Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Cloudflare, Inc.

NET · NYSE · Technology

Fundamental quality

REASONABLE

62

out of 100

Cloudflare, Inc. is in full growth mode but not yet profitable: revenue is growing strongly (37.9% a year), but it doesn't translate into earnings yet. On fundamental quality it scores 62 out of 100, profiling it as a company of reasonable quality. Its weakest area is its profitability (net margin -3.7%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Cloudflare runs a global network that sits between users and the internet: it speeds up websites, stops cyberattacks and increasingly runs code at the network edge. A huge fraction of the world's web traffic passes through its servers.

What will shape its future

  • Its network as a platform: every new product (security, compute, AI) rides on the same deployed infrastructure.
  • Converting free users into large corporate contracts, the key to its monetization.
  • A market that demands years of high growth to justify a typically demanding valuation.

Breakdown by area

I.Growth
95

Revenue growth: 37.9%

II.Profitability
42

Net margin: -3.7% · ROE: -5.7%

III.Financial health
48

Net debt/EBITDA: 87.92x · FCF: 13.8%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 8%
ROEbeats 10%
Growthbeats 88%
Cash generationbeats 27%
Less debtbeats 0%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Cloudflare, Inc. strengths

  • Revenue growing strongly (37.9% annualized).
  • High gross margin (73.3%), pointing to pricing power.
  • Strong free-cash-flow generation (FCF margin of 13.8%): profit turns into real cash.
  • Revenue rising without interruption since 2020.

Cloudflare, Inc. risks and weaknesses

  • Very high leverage (net debt of 87.92× EBITDA): more exposed to rates and to a rough patch.
  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -3.7%).
  • Erratic free cash flow, with several years in the red.

Cloudflare, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020431-119-74-109
2021656-260-28-314
2022975-193-20-204
20231,297-184140-87
20241,670-79195-148
20252,168-102287-944

Between 2020 and 2025, revenue went from $431M to $2,168M (+403%) and net income went from -$119M to -$102M (+14%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+33.5%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Cloudflare, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Cloudflare, Inc. a good company to invest in?

In terms of business quality, Cloudflare, Inc. scores 62 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Cloudflare, Inc. a profitable company?

Over the last twelve months, no: Cloudflare, Inc. posts a negative net margin (-3.7%).

Does Cloudflare, Inc. have a lot of debt?

Yes, its leverage is high: net debt is 87.92 times its EBITDA.

Is Cloudflare, Inc. growing?

Its revenue has grown 37.9% annualized in recent years, and without interruption since 2020.

Does Cloudflare, Inc. generate cash?

Yes. It converts about 13.8% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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