Cloudflare, Inc. (NET) Form 10-Q — Aug 6, 2026

$NETForm 10-QFiled Aug 6, 2026, 4:24 PM ET0001477333-26-000054Original filing

Cloudflare's Q2 2026 revenue rose to $696.1 million, up roughly 36% from $512.3 million a year earlier, with six-month revenue of $1.34 billion and large customers (over $100,000 annualized revenue) growing to 4,698 from 3,712. The quarter was dominated by a restructuring: the plan announced May 7, 2026 cut approximately 20% of the workforce as Cloudflare shifts to an 'agentic AI-first' operating model, driving $150.7 million of charges in Q2 out of an estimated total of up to $165 million.

Key figures

Revenue: 696061000
Revenue Yoy: ~35.9% YoY (Q2 2026 vs. $512.3M in Q2 2025); ~34.7% YoY for the six-month period ($1,335.8M vs. $991.4M)
Total Assets: 6474127000
Cash Position: 1663773000
Workforce reduction: approximately 20% (announced May 7, 2026)
Gross margin q2 2026: 72% (down from 75% a year ago)
Convertible notes 2026: $1,293.8M principal 0% notes maturing August 15, 2026 (classified current)
Convertible notes 2030: $2,000.0M principal 0% notes maturing June 15, 2030
Free cash flow q2 2026: 56384000
Revolving credit facility: $400.0 million senior secured facility, undrawn as of June 30, 2026
Rpo next 12 months percent: 64%
Non gaap operating margin q2: 14%
Restructuring total estimate: up to $165 million ($125M cash severance, $35M stock-based compensation, $5M other)
Restructuring charges q2 2026: 150693000
Free cash flow six months 2026: 140458000
Large paying customers over 100k: 4,698 vs. 3,712 a year ago
Remaining performance obligations: 2732000000
Non gaap income from operations q2: 96111000
Voidzero acquisition consideration: $164.2 million ($98.7M stock + $65.5M cash net of $11.3M cash acquired)
Operating cash flow six months 2026: 275894000
Replicate acquisition consideration: $57.4 million cash (December 2025)
If converted value excess 2026 notes: $364.7 million above principal at $245.28 closing price (June 30, 2026)

Price after filing

1 day: -0.4%7 days: +9.8%30 days: -7.4%

Close on the filing date to close N calendar days later (from $301.33). Historical, not a forecast.

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