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NET, Cloudflare Inc.

Software asset-light UnprofitableDistress / turnaround

Cloudflare is a leader in this Connectivity Cloud category.

Over the past decade, the technology industry has been undergoing a massive transition from on-premises hardware and software that customers buy, to services in the cloud that they rent.

As these solutions move to the cloud, the network latency, support complexity, and cost of overhead makes stringing together multiple point-cloud solutions that only address specific network needs also untenable.

Latest annual: FY2025 10-K

NET · Cloudflare Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.2B

+29.8% YoY · 38% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $2.3B 5-yr avg $1.4B

Gross margin 73% 5-yr avg 76%

Operating margin −9.3% 5-yr avg −14.6%

ROIC −7% 5-yr avg −7%

Owner-earnings margin 18% 5-yr avg 9%

Free cash flow margin 14% 5-yr avg 6%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −19% through the cycle on a 77% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. The cash cycle has run negative through the cycle (a median of −12 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −7%, above 15% in 0 of 7 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

51% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States49%$1.1B
EMEA28%$599M
Asia Pacific15%$330M
Other8%$167M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
										Income statement
$135M	$193M	$287M	$431M	$656M	$975M	$1.3B	$1.7B	$2.2B	$2.3B	RevenueRevenue
79%	77%	78%	77%	78%	76%	76%	77%	75%	73%	Gross marginGross mgn
15%	44%	28%	21%	18%	18%	17%	17%	18%	17%	SG&A / revenueSG&A/rev
25%	28%	32%	29%	29%	31%	28%	25%	24%	24%	R&D / revenueR&D/rev
($10M)	($85M)	($108M)	($107M)	($128M)	($201M)	($185M)	($155M)	($207M)	($216M)	Operating incomeOp. inc.
−7.2%	−44.1%	−37.6%	−24.8%	−19.5%	−20.6%	−14.3%	−9.3%	−9.6%	−9.3%	Operating marginOp. mgn
($11M)	($87M)	($106M)	($119M)	($260M)	($193M)	($184M)	($79M)	($102M)	($87M)	Net incomeNet inc.
										Cash flow & returns
$3M	($43M)	($39M)	($17M)	$65M	$124M	$254M	$380M	$603M	$616M	Operating cash flowOp. cash
$12M	$19M	$29M	$49M	$67M	$102M	$136M	$128M	$190M	$205M	DepreciationDeprec.
($1M)	($2M)	$805K	($3M)	$168M	$12M	$29M	($7M)	$64M	$27M	Working capital & otherWC & other
$19M	$25M	$43M	$56M	$93M	$144M	$114M	$185M	$316M	$295M	CapexCapex
14.1%	13.2%	15.1%	13.1%	14.2%	14.7%	8.8%	11.1%	14.6%	12.7%	Capex / revenueCapex/rev
($9M)	($62M)	($68M)	($74M)	($2M)	$21M	$140M	$253M	$413M	$410M	Owner earningsOwner earn.
−6.7%	−32.3%	−23.8%	−17.1%	−0.3%	2.2%	10.8%	15.1%	19.1%	17.6%	Owner earnings marginOE mgn
($16M)	($69M)	($82M)	($74M)	($28M)	($20M)	$140M	$195M	$287M	$321M	Free cash flowFCF
−11.8%	−35.7%	−28.6%	−17.1%	−4.3%	−2.1%	10.8%	11.7%	13.3%	13.8%	Free cash flow marginFCF mgn
$250K	$0	$0	$14M	$6M	$88M	$6M	—	—	$6M	AcquisitionsAcquis.
$16K	$65K	$283K	$157K	$189K	$3K	$34K	$0	$0	—	BuybacksBuybacks
—	—	-15%	-8%	-6%	-9%	-7%	-6%	-7%	-7%	ROICROIC
—	—	-15%	-15%	-32%	-31%	-24%	-8%	-7%	-6%	Return on equityROE
—	—	−15%	−15%	−32%	−31%	−24%	−8%	−7%	−6%	Retained to equityRetained/eq
										Balance sheet
$27M	$25M	$139M	$109M	$314M	$204M	$87M	$148M	$944M	$932M	Cash & investmentsCash+inv
—	$25M	$34M	$63M	$96M	$149M	$248M	$317M	$382M	$380M	ReceivablesReceiv.
—	$14M	$11M	$14M	$26M	$36M	$54M	$106M	$84M	$59M	Accounts payablePayables
—	$11M	$22M	$49M	$69M	$113M	$195M	$211M	$298M	$321M	Operating working capitalOper. WC
—	$197M	$690M	$1.1B	$2.0B	$1.9B	$2.0B	$2.3B	$4.6B	$4.7B	Current assetsCur. assets
—	$61M	$84M	$141M	$289M	$398M	$567M	$794M	$2.4B	$2.4B	Current liabilitiesCur. liab.
—	3.2×	8.2×	8.0×	6.8×	4.7×	3.5×	2.9×	2.0×	2.0×	Current ratioCurr. ratio
—	$4M	$4M	$17M	$24M	$148M	$148M	$181M	$227M	$233M	GoodwillGoodwill
—	$298M	$831M	$1.4B	$2.4B	$2.6B	$2.8B	$3.3B	$6.0B	$6.2B	Total assetsAssets
—	$255K	$0	$383M	$1.1B	$1.4B	$1.3B	$1.3B	$2.0B	$2.0B	Total debtDebt
—	($25M)	($139M)	$274M	$833M	$1.2B	$1.2B	$1.1B	$1.0B	$1.0B	Net debt / (cash)Net debt
-11.3×	-85.6×	-97.1×	-4.3×	-2.6×	-40.4×	-31.6×	-29.8×	-23.6×	-21.8×	Interest coverageInt. cov.
($60M)	($114M)	$726M	$817M	$811M	$624M	$763M	$1.0B	$1.5B	$1.5B	Shareholders’ equityEquity
2.0%	14.2%	12.8%	13.1%	13.7%	20.8%	21.1%	20.3%	20.8%	20.2%	Stock comp / revenueSBC/rev
										Per share
77.1M	81.0M	146M	300M	312M	326M	334M	341M	348M	353M	Shares out (diluted)Shares
$1.75	$2.38	$1.96	$1.44	$2.10	$2.99	$3.89	$4.89	$6.22	$6.60	Revenue / shareRev/sh
$-0.14	$-1.08	$-0.72	$-0.40	$-0.83	$-0.59	$-0.55	$-0.23	$-0.29	$-0.25	EPS (diluted)EPS
$-0.12	$-0.77	$-0.47	$-0.25	$-0.01	$0.07	$0.42	$0.74	$1.19	$1.16	Owner earnings / shareOE/sh
$-0.21	$-0.85	$-0.56	$-0.25	$-0.09	$-0.06	$0.42	$0.57	$0.83	$0.91	Free cash flow / shareFCF/sh
$0.25	$0.31	$0.30	$0.19	$0.30	$0.44	$0.34	$0.54	$0.91	$0.84	Cap. spending / shareCapex/sh
$-0.78	$-1.40	$4.96	$2.73	$2.60	$1.91	$2.29	$3.06	$4.19	$4.33	Book value / shareBVPS

