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CLOUDFLARE Investor Presentation as of June 30 , 2026 © 2026 Cloudflare , Inc.
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© 2026 Cloudflare, Inc. This presentation has been prepared by Cloudflare, Inc. (“Cloudflareˮ) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise, or representation by the presenter or Cloudflare or any officer, director, employee, agent, or advisor of Cloudflare. This presentation does not purport to be all-inclusive or to contain all of the information you may desire. Except as otherwise set forth in this presentation, information provided in this presentation speaks only as of the date set forth on the cover page of this presentation. This presentation and the accompanying oral commentary contain express and implied “forward-lookingˮ statements within the meaning of the federal securities laws, and these statements involve substantial risks, assumptions, and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, the current and planned development and functionality of our products, demand for our products, our ability to effectively sell our existing and new products, our ability to attract and retain new customers (including new large customers), expectations of future operating results or financial performance, business strategy and plans, the impact of adverse macroeconomic conditions, the impact of the conflicts in the Middle East and Ukraine and other areas of geopolitical tension around the world, or any potential worsening or expansion of those conflicts or tensions, other geopolitical events such as elections and other governmental changes, and threats of tariffs and other impediments to cross-border trade, market volatility, size and growth opportunities, the calculation of certain of our key financial and operating metrics, capital expenditures, plans for future operations, competitive position, rapidly evolving technological developments, including advancements in AI, and strategic relationships, the plan to further accelerate our evolution to an agentic AI-first operating model and align our organizational structure with this new operating model, the estimated reduction of our current workforce, the estimated charges in connection with this plan and the anticipated timing thereof, and the expected benefits from this plan and related actions, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as “may,ˮ “will,ˮ “should,ˮ “expects,ˮ “plans,ˮ “anticipates,ˮ “could,ˮ “intends,ˮ “target,ˮ “projects,ˮ “contemplates,ˮ “believes,ˮ “estimates,ˮ “predicts,ˮ “potential,ˮ or “continue,ˮ or the negative of these terms or other comparable terminology. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Actual results could differ materially from our current expectations as a result of many factors, including those identified in the “Risk Factorsˮ section of our filings made with the Securities and Exchange Commission ("SEC"). You can locate these reports on our investor relations website (https://cloudflare.NET) or on the SEC website (www.sec.gov). If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements included in this presentation represent our views only as of the date of this presentation, and except as required by law, we assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations. In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAPˮ), this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. See the appendix for a reconciliation of those measures to the most directly comparable GAAP measures. This presentation and the accompanying oral commentary may contain statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business and products. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the network and products of Cloudflare. 2 Safe Harbor
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Company Overview © 2026 Cloudflare, Inc. 3
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Mission: Help Build A Better Internet © 2026 Cloudflare, Inc. 4
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© 2026 Cloudflare, Inc. Q2 2025 Cyber Threats Blocked per Day Employees Cities in Network 335 Revenue from Outside of the U.S. 49% Revenue from Large Customers 73% Large Customers 36% 29% CAGR Total Revenue $M Large Customers > $100,000 Annualized Revenue 24% CAGR $1,297 $1,670 $2,168 20252023 2024 3,046 3,712 4,698 Q2 2026 $512 $696 Cloudflare At A Glance Q2 2025 1 Note: Unless indicated otherwise, all data in orange shaded area of slide are as of June 30, 2026 except revenue from Large Customers and Non-GAAP gross margin are for three months ended June 30, 2026. Large Customers data are as of June 30 of their respective years. See Appendix for GAAP financial measures and GAAP to Non-GAAP reconciliation, and Large Customers definition. Q2 2024 Q2 2026 4,600 4,700 310B © 2026 Cloudflare, Inc. 5
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MEDIA SOFTWARE & SAAS FINANCE & FINTECH GAMING & GAMBLING HEALTHCARE RETAIL & ECOMMERCE The Economy Runs On Cloudflare 6© 2026 Cloudflare, Inc.
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One programmable network More effective by simplifying connectivity and policy management More productive by ensuring fast, reliable, and consistent user experiences everywhere More agile by innovating rapidly to meet evolving security requirements One composable platform Unified security for external-facing systems and internal resources Any-to-any connectivity for users, apps, branches, data centers, & clouds Flexibility to customize the platform with full-stack developer tools 7 Cloudflare Is Built For Whatʼs Next © 2026 Cloudflare, Inc.
