olivLaw · US equity research
Cloudflare, Inc. NET
Services-Prepackaged Software · SIC 7372 · Vertical: Services-Prepackaged Software (SIC 7372)
Cloudflare, Inc. is a cloud company that provides security, performance and connectivity services to developers and enterprises on a programmable global network. The company reported 36% revenue growth in the second quarter of 2026, as customers move more applications and networks to the cloud and AI changes how traffic moves across the internet.
At the close of 04 Nov 2026, Cloudflare, Inc. (NET) stock was 266.58 USD (−2.57% on the day), with beta 1.69, 52-week range 160.19–360.93 USD. Latest reported quarter (Q2 2026): revenue of 696.1 m USD (+35.9% YoY), net income of -170.0 m USD, diluted EPS -0.48 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 34.1
- weak (30–45)
- Bollinger (20, 2)
- 257.55 – 366.34
- in the lower half of the band · %B 0.08 · band width 34.9%
- SMA 50 / 200
- 319.81 / 249.39
- mixed trend
- MACD (12, 26, 9)
- -13.80 / -7.63
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −25.8% | −1.1% | −24.7 pp | — |
| 3 months | −9.0% | −0.5% | −8.6 pp | — |
| 6 months | +7.2% | +4.4% | +2.8 pp | — |
| Year to date | +35.2% | +12.3% | +22.9 pp | — |
| 1 year | +14.5% | +13.5% | +0.9 pp | −0.7% |
| 3 years | +313.8% | +76.4% | +237.4 pp | +23.7% |
| 5 years | +35.1% | +63.7% | −28.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 430.1 m | 459.9 m | 479.1 m | 512.3 m | 562.0 m | 614.5 m | 639.8 m | 696.1 m |
| Cost of revenue | 96.0 m | 108.7 m | 115.6 m | 128.7 m | 146.3 m | 162.0 m | 184.2 m | 196.5 m |
| Gross profit | 334.1 m | 351.3 m | 363.5 m | 383.6 m | 415.7 m | 452.6 m | 455.6 m | 499.5 m |
| Research & development | 110.9 m | 120.2 m | 115.1 m | 134.6 m | 121.0 m | 141.9 m | 151.0 m | 159.5 m |
| Operating income | -30.8 m | -34.7 m | -53.2 m | -67.3 m | -37.5 m | -49.2 m | -62.0 m | -205.7 m |
| Depreciation & amortisation | 31.7 m ≈ | 36.2 m | 42.2 m | 45.5 m ≈ | 49.5 m ≈ | 52.6 m | 57.8 m | 65.4 m ≈ |
| Interest expense | 1.4 m | 1.4 m | 1.4 m | 1.5 m | 2.9 m | 2.9 m | 2.6 m | 3.1 m |
| Pre-tax income | -12.8 m | -10.8 m | -36.8 m | -47.3 m | 1.9 m | -10.5 m | -21.4 m | -167.9 m |
| Income tax | 2.5 m | 2.0 m | 1.7 m | 3.2 m | 3.1 m | 1.6 m | 1.5 m | 2.0 m |
| Net income | -15.3 m | -12.8 m | -38.5 m | -50.4 m | -1.3 m | -12.1 m | -22.9 m | -170.0 m |
| Diluted EPS | -0.04 | -0.04 ≈ | -0.11 | -0.15 | 0.00 | -0.03 ≈ | -0.07 | -0.48 |
| Operating cash flow | 104.7 m ≈ | 127.3 m | 145.8 m | 99.8 m ≈ | 167.1 m ≈ | 190.4 m | 158.3 m | 117.6 m ≈ |
| Capex | 50.2 m ≈ | 73.2 m | 85.9 m | 59.9 m ≈ | 84.6 m ≈ | 85.2 m | 65.2 m | 50.0 m ≈ |
| Share repurchases | 0 ≈ | 0 | — | — | — | — | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 192.7 m | 287.0 m | 431.1 m | 656.4 m | 975.2 m | 1.3 bn | 1.7 bn | 2.2 bn |
| Revenue YoY | +42.8% | +49.0% | +50.2% | +52.3% | +48.6% | +33.0% | +28.8% | +29.8% |
| Net income | -87.2 m | -105.8 m | -119.4 m | -260.3 m | -193.4 m | -183.9 m | -78.8 m | -102.3 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | -0.72 | -0.40 | -0.83 | -0.59 | -0.55 | -0.23 | -0.29 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -45.2% | -36.9% | -27.7% | -39.7% | -19.8% | -14.2% | -4.7% | -4.7% |
| Free cash flow | -68.7 m | -82.2 m | -73.5 m | -28.3 m | -20.0 m | 140.0 m | 195.4 m | 287.5 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 943.5 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 1.5 bn USD
- Total assets
- 6.0 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.98x
- ROE
- -8.2%
- ROA
- -2.2%
- FCF margin
