Company: NET
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001477333-25-000137
Chunk: 400

Company: Cloudflare, Inc.
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 8
Chunk 400
---
 7.1 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 8.5 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 June 30,Six Months Ended June 30,2025202420252024(in thousands)(in thousands)Operating lease cost$15,215 $11,261 $29,872 $23,124 Total lease cost$15,215 $11,261 $29,872 $23,124 

22

Variable lease cost, short-term lease cost, and sublease income for the three and six months ended June 30, 2025 and June 30, 2024 were not material. As of June 30, 2025, the Company had $83.7 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 July 2025 and February 2027 and have an average lease term of 4.4 years.As of June 30, 2025, the weighted-average remaining term of the Company’s operating leases was 4.1 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.6%.Maturities of the operating lease liabilities as of June 30, 2025 are as follows:June 30, 2025(in thousands)2025 (remaining six months)$33,908 202659,325 202754,088 202832,747 202920,973 Thereafter18,989 Total lease payments$220,030 Less: Imputed interest$(18,423)Total operating lease liabilities$201,607 

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 (the 2030 Notes). The total proceeds from the issuance of the 2030 Notes, net of initial purchaser discounts and commissions and debt issuance costs, were $1,971.0 million.The 2030 Notes are senior unsecured obligations of the Company and will