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Cloudflare, Inc. NET Business Segments — Cost Of Revenue, Adjusted

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Other financials

Income statement

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Revenue$696.1M+35.9%
Gross profit$499.5M+30.2%
Operating income-$205.7M-206%
Net income-$170.0M-237%
EPS (diluted)-$0.48-220%

Balance sheet

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Cash & equivalents$1.7B+9.9%
Total debt$1.6B+670%
Total equity$1.6B+30.7%
Total assets$6.5B+16.4%

Cash flow

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Operating cash flow$117.6M+17.8%
CapEx$50.0M-16.6%
Free cash flow$67.6M+69.4%

Valuation

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Market cap$110.59B+57.8%
Enterprise value$110.47B+60.6%
P/S44×+6.8×

Profitability

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Gross margin72.6%-3.6pp
Operating margin-14.1%+10.5pp
Net margin-8.2%+3.9pp
FCF margin13.9%+2.8pp

Returns & leverage

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Return on equity-14.4%+6.4pp
Debt / equity+0.8×
Current ratio1.8×-3.3×

Where this comes from

Reported directly by Cloudflare, Inc. in its filing.

Tagged under the XBRL concept cloud:CostOfRevenueAdjusted.

The source filing: Cloudflare, Inc.’s 10-Q, filed August 6, 2026.

Filed
Aug 6, 2026, 4:24 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001477333-26-000054
Line itemThree Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Revenue$696,061$512,316$1,335,816$991,403
Less:
Adjusted cost of revenue(1)(187,183)(121,655)(361,236)(231,472)
Adjusted sales and marketing expense(1)(232,452)(182,124)(459,978)(365,542)
Adjusted research and development expense(1)(104,051)(83,601)(205,522)(160,421)
Adjusted general and administrative expense(1)(76,264)(52,621)(139,872)(105,652)
Other segment items(2)(266,092)(122,761)(362,116)(217,216)
Net loss$(169,981)$(50,446)$(192,908)$(88,900)

Item 1. FINANCIAL STATEMENTS

FAQ

What is Cloudflare, Inc.'s business segments — cost of revenue, adjusted?
Cloudflare, Inc. (NET) reported business segments — cost of revenue, adjusted of $187.18M in Q2 2026.
How has Cloudflare, Inc.'s business segments — cost of revenue, adjusted changed year-over-year?
Cloudflare, Inc.'s business segments — cost of revenue, adjusted increased by 53.9% year-over-year, from $121.66M to $187.18M.
What is the long-term trend for Cloudflare, Inc.'s business segments — cost of revenue, adjusted?
Over 3 years (2022 to 2025), Cloudflare, Inc.'s business segments — cost of revenue, adjusted has grown at a 35.2% compound annual growth rate (CAGR), from $212.4M to $524.75M.
What does business segments — cost of revenue, adjusted mean?
This metric captures the direct costs associated with delivering the segment's services, excluding non-cash items like stock-based compensation. It includes expenses such as data center operations, bandwidth costs, and support personnel directly tied to service delivery. Monitoring this helps evaluate the scalability of the infrastructure and the efficiency of service provision.

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