$NET

Cloudflare, Inc.

CIK:0001477333|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 696,061	$ 512,316	$ 1,335,816	$ 991,403
Cost of revenue	196,544	128,677	380,702	244,253
Gross profit	499,517	383,639	955,114	747,150
Operating expenses:
Sales and marketing	276,122	219,359	547,722	433,370
Research and development	159,486	134,557	310,458	249,646
General and administrative	118,912	96,987	213,931	184,645
Restructuring and other charges	150,693	0	150,693	0
Total operating expenses	705,213	450,903	1,222,804	867,661
Loss from operations	(205,696)	(67,264)	(267,690)	(120,511)
Non-operating income (expense):
Interest income	39,932	25,406	80,098	46,805
Interest expense	(3,089)	(1,524)	(5,652)	(2,967)
Other income (expense), net	913	(3,907)	3,903	(7,375)
Total non-operating income, net	37,756	19,975	78,349	36,463
Loss before income taxes	(167,940)	(47,289)	(189,341)	(84,048)
Provision for income taxes	2,041	3,157	3,567	4,852
Net loss	$ (169,981)	$ (50,446)	$ (192,908)	$ (88,900)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.48)	$ (0.15)	$ (0.55)	$ (0.26)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.48)	$ (0.15)	$ (0.55)	$ (0.26)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	354,334	347,489	353,485	346,605
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	354,334	347,489	353,485	346,605

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net loss	$ (192,908)	$ (88,900)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	123,170	87,688
Non-cash operating lease costs	41,696	29,872
Amortization of deferred contract acquisition costs	63,486	47,296
Stock-based compensation expense	274,113	217,912
Amortization of debt issuance costs	4,865	2,189
Net accretion of discounts and amortization of premiums on available-for-sale securities	(13,233)	(11,987)
Deferred income taxes	(7,013)	(480)
Provision for bad debt	5,157	7,815
Other	(6,814)	3,227
Changes in operating assets and liabilities, net of effect of asset acquisitions and business combinations:
Accounts receivable, net	(45,614)	1,431
Contract assets	(3,656)	(4,707)
Deferred contract acquisition costs	(84,510)	(58,998)
Prepaid expenses and other current assets	(60,612)	(46,339)
Other noncurrent assets	7,142	4,312
Accounts payable	1,205	(247)
Accrued expenses and other current liabilities	48,699	758
Accrued compensation	40,523	(2,914)
Operating lease liabilities	(45,567)	(24,973)
Deferred revenue	127,144	82,643
Other noncurrent liabilities	(1,379)	(18)
Net cash provided by operating activities	275,894	245,580
Cash Flows from Investing Activities
Purchases of property and equipment	(115,192)	(145,786)
Capitalized internal-use software	(20,244)	(13,647)
Asset acquisitions and business combinations, net of cash acquired	(75,098)	(6,462)
Purchases of available-for-sale securities	(783,933)	(1,530,775)
Maturities of available-for-sale securities	1,442,199	810,825
Other investing activities	1,636	382
Net cash provided by (used in) investing activities	449,368	(885,463)
Cash Flows from Financing Activities
Proceeds from settlement of the 2025 capped calls	0	309,616
Gross proceeds from issuance of 2030 convertible senior notes	0	2,000,000
Purchases of capped calls related to the 2030 convertible senior notes	0	(283,400)
Cash paid for issuance costs on 2030 convertible senior notes	0	(27,873)
Proceeds from the exercise of stock options	9,815	17,942
Proceeds from the issuance of common stock for employee stock purchase plan	16,075	13,057
Payment of tax withholding obligation on RSU and PSU settlement	(29,473)	(18,217)
Payment of indemnity holdback	(100)	0
Net cash provided by (used in) financing activities	(3,683)	2,011,125
Net increase in cash, cash equivalents, and restricted cash	721,579	1,371,242
Cash, cash equivalents, and restricted cash, beginning of period	954,357	154,214
Cash, cash equivalents, and restricted cash, end of period	1,675,936	1,525,456
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	32	9
Cash paid for income taxes, net of refunds	4,154	3,503
Cash paid for operating lease liabilities	43,179	32,378
Supplemental Disclosure of Non-cash Investing and Financing Activities:
Stock-based compensation capitalized for software development and cloud computing arrangements	7,081	5,952
Accounts payable and accrued expenses related to property and equipment additions	71,412	51,090
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	45,897	46,270
Issuance of common stock related to an acquisition	$ 98,686	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,663,773	$ 943,536
Available-for-sale securities	2,499,025	3,157,715
Accounts receivable, net	422,945	382,488
Contract assets	27,187	23,531
Restricted cash short-term	12,163	9,364
Prepaid expenses and other current assets	153,282	128,203
Total current assets	4,778,375	4,644,837
Property and equipment, net	703,209	618,691
Goodwill	376,204	226,563
Acquired intangible assets, net	57,369	41,799
Operating lease right-of-use assets	247,675	237,646
Deferred contract acquisition costs, noncurrent	240,523	219,499
Restricted cash	0	1,457
Other noncurrent assets	70,772	45,764
Total assets	6,474,127	6,036,256
Current liabilities:
Accounts payable	127,032	84,115
Accrued expenses and other current liabilities	165,788	109,054
Accrued compensation	151,528	111,005
Operating lease liabilities	78,239	70,901
Deferred revenue	812,187	684,207
Current portion of convertible senior notes, net	1,293,260	1,291,281
Total current liabilities	2,628,034	2,350,563
Convertible senior notes, net	1,977,006	1,974,120
Operating lease liabilities, noncurrent	180,845	182,025
Deferred revenue, noncurrent	40,252	41,088
Other noncurrent liabilities	27,970	29,337
Total liabilities	4,854,107	4,577,133
Commitments and contingencies (Note 8)
Stockholders’ Equity
Additional paid-in capital	3,027,713	2,651,420
Accumulated deficit	(1,397,815)	(1,204,907)
Accumulated other comprehensive income (loss)	(10,233)	12,259
Total stockholders’ equity	1,620,020	1,459,123
Total liabilities and stockholders’ equity	6,474,127	6,036,256
Class A common stock
Stockholders’ Equity
Common stock, value, issued	322	317
Class B common stock
Stockholders’ Equity
Common stock, value, issued	$ 33	$ 34