0001477333-25-000137
SEC filingCloudflare issued $2B in 2030 Notes, has $3.96B in fair value assets, and $1.98B in remaining performance obligations.
As of June 30, 2025, Cloudflare held $1,518.6 million in cash and cash equivalents and $2,441.1 million in available-for-sale securities, totaling $3,959.7 million in liquid financial assets. Total assets reached $5,562.4 million, while total debt stood at $3,260.5 million (carrying value of convertible notes), resulting in a net cash position of approximately $699.2 million when subtracting total debt from cash and marketable securities. The company recorded $2,441.1 million in available-for-sale securities, composed primarily of U.S. treasury securities ($1,645.2M), corporate bonds ($728.9M), and commercial paper ($243.1M).
The Notes disclose $83.7 million in total undiscounted future payments under operating leases that have not yet commenced, including co-location and bandwidth agreements. As of June 30, 2025, there were no material changes outside the ordinary course of business to non-cancelable purchase commitments. The Notes also highlight $1,976.7 million in remaining performance obligations (RPO), with 66% expected to be recognized as revenue over the next 12 months and the remainder thereafter.
Cloudflare had no share repurchase activity and declared no dividends in the period. In June 2025, the company issued $2.0 billion aggregate principal of 0% Convertible Senior Notes due 2030, receiving net proceeds of $1,971.0 million after discounts and costs. The company also spent $283.4 million on capped call transactions to offset potential dilution. Capital expenditures for property and equipment totaled $145.8 million for the six months ended June 30, 2025, representing 14.7% of revenue. The 2026 Notes ($1,293.75M principal) remain outstanding; the 2025 Notes are fully settled.
The Notes confirm a single operating segment. Geographic revenue breakdown (based on customer billing address) for Q2 2025 shows the United States at 49% ($251.9M), Europe, Middle East, and Africa at 28% ($143.4M), Asia Pacific at 15% ($75.1M), and Other at 8% ($41.8M). No segment-level operating income or margin is disclosed.
CFO of $245.6M significantly exceeded the net loss of $(88.9M), indicating strong cash generation despite GAAP losses. The primary non-cash add-backs were stock-based compensation ($217.9M) and depreciation/amortization ($87.7M). Working capital was a net positive contributor, notably deferred revenue growth of $82.6M. Capital expenditures of $159.4M (65% of CFO) reflect heavy infrastructure investment. Free cash flow of $86.1M was positive, but low relative to the massive financing inflow of $2.0B from the 2030 convertible note issuance and capped call transactions. No share repurchases or dividends were paid. The company's cash balance surged to $1.5B from $154.2M at year-end, providing ample liquidity for operations and growth investments.