CluenexCloudflare NET
Cloudflare scores average on business quality (4.6 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Cloudflare does
Cloudflare sells security, performance, and edge computing services that developers and enterprises use to protect and run web applications. Customers pay subscription fees to route their internet traffic through its global network.
- What it does best
Cloudflare turns its massive global edge network into high-margin security and developer services, delivering a 72.6% gross margin that beats peers like Twilio's 48.6%. This distributed infrastructure creates deep application stickiness that rivals struggle to duplicate quickly.
- The main risk
A negative interest coverage of -17.6x and ongoing net losses of $206 million mean the business relies entirely on its high valuation multiple to fund operations without crashing into debt distress if growth slows.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at -8.0% and return on equity is -13.9%, offset by a healthy 24.0% free cash flow margin. The company generates positive cash despite operating at a GAAP loss.
Switching costs lock in developers and enterprises who build custom logic directly on its Workers edge platform. Its revenue growth ranks in the top quartile at the 89th sector percentile.
Revenue jumped to $2.5 billion with a 29.8% growth rate, continuing an expansion trend visible across annual history where revenue climbed from $431 million in 2020.
Total debt sits at $3.3 billion against $4.1 billion in cash, producing a net cash position of $836 million. Free cash flow reached $314 million, showing improving cash generation despite negative net income.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on NET
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Cloudflare scores average on the Cluenex quality check (4.6 of 10), measured against its own industry. Profitability is weak, moat fair, growth fast and financial health weak.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 29, 2026, after the close.
See NET today
- Today's verdict on NET, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Cloudflare (NET)”, https://cluenex.com/stocks/net/, data as of Oct 10, 2026.