The diluted share count moved ×1.81 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×2.05 into 2020 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+17.2%/yr	+34.0%/yr
Capital spending / share	+17.7%/yr	+36.9%/yr
Book value / share	—	+9.0%/yr

The record, charted

FY2017–2025

Each measure over its full record; the current point and the worst year marked.

Share count

348Mpeak FY2025

ROIC

−7%low FY2019

Gross margin

75%low FY2025

Net debt ÷ owner earnings

2.5×peak FY2022

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$413Mowner earningsvs.($102M)net incomelow FY2020

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $413M of owner earnings, the operating cash left after the $190M it takes just to hold its position. It put $126M more into growth; free cash flow, after that spending, was $287M.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($102M)	($79M)	($184M)	($193M)	($260M)
Depreciation & amortizationnon-cash charge added back	+$190M	+$128M	+$136M	+$102M	+$67M
Stock-based compensationreal costnon-cash, but a real cost	+$451M	+$338M	+$274M	+$203M	+$90M
Working capital & othertiming of cash in and out, other non-cash items	+$64M	−$7M	+$29M	+$12M	+$168M
Cash from operations	$603M	$380M	$254M	$124M	$65M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$190M	−$128M	−$114M	−$102M	−$67M
Owner earnings	$413M	$253M	$140M	$21M	($2M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$126M	−$57M	—	−$41M	−$26M
Free cash flow	$287M	$195M	$140M	($20M)	($28M)
Owner-earnings marginowner earnings ÷ revenue	19%	15%	11%	2%	0%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $190M, roughly its depreciation, the rate its assets wear out). The other $126M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $451M), owner earnings is nearer ($38M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -23.6×

Does not cover its interest

Operating income ($207M) ÷ interest expense $9M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $1.0B

Net debt against an operating loss

Cash $944M − debt $2.0B

What this means
Netting $944M of cash and short-term investments against $2.0B of debt leaves $1.0B owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 9d