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© 2026 Cloudflare, Inc. 95% of the world’s Internet-connected population is within ~50 ms of a Cloudflare data center 27% year-over-year Large Customer growth in Q2'26 Note: Figures as of June 30, 2026. See Appendix for “Paying Customersˮ and “Large Customersˮ definitions. 4,600 large customers Cloudflare city (as of Q2 2026 45% of the Fortune 500 are Paying Customers as of June 30, 2026 335 cities in 125+ countries, including mainland China 13,000 networks directly connect to Cloudflare, including ISPs, cloud providers, and large enterprises 534 Tbps of network capacity and growing A Single, Programmable Network Unlike Any Other 8
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© 2026 Cloudflare, Inc. Every Cloudflare service Built to run over every Cloudflare server In every Cloudflare data center 9 Across 335+ cities . in 125+ countries A Single, Composable Platform Of Internet-Native Services Note: Figures as of June 30, 2026.
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© 2026 Cloudflare, Inc. Public CloudOn-Premises Point Solutions • Complex and expensive • Not suited to address cloud-based and hybrid deployments • Architected to deliver single point / more narrow product portfolio • Customers are increasingly looking for an integrated platform offering security, performance, and reliability through a single vendor • Inability to serve as a unified control plane across on-premise, cloud, hybrid, and SaaS infrastructure • Customer lock-in and competition concerns Our Favorable Competitive Position 10 Limitations
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© 2026 Cloudflare, Inc. Our Product & Network Flywheels Drive Our Business Product Ease of use Better Products Serve Everyone Network Serverless Architecture Increased Efficiency Helping Build a Better Internet Global Scale 11
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© 2026 Cloudflare, Inc. Connect, Protect, & Build Everywhere Cloudflare Developer Platform Build the next-generation of applications Cloudflare Network Services Cloudflare Zero Trust Services One Platform One Network Cloudflare Application Services Connect and protect external-facing systems Connect and protect internal-facing systems 12
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© 2026 Cloudflare, Inc. Relentless Focus On Innovation Magic WAN Workers Analytics Engine 2018 DNS Data Localization Gateway Area 1 Email Security Rate Limiting 2014 2022 2010 Resolver AI Gateway Vectorize Workers AI D1 Privacy Gateway Magic WAN Connector Cache Reserve Turnstile Queues R2 Storage Workers Logpush Threat Intel Static IPs for Spectrum CASB DLP Argo for Packets Magic Network Monitoring Page Shield Magic Firewall Waiting Room Ethereum Gateway Custom Domain Protection Advanced Certification Manager Gateway DNS Zaraz Images Web Analytics Durable Objects Browser Isolation Payload Inspection API Shield Pages Automatic Platform Optimization Regional Services Image Resizing Magic Transit Bot Management Registrar IPFS Gateway mTLs Stream Workers KV Workers Domains Spectrum Argo DDoS Access Load Balancing SSL for SaaS DNS Firewall Page Rules CDN SSL WAF China Network Calls 2024 Note: Products represented are revenue generating and generally available. 13
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© 2026 Cloudflare, Inc. ● VPN ● Content Filtering ● Remote Browser Isolation ● Data Loss Prevention ● Privileged Access Management ● Network Analytics ● Email Security ● CASB ● Cloud Security Posture Management Cloudflare Zero Trust Services● Application Delivery Controllers ● CDN ● DDoS ● Web Application Firewall ● Bot Management ● Anti-Fraud ● Threat Intelligence ● Securing AI Cloudflare Developer Services ● Application Platform ● Object Storage ● AI & Agent Builder Platforms ● Inference ● AI Observability ● Network Firewall ● MPLS ● SDWAN ● Cloud Interconnect ● Intrusion Detection & Prevention ● Multi-Cloud Networking 2018 2026 2027 2029 $384B $238B Cloudflare Application Services Cloudflare Network Services $282B 2028 $329B Areas for Potential Incremental Growth Act IV Internet of Things 5G Cellular Database $32B Cloudflare One1 Note: Calculations performed by Cloudflare. Graphic created by Cloudflare based on Gartner® research. Figures reflect the markets addressed by our current product offerings. For full citation details on the Gartner forecasts used in Cloudflareʼs estimations, see the Appendix. 14 A Consistently Expanding TAM Payments
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AI and agents change everything © 2026 Cloudflare, Inc. 15
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50% of traffic on Cloudflareʼs network is now non-human The Web Is Shifting 16© 2026 Cloudflare, Inc.
