Cloudflare Insiders Sell $44 Million Amid Stock Rally
Cloudflare insiders, including President Michelle Zatlyn and CFO Thomas Seifert, sold a combined $44 million in stock during August and September 2026. This occurred as the company's shares reached new highs following strong Q2 results that included 36% revenue growth to $696.1 million and record large customer additions. Despite these positive metrics, Cloudflare’s forward-looking valuation has expanded significantly, with its NTM EV/Revenue multiple reaching 35.17x—close to a historical high of 36.30x but well above the two-year average of 22.30x. The company also raised $2.175 billion in convertible debt despite holding over $4 billion in cash, raising concerns about capital allocation. Meanwhile, free cash flow margin has declined for two consecutive quarters and severance costs have risen to nearly $165 million this year. Management continues to highlight Act 4 growth initiatives like Monetization Gateway as future drivers but acknowledges these are still early-stage projects with no clear revenue timeline.
Tickers: $NET
Topics: Cloudflare earnings report free cash flow insider selling stock valuation