Cloudflare, Inc. (NET) Factsheet
Cloudflare, Inc. (NET) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC -6.8%. FCF margin 12.5%. D/E 0.0x. Source: 10-Q filed 2025-10-30.
| Metric | Value | Context |
|---|---|---|
| ROIC | -6.8% | Below expectations |
| FCF Margin | 12.5% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC -6.8% — Bottom 50% of sector peers. FCF margin 12.5% — Top 50%.
Explore Cloudflare, Inc.: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NET: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Cloudflare, Inc. earns -6.8% ROIC, Bottom 50% in Technology
ROIC TTM -6.8%, sector median 4.6%, Bottom 50%. DuPont: NOPAT margin -10.4% × asset turnover 0.4x. Gross margin 73.3%. Operating margin -9.3%. Source: 10-Q filed 2025-10-30.
| Metric | NET | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -6.8% | Red flag | Below sector median of 4.6% |
| Return on Equity (ROE) | -6.3% | Red flag | Moderate equity returns |
| Gross Margin | 73.3% | Excellent | Strong pricing power |
| Operating Margin | -9.3% | Warning | Moderate operational efficiency |
Cash Flow: Cloudflare, Inc. generates $291.8M FCF at 12.5% margin, positive NaN/8 quarters
FCF TTM $291.8M. FCF margin 12.5%, Top 50%. OCF/Net income -7.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.
| Metric | NET | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 12.5% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $291.8M | Good | Positive cash generation |
| OCF/Net Income | -7.1x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Cloudflare, Inc. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-10-30.
| Metric | NET | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Cloudflare, Inc. trades at -832.9x earnings
P/E -832.9x. EV/Sales 29.4x. FCF yield 0.4%. Source: 10-Q filed 2025-10-30.
| Metric | NET | Rating | Context |
|---|---|---|---|
| P/E Ratio | -832.9x | Red flag | Reasonable valuation |
| EV/Sales | 29.4x | Warning | Growth premium priced in |
| FCF Yield | 0.4% | Warning | Lower cash yield |
Capital Allocation: Cloudflare, Inc. returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-10-30.
| Metric | NET | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -6.8% | Bottom 50% | -1.5x below |
| Free Cash Flow Margin | 12.5% | Top 50% | 1.5x above |
| Gross Margin | 73.3% | Top 50% | 1.4x above |
| Operating Margin | -9.3% | Bottom 50% | -1.9x below |
| Return on Equity (ROE) | -6.3% | Bottom 50% | -1.2x below |
Financial Scorecard
| Metric | NET | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -6.8% | Red flag | Bottom 50% of sector (median: 4.6%) |
| Free Cash Flow Margin | 12.5% | Good | Top 50% of sector (median: 8.5%) |
| Gross Margin | 73.3% | Excellent | Top 50% of sector (median: 51.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| Free Cash Flow Yield | 0.4% | Red flag | Growth-focused valuation |
Frequently Asked Questions
Q: What is Cloudflare, Inc.'s Return on Invested Capital (ROIC)?
Cloudflare, Inc. (NET) has a trailing twelve-month Return on Invested Capital (ROIC) of -6.8%. Sector median 4.6%. Source: 10-Q filed 2025-10-30.
Q: What is Cloudflare, Inc.'s Free Cash Flow Margin?
Cloudflare, Inc. (NET) has a free cash flow margin of 12.5%, generating $291.8 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.
Q: What is Cloudflare, Inc.'s P/E ratio and how does it compare to peers?
Cloudflare, Inc. (NET) trades at a P/E ratio of -832.9x, which is above the sector median of N/A. EV/Sales 29.4x. FCF yield 0.4%. Source: 10-Q filed 2025-10-30.
Q: What is Cloudflare, Inc.'s revenue and earnings growth?
Cloudflare, Inc. (NET) grew revenue by 31.6% year-over-year. EPS -4.0% YoY. Source: 10-Q filed 2025-10-30.
Q: How does Cloudflare, Inc. compare to competitors in Technology?
Compared to other companies in Technology, Cloudflare, Inc. (NET) shows: ROIC -6.8%, sector median 4.6% (Bottom 50%). FCF margin 12.5%, sector median 8.5% (Top 50%). Gross margin 73.3%, 22.3pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Cloudflare, Inc.?
No quantitative warning flags fired for Cloudflare, Inc. (NET) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.