- 13.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 431.1 m | 656.4 m | 975.2 m | 1.3 bn | 1.7 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 101.1 m | 147.1 m | 232.6 m | 307.0 m | 378.7 m | 552.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 330.0 m | 509.3 m | 742.6 m | 989.7 m | 1.3 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Research & development | 127.1 m | 189.4 m | 298.3 m | 358.1 m | 421.4 m | 512.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | -106.8 m | -127.7 m | -201.2 m | -185.5 m | -154.8 m | -207.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 49.4 m | 66.6 m | 102.3 m | 135.8 m | 127.7 m | 189.7 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | -57.4 m ≈ | -61.1 m ≈ | -98.9 m ≈ | -49.7 m ≈ | -27.0 m ≈ | -17.5 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 25.0 m | 49.2 m | 5.0 m | 5.9 m | 5.2 m | 8.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -125.0 m | -248.0 m | -190.7 m | -177.9 m | -70.9 m | -92.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | -5.6 m | 12.3 m | 2.6 m | 6.1 m | 7.9 m | 9.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -119.4 m | -260.3 m | -193.4 m | -183.9 m | -78.8 m | -102.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -0.40 | -0.83 | -0.59 | -0.55 | -0.23 | -0.29 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 299.8 m | 312.3 m | 326.3 m | 333.7 m | 341.4 m | 348.4 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 108.9 m | 313.8 m | 204.2 m | 86.9 m | 147.7 m | 943.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 63.5 m | 95.5 m | 148.5 m | 248.3 m | 316.8 m | 382.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 1.1 bn | 2.0 bn | 1.9 bn | 2.0 bn | 2.3 bn | 4.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 123.7 m | 183.7 m | 286.6 m | 322.8 m | 467.4 m | 618.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 17.2 m | 23.5 m | 148.0 m | 148.0 m | 181.1 m | 226.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 2.8 m | 1.3 m | 32.5 m | 19.6 m | 21.9 m | 41.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 1.4 bn | 2.4 bn | 2.6 bn | 2.8 bn | 3.3 bn | 6.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 14.5 m | 26.1 m | 35.6 m | 53.7 m | 105.8 m | 84.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 141.4 m | 288.6 m | 397.9 m | 567.1 m | 793.7 m | 2.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 563.7 m | 1.6 bn | 2.0 bn | 2.0 bn | 2.3 bn | 4.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 816.9 m † | 811.4 m † | 624.0 m † | 763.0 m † | 1.0 bn † | 1.5 bn † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -17.1 m | 64.6 m | 123.6 m | 254.4 m | 380.4 m | 603.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 56.4 m | 93.0 m | 143.6 m | 114.4 m | 185.0 m | 315.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | -73.5 m ≈ | -28.3 m ≈ | -20.0 m ≈ | 140.0 m ≈ | 195.4 m ≈ | 287.5 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -515.3 m | -709.3 m | -235.7 m | -186.2 m | -330.2 m | -1.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 504.9 m | 847.5 m | 6.3 m | -192.2 m | 12.8 m | 2.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 157.0 k | 189.0 k | 3.0 k | 34.0 k | 0 | 0 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 59.6% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
60% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 59.6% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 72.6% | 81 (on a fixed band) | 18% |
| EBIT margin · Quality | -14.1% | 22 (vs peers) | 14% |
| FCF margin · Quality | 13.9% | 55 (on a fixed band) | 14% |
| Revenue CAGR 3Y · Growth | 30.5% | 100 (on a fixed band) | 29% |
| Revenue growth (YoY) · Growth | 29.8% | 87 (vs peers) | 14% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.8x | 60 (on a fixed band) | 11% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial60/100 · 1/2 factors with a value
- Growth96/100 · 2/2 factors with a value
