Cloudflare (NET) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Cloudflare

NYSE•Technology•Software - Infrastructure

$284.30+5.38(0.02%)Pre-market

Market Cap

$115.31B

P/S

45.9x

P/B

71.2x

Cloudflare, Inc. operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides a cloud-based security solution to secure a range of combination of platforms, including public and private cloud, on-premises, software-as-a-service applications, and Internet of things (IoT) devices; and application security products comprising web application firewall, bot management, distributed denial of service mitigation, API security, SSL/TLS encryption, client-side security, and security center products. It also offers application performance solutions, such as content delivery, load balancing, DNS, smart shield, video stream delivery, web optimization, cloudfare waiting room, and cloudfare data localization suite; SASE platform that combines network services and Zero Trust and workplace security products that provides a cloud-based network and security-as-a-service; network services, including magic WAN, magic transit, magic firewall, cloudflare network interconnect, and spectrum. In addition, the company provides zero trust security services which include cloudflare zero trust network access, secure web gateway, and one client; and remote browser isolation, cloud access security broker, cloud email security, digital experience monitoring, and data loss prevention products. Further, it provides developer-based solutions comprising workers AI, vectorize, AI gateway, cloudflare workers, cloudflare pages, R2 object storage, workers KV, durable objects, D1, hyperdrive, queues, cloudfare stream, cloudfare images, and cloudflare realtime; and consumer offerings, such as 1.1.1.1 DNS and with WARPm and cloudfare registrar that offers secure registration and management of domain names. The company serves customers in technology, healthcare, financial services, consumer and retail, industrial, and non-profit industries, as well as government. The company was incorporated in 2009 and is headquartered in San Francisco, California.

How this company scores

GoodMetricSide Score: 60/100

Strongest: Growth (19/25); weakest: Profitability (8/25).

Profitability8/25

Growth19/25

Balance Sheet & Red Flags16/25

Cash & Earnings Quality17/25

Strengths

Growing revenueRising free cash flowLong cash runwayConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 45.9x5y range 15.9x – 67.3x

Currently above its 20-quarter median.

P/B · 71.2x5y range 24.8x – 76.8x

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -10.9x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $115.31B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $2.51B
Q. Revenue: $696.06M
TTM EBITDA: $-137.63M
TTM Op. Income: $-354.38M
Q. Op. Income: $-205.70M
TTM Net Income: $-206.28M
Q. Net Income: $-169.98M
EPS: $-0.48
Shares Out.: $354.33M

$2.51B in TTM revenue grew 33.5% YoY, reaching $696.06M last quarter. TTM EBITDA of $-137.63M and TTM operating income of $-354.38M show growth is flowing through to the bottom line. However, net income is negative at $206.28M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 71.8%
EBITDA Margin: -22.2%
Op. Margin: -29.6%
Net Margin: -24.4%

Op. margin of -29.6% is down 16.4% YoY — costs are rising relative to revenue. Net margin at -24.4% and gross margin of 71.8% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 45.9x
P/B Ratio: 71.2x

P/S of 45.9x and P/B of 71.2x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $6.47B
Cash: $1.66B
Long-Term Debt: $1.98B
Book Value: $1.62B
D/E Ratio: 1.2
Debt/EBITDA: N/A

With $6.47B in assets and $1.98B in long-term debt, D/E is 1.2and book value is $1.62B — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $117.56M
TTM Free Cash Flow: $348.40M
FCF Margin: 13.9%
FCF / Net Income: -1.7

TTM FCF of $348.40M on $117.56M in operating cash flow. The FCF / Net Income ratio of -1.7x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.