Cloudflare Inc. (NET) 10-K Red Flags
Risk signals extracted deterministically from Cloudflare Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (13)
- Gross margin compression: Gross margin contracted +2.8%pp (from 77.3% to 74.5%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Restatement of financial statements: The term "restatement of" "previously issued" appears in 5 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +43.2% to $684.2M, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- R&D intensity declining: R&D as % of revenue fell from 25.2% to 23.6%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- Endogenous analysis: 3 risk signal(s) detected versus 1 positive signal(s). The balance of evidence suggests elevated filing-specific risk that warrants monitoring in subsequent filings.
- 6 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Ongoing high-severity risk language: Material weakness in internal controls, Restatement of financial statements.
- Composite risk: Elevated.
- Liquidity current ratio 1.82 (adequate).
- Gross margin compression: Gross margin contracted +2.8%pp (from 77.3% to 74.5%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
Filings & ownership
- Latest annual report (10-K) filed Feb 26, 2026.
- Latest quarterly report (10-Q) filed Aug 6, 2026.
- 4 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Cloudflare Inc.; broad institutional reporting.
- Recent filers include SYMMETRY PEAK MANAGEMENT LLC, Sunstone Asset Management, LP, Skaana Management L.P..
- 20 recent 13G passive institutional ownership notices.
Full NET analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
View full report →Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.