Company: NET
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001477333-25-000082
Chunk: 336

Company: Cloudflare, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 336
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2025 and March 31, 2024 were not material. As of March 31, 2025, the Company had $51.8 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 April 2025 and July 2026 and have an average lease term of 4.3 years.As of March 31, 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 4.8%.Maturities of the operating lease liabilities as of March 31, 2025 are as follows:March 31, 2025(in thousands)2025 (remaining nine months)$46,648 202652,460 202747,970 202826,506 202916,575 Thereafter15,715 Total lease payments$205,874 Less: Imputed interest$(18,291)Total operating lease liabilities$187,583 

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Note 7. Financing Arrangements

2026 Convertible Senior NotesIn August 2021, the Company issued $1,293.8 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (the 2026 Notes). The total proceeds from the issuance of the 2026 Notes, net of initial purchaser discounts and commissions and debt issuance costs, were $1,274.0 million.The 2026 Notes are senior unsecured obligations of the Company and will mature on August 15, 2026, unless earlier redeemed, repurchased, or converted, and are governed by the terms of the Indenture dated August 13, 2021 (the 2026 Indenture). The 2026 Notes are 0% convertible senior notes and therefore do not bear regular cash interest.The 2026 Notes are convertible at an initial conversion rate of 5.2263 shares of the Company's Class A common stock per $1,000 principal amount of the 2026 Notes, which is equivalent to an initial conversion price of approximately $191.34 per share, subject to adjustment upon the occurrence of specified events in accordance with the terms of the 2026 Indenture. The 2026 Notes may be converted at any time on or after May 15, 2026 until the close of business on