Cloudflare, Inc. (NET) FY2026 YTD Q2 Statement of Cash Flows

Income StatementCash FlowBalance Sheet

Statement of Cash Flows

2026-01-01 to 2026-06-30

Swipe to see the full flow
Cloudflare, Inc. cash flow reconciliation, Jan 1, 2026 through Jun 30, 2026One connected Sankey reconciles operating, investing and financing net cash flows through a shared cash pool, from beginning cash to ending cash. Ribbons flow left to right on one dollar scale. Activity totals are dark gray; beginning and ending cash are blue. Cash basis for beginning and ending balances and net cash change: Cash, cash equivalents, and restricted cash. Intermediate calculation bars are lighter gray. Net income is green for profit and red for loss. Identified asset purchases, sales and maturities are blue in either cash direction. Orange marks positive customer-advance and deferred-revenue changes that add to operating cash in the reconciliation. These are net changes, not gross customer receipts. Negative changes are neutral reconciliation adjustments; they do not by themselves identify cash payments. Purple identifies capital transactions such as borrowing, repayments, share issuance and dividends. Free cash flow is a separate comparison, not an added cash flow. Read chart description and values below for full signed amounts, including zero items.Stock-based compensation expense → operating reconciliation: $274,113,000.00Deferred revenue → operating reconciliation: $127,144,000.00Depreciation and amortization expense → operating reconciliation: $123,170,000.00Amortization of deferred contract acquisition costs → operating reconciliation: $63,486,000.00Accrued expenses and other current liabilities → operating reconciliation: $48,699,000.00Non-cash operating lease costs → operating reconciliation: $41,696,000.00Accrued compensation → operating reconciliation: $40,523,000.00Other noncurrent assets → operating reconciliation: $7,142,000.00Provision for bad debt → operating reconciliation: $5,157,000.00Amortization of debt issuance costs → operating reconciliation: $4,865,000.00Accounts payable → operating reconciliation: $1,205,000.00operating reconciliation → Net cash from operating activities: $275,894,000.00operating reconciliation → Net loss: $192,908,000.00operating reconciliation → Deferred contract acquisition costs: $84,510,000.00operating reconciliation → Prepaid expenses and other current assets: $60,612,000.00operating reconciliation → Accounts receivable, net: $45,614,000.00operating reconciliation → Operating lease liabilities: $45,567,000.00operating reconciliation → Net accretion of discounts and amortization of premiums on available-for-sale securities: $13,233,000.00operating reconciliation → Deferred income taxes: $7,013,000.00operating reconciliation → Other: $6,814,000.00operating reconciliation → Contract assets: $3,656,000.00operating reconciliation → Other noncurrent liabilities: $1,379,000.00Maturities of available-for-sale securities → investing reconciliation: $1,442,199,000.00Other investing activities → investing reconciliation: $1,636,000.00investing reconciliation → Net cash from investing activities: $449,368,000.00investing reconciliation → Purchases of available-for-sale securities: $783,933,000.00investing reconciliation → Purchases of property and equipment: $115,192,000.00investing reconciliation → Asset acquisitions and business combinations, net of cash acquired: $75,098,000.00investing reconciliation → Capitalized internal-use software: $20,244,000.00Net cash used in financing activities → financing reconciliation: $3,683,000.00Proceeds from the issuance of common stock for employee stock purchase plan → financing reconciliation: $16,075,000.00Proceeds from the exercise of stock options → financing reconciliation: $9,815,000.00financing reconciliation → Payment of tax withholding obligation on RSU and PSU settlement: $29,473,000.00financing reconciliation → Payment of indemnity holdback: $100,000.00Beginning cash: Cash, cash equivalents, and restricted cash → Cash sources and uses: $954,357,000.00Net cash from operating