Cloudflare, Inc. (NET) Factsheet

Cloudflare, Inc. (NET) Stock Analysis

Analysis from 10-Q filed 2026-11-05. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC -8.2%. FCF margin 11.8%. D/E 3.0x. Source: 10-Q filed 2026-11-05.

Metric	Value	Context
ROIC	-8.2%	Below expectations
FCF Margin	11.8%	Healthy cash flow
Debt/Equity	3.0x	Elevated debt

ROIC -8.2% — Bottom 50% of sector peers. FCF margin 11.8% — Top 50%.

Explore Cloudflare, Inc.: Earnings History | Overview

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_section, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Cloudflare, Inc. earns -8.2% ROIC, Bottom 50% in Technology

ROIC TTM -8.2%, sector median 4.4%, Bottom 50%. DuPont: NOPAT margin -14.8% × asset turnover 0.4x. Gross margin 71.9%. Operating margin -14.1%. Source: 10-Q filed 2026-11-05.

Metric	NET	Rating	Context
Return on Invested Capital (ROIC)	-8.2%	Red flag	Below sector median of 4.4%
Return on Equity (ROE)	-15.9%	Red flag	Moderate equity returns
Gross Margin	71.9%	Excellent	Strong pricing power
Operating Margin	-14.1%	Warning	Moderate operational efficiency

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Cash Flow: Cloudflare, Inc. generates $322.0M FCF at 11.8% margin, positive NaN/8 quarters

FCF TTM $322.0M. FCF margin 11.8%, Top 50%. OCF/Net income -2.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-05.

Metric	NET	Rating	Context
Free Cash Flow Margin	11.8%	Good	Healthy cash generation
Free Cash Flow (TTM)	$322.0M	Good	Positive cash generation
OCF/Net Income	-2.9x	Warning	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Cloudflare, Inc. at 3.0x leverage, -31.8x interest coverage

Debt/Equity 3.0x. Net cash $686.8M. Interest coverage -31.8x. Source: 10-Q filed 2026-11-05.

Metric	NET	Rating	Context
Debt to Equity	3.0x	Red flag	Elevated leverage
Net Cash Position	$686.8M	Excellent	Net cash positive
Interest Coverage	-31.8x	Warning	Monitor debt obligations

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Valuation: Cloudflare, Inc. trades at -477.5x earnings

P/E -477.5x. EV/Sales 41.5x. FCF yield 0.3%. Source: 10-Q filed 2026-11-05.

Metric	NET	Rating	Context
P/E Ratio	-477.5x	Red flag	Reasonable valuation
EV/Sales	41.5x	Warning	Growth premium priced in
FCF Yield	0.3%	Warning	Lower cash yield

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Capital Allocation: Cloudflare, Inc. returns 0.0% shareholder yield

Total shareholder yield 0.0%. Share count +2.3% YoY. Capital returned $0 TTM. Source: 10-Q filed 2026-11-05.

Metric	NET	Rating	Context
Total Shareholder Yield	0.0%	Warning	Dividend + buyback yield combined
Share Count Change (YoY)	2.3%	Warning	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$0	Adequate	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	-8.2%	Bottom 50%	-1.9x below
Free Cash Flow Margin	11.8%	Top 50%	1.1x above
Gross Margin	71.9%	Top 50%	1.4x above
Operating Margin	-14.1%	Bottom 25%	-3.0x below
Return on Equity (ROE)	-15.9%	Bottom 25%	-2.5x below

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Financial Scorecard

Metric	NET	Rating	Sector Context
Return on Invested Capital (ROIC)	-8.2%	Red flag	Bottom 50% of sector (median: 4.4%)
Free Cash Flow Margin	11.8%	Good	Top 50% of sector (median: 10.3%)
Gross Margin	71.9%	Excellent	Top 50% of sector (median: 51.0%)
Debt to Equity Ratio	303.2%	Red flag	High financial leverage
Free Cash Flow Yield	0.3%	Red flag	Growth-focused valuation

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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 -8.2%. The 8-quarter median ROIC is -6.7% with a declining trend. Sector median 4.4%. Source: 10-Q filed 2026-11-05.

Q: What is Cloudflare, Inc.'s Free Cash Flow Margin?

Cloudflare, Inc. (NET) has a free cash flow margin of 11.8%, generating $322.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-05.

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 -477.5x, which is above the sector median of N/A. EV/Sales 41.5x. FCF yield 0.3%. Source: 10-Q filed 2026-11-05.

Q: How much debt does Cloudflare, Inc. have?

Cloudflare, Inc. (NET) has a debt-to-equity ratio of 3.0x with total debt of $4.4 billion. Interest coverage -31.8x. Net cash position $686.8 million. Source: 10-Q filed 2026-11-05.

Q: What is Cloudflare, Inc.'s revenue and earnings growth?

Cloudflare, Inc. (NET) grew revenue by 35.7% year-over-year. EPS -127.3% YoY. Source: 10-Q filed 2026-11-05.

Q: How does Cloudflare, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Cloudflare, Inc. (NET) shows: ROIC -8.2%, sector median 4.4% (Bottom 50%). FCF margin 11.8%, sector median 10.3% (Top 50%). Gross margin 71.9%, 20.9pp 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.?

Quantitative warning flags for Cloudflare, Inc. (NET): 1) ROIC declining -2.6% over 8 quarters; 2) debt/equity 3.0x (above 1.5x threshold); 3) interest coverage -31.8x (below 5x). Source: 10-Q filed 2026-11-05.

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Data Source: Data sourced from 10-Q filed 2026-11-05. TTM metrics as of Q3 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.