customers typically start with basic services and expand their usage over time, leading to a dollar-based net retention rate of around 110-115%. The company employs a "land and expand" strategy, where initial deployments often grow as customers adopt additional services across their infrastructure. Pool of funds contracts allow enterprise customers to commit to spending levels across Cloudflare's entire platform, providing flexibility while securing longer-term commitments. **Margin Drivers and Economic Factors:** Cloudflare benefits from significant economies of scale due to its network architecture. As traffic volume increases, the marginal cost of serving additional requests decreases, leading to gross margins consistently above 77%. The company's global network infrastructure represents a substantial fixed cost investment, but once deployed, can handle massive traffic increases with minimal incremental expenses. **Factors Affecting Profitability:** Positive margin drivers include increased network utilization, customer migration to higher-value services, and the company's ability to consolidate multiple vendor relationships for customers. The shift toward AI and edge computing services also presents opportunities for premium pricing. Conversely, margin pressure can come from increased competition in the CDN and security markets, the need for continued infrastructure investment to maintain performance advantages, and potential pricing pressure as cloud services commoditize. Macroeconomic conditions can also impact customer spending on IT infrastructure and security services.
Competitive moat
Cloudflare possesses a **moderate to strong competitive moat** built primarily around its global network infrastructure and the network effects inherent in its business model. The company's most significant competitive advantage lies in its massive, globally distributed network spanning over 320 cities worldwide. This infrastructure creates substantial barriers to entry, as replicating such scale would require billions of dollars in capital investment and years of development. **Network Effects and Data Advantages:** The company benefits from network effects where each additional customer and data point makes the service more valuable for all users. As more traffic flows through Cloudflare's network, the company gains better intelligence about internet threats, performance optimization opportunities, and traffic patterns. This data advantage allows Cloudflare to provide superior security and performance services that become increasingly difficult for competitors to match. **Switching Costs and Integration Depth:** Once customers integrate Cloudflare's services into their infrastructure, switching costs become significant due to the technical complexity of migration and the risk of service disruption. The company's strategy of expanding from basic CDN services to comprehensive security and edge computing platforms creates deeper customer relationships and higher switching costs over time. **Competitive Threats and Limitations:** However, Cloudflare faces meaningful competitive pressure from several directions. Hyperscale cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud offer competing services with their own global infrastructure and deeper pockets for price competition. Traditional CDN providers like Akamai have decades of experience and established enterprise relationships. In the security space, specialized vendors like Zscaler and Palo Alto Networks compete aggressively for zero trust and SASE market share. The company's moat is also limited by the commoditization risk inherent in internet infrastructure services. As cloud services become more standardized, differentiation may become harder to maintain, potentially leading to price-based competition. Additionally, Cloudflare's expansion into multiple product categories means it faces different competitive dynamics in each market, potentially diluting its focus and competitive advantages.
Risks & safety
**Overall Assessment:** Cloudflare presents a moderate margin of safety with strong operational cash flow generation but elevated valuation metrics and ongoing losses. **Cash and Solvency Position:** - Strong liquidity with $204.5 million in cash and short-term investments as of Q1 2025 - Healthy current ratio of 3.2x indicating solid short-term financial stability - Positive operating cash flow of $145.8 million in Q1 2025 and $380.4 million for full year 2024 - Free cash flow positive at $52.9 million in Q1 2025, though volatile quarter-to-quarter - Debt-to-equity ratio of 1.04x shows moderate leverage levels **Valuation Concerns:** - Extremely high EV/EBITDA ratio of 1,459x due to minimal EBITDA generation - Price-to-book ratio of 27.3x indicates significant premium to book value - Company trades at high revenue multiples despite achieving profitability **Risk Factors:** - Still generating net losses ($38.5 million in Q1 2025) despite revenue growth - High customer concentration risk with large customers representing 69% of revenue - Significant ongoing capital expenditure requirements for network infrastructure - Competitive pressure from well-funded hyperscale cloud providers
Recent development
Over the past few years, Cloudflare has undergone significant strategic evolution, transforming from primarily a CDN and security provider into a comprehensive connectivity cloud platform. The most notable development has been the company's **go-to-market transformation** initiated in 2023 with the hiring of Mark Anderson to lead sales operations. This involved restructuring the sales organization, improving territory assignments, hiring more experienced enterprise account executives, and shifting compensation models to focus on revenue recognition rather than bookings. **AI and Developer Platform Expansion:** The company has made substantial investments in artificial intelligence infrastructure, deploying GPUs across over 150 cities globally and launching Workers AI for edge inference. AI-related services have shown explosive growth, with Workers AI inference requests up 4,000% year-over-year and AI gateway requests up 1,200% year-over-year in Q1 2025. The company has also developed the Model Context Protocol (MCP) server to enable AI agent interconnectivity, positioning itself as infrastructure for the emerging AI application ecosystem. **Product Portfolio Diversification:** Cloudflare has significantly expanded beyond its core CDN business into comprehensive security solutions, particularly in the Zero Trust and SASE markets. The company has also built out its developer platform with services like R2 object storage, D1 serverless databases, and Vectorize for AI applications. This expansion has enabled the company to move from point solutions to platform-wide "pool of funds" contracts, allowing customers to consume services across the entire Cloudflare ecosystem. **Enterprise Market Focus:** The company has increasingly focused on large enterprise customers, with significant success in landing major contracts including a $100+ million workers-led deal and a 7-year SASE contract. The number of customers spending over $1 million annually has grown substantially, with 173 such customers by the end of 2024. This enterprise focus has been supported by continued investment in sales capacity and more sophisticated go-to-market strategies targeting specific industry verticals and use cases.
NET company profile · for informational purposes only — not investment advice.
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