activities → Cash sources and uses: $275,894,000.00Net cash from investing activities → Cash sources and uses: $449,368,000.00Cash sources and uses → Ending cash: Cash, cash equivalents, and restricted cash: $1,675,936,000.00Cash sources and uses → Net cash used in financing activities: $3,683,000.00Net loss: -$192,908,000.00Net loss−$192.91 MDepreciation and amortization expense: $123,170,000.00Depreciation & amortization+$123.17 MNon-cash operating lease costs: $41,696,000.00Non-cash operating lease costs+$41.70 MAmortization of deferred contract acquisition costs: $63,486,000.00Contract cost amortization+$63.49 MStock-based compensation expense: $274,113,000.00Stock-based compensation+$274.11 MAmortization of debt issuance costs: $4,865,000.00Debt issuance cost amortization+$4.87 MNet accretion of discounts and amortization of premiums on available-for-sale securities: -$13,233,000.00Investment discount & premium−$13.23 MDeferred income taxes: -$7,013,000.00Deferred income taxes−$7.01 MProvision for bad debt: $5,157,000.00Credit loss provision+$5.16 MOther: -$6,814,000.00Other operating, net−$6.81 MAccounts receivable, net: -$45,614,000.00Accounts receivable−$45.61 MContract assets: -$3,656,000.00Contract assets−$3.66 MDeferred contract acquisition costs: -$84,510,000.00Deferred contract costs, net−$84.51 MPrepaid expenses and other current assets: -$60,612,000.00Prepaid & other assets−$60.61 MOther noncurrent assets: $7,142,000.00Other noncurrent assets+$7.14 MAccounts payable: $1,205,000.00Accounts payable+$1.21 MAccrued expenses and other current liabilities: $48,699,000.00Accrued & other liabilities+$48.70 MAccrued compensation: $40,523,000.00Accrued compensation+$40.52 MOperating lease liabilities: -$45,567,000.00Operating lease liabilities−$45.57 MDeferred revenue: $127,144,000.00Deferred revenue+$127.14 MOther noncurrent liabilities: -$1,379,000.00Other noncurrent liabilities−$1.38 MNet cash from operating activities: $275,894,000.00Operating cash+$275.89 Moperating reconciliation: $737,200,000.00Proceeds from settlement of the 2025 capped calls: $0.00Gross proceeds from issuance of 2030 convertible senior notes: $0.00Purchases of capped calls related to the 2030 convertible senior notes: $0.00Cash paid for issuance costs on 2030 convertible senior notes: $0.00Proceeds from the exercise of stock options: $9,815,000.00Stock option exercises+$9.82 MProceeds from the issuance of common stock for employee stock purchase plan: $16,075,000.00Common stock issued+$16.08 MPayment of tax withholding obligation on RSU and PSU settlement: -$29,473,000.00Stock-award tax withholding−$29.47 MPayment of indemnity holdback: -$100,000.00Payment of indemnity holdback−$100.00 KNet cash used in financing activities: -$3,683,000.00. Cash required to fund net payments.Financing cash−$3.68 Mfinancing reconciliation: $29,573,000.00Purchases of property and equipment: -$115,192,000.00PP&E purchases−$115.19 MCapitalized internal-use software: -$20,244,000.00Intangible asset purchases−$20.24 MAsset acquisitions and business combinations, net of cash acquired: -$75,098,000.00Acquisitions, net of cash−$75.10 MPurchases of available-for-sale securities: -$783,933,000.00AFS securities purchases−$783.93 MMaturities of available-for-sale securities: $1,442,199,000.00AFS securities maturities+$1.44 BOther investing activities: $1,636,000.00Other investing, net+$1.64 MNet cash from investing activities: $449,368,000.00Investing cash+$449.37 Minvesting reconciliation: $1,443,835,000.00Cash sources and uses: $1,679,619,000.00Beginning cash: Cash, cash equivalents, and restricted cash: $954,357,000.00Beginning cash$954.36 MEnding cash: Cash, cash equivalents, and restricted cash: $1,675,936,000.00Ending cash$1.68 BCASH RECONCILIATIONOperatingflowsInvestingflowsFinancingflowsNet loss −$192.91M + net operating adjustments $468.80M = operating cash +$275.89MFree cash flow$160.70 MOperating cash − cash spent on PP&ECash flow / Net incomeNot meaningfulOperating cash flow ÷ net incomeNet cash change+$721.58 MEnding cash − beginning cash
Chart details