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© 2026 Cloudflare, Inc. The Agentic Surge Is Real AI Agent Requests (in billions per day) 1,700% INCREASE in daily AI agent requests on Cloudflareʼs network over one year 17
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Secure workforce use of AI Govern AI agentsCategory Cloudflare products Build AI securely Cloudflare One Remote MCP servers, Access with MCP Server Portals Workers AI, AI Search, AI Gateway, Agents SDK, Dynamic Workers, Containers, Artifacts Protect AI-powered applications Application Security (inc. AI Security for Apps) Other major vendors Specialized startups SASE / SSE App Security / WAAP Hyperscalers Developer-focused Hyperscalers Complementary vendors We offer AI security and AI infrastructure products — all on one platform and one network. Cloudflare advantages Comprehensive AI lifecycle protection Model-agnostic deployment Future-proof global architecture For CIOs & CISOs For CTOs & Developers Cloudflare Is The Only Vendor To Help Customers Connect, Protect, & Build AI 18© 2026 Cloudflare, Inc.
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Cloudflare is the fastest, most secure, and most cost-effective place to build, deploy, and scale: Agents The code they write& © 2026 Cloudflare, Inc. 19
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“The best way we know how to do this is by building primitive services. … Primitives are the raw parts or the most foundational-level building blocks for software developers. … And, over the last 20 years, primitives have been at the heart of how weʼve innovated quickly. … Our AWS primitive services were designed from the start to be different. … Primitives, done well, rapidly accelerate buildersʼ ability to innovate. … a good compass is to pick real customer problems you’re trying to solve.“ Andy Jassy Was Right About Primitives… © 2026 Cloudflare, Inc. 20
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Durable Objects & Artifacts Isolates Workers) Workflows S3 EC2 SQS 2006 🡒 → 2026 → …But The Agentic Cloud Needs New Primitives © 2026 Cloudflare, Inc. 21
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December 2024 3+ million April 2024 2+ million June 2024 2.4+ million May 2022 450,000 November 2022 1+ million 2020 2021 2022 2023 20242019 November 2021 350,000 Note: Developer count represents active developers, defined as the unique count of all users with activity on Developer Platform products in the last year. 2025 December 2025 4.5+ million 7 .4 MILLION developers on the Cloudflare platform June 2026 7.4+ million 2026 March 2026 5.5+ million 22© 2026 Cloudflare, Inc. Developers Are “Getting Itˮ
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Mobile-native businesses were powered by the cloud Agent-native businesses are powered by Cloudflare ⟶ ⟶ ⟶ ⟶ ⟶ ⟶ ⟶ © 2026 Cloudflare, Inc. 23
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Act I + Act III = Act IV Connect & Protect Build Agentic Internet © 2026 Cloudflare, Inc. 24
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Supply Technical Capabilities Demand Cloudflare is positioned to provide the “control planeˮ for the Agentic Internet Reliable scarcity Analytics Value discovery Neutrality / a level playing field Streamlined workflows A payment system Transparency • Control • Optimize • Charge Bot Management Filter and manage automated traffic Web Bot Auth Authenticate legitimate bots Content optimization Transform content to Markdown for Agents Optimize • Behave • Access • Discover Infrastructure AI Gateway, Workers, & Workers AI Developer Tools Agents SDK, MCP, AI Search Visualization Browser Rendering for Agents b u i d © 2026 Cloudflare, Inc. 25
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Breadth 20% of the Internet runs on Cloudflare Depth 37% of the top 10,000 sites run on Cloudflare Importance 45% of the Fortune 500 Uniqueness The worldʼs largest developer communities run on Cloudflare The Internet Runs On Cloudflare 26© 2026 Cloudflare, Inc. Note: All figures as of June 30, 2026.
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Top 50 generative AI Web products, by unique monthly visits Source: Top 50 Generative AI Web Products based on a16z Consumer report as of March 2026. This includes generative AI Web products only and does not include mobile apps. Cloudflare customers as of Q4 2025. 78% run on Cloudflare Leading AI Companies Already Run On Cloudflare Too 27© 2026 Cloudflare, Inc.
