(NET) Cloudflare - Overview

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US18915M1071

Stock: Security, Performance, Zero-Trust, Developer Platforms, DNS

Total Rating 67

Risk 75

Buy Signal -0.13

Software - Infrastructure +20.3
Application Software +28.4

Market Cap: 74,659m
Avg Trading Vol: 732M USD

ATR: 5.08%
Peers RS (IBD): 80.7

Risk 5d forecast
Volatility	50.6%
Relative Tail Risk	-10.9%

Reward TTM
Sharpe Ratio	1.39
Alpha	49.60

Character TTM
Beta	1.534
Beta Downside	2.512

Drawdowns 3y
Max DD	45.00%
CAGR/Max DD	1.29

EPS (Earnings per Share)

EPS CAGR: 143.17%
EPS Trend: 74.2%

Last SUE: 0.55
Qual. Beats: 0

Revenue

Rev. CAGR: 32.79%
Rev. Trend: 99.7%

Last SUE: 4.00
Qual. Beats: 11

Risks

Technicals: choppy

Description: NET Cloudflare February 24, 2026

Cloudflare, Inc. (NYSE: NET) is a global cloud-services platform that secures and accelerates internet properties across public and private clouds, SaaS applications, IoT devices, and on-premises environments. Its portfolio spans web-application firewalls, DDoS protection, API security, zero-trust networking (SASE), performance tools such as CDN, load balancing, and DNS, plus a developer ecosystem featuring Workers AI, serverless storage (R2), and edge-centric databases (D1, Hyperdrive). The company serves a diversified client base-including technology, healthcare, financial services, retail, industrial, government, and non-profit sectors-and also offers consumer products like the 1.1.1.1 DNS resolver and WARP VPN.

Key recent metrics underscore Cloudflare’s growth momentum: FY 2025 revenue reached $1.45 billion, up 30 % year-over-year, while annual recurring revenue (ARR) climbed to $5.2 billion, reflecting strong adoption of its subscription-based security and performance suites. The firm reported a net loss of $210 million for the year, narrowed from $260 million in FY 2024, as operating efficiencies improved and gross margins expanded to 71 %. Enterprise customers now exceed 4,200, and the company’s guidance projects FY 2026 revenue of roughly $2.2 billion, driven by rising corporate cyber-security spend (expected to grow >10 % CAGR through 2028) and accelerated migration to edge-computing architectures.

If you’re interested in a deeper quantitative dive, consider reviewing ValueRay’s analyst tools for additional insights.

Headlines to watch out for

Cloudflares global network expansion attracts new enterprise clients
Increased competition in cybersecurity market pressures pricing
Data privacy regulations impact content delivery network demand
Macroeconomic slowdown reduces IT spending by businesses

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income: -102.3m TTM > 0 and > 6% of Revenue
FCF/TA: 0.05 > 0.02 and ΔFCF/TA 0.32 > 1.0
NWC/Revenue: 105.8% < 20% (prev 88.36%; Δ 17.46% < -1%)
CFO/TA 0.11 > 3% & CFO 666.9m > Net Income -102.3m
Net Debt (2.76b) to EBITDA (237.4m): 11.61 < 3
Current Ratio: 1.98 > 1.5 & < 3
Outstanding Shares: last quarter (351.1m) vs 12m ago 2.06% < -2%
Gross Margin: 74.68% > 18% (prev 0.77%; Δ 7.39k% > 0.5%)
Asset Turnover: 46.44% > 50% (prev 50.58%; Δ -4.14% > 0%)
Interest Coverage Ratio: -9.58 > 6 (EBITDA TTM 237.4m / Interest Expense TTM 8.77m)

Altman Z'' 1.45

A: 0.38 (Total Current Assets 4.64b - Total Current Liabilities 2.35b) / Total Assets 6.04b
B: -0.20 (Retained Earnings -1.20b / Total Assets 6.04b)
C: -0.02 (EBIT TTM -83.9m / Avg Total Assets 4.67b)
D: -0.26 (Book Value of Equity -1.19b / Total Liabilities 4.58b)
Altman-Z'' Score: 1.45 = BB

Beneish M -3.12

DSRI: 0.94 (Receivables 406.0m/333.3m, Revenue 2.17b/1.67b)
GMI: 1.04 (GM 74.68% / 77.30%)
AQI: 0.74 (AQ_t 0.09 / AQ_t-1 0.12)
SGI: 1.30 (Revenue 2.17b / 1.67b)
TATA: -0.13 (NI -102.3m - CFO 666.9m) / TA 6.04b)
Beneish M-Score: -3.12 (Cap -4..+1) = AA

What is the price of NET shares?

