Aureus
DWarning

Cloudflare, Inc.(NET)

D

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin12.0%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$260.6M
Revenue$2.2B
Net Cash-$2.6BNet debt position
Debt / FCF13.5xElevated debt burden
Current Ratio1.98Adequate short-term liquidity
YoY FCF Growth+108.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Very high debt-to-FCF ratio (13.5x)
→
+1Strong YoY FCF growth (108.2% YoY)
→
FinalD

Analysis Summary

Strengths

  • Healthy FCF margin (12.0%)
  • Strong YoY FCF growth (+108.2%)

Concerns

  • Heavy debt position ($2.6B net debt, 13.5x FCF)
  • High debt-to-FCF ratio (13.5x)
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin12.0%
Net Margin-4.7%
Operating CF Margin27.8%
CapEx Ratio15.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$2.6BNet debt position
Debt / FCF13.5xElevated debt burden
Current Ratio1.98Strong liquidity
Debt / Equity2.41High leverage

Quarterly FCF Trend

+108.2% YoYImproving (+108.2%)

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$260.6M
Revenue$2.2B
Net Income-$102.3M
Operating Cash Flow$603.1M
Capital Expenditure$342.6M
FCF Margin12.0%
Cash Conversion Rate—
Net Margin-4.7%
Total Debt$3.5B
Total Cash$943.5M
Net Cash-$2.6B
Current Ratio1.98
Debt / Equity2.41
Debt / FCF13.5x
YoY FCF Growth+108.2%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeD
Data SourceYahoo Finance

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