CloudflareNET

01Subscription agreements with certain largest customers are structured on a 'pool of funds' model in which the customer commits to spend at least a specified amount on products during the subscription period

02Our global network includes co-location facilities located in more than 335 cities and over 125 countries worldwide as of June 30, 2026 We have a strategic agreement with JD Cloud to provide solutions in China through JD Cloud's development and operation of facilities that are included as part of our network The vast majority of our customers do not pay for our products We believe that offering a free plan for certain of our products is an important part of our business strategy

03We generate revenue primarily from subscriptions to access our network and products, together with related support services Our contracted customers enter into agreements with us having terms typically ranging from one to three years Because we recognize revenue from subscriptions for our products over the term of the subscription, downturns or upturns in new business may not be immediately reflected in our results of operations

04We have 390 issued patents and 75 pending patent applications in the United States and abroad as of June 30, 2026 We own a large number of patents, copyrights, trademarks, domain names, and trade secrets Research and development expenses increased by $60.8 million, or 24%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 Our broad portfolio of products exposes us to competition from a large number of competitors in a number of different markets