Cloudflare, Inc.

Cloudflare, Inc.

NETยทNYSE

$265.49

-2.0%
TechnologySoftware - Infrastructure

CloudFlare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company offers an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices. Its security products comprise cloud firewall, bot management, distributed denial of service, IoT, SSL/TLS, secure origin connection, and rate limiting products. The company also offers performance solutions, which include content delivery and intelligent routing, as well as content, mobile, and image optimization solutions. In addition, it provides reliability solutions comprising load balancing, anycast network, virtual backbone, DNS, DNS resolver, online, and virtual waiting room solutions. Further, the company offers Cloudflare internal infrastructure solutions, including on-ramps, which connect users, devices, or locations to its network; and filters, which are the products that protect, inspect, and privilege data. Additionally, it provides developer-based solutions, such as serverless computing/programmable network, website development, domain registration, Cloudflare apps, analytics, and data localization management; Consumer DNS Resolver, a consumer app to browse the Internet; and Consumer VPN for consumers to secure and accelerate traffic on mobile devices. The company serves customers in the technology, healthcare, financial services, consumer and retail, and non-profit industries, as well as government. CloudFlare, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

At a Glance

Live Snapshot
Market Cap$93.84B
EPS-0.2900
P/E Ratio-915.48
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -915.5).

Valuation inputs: P/E -915.5, earnings yield N/A, momentum -2.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -7.0%, ROIC -4.0%).

Profitability stack: net margin -4.7%, ROE -7.0%, ROIC -4.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +75.8%, momentum -2.0%, net margin -4.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Cloudflare, Inc. Market vs Earnings Trajectory

NET ยท NYSE

Loading price and EPS data...

Cloudflare, Inc.

Cloudflare, Inc. Fair Value Envelope

NET ยท NYSE

Our analysis suggests that NET has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $265.49, this represents a potential HIDDEN relative to our calculated worth for Cloudflare, Inc..

Intrinsic Value
Current Price: $265.49
3Y-51.0%
5Y-28.0%
10Y+297.0%
3Y+122.0%
5Y+403.0%
10Y+2457.0%
3Y-47.0%
5Y-14.0%
10Y+490.0%
3Y+440.0%
5Y-3993.0%
10Y-5107.0%
3Y-916.0%
5Y-452.0%
10Y-1117.0%
3Y+133.0%
5Y+337.0%
10Y+3600.0%
Cloudflare, Inc.

Cloudflare, Inc. Profit Bridge

NET ยท NYSE
Revenue2.17B
Cost of Goods Sold (554.35M)
Gross Profit1.61B
Operating Expenses (1.82B)
Operating Income-203.30M
Interest Expense (8.77M)
Other Income/Expense110.59M
Pretax Income-92.71M
Income Tax (9.56M)
Net Income-102.27M
Net Income
-102.27M

Profitability Analysis

Gross Margin

74.4%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

-9.4%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-4.7%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

74.43%
Gross Profit Margin
-4%
3Y-2.0%
5Y-3.0%
10Y+4.0%
-9.38%
Operating Profit Margin
1%
3Y-63.0%
5Y-63.0%
10Y-53.0%
-4.72%
Net Profit Margin
3Y-76.0%
5Y-83.0%
10Y-77.0%
-7.01%
Return on Equity
-7%
3Y-77.0%
5Y-52.0%
10Y-
-1.69%
Return on Assets
-29%
3Y-77.0%
5Y-80.0%
10Y-
-4.03%
Return on Invested Capital
-34%
3Y-55.0%
5Y-48.0%
10Y-
NET

Cloudflare, Inc. Cash Conversion Engine

NET ยท NYSE
Net Income-102.27M
Depreciation & Amortization291.37M
Stock-Based Compensation451.45M
Change in Working Capital-33.56M
Others58.55M
Capital Expenditures-342.55M
Free Cash Flow324.32M

Cash Flow Quality Analysis

FCF Conversion Rate

-317.1%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

51.4%

Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.

FCF Growth Trend

+66.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$33.56M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

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Cloudflare, Inc. Funding & Solvency Profile

NET ยท NYSE
Cash & Cash Equivalents932.23M
Net Receivables379.59M
Inventory0.00
Other Current Assets172.19M
Total Current Assets5 B
Property, Plant & Equipment875.25M
Goodwill & Intangible Assets271.80M
Long-Term Investments0.00
Other Non-Current Assets301.27M
Total Non-Current Assets1 B
Total Assets
6.16B

Financial Health Analysis

Current Ratio

1.96x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

3.04x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

2 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

77% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Cloudflare, Inc. Street Expectations Map

NET ยท NYSE

Wall Street analysts project that NET stock may decline over the coming 12 months. The consensus 1-year price target stands at 222.87, with estimates ranging from a low of 140.00 to a high of 260.00.

Lowest Target
140.00
-47.27%
Consensus Target
222.87
-16.05%
Highest Target
260.00
-2.07%

The consensus 1-year price target stands at 222.87, with estimates ranging from a low of 140.00 to a high of 260.00.

Analyst Consensus Analysis

Upside Potential

-16.1%

Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.

Analyst Agreement

53.8% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Risk-Reward Profile

0.04x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Cloudflare, Inc. Insider Positioning

NET ยท NYSE

During the last 12 months, insiders have sold $58.62M worth of NET shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

82.6K

17.26M

Net Activity

-17.3M

-$17.26M

3-6 Months

Bought

0

0.00

Sold

59.5K

11.19M

Net Activity

-11.2M

-$11.19M

6-9 Months

Bought

0

0.00

Sold

34.2K

7.40M

Net Activity

-7.4M

-$7.40M

9-12 Months

Bought

0

0.00

Sold

120.8K

22.77M

Net Activity

-22.8M

-$22.77M

Top Buyers

No buying activity

Top Sellers

1
ZM

Zatlyn Michelle

Director, Officer: President And Board Co-Chair

80.8K sharesโ€ข23 transactions

$15.44M

2
PM

Prince Matthew

Director, 10 Percent Owner, Officer: Ceo & Board Co-Chair

76.4K sharesโ€ข26 transactions

$14.98M

3
LC

Ledbetter Carl

Director

65.9K sharesโ€ข15 transactions

$13.87M

4
STJ

Seifert Thomas J

Officer: Chief Financial Officer

27.9K sharesโ€ข13 transactions

$5.37M

5
RJ

Riley Janel

Officer: Chief Accounting Officer

27.6K sharesโ€ข3 transactions

$5.20M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $58.62M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$17.26M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

NET has not reported any dividend yield values in the available annual periods.

ย 

net Dividend History

NET
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%