Tight

DSO 64 + DIO 0 − DPO 56 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital -7%

Below average through the cycle

7-yr median, range -15%–-6%; -7% latest = NOPAT ($164M) ÷ invested capital $2.5B

Industry peers: median 8%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran -7% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 19%

High, recently turned positive

latest $413M = operating cash $603M − maintenance capex $190M; positive each of the last 3 years, after an earlier loss stretch (9-yr median -0%)

Industry peers: median 24%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 19% of revenue this year, a -0% median across 9 years. It chose to put $126M more into growth, so free cash flow this year was $287M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $451M of SBC) leaves ($38M).
Are earnings backed by cash? $603M

Loss, but cash-generative

Net income ($102M) · cash from operations $603M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $413M

What this means
Of $413M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.66×

Expanding

Capex $316M ÷ depreciation $190M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.2B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Near

Current ratio ≥ 2× · 1.98×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $2.0B vs $2.3B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (9-yr record) · 9 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.35/share (latest year $-0.29), the averaged base the calculator's gate runs on, and book value is $4.14/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 9

What this means
Lost money in 9 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 7 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −30% → −11% (3-yr avg ends)

In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.

What this means
Through the cycle the operating margin widened — about −30% early to −11% lately, median −19% — pricing power intact or improving.
Reinvestment, incremental ROIC −8%

What this means
Reinvested capital came back at a negative incremental return over this window — the invested base grew while operating profit did not. The filings show where it went.
Worst year 2018 · −44.1% op. margin

What this means
Operations went underwater in 2018, understand why before trusting the good years.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“We expect competition to increase as other established and emerging companies and start-ups enter the markets for products and solutions for security, performance, and reliability, in particular with respect to cloud-based solutions, as customer requirements evolve and as new products, services, and technologies, inclu…”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$4.7B

Cash & short-term investments$932M
Receivables$380M
Other current assets$3.4B

Current liabilities$2.4B

Accounts payable$59M
Other current liabilities$2.4B

Current ratio1.96×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.96×stricter: inventory excluded

Cash ratio0.39×strictest: cash alone against what's due

Working capital$2.3Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+33.5%the freshest read on whether the business is still growing

Current ratio, recent quarters3.5× → 2.0×

Deeper floors

Tangible book value$1.3Bequity stripped of goodwill & intangibles

Net current asset value$78MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$257M$257M of it operating leases

Deferred revenue$795Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2017–2025

Over the record, the business generated $1.3B of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$996M · 75%
Buybacks$747K · 0%
Retained (debt / cash)$333M · 25%

Returned to owners$747K
0% of the owner earnings the business produced over the span, $0 as dividends and $747K as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $905M.
Average price paid for buybacks—
Buybacks ran $747K over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count357.1%
The diluted count rose from 77M to 353M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Mr. Prince	$400k	$133.6M	($2M)
2022	Mr. Prince	$600k	−$123.8M	$21M
2023	Mr. Prince	$20.5M	$36.8M	$140M
2024	Mr. Prince	$2.1M	$6.6M	$253M
2025	Mr. Prince	$60.6M	$97.7M	$413M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio387:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$451M
The slice of the business handed to employees in shares this year, 21% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ANSSAnsys Inc.	$2.5B	87%	31.7%	13%	30%
NTNXNutanix	$2.5B	79%	-26.6%	-190%	-1%
MDBMongoDB Inc.	$2.5B	73%	-34.1%	-19%	-5%
TYLTyler Technologies	$2.3B	47%	14.9%	10%	21%
NETCloudflare Inc.	$2.2B	77%	-19.5%	-7%	-0%
PAYCPaycom Software	$2.1B	84%	28.8%	37%	24%
DTDynatrace	$2.0B	81%	8.7%	8%	27%
MBLYMobileye Global Inc.	$1.9B	47%	-13.1%	-1%	27%
Group median	—	78%	-2.2%	4%	22%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Cloudflare Inc. has delivered.

Today’s price $

Base Normalize · through-cycle ($208M) Net of stock comp (−$470M) Steady-state · maintenance capex ($426M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+142%/yr

Owner-earnings growth · since FY2023+43%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $321M on 353M shares outstanding (a weighted basic average, the only count this filer tags); net debt $1.0B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($295M) runs well above depreciation ($205M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $426M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh NET against another business →

The owners of NET: the meeting and the votes →

Cite: Owner Scorecard, "Cloudflare Inc. (NET), the owner's record," https://ownerscorecard.com/c/NET, data as of 2026-07-09.

Manual order: ← NESR its page in the Manual NEU →

Industry order: ← NCNO the Software chapter NEXN →