NYSE Shariah screener · October 2026

Is Cloudflare, Inc. (NET) Halal?

FAIL

Cloudflare, Inc. · NYSE: NET · Technology

The short answer

No — Cloudflare (NET) fails this Shariah stock screen, at the income gate. The San Francisco company runs a connectivity cloud: CDN, application security, Zero Trust networking and the Workers serverless developer platform — all technology activity, with no haram business segments disclosed in its FY2025 filings, so the business gate passes. The debt gate passes too: Q2 2026 interest-bearing debt of about $3.27B (convertible senior notes) is just 2.62% of its ~$124.9B market cap (October 2026, Finnhub), below the ~33% ceiling. But FY2025 interest income of $131.2M is 6.05% of revenue ($2,167.9M) — above the 5% non-compliant income ceiling, so the screen fails. Zoya independently rates NET not Shariah-compliant (September 2026) on the same interest-income basis. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

Gate 1 — Business activity: PASS

Cloudflare, Inc. (NYSE: NET), founded in July 2009 and headquartered in San Francisco, California, describes itself as a leader in the "Connectivity Cloud" — a global cloud network that makes businesses more secure and their applications faster and more reliable. Four product suites: application services — application security (Web Application Firewall, Bot Management/Turnstile, DDoS mitigation, API Shield, SSL/TLS, Page Shield, Security Center) and application performance (content delivery/CDN, load balancing, authoritative and recursive DNS, Smart Shield, video stream delivery, data localization); the SASE platform combining Zero Trust/workplace security with network services (Magic WAN, Magic Transit, WAN-as-a-service) that lets corporate networks run over Cloudflare instead of legacy hardware; developer-based solutions for building and deploying serverless and AI applications at scale (Cloudflare Workers, storage and compute, GPUs deployed across the global network); and consumer offerings. The network spans 330+ cities in 125+ countries and interconnects with over 13,000 networks globally. FY2025 total revenue of $2,167.9M came from pay-as-you-go and contracted customers. Business-screen implication (factual): all activity is cloud technology/infrastructure; the 10-K discloses no alcohol, gambling, conventional finance, pork, weapons or tobacco revenue — no haram segments. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per Cloudflare's Q2 2026 financial results (announced August 6, 2026), the condensed consolidated balance sheet as of June 30, 2026 carries two interest-bearing debt lines: the current portion of convertible senior notes of $1,293.3M and noncurrent convertible senior notes of $1,977.0M — total interest-bearing debt of about $3,270.3M (~$3.27B). Against a market cap of about $124.9B (Finnhub, October 2026, NYSE: NET), debt ÷ market cap is about 2.62% — below the ~33% ceiling. Cash, cash equivalents and available-for-sale securities of $4,101.3M at December 31, 2025 ($943.5M + $3,157.7M, per the FY2025 10-K) are about 3.28% of market cap, also below 33%. The debt gate passes. Facts only. (Post-quarter development: in September 2026 Cloudflare announced it was issuing $2.175B of 0% convertible senior notes due 2031 — not yet reflected in the Q2 2026 figures above.)

Gate 3 — Non-compliant income: FAIL

Cloudflare's 10-K for the fiscal year ended December 31, 2025 (filed February 2026; SEC CIK 0001477333) reports 'Interest income' of $131,219,000 against FY2025 total revenues of $2,167.9M — about 6.05% of revenue, above the 5% non-compliant income ceiling. Per the 10-K notes, interest income consists primarily of interest earned on cash, cash equivalents and investment holdings, and it grew 50% year-on-year in 2025. This is the broadest verifiable interest income line from primary filings, and Zoya's NET page cites the same $131,219,000 figure and computes the same 6.05% ratio. The income gate fails, so the screen fails. Facts only.

Key figures used

Frequently asked questions

What does Cloudflare do?

Cloudflare, Inc., founded in July 2009 and headquartered in San Francisco, California, describes itself as a leader in the "Connectivity Cloud": a global cloud network delivering security, performance and reliability services. Its four product suites are (1) application services — application security (Web Application Firewall, Bot Management/Turnstile, DDoS mitigation, API Shield, SSL/TLS, Page Shield) and application performance (content delivery/CDN, load balancing, authoritative DNS, Smart Shield, video stream delivery, data localization); (2) the SASE platform combining Zero Trust/workplace security with network services such as Magic WAN and Magic Transit; (3) developer-based solutions for building and deploying serverless and AI applications at scale (Cloudflare Workers, storage and compute, GPUs across the network); and (4) consumer offerings. Its network spans 330+ cities in 125+ countries and interconnects with over 13,000 networks. FY2025 total revenue was $2,167.9M from pay-as-you-go and contracted customers — all technology/cloud services, with no haram segments disclosed.

Why does NET fail this Shariah stock screen?

NET fails this Shariah stock screen at the third gate. Gate 1 (business activities): connectivity-cloud technology — CDN, application security, Zero Trust networking and serverless developer platform — is permissible activity; the FY2025 10-K discloses no alcohol, gambling, conventional finance, pork, weapons or tobacco revenue, so Gate 1 passes. Gate 2 (debt): Q2 2026 interest-bearing debt of ~$3.27B (convertible senior notes) is 2.62% of a ~$124.9B market cap, well under the ~33% ceiling, so Gate 2 passes. Gate 3 (interest income): FY2025 interest income of $131.2M is 6.05% of $2,167.9M revenue — above the 5% non-compliant income ceiling, so Gate 3 fails, and Zoya's own NET page (September 2026) independently rates the stock not Shariah-compliant on the same basis. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

What is NET's interest-bearing debt ratio?

Per Cloudflare's Q2 2026 financial results (announced August 6, 2026), the condensed consolidated balance sheet as of June 30, 2026 carries two interest-bearing debt lines: the current portion of convertible senior notes of $1,293.3M and noncurrent convertible senior notes of $1,977.0M — total interest-bearing debt of about $3,270.3M (~$3.27B). Against a market cap of about $124.9B (Finnhub, October 2026, NYSE: NET), debt ÷ market cap is about 2.62% — below the ~33% ceiling. Cash, cash equivalents and available-for-sale securities of $4,101.3M at December 31, 2025 ($943.5M + $3,157.7M per the FY2025 10-K) are about 3.28% of market cap, also below 33%. The debt gate passes. In September 2026 Cloudflare announced it was issuing $2.175B of 0% convertible senior notes due 2031, a post-quarter development that would raise future interest-bearing debt.

What is NET's non-compliant income ratio?

Cloudflare's 10-K for the fiscal year ended December 31, 2025 (filed February 2026; SEC CIK 0001477333) reports 'Interest income' of $131,219,000 against total FY2025 revenues of $2,167.9M — about 6.05% of revenue, above the 5% non-compliant income ceiling. Interest income consists primarily of interest earned on cash, cash equivalents and investment holdings (per the 10-K notes) and grew 50% year-on-year. This is the broadest verifiable interest income line from primary filings, and Zoya's NET page cites the same $131,219,000 / 6.05% figures. The income gate fails.

Do Zoya, Musaffa, or ShariaPortfolio cover NET?

Zoya covers NET (zoya.finance/stocks/net; updated September 2026) and rates it not Shariah-compliant — not considered halal to invest in — based on Cloudflare's most recent financial reports, citing FY2025 interest income of $131,219,000 (6.05% of the revenue total), matching this page's own computation. Musaffa: no Cloudflare/NET page was found via public search — no coverage found. ShariaPortfolio: no NET entry found — no coverage found. All honestly reported as found, not invented. This page applies the screen directly from Cloudflare's own filings.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.