- Quality55/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation· partialunavailable · 0/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Cloudflare, Inc. (NET). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.2 bn USD in 2025; YoY growth 29.8%; net margin -8.2%; ROE -14.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (score weight coverage: 59.6% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 72.6%
- Revenue CAGR 3Y: 30.5%
- Revenue growth (YoY): 29.8%
What contradicts it
- EBIT margin: -14.1%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Services-Prepackaged Software (SIC 7372) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MSFTMicrosoft Corporation | 4,127.5 bn | 29.0 | 34.2% | 41.2% | +17.8% | +13% / +47% |
| PLTRPalantir Technologies Inc. | 413.7 bn | 120.4 | 41.2% | 50.3% | +56.2% | +2% / +756% |
| ORCLOracle Corporation | 374.1 bn | 19.3 | 41.6% | 26.4% | +17.3% | −39% / +6% |
| CRWDCrowdStrike Holdings, Inc. | 246.8 bn | 1,120.4 | 1.3% | 1.1% | +21.7% | +89% / +307% |
| CRMSalesforce, Inc. | 186.9 bn | 20.7 | 19.4% | 22.0% | +9.6% | −1% / −10% |
| NOWServicenow, Inc. | 112.9 bn | 78.1 | 11.8% | 9.4% | +20.9% | −33% / −21% |
| SNOWSnowflake Inc. | 102.5 bn | — | -48.2% | -20.1% | +29.2% | +16% / +55% |
| ADBEAdobe Inc. | 96.7 bn | 13.9 | 61.9% | 28.0% | +10.5% | −22% / −59% |
| INTUIntuit Inc. | 95.3 bn | 21.7 | 23.6% | 21.3% | +13.9% | −44% / −38% |
| CDNSCadence Design Systems, Inc. | 90.4 bn | 65.5 | 22.9% | 22.5% | +14.1% | +6% / +21% |
| SNPSSynopsys Inc | 88.7 bn | 81.8 | 3.7% | 11.4% | +15.1% | +11% / −15% |
| ADSKAutodesk, Inc. | 56.4 bn | 35.0 | 53.9% | 21.1% | +17.5% | −11% / +24% |
| VEEVVeeva Systems Inc. | 50.3 bn | 50.8 | 14.4% | 29.3% | +16.3% | +29% / +78% |
| TTWOTake-Two Interactive Software, Inc. | 39.1 bn | — | -9.0% | -4.8% | +18.2% | −15% / +32% |
| RBLXRoblox Corporation | 35.3 bn | — | -478.2% | -16.5% | +35.8% | −48% / +25% |
| TWLOTwilio Inc. | 33.0 bn | 26.8 | 14.9% | 21.8% | +13.7% | +65% / +230% |
| MDBMongodb, Inc. | 26.5 bn | 449.1 | 2.0% | 2.1% | +22.8% | −1% / −21% |
| PTCPTC Inc. | 21.2 bn | 19.0 | 35.1% | 41.4% | +19.2% | +11% / +24% |
| UUnity Software Inc. | 18.7 bn | — | -18.9% | -29.0% | +2.0% | −0% / +44% |
| SSNCSs&C Technologies Holdings, Inc. | 18.7 bn | 22.9 | 12.7% | 13.2% | +6.6% | −7% / +41% |
| NTNXNutanix, Inc. | 17.2 bn | 12.3 | 37,460.2% | 52.8% | +12.4% | +33% / +48% |
| TYLTyler Technologies, Inc. | 16.8 bn | 53.3 | 10.5% | 13.5% | +9.1% | −10% / +4% |
| DOCUDocusign, Inc. | 15.0 bn | 49.1 | 17.8% | 9.8% | +8.2% | +16% / +87% |
| GWREGuidewire Software, Inc. | 14.0 bn | 104.7 | 10.5% | 9.4% | +22.7% | −21% / +71% |
| DTDynatrace, Inc. | 13.4 bn | 87.0 | 6.4% | 7.4% | +18.8% | +5% / −13% |
1- and 3-year price returns: for NET from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Cloudflare, Inc. is a cloud company that provides security, performance and connectivity services to developers and enterprises on a programmable global network. The company reported 36% revenue growth in the second quarter of 2026 3, as customers move more applications and networks to the cloud and AI changes how traffic moves across the internet.
SWOT
Strengths
- The global serverless network, which runs every service in every city, offers scale and efficiency that are hard to replicate 1.
- The free tier creates scale, threat data and relationships with internet service providers, which lowers costs and improves products 1.
- The integrated portfolio, from security to developer services, lets customers expand usage after an initial adoption 1.
Weaknesses
- The company has been loss-making in every period since it began operating, and it is not certain when or whether it will become profitable 1.
- The GAAP gross margin fell in the second quarter of 2026 compared with the prior year, which shows the pressure of infrastructure costs 3.
