NET · Edge Network · Cloud Infrastructure · Security
Cloudflare, Inc.
AccumulateThe business
Cloudflare runs one of the world's largest edge networks, sitting between users and the internet to deliver security, performance, and increasingly compute. What started as protection and content delivery has grown into a platform where developers build and run applications close to users everywhere.
The flywheel
Each new customer and location adds capacity and data to the network, improving security intelligence and performance for everyone on it. A better network attracts more developers; more developers build more on the platform; greater usage justifies more capacity — and economies of scale lower unit costs as it grows.
Why we own it
- Genuine economies of scale in a vast, expanding network footprint.
- A developer-led adoption motion with a widening product surface.
- Security and edge compute are durable, growing secular markets.
- Improving margins as the network scales and matures.
Key risks
- Rich valuation demands sustained high growth.
- Competes with far larger hyperscalers on parts of the stack.
- Profitability is still earlier-stage than our mature holdings.
Our recommendation
A widening-moat flywheel in the early-to-middle innings. We accumulate deliberately and size it as a higher-variance compounder within the portfolio.
This note reflects the views of Flywyl as of May 2026 and is provided for informational purposes only. It is not investment advice, an offer, or a solicitation to buy or sell any security. Views and positioning may change without notice. Past performance does not guarantee future results, and all investments carry risk of loss. Figures and qualitative ratings are illustrative of our internal framework and should be independently verified.