NETCloudflare, Inc.

Services-Prepackaged Software

Revenue: $2.2B; 30% YoY
Operating margin: -9.6%; 3.1% YoY
EBITDA: −$17M; 35% YoY
Market cap: $99.2B
Employees: 5,156; $420K revenue each
Net debt / EBITDA: —
AI in 10-K: 5.4; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 3 of 7

TSR below peersYes
3 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$2M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCYes
21% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
6% of assets
Over 40% of assets
Shareholder dissentYes
76% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$420K · 47th pct
Bottom quartile of its SIC industry
Quiet on AINo
5.4 per 10K words · 84th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedNo
$99.2B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$700M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$656M	$975M	$1.3B	$1.7B	$2.2B	30%
Operating income	−$128M	−$201M	−$185M	−$155M	−$207M	34%
Net income	−$260M	−$193M	−$184M	−$79M	−$102M	30%
Operating cash flow	$65M	$124M	$254M	$380M	$603M	59%
Capex	$93M	$144M	$114M	$185M	$316M	71%
Stock-based comp	$90M	$203M	$274M	$338M	$451M	33%
Buybacks	$189K	$3K	$34K	$0	$0

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $700M · 845
Net: −$700M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$61M	$98M	259	258
FY2024	$2M	$7M	142	208
FY2023	$21M	$37M	110	152
FY2022	$600K	−$124M	59	97
FY2021	$400K	$134M	173	135