- Dependence on equipment bought from outside the United States exposes the company to extra costs from tariffs 1.
Opportunities
- AI agents and machine-to-machine traffic could create new demand for controls, infrastructure and developer tools 3.
- The developer storage and compute market is described by management as new, which could open additional revenue 1.
- Expanding large customers and pool-of-funds contracts could increase recurring revenue over the long term 1.
Threats
Risks
- Persistent net losseshigh
The company has reported net losses in every year of operation and cannot guarantee it will reach profitability, especially if costs grow faster than revenue 1.
- Slowing growthmedium
Revenue growth has been rapid in the past but has slowed periodically, and this could happen again 1.
- Economic conditions and tariffshigh
Recession, tariffs and conflicts can reduce customer budgets and lengthen sales cycles 1.
- Price competitionmedium
Competitors could cut prices to win customers, which could pressure margins 1.
- AI infrastructure costsmedium
Investment in GPUs and network capacity is capital intensive and could exceed demand if AI adoption slows 13.
Investment thesis
What would need to be true (bull case)
- Revenue growth accelerated in the second quarter of 2026, and the annual guidance points to continued expansion 3.
- The global serverless network offers a cost advantage that is hard to copy, which could support rising margins over the long term 1.
- The AI platform and demand for agent infrastructure could open a new revenue category if adoption continues 3.
What would break the thesis
- The company remains loss-making on a GAAP basis, and its gross margin declined in the second quarter of 2026 compared with a year earlier 3.
- Growth has been rapid but has slowed in the past, and another slowdown could reduce investor confidence 1.
- Tariffs, geopolitical tensions and price competition could affect demand and margins at the same time 1.
What to watch
- Third-quarter results against revenue guidance and non-GAAP operating income guidanceQ3 2026
- Development of the GAAP gross margin from the 71,8% level reported in the second quarterQ3 2026
- Effect of the reorganisation plan and workforce reduction on operating expensesnext 10-K
- How Current RPO and large-customer growth develop relative to the 35% growth reportednext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Cloudflare aims to help build a better Internet and presents itself as a leader in the 'Connectivity Cloud' category, a single cloud platform that replaces on-premises hardware and point solutions. Revenue for fiscal 2025 was 2167,9 million USD 1, and its network spans more than 330 cities in over 125 countries 1. The business model combines Enterprise subscriptions with one to three year contracts, pay-as-you-go plans and a free tier that adds scale to the network and reduces bandwidth and interconnection costs 1.
The company has posted net losses in every period since it began operating. The net loss was 102,3 million USD in 2025 1, and the income statement includes development and network expansion costs that management considers necessary for growth. Paying customers are supported by a broad portfolio, from application security and Zero Trust to developer services such as Workers, R2 and Workers AI 1.
The core advantage is that the network runs every service on every server in every city, allowing capacity to grow quickly and at low cost 1. Management sees agent-based models and payment rails for machine-to-machine content as a strategic direction, and early 2026 results suggest accelerating demand 3.
Segments
Application services
This segment covers protection against web attacks, DDoS, bots and API threats, plus content performance and load balancing 1. It is the company's historical core and the category where customers can start with one product and then expand usage.
SASE and Zero Trust
The SASE platform brings together Magic WAN, Magic Transit, cloud firewall and Zero Trust products such as network access and a secure web gateway 1. It replaces traditional WAN networks and branch security appliances, and it is a category with growing demand as hybrid work spreads.
Market context
The market in which Cloudflare operates includes network security, application performance and cloud connectivity, which customers increasingly consolidate onto one platform 1. It is shaped by the shift from on-premises equipment to cloud services, a transition the company describes as well underway. The company has significant international exposure, with 51% of revenue from outside its home base in 2025 1 and 49% in the second quarter of 2026 2.
Revenue guidance for 2026 points to a range of 2864,0 to 2870,0 million USD 3, and demand depends on customers' spending on network security and performance. The sources provided do not report the size of the total market, so the outlook is described qualitatively rather than quantitatively.
Trends
- Migration to the cloudtailwind
Organisations are moving from on-premises hardware to cloud services, which increases demand for a single connectivity platform 1. If this transition continues, demand for the company's products could remain high.
- AI agents and machine-to-machine traffictailwind
As AI answer engines and agent-driven commerce grow, automated traffic on the internet is changing, and management argues this opens demand for controls and infrastructure 3. The effect could be significant if adoption grows, but it remains uncertain.