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Reliable scarcity Analytics A payment system Neutrality / a level playing field Streamlined workflows Value discovery Crisis Response Technical Capabilities Required For A Functioning Market
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The economic surface expands from content access to recommendations, payments, fulfillment, and audit. Access fees Verification Gateway routing Payment facilitation The strategic shift: from protecting websites from bots to monetizing trusted automated demand Build deploy + configure Discover crawler access Recommend ranking + context Act reserve or buy Verify identity + policy Settle payment + audit © 2026 Cloudflare, Inc. 29 Every Agent Request Can Become A Metered Event
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30+ trillion Average transactions per day 500+ million transactions per second Source: Largest payment network figures per its public filings and technology disclosures. Each transaction defined as a payment authorized, cleared and settled. Cloudflare figures per internal telemetry, June 2026. A Cloudflare transaction is a discrete unit of work — an HTTP request, DNS query, Workers call, or DDoS check. 900 million Average transactions per day 100,000 transactions per second LARGEST PAYMENT NETWORK 30© 2026 Cloudflare, Inc.
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Cloudflare was built for this moment. © 2026 Cloudflare, Inc. 31
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Financial Overview © 2026 Cloudflare, Inc. 32
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© 2026 Cloudflare, Inc. High growth, predominantly subscription revenue model with attractive unit economics Widely distributed global cloud platform Disrupting a large and growing total addressable market Expansive product portfolio; open to developer innovation Highly efficient business model and low fundamental cost structure 33 Our Business Model
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© 2026 Cloudflare, Inc. 34 Key Financial Highlights Q2'26 Y/Y Revenue Growth Large Addressable Market in 2026 Large Customers Q2'26 Non-GAAP Gross Margin $238B 36% 73% 4,600 Note: Total Addressable Market represents 2026 expected spend from our analysis based on Gartner market data. Year-over-year revenue growth and Non-GAAP gross margin are as of the three months ended June 30, 2026. Large Customers are as of June 30, 2026. See Appendix for GAAP financial measures and GAAP to Non-GAAP reconciliation, and how we define “Large Customers.ˮ
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© 2026 Cloudflare, Inc. 36% Total Revenue $M Investment in enterprise sales Large customer momentum Land and expand strategy drives growth across cohorts Strong penetration across the entire product portfolio Track Record Of Delivering Strong Revenue Growth $431 $656 $975 2020 2021 2022 2023 $1,297 $1,670 2024 $2,168 2025 38% CAGR $512 Q2 2025 $696 Q2 2026 35
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© 2026 Cloudflare, Inc. Rapid Customer Growth Large Customers $100,000 Annualized Revenue Q2 2023 Q2 2024 Q2 2026 4,698 3,046 2,352 28% CAGR Q2 2025 3,712 Note: Large Customer data are as of three months ended June 30 of their respective years. See the Appendix for how we define “Large Customers.ˮ 64% revenue 67% revenue 71% revenue 73% revenue Q2 2022 1,749 60% revenue 36
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© 2026 Cloudflare, Inc. 118% Q2'26 120% Q2'25 Q3'25 114% Q4'25 119% Q1'26 Strong Dollar-Based Net Retention Note: See the Appendix for how we define “Dollar-Based Net Retention.ˮ DNR includes all paying customers Continuous innovation offers expansion opportunities Large customers are a long-term tailwind to DNR 120% 37