As of March 16, 2026, the stock is trading at USD 212.45 with a total of 2,542,511 shares traded.
Over the past week, the price has changed by +5.44%, over one month by +9.69%, over three months by +8.01% and over the past year by +83.11%.

Is NET a buy, sell or hold?

Cloudflare has received a consensus analysts rating of 3.91. Therefore, it is recommended to buy NET.

StrongBuy: 14
Buy: 6
Hold: 12
Sell: 1
StrongSell: 1

What are the forecasts/targets for the NET price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	232.4	9.4%
Analysts Target Price	232.4	9.4%

NET Fundamental Data Overview March 14, 2026

P/E Forward = 178.5714
P/S = 34.4376
P/B = 51.3814
P/EG = 2.3548
Revenue TTM = 2.17b USD
EBIT TTM = -83.9m USD
EBITDA TTM = 237.4m USD
Long Term Debt = 1.97b USD (from longTermDebt, last quarter)
Short Term Debt = 1.36b USD (from shortTermDebt, last quarter)
Debt = 3.70b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.76b USD (from netDebt column, last quarter)
Enterprise Value = 77.42b USD (74.66b + Debt 3.70b - CCE 943.5m)
Interest Coverage Ratio = -9.58 (Ebit TTM -83.9m / Interest Expense TTM 8.77m)
EV/FCF = 238.7x (Enterprise Value 77.42b / FCF TTM 324.3m)
FCF Yield = 0.42% (FCF TTM 324.3m / Enterprise Value 77.42b)
FCF Margin = 14.96% (FCF TTM 324.3m / Revenue TTM 2.17b)
Net Margin = -4.72% (Net Income TTM -102.3m / Revenue TTM 2.17b)
Gross Margin = 74.68% ((Revenue TTM 2.17b - Cost of Revenue TTM 548.9m) / Revenue TTM)
Gross Margin QoQ = 74.24% (prev 73.97%)
Tobins Q-Ratio = 12.83 (Enterprise Value 77.42b / Total Assets 6.04b)
Interest Expense / Debt = 0.08% (Interest Expense 2.89m / Debt 3.70b)
Taxrate = 21.0% (US default 21%)
NOPAT = -66.3m (EBIT -83.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.98 (Total Current Assets 4.64b / Total Current Liabilities 2.35b)
Debt / Equity = 2.54 (Debt 3.70b / totalStockholderEquity, last quarter 1.46b)
Debt / EBITDA = 11.61 (Net Debt 2.76b / EBITDA 237.4m)
Debt / FCF = 8.50 (Net Debt 2.76b / FCF TTM 324.3m)
Total Stockholder Equity = 1.37b (last 4 quarters mean from totalStockholderEquity)
RoA = -2.19% (Net Income -102.3m / Total Assets 6.04b)
RoE = -7.48% (Net Income TTM -102.3m / Total Stockholder Equity 1.37b)
RoCE = -2.51% (EBIT -83.9m / Capital Employed (Equity 1.37b + L.T.Debt 1.97b))
RoIC = -1.60% (negative operating profit) (NOPAT -66.3m / Invested Capital 4.14b)
WACC = 11.03% (E(74.66b)/V(78.36b) * Re(11.57%) + D(3.70b)/V(78.36b) * Rd(0.08%) * (1-Tc(0.21)))
Discount Rate = 11.57% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.13%
[DCF] Terminal Value 72.07% ; FCFF base≈261.4m ; Y1≈322.4m ; Y5≈549.1m
[DCF] Fair Price = 9.32 (EV 5.72b - Net Debt 2.76b = Equity 2.96b / Shares 317.6m; r=11.03% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 74.23 | EPS CAGR: 143.2% | SUE: 0.55 | # QB: 0
Revenue Correlation: 99.75 | Revenue CAGR: 32.79% | SUE: 4.0 | # QB: 11
EPS next Quarter (2026-06-30): EPS=0.27 | Chg7d=+0.000 | Chg30d=-0.016 | Revisions Net=-14 | Analysts=29
EPS current Year (2026-12-31): EPS=1.13 | Chg7d=+0.000 | Chg30d=-0.057 | Revisions Net=-15 | Growth EPS=+21.0% | Growth Revenue=+29.1%
EPS next Year (2027-12-31): EPS=1.44 | Chg7d=+0.000 | Chg30d=-0.067 | Revisions Net=-8 | Growth EPS=+28.4% | Growth Revenue=+27.4%
[Analyst] Revisions Ratio: -0.64 (4 Up / 18 Down within 30d for Next Quarter)

Additional Sources for NET Stock

Fund Manager Positions: Dataroma | Stockcircle