Cloudflare must settle $1.125 billion in 0% convertible senior notes. These notes reach maturity on August 15, 2026. The company can fulfill this obligation using cash, Class A common stock, or a combination of both. This settlement choice will determine the impact on cash reserves or shareholder dilution.
The deadline arrives after Cloudflare priced a new $2.5 billion offering of convertible notes. These new notes are due in 2031. The company finalized this capital raise around August 11, 2026. Cloudflare's stock price fell as investors reacted to the potential for future dilution.