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© 2026 Cloudflare, Inc. Robust Unit Economics Unit Economic Margin by Component Attrition Whatʼs the expected lifetime revenue from $1 ARR? Lifetime Revenue LTR = $1 ARR / attrition rate Cost to Book CTB Cost to Serve CTS How much does it “cost to serveˮ the lifetime revenue? CTS = Delivery, R&D, Support & G&A cost as % of ARR Note: Unit economic margin in this and subsequent slides are calculations based on assumptions derived from Cloudflareʼs historical operations regarding unit lifetime revenue and subscription economics, including cost to book, cost to serve, and attrition dynamics. Unit economic margin is not operating margin. The calculations charted are as of fourth quarter of the respective years. What does it “cost to bookˮ $1 of incremental ARR? CTB Sales & Marketing cost per dollar of incremental ARR Unit Economic Margin What is the economic margin created by $1 ARR? Unit Economic Margin = LTR CTB - CTS LTR ] / LTR 44% Unit Economic Margin 38
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© 2026 Cloudflare, Inc. Non-GAAP Operating Expenses & Operating Margin % of Revenue) Note: See the Appendix for GAAP to non-GAAP reconciliation. 2026E is based on full-year mid-point guidance provided by Cloudflare on August 6, 2026. This forward looking guidance speaks only as of such date and the inclusion of such guidance in this presentation should not be interpreted as a confirmation or affirmation of such guidance as of any other date. Except as required by law, we assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations. S&M G&AR&DCOGS 20% 45% 21% 15% 19% 42% 22% 14% 17% 40% 22% 12% 16% 38% 21% 11% 1% 9% 2021 2022 2023 2024 2025 14% 2026E 16% 24% 36% 16% 10% Operating Margin 4% 14% Elasticity of & Leverage In Our Operating Model 39
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© 2026 Cloudflare, Inc. ● Issued 2026 Notes: Raised $790 million in our Convertible Note Offering due 2026 that priced on August 10, 2021, net of the repurchase of 2025 notes, issuance costs, and a capped call with respect to the 2026 convertible notes. The Notes will mature on August 15, 2026. ● Revolving Credit Facility: Executed $400 million senior secured revolving credit facility on May 21, 2024. The Borrowing may be used for working capital and general corporate purposes. ● Settled 2025 Capped Calls: Received $309.6M in cash in May 2025 upon the settlement of the 2025 Capped Calls. ● Issued 2030 Notes: Raised $1.97B in our Convertible Notes Offering due 2030 that priced on June 12, 2025, net of issuance costs, and a capped call with respect to the 2030 convertible notes. Operating Cash Flow & Margin Strong Cash Position 40 Cash Balance Note: Cash, Cash Equiv., & AFS are as of last day of respective quarters. Operating Cash Flow & Margin are as of three months ended of respective quarters.
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© 2026 Cloudflare, Inc. FY 2026 Network Capex as % of Revenue FY 2026Q3 2026 Revenue Y/Y Growth Operating Income Operating Margin EPS Revenue Y/Y Growth Operating Income Operating Margin EPS 14% 15% Note: These forward looking statements were provided by us on August 6, 2026. This forward looking guidance speaks only as of such date and the inclusion of such guidance in this presentation should not be interpreted as a confirmation or affirmation of such guidance as of any other date. Except as required by law, we assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations. $2,864.0 $2,870.0 32% $443.0 $445.0 1516% $1.25 $1.26 $736.0 $737 .0 31% $129.0 $130.0 18% $0.34 41 Guidance
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2027 Since IPO 2028 40% 50% 50% + Our “Rule Ofˮ North Star… 4242© 2026 Cloudflare, Inc.
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2022 2023 2024 2025 Long-Term Model Long-Term Model Gross Margin 78 % 78 % 79 % 76 % 75% 77% 70% 77% Sales & Marketing % of revenue) 42 % 40 % 38 % 36 % 27% 29% 23% 25% Research & Development % of revenue) 19 % 17 % 16 % 16 % 18% 20% 15% 17% General & Administrative % of revenue) 14 % 12 % 11 % 10 % 8% 10% 3% 5% Operating Margin 4 % 9 % 14 % 14 % 20% 30% Free Cash Flow Margin 4 % 9 % 10 % 12 % 25% 30% 35% Prior Updated Long-Term Operating Model 43© 2026 Cloudflare, Inc.
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Achieve GAAP profitability by 2028 latest 44© 2026 Cloudflare, Inc.