Cloudflare, Inc. cash flow reconciliation, Jan 1, 2026 through Jun 30, 2026

Cash flows for Jan 1, 2026 through Jun 30, 2026. Cash basis: Cash, cash equivalents, and restricted cash. Beginning cash: Dec 31, 2025. Ending cash: Jun 30, 2026. Beginning and ending cash are dated balances. Positive cash flows add cash; negative cash flows reduce it.

Beginning cash on Dec 31, 2025
954,357,000 US dollars. Beginning cash: Cash, cash equivalents, and restricted cash
Operating activities
275,894,000 US dollars. Net cash provided.
Net loss
negative 192,908,000 US dollars
Depreciation and amortization expense
123,170,000 US dollars
Non-cash operating lease costs
41,696,000 US dollars
Amortization of deferred contract acquisition costs
63,486,000 US dollars
Stock-based compensation expense
274,113,000 US dollars
Amortization of debt issuance costs
4,865,000 US dollars
Net accretion of discounts and amortization of premiums on available-for-sale securities
negative 13,233,000 US dollars
Deferred income taxes
negative 7,013,000 US dollars
Provision for bad debt
5,157,000 US dollars
Other
negative 6,814,000 US dollars
Accounts receivable, net
negative 45,614,000 US dollars
Contract assets
negative 3,656,000 US dollars
Deferred contract acquisition costs
negative 84,510,000 US dollars
Prepaid expenses and other current assets
negative 60,612,000 US dollars
Other noncurrent assets
7,142,000 US dollars
Accounts payable
1,205,000 US dollars
Accrued expenses and other current liabilities
48,699,000 US dollars
Accrued compensation
40,523,000 US dollars
Operating lease liabilities
negative 45,567,000 US dollars
Deferred revenue
127,144,000 US dollars
Other noncurrent liabilities
negative 1,379,000 US dollars
Investing activities
449,368,000 US dollars. Net cash provided.
Purchases of property and equipment
negative 115,192,000 US dollars
Capitalized internal-use software
negative 20,244,000 US dollars
Asset acquisitions and business combinations, net of cash acquired
negative 75,098,000 US dollars
Purchases of available-for-sale securities
negative 783,933,000 US dollars
Maturities of available-for-sale securities
1,442,199,000 US dollars
Other investing activities
1,636,000 US dollars
Financing activities
negative 3,683,000 US dollars. Net cash used.
Proceeds from settlement of the 2025 capped calls
0 US dollars
Gross proceeds from issuance of 2030 convertible senior notes
0 US dollars
Purchases of capped calls related to the 2030 convertible senior notes
0 US dollars
Cash paid for issuance costs on 2030 convertible senior notes
0 US dollars
Proceeds from the exercise of stock options
9,815,000 US dollars
Proceeds from the issuance of common stock for employee stock purchase plan
16,075,000 US dollars
Payment of tax withholding obligation on RSU and PSU settlement
negative 29,473,000 US dollars
Payment of indemnity holdback
negative 100,000 US dollars
Operating adjustment reconciliation
737,200,000 US dollars. Intermediate calculation joining the operating reconciliation branches. Its gross amount includes any portion of net income routed through this junction. It is not an additional cash source or use.
financing gross reconciliation
29,573,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
investing gross reconciliation
1,443,835,000 US dollars. Gross amount at the activity's junction before offsetting its receipts and deductions. It is not an additional cash source or use.
Exchange-rate effect
0 US dollars
Ending cash on Jun 30, 2026
1,675,936,000 US dollars. Ending cash: Cash, cash equivalents, and restricted cash
Cash sources and uses
1,679,619,000 US dollars. Opening cash plus net sources, equal to net uses plus ending cash.
Net cash change
721,579,000 US dollars. Ending cash minus beginning cash.
Cash flow / Net income
Not meaningful. Operating cash flow divided by reconciliation net income for the same period. The ratio is not meaningful when net income is zero or negative.
Operating cash flow
275,894,000 US dollars. Operating cash flow used in the free cash flow calculation.
Cash purchases of property, plant and equipment
115,192,000 US dollars. These cash purchases are already included in investing activities above.
Free cash flow
160,702,000 US dollars. A supplemental measure; finance-lease payments are excluded from this definition.

Chart connections

  • Beginning cash plus operating, investing and financing cash flows plus the exchange-rate effect equals ending cash. Negative amounts reduce cash.
  • Financing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Investing contributions meet at a reconciliation junction before connecting to the net cash total.
  • Operating reconciliation adjustments are not all independent cash receipts.
  • Net loss −$192.91M + net operating adjustments $468.80M = operating cash +$275.89M. The loss reduces the earnings basis of the reconciliation; it is not a cash payment. The signed loss remains a deduction at the operating reconciliation junction.
  • Each activity has one net cash bar connected to the shared cash pool. Positive activity totals enter the pool; negative activity totals leave the pool to fund that activity's net payments. The central pool does not assign a particular funding source to a particular payment.
  • The intermediate calculation bars include both sides of the displayed activity breakdowns; they are not additional cash flows.
  • Operating cash flow minus cash purchases of property, plant and equipment equals free cash flow: 275,894,000 US dollars minus 115,192,000 US dollars equals 160,702,000 US dollars.
Cloudflare, Inc. (NET) FY2026 YTD Q2 Statement of Cash Flows Sankey chart
Free to share unchanged, with credit to Plicit.ai · CC BY-NC-ND 4.0Download PNG

Newsletter

Get the teardowns by email

Subscribe if you want the public-company teardowns in your inbox when they're released.

Product waitlist

Health Check and Teardown for your own company

A health check uncovers insights of your private books, not a public ticker. Join this list to get notified as soon as we go-live!