Cloudflare’s November 5, 2026 results report $215.365 million of operating cash flow for the quarter ended September 30. Its free cash flow is $82.080 million. The company’s reconciliation explains the gap with two deductions; the measures describe different stages of the same calculation.
Follow the two deductions
- Operating cash flow: $215.365 million.
- Less purchases of property and equipment: $121.809 million.
- Less capitalized internal-use software: $11.476 million.
- Resulting free cash flow: $82.080 million.
The source table is in thousands of dollars; the amounts above are converted to millions. The deductions total $133.285 million, approximately $133.3 million. Subtracting that sum from $215.365 million reproduces the reported result.
Reconcile before rounding
Keep the period, unit and signs together in a calculation sheet. First reproduce the result at the source’s precision. Then choose a consistent display unit. If a copied total does not reconcile, return to the table headings and deduction rows before inventing an explanation.
Try an entirely fictional exercise: a company reports 120 units of operating cash, spends 35 on equipment and capitalizes 5 of internal software. Applying this three-line method produces 80 units. A worksheet showing 85 has omitted the software line; a worksheet showing 45 has subtracted the equipment twice. These invented values are an arithmetic check, not another company’s results.
Preserve the meaning of the result
Cloudflare labels free cash flow a non-GAAP measure. Its explanation says the measure does not represent the total change in the cash balance and does not reflect future contractual commitments. Keep those limits beside the calculation rather than turning the result into a claim about all cash available to spend.
A reproducible reading note needs only the dated release, the quarter, the four rows and the calculation. That makes it easier for another reader to find a unit error or omitted deduction. This article checks the published reconciliation; it does not estimate valuation, future returns or a trading decision.