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Appendix © 2026 Cloudflare, Inc. 45
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© 2026 Cloudflare, Inc. GAAP to Non-GAAP Reconciliation 46
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© 2026 Cloudflare, Inc. 47 Note: See next slide for definitions of Paying Customers (> $100,000 Annualized Revenue) and Dollar-Based Net Retention Rate. Dollar-Based Net Retention Rate Paying Customers (> $100,000 Annualized Revenue) Appendix Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 3,265 3,497 3,527 3,712 4,009 4,298 4,416 4,698 y-y growth 28% 27% 23% 22% 23% 23% 25% 27% % of revenue 67% 69% 69% 71% 73% 73% 72% 73% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 110% 111% 111% 114% 119% 120% 118% 120% Key Business Metrics
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© 2026 Cloudflare, Inc. 48 Appendix Paying Customers. We believe our ability to grow the number of paying customers on our network provides a key indicator of growth of our business and our future business opportunities. We define a paying customer at the end of the quarter as a person or entity who has generated revenue and has an active contract with us or one of our partners during such quarter, excluding (i) customers that were not acquired through ordinary sales channels, (ii) customers using only our registrar product, and (iii) customers using our consumer applications, such as 1.1.1.1 DNS and 1.1.1.1 with WARP, which agreements and customers together represent an insignificant amount of our revenue. An entity is defined as a company, a government institution, a non-profit organization, or a distinct business unit of a large company. An active contract is defined as a customer relationship for which we have provided services during the quarter. Paying Customers (> $100,000 Annualized Revenue). While we continue to grow customers across all sizes, over time, our large customers have contributed an increasing share of our revenue. We view the number of our paying customers with Annualized Revenue greater than $100,000 as indicative of our penetration within large enterprise accounts. To measure Annualized Revenue at the end of a quarter, we take the sum of revenue for each paying customer in the quarter and multiply that amount by four. For example, if we signed a new paying customer that generated $1,800 of revenue in a quarter, that customer would account for $7,200 of Annualized Revenue for that year. Our Annualized Revenue calculation excludes (i) agreements that were not entered into through ordinary sales channels, (ii) revenue generated from customers using only our registrar product, and (iii) customers using our consumer applications, such as 1.1.1.1 DNS and 1.1.1.1 with WARP, which agreements and customers together represent an insignificant amount of our revenue. Our Annualized Revenue metric also includes any usage charges by a customer during a period. As a result, Annualized Revenue may be higher than actual revenue over the course of the year. Dollar-Based Net Retention Rate. Our ability to maintain long-term revenue growth and achieve profitability is dependent on our ability to retain and grow revenue generated from our existing paying customers. We believe that we will achieve these objectives by continuing to focus on customer loyalty and adding additional products and functionality to our network. Our dollar-based net retention rate is a key way we measure our performance in these areas. Dollar-based net retention rate measures our ability to retain and expand recurring revenue from existing customers. To calculate dollar-based net retention rate for a quarter, we compare the Annualized Revenue from paying customers four quarters prior to the Annualized Revenue from the same set of customers in the most recent quarter. Our dollar-based net retention rate includes expansion and is net of contraction and attrition, but excludes Annualized Revenue from new customers in the current period. Our dollar-based net retention rate excludes professional services and the benefit of free customers that upgrade to a paid subscription between the prior and current periods, even though this is an important source of incremental growth. We believe this provides a more meaningful representation of our ability to add incremental business from existing paying customers as they renew and expand their contracts. Total Addressable Market. Total Addressable Market figures are Cloudflare estimates based on Gartner market forecasts and include the following Gartner sources: 1 Gartner, Forecast: Enterprise Network Equipment, Worldwide, 20242030, 1Q26, Vivek Tiwari, Christian Canales, Naresh Singh, 3/27/2026 2 Gartner, Forecast Analysis: Edge Distribution Platforms, Worldwide, 2025, Brandon Medford, Jimmy Chuang, 1/26/2026 3 Gartner, Forecast: Information Security, Worldwide, 20242030, 1Q26, Shailendra Upadhyay, Christian Canales, Ruggero Contu, Frank Marsala, Rahul Yadav, 3/26/2026 4 Gartner, Forecast: IT Operations Management Software, Worldwide, 20222028, 2Q24 Update, Shailendra Upadhyay, Kanchi Bindal, Colin Fletcher, 10/16/2024 5 Gartner, Forecast: Communications Services, Worldwide, 20242030, 1Q26, Grigory Betskov, Gaspar Valdivia, Khurram Shahzad, 3/26/2026 6 Gartner, Forecast Analysis: Communications Platform as a Service, Worldwide, Lisa Unden-Farboud, Arunasree Cheparthi, 6/6/2025 7 Gartner, Forecast: Enterprise Infrastructure Software, Worldwide, 20242030, 1Q26, Arunasree Cheparthi, Lisa Unden-Farboud, Robin Schumacher, Colin Fletcher, Sharat Menon, Kelli Smith, Saikat Ray, Nicholas Carter, Arthur Villa, Christian Canales, Brandon Medford, Amarendra ., Shailendra Upadhyay, 3/25/2026 8 Gartner, Forecast: AI Spending, Worldwide, 20242029, 4Q25, Kay Arnott, Amarendra ., Adrian O'Connell, Hardeep Singh, Arunasree Cheparthi, Colleen Graham, Ranjit Atwal, Naresh Singh, Shailendra Upadhyay, Jon Erensen, Peter Middleton, 12/19/2025 9 Gartner, Forecast Analysis: AIOptimized IaaS, Hardeep Singh, Colleen Graham, 7/15/2025. GARTNER is a trademark of Gartner, Inc. and/or its affiliates. Definitions