Aureus
COkay

Cloudflare, Inc.(NET)

C

Financial data as of Dec 31, 2024Improving · Technology

FCF Margin10.0%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$166.9M
Revenue$1.7B
Net Cash-$1.3BNet debt position
Debt / FCF8.8xElevated debt burden
Current Ratio2.86Adequate short-term liquidity
YoY FCF Growth+65.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-1High debt-to-FCF ratio (8.8x)
→
+1Strong YoY FCF growth (65.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalC

Analysis Summary

Strengths

  • Strong liquidity (current ratio: 2.86)
  • Strong YoY FCF growth (+65.6%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Low FCF margin (10.0%)
  • Heavy debt position ($1.3B)
  • High debt-to-FCF ratio (8.8x)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin10.0%
Net Margin-4.7%
Operating CF Margin22.8%
CapEx Ratio12.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.3BNet debt position
Debt / FCF8.8xElevated debt burden
Current Ratio2.86Strong liquidity
Debt / Equity1.40Moderate leverage

Quarterly FCF Trend

+65.6% YoYImproving (+65.6%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameCloudflare, Inc.
SectorTechnology
Free Cash Flow$166.9M
Revenue$1.7B
Net Income-$78.8M
Operating Cash Flow$380.4M
Capital Expenditure$213.5M
FCF Margin10.0%
Cash Conversion Rate—
Net Margin-4.7%
Total Debt$1.5B
Total Cash$147.7M
Net Cash-$1.3B
Current Ratio2.86
Debt / Equity1.40
Debt / FCF8.8x
YoY FCF Growth+65.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2024
GradeC
Data SourceYahoo Finance