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Cloudflare, Inc. NET Business Segments — Research And Development Expense, 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$103.98B+38.4%
Enterprise value$103.86B+40.8%
P/S41.4×+1.5×

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:ResearchAndDevelopmentExpenseAdjusted.

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 — research and development expense, adjusted?
Cloudflare, Inc. (NET) reported business segments — research and development expense, adjusted of $104.05M in Q2 2026.
How has Cloudflare, Inc.'s business segments — research and development expense, adjusted changed year-over-year?
Cloudflare, Inc.'s business segments — research and development expense, adjusted increased by 24.5% year-over-year, from $83.6M to $104.05M.
What is the long-term trend for Cloudflare, Inc.'s business segments — research and development expense, adjusted?
Over 3 years (2022 to 2025), Cloudflare, Inc.'s business segments — research and development expense, adjusted has grown at a 22.8% compound annual growth rate (CAGR), from $182.34M to $337.87M.
What does business segments — research and development expense, adjusted mean?
This metric tracks the adjusted costs associated with developing new features, improving existing products, and maintaining the segment's technological edge, excluding non-cash items. It reflects the company's commitment to innovation and long-term product competitiveness. High investment here is typically necessary to sustain growth in the rapidly evolving cloud and edge computing landscape.

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