Cloudflare Inc.

"The ongoing evolution of our business to an agentic AI-first operating model, including our use of artificial intelligence (AI) and other automation tools and resources and our related recently announced workforce reduction, may not achieve the benefits we expect in the time we expect, if at all, and could adversely affect our business, financial condition, and results of operations."

"On April 9, 2026, we received a No Action Letter from OFAC, stating that OFAC was closing its review without penalties or further action."

"As of March 31, 2026, the Company expected to recognize 64% of its remaining performance obligations as revenue over the next 12 months with the remainder recognized thereafter."

"Our headcount grew from 3,682 employees as of December 31, 2023, to 4,263 employees as of December 31, 2024, to 5,156 employees as of December 31, 2025."

"We expect significant component shortages that may impact our server supply chain during the current year, particularly in memory products such as Dual In-line Memory Modules (DIMMs), as well as enterprise Solid State Drives (SSDs), Central Processing Units (CPUs), and high-capacity Hard Disk Drives (HDDs)."

"A significant part of our business strategy is to focus on long-term growth and to reinvest our cash flow from operations into our business, including the expansion of our global network, the development of new products and features, the expansion of our global workforce, and the potential acquisition of complementary businesses."

"The Company is not aware of any specific event or circumstance that would require an update to its estimates or assumptions or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q."

"As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,143.1 million. As of September 30, 2025, the Company expected to recognize 64% of its remaining performance obligations as revenue over the next 12 months with the remainder recognized thereafter."

"For the nine months ended September 30, 2025, the Company recognized revenue of $433.5 million, that was included in the corresponding contract liability balance at the beginning of the period presented."

"We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects."

"Due in part to the conflicts in the Middle East and Ukraine, the potential worsening and expansion of such conflicts, and other macroeconomic and geopolitical conditions, there is ongoing uncertainty and significant disruption in the global economy and financial markets."

"The Company is not aware of any specific event or circumstance that would require an update to its estimates or assumptions or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q."

"As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,864.2 million. As of March 31, 2025, the Company expected to recognize 66% of its remaining performance obligations as revenue over the next 12 months"

"The voluntary self-disclosure to OFAC remains under review. If the Company is found to be in violation of U.S. economic sanctions or export control laws, it could result in substantial fines and penalties"

"Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make"

"A substantial majority of our revenue in the year ended December 31, 2024 was from contracted customers that were acquired through our inside and field sales teams, and we expect our sales teams to continue generating the majority of our revenue for the foreseeable future."

"Since the first half of 2022, however, we have experienced periodic lengthening of our average sales cycle for our new and existing large customers, and the lengthening of our sales cycle to our large customers could continue in the future."

"Our growth has placed, and future growth will continue to place, a significant strain on our management and our administrative, operational, and financial infrastructure."

"The Company's network serves as a scalable, easy-to-use, unified control plane to deliver security, performance, and reliability across on-premises, hybrid, cloud, and software-as-a-service (SaaS) applications."

"The Company has submitted to OFAC and to the Bureau of Industry and Security a voluntary self-disclosure concerning potential violations...the voluntary self-disclosure to OFAC remains under review."

"For the nine months ended September 30, 2024, the Company recognized revenue of $330.5 million, that was included in the corresponding contract liability balance at the beginning of the periods presented."

"We have a history of net losses and may not be able to achieve or sustain profitability in the future."

"The Hamas-Israel and Russia-Ukraine conflicts and other areas of geopolitical tension around the world...may materially adversely affect our customers, vendors, and partners."

"As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,421.0 million, with 69% expected to be recognized as revenue over the next 12 months."

"Our business model benefits from our ability to serve the needs of all customers ranging from individual developers to the largest enterprises, in a cost-effective manner."

"Given the large customer base we have and the immense amount of Internet traffic that we manage, we are able to negotiate mutually beneficial agreements with Internet service providers (ISPs) that allow us to place our equipment directly in their data centers."

"The Company submitted to OFAC and to the Bureau of Industry and Security a voluntary self-disclosure concerning potential violations, and the Company has submitted a voluntary self-disclosure to the Census Bureau regarding potential violations of the Foreign Trade Regulations."

"The Company's business depends on the ability to retain and upgrade paying customers, expand the numbers of products sold to paying customers, and convert free customers to paying customers."

"The Hamas-Israel and Russia-Ukraine conflicts, other areas of geopolitical tension around the world, or the worsening of those conflicts or tensions, and any related challenging macroeconomic conditions globally may materially adversely affect our customers, vendors, and partners."

"Remaining performance obligations as of September 30, 2023, the aggregate amount was $1,083.0 million, with 75% expected to be recognized as revenue over the next 12 months."

"As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,036.2 million"

"In May 2023, the Company repurchased $123.0 million principal amount of the 2025 Notes for $172.7 million in cash"

"For the six months ended June 30, 2023, the Company recognized revenue of $169.7 million that was included in the corresponding contract liability balance at the beginning of the periods presented"