Cloudflare Raises $2.5 Billion via Convertible Notes Offering
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Cloudflare ( (NET) ) has shared an update.
On August 13, 2026, Cloudflare issued $2.5 billion of 0% Convertible Senior Notes due 2031 in a private Rule 144A placement, with an initial conversion price of about $496.94 per share, a roughly 60% premium to its August 10, 2026 closing price. The notes are senior unsecured obligations with detailed conversion, redemption, and default terms, and rank alongside its existing 2026 and 2030 convertible notes.
Net proceeds were approximately $2.46 billion, of which Cloudflare spent $259.5 million on capped call transactions designed to reduce dilution and potential cash outlays on note conversion, with a cap price initially set at $854.12 per share. The company plans to use the remaining funds for general corporate purposes and also amended its revolving credit agreement to adjust leverage calculations, giving it greater flexibility in managing liquidity and future strategic transactions.
Cloudflare entered the capped call transactions on August 10 and 11, 2026 with various financial institutions, covering the shares underlying the new notes and potentially mitigating shareholder dilution up to the capped level. In parallel, it secured a purchase agreement with Goldman Sachs, Morgan Stanley, and other initial purchasers, who fully exercised an option to buy additional notes, underscoring strong institutional demand for the company’s convertible debt.
The most recent analyst rating on (NET) stock is a Buy
with a $375.00 price target.
To see the full list of analyst forecasts on Cloudflare stock,
see the NET Stock Forecast page.
Spark’s Take on NET Stock
According to Spark, TipRanks’ AI Analyst, NET is a Neutral.
NET scores well on momentum and forward outlook: strong technical trend and a confident earnings call with robust growth and profitability guidance support the stock. The main constraints on the score are financial quality and valuation—ongoing GAAP losses and elevated leverage for a software company, plus a highly unfavorable (negative) P/E and no dividend yield.
To see Spark’s full report on NET stock,
click here.
More about Cloudflare
Cloudflare, Inc. is a U.S.-based technology company listed on the NYSE that operates in the internet infrastructure and security industry. The company provides cloud-based services including content delivery, cybersecurity, and networking solutions, primarily targeting enterprises and other large-scale internet properties that require secure, reliable, and scalable online performance.
Average Trading Volume: 3,739,976
Technical Sentiment Signal: Buy
Current Market Cap: $109.3B
See more insights into NET stock on TipRanks’ Stock Analysis page.
