Cloudflare, Inc.
NET Technology Software Infrastructure
Cloudflare, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.2 billion, up 29.8% from fiscal 2024. Revenue growth for five consecutive years, operating cash flow growth for five.
Follow NET
Cloudflare, Inc. (NET) Altman Z-score
Cloudflare, Inc.'s Altman Z-score for fiscal 2025 is 9.43, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 9.43 | (0.77) |
| FY2024 | 10.20 | 1.51 |
| FY2023 | 8.69 | 3.83 |
| FY2022 | 4.86 | (11.47) |
| FY2021 | 16.33 | (8.41) |
| FY2020 | 24.74 | 10.19 |
| FY2019 | 14.55 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.38 | — | 0.46 | |
| Retained earnings / total assets | (0.20) | — | −0.28 | |
| EBIT / total assets | (0.03) | — | −0.11 | |
| Market value of equity / total liabilities | 15.01 | — | 9.00 | |
| Sales / total assets | 0.36 | — | 0.36 | |
| Altman Z-score | Safe zone | 9.43 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.95 | ||
Z and Z″ put Cloudflare, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| CRWD CrowdStrike compare | 10.6× |
| NET Cloudflare, Inc. | 9.4× |
| PANW Palo Alto Networks, Inc. compare | 7.4× |
| TWLO Twilio Inc. compare | 6.4× |
| FTNT Fortinet, Inc. compare | 5.3× |
| SNPS Synopsys, Inc. compare | 2.8× |
| XYZ Block, Inc. compare | 2.6× |
| NBIS Nebius Group N.V. compare | 2.1× |
| CRWV CoreWeave Inc. compare | 0.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets