Company: NET
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001477333-25-000141
Chunk: 343

Company: Cloudflare, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 343
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2,676 Total$18,411 

Note 6. Leases

The Company's lease portfolio consists of real estate and co-location agreements in the United States and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 9.0 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 10.1 years. All of the Company's leases are classified as operating leases.The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands)(in thousands)Operating lease cost$17,310 $12,500 $47,182 $35,624 Total lease cost$17,310 $12,500 $47,182 $35,624 

22

Variable lease cost, short-term lease cost, and sublease income for the three and nine months ended September 30, 2025 and September 30, 2024 were not material. As of September 30, 2025, the Company had $75.0 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between October 2025 and February 2027 and have an average lease term of 4.4 years.As of September 30, 2025, the weighted-average remaining term of the Company’s operating leases was 4.8 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.8%.Maturities of the operating lease liabilities as of September 30, 2025 are as follows:September 30, 2025(in thousands)2025 (remaining three months)$22,910 202667,873 202761,392 202839,388 202927,020 Thereafter48,201 Total lease payments$266,784 Less: Imputed interest$(28,031)Total operating lease liabilities$238,753 

Note 7. Financing Arrangements

2030 Convertible Senior NotesIn June 2025, the Company issued $2,000.0 million aggregate principal amount of 0% Convertible Senior Notes due 2030