- Macroeconomic uncertainty and tariffsheadwind
Tariffs and geopolitical tensions can delay customer spending, lengthen sales cycles and raise the cost of network equipment 1. This factor could affect growth and margins if the economy weakens.
- AI infrastructure costs and reorganisationmixed
Investment in GPUs and AI operations raises expenses, and the company announces a plan to reorganise toward an AI-first operating model, with an estimated reduction of its workforce 3. The net effect on profitability is mixed and depends on execution.
Competitive position
The sources provided do not name competitors, so the analysis is based on the product categories described in the annual report. The company competes with providers of on-premises network and security equipment, with cloud security and network platforms, and with platforms that try to win customers through lower prices 1.
The company's stated advantage is its global network and serverless model, which reduce interconnection costs and allow fast launches of new products 1. If competitors manage to copy this architecture or offer cheaper solutions, that advantage could be reduced.
- On-premises network and security appliance vendors
Vendors of the hardware boxes the report describes as the older solutions that customers now consolidate into the cloud 1.
- Cloud network and security platforms
Providers of Zero Trust and SASE services that compete for the same network security budgets 1.
- Developer cloud and AI compute platforms
Serverless computing and AI inference platforms that compete with the company's developer solutions 1.
- Content delivery services providers
Networks offering content acceleration and load balancing, a segment the company covers through its performance products 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- See the agents, set the terms: new visibility and control for personal agentsCloudflare Blog · 04 Nov 2026 · EN
- Introducing Zero Wire, a hub for investigating critical Internet vulnerabilitiesCloudflare Blog · 03 Nov 2026 · EN
- Cloudflare experiencing multiple active incidentsHacker News · 03 Nov 2026 · EN
- How we halved DNS build delay and cut memory use by 85%Cloudflare Blog · 02 Nov 2026 · EN
- Here's How You Can Use VPNs for FREE on LinuxIt's FOSS · 01 Nov 2026 · EN
- Cloudflare’s Post-Quantum GeoKey Manager Enters Closed Beta Without Attribute-Based EncryptionInfoQ · 31 Oct 2026 · EN
- Cloudflare Reports 18.2 Million Network-Layer DDoS Attacks in Q3, Up 38%The Hacker News · 31 Oct 2026 · EN
- HTTP/3 is faster with some work and help from CloudflareThe Register · 30 Oct 2026 · EN
- 4 real? Tracking exploitation and patching of eMudhra’s weak keysCloudflare Blog · 30 Oct 2026 · EN
- AI Security Agents Compared: Claude, Codex, Mantis, CloudflareMarkTechPost (Asia AI) · 30 Oct 2026 · EN
- The Pulse: Time to rethink software security because of AI?The Pragmatic Engineer · 30 Oct 2026 · EN
- In Other News: Anthropic Breach Dispute, UEFI Flaw Hits Most Servers, Cloudflare AI Data LeakSecurityWeek · 30 Oct 2026 · EN
- Cloudflare services for private origins is now generally availableCloudflare Blog · 30 Oct 2026 · EN
- [AINews] Building AIE CODE: The top Coding Agent ConferenceLatent Space Newsletter · 30 Oct 2026 · EN
- Baseten Releases joey-1, a 2B Decision Model at $0.01 per 1M TokensMarkTechPost (Asia AI) · 29 Oct 2026 · EN
- Cloudflare DDoS Threat Report 2026 Q3: More swarms, fewer giantsCloudflare Blog · 29 Oct 2026 · EN
- Cloudflare Introduces Web Search API for AI ApplicationsInfoQ · 29 Oct 2026 · EN
- A Russian disinformation campaign cloned Euromaidan Press to blame Ukraine for Russia’s own strike on Kramatorsk (we took the fake down)Euromaidan Press (UA, EN) · 29 Oct 2026 · EN
- Cloudflare Turnstile solver library (no headless browser required)Hacker News · 28 Oct 2026 · EN
- Double Buffering with Cloudflare QueuesHacker News · 28 Oct 2026 · EN
SEC filings
- Current report13 Aug 2026Material agreement · Creation of a direct financial obligation · Item 3.02 · Other events · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report (amendment)01 Jul 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Current report30 Jun 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Proxy statement09 Jun 2026
- Quarterly report08 May 2026
- Current report (amendment)07 May 2026Results of operations · Exit or disposal costs · Regulation FD disclosure · Financial statements and exhibits
- Current report07 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Annual report26 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Cloudflare, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Cloudflare, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Cloudflare, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.