Edge cloud is splitting from the GPU crowd in today's trading, and one name is pulling so far ahead of its own sector fund that traders are asking whether a single partnership deal just rewrote the growth story.
Edge delivery is setting the pace in the cloud software rebound, and one specialist is pulling well ahead of the group. Fastly (NASDAQ:FSLY) stock is at $24.18, up 8% in afternoon trading. This gain ranks among the strongest performances in the cloud group.
Sector-wide gains are far smaller, which makes the jump in Fastly stock stand out even more. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is trading at $167.36, up 2%. On the broad-market side, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $762.42, down 0.2%. Cloud buyers aren’t getting any help from the overall market.
Meanwhile, Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) stock is at $161.31, up 1%, a gain that trails Fastly stock by a wide margin. CoreWeave (NASDAQ:CRWV) stock is trading at $54.85, down 1%, moving opposite both Fastly stock and the cloud fund. That split puts Nebius and CoreWeave on opposite sides of a rebound that Fastly stock is leading.
Edge Cloud Leads the Software Bounce
Cloud software stocks are rebounding, and Fastly is posting one of the larger gains in the group. The company runs an edge cloud network that delivers and secures web content close to users, with product lines spanning network services, security, compute, and observability. Nebius and CoreWeave sit in a different corner of the market, renting out graphics processor computing capacity to customers running AI workloads.
Earlier this month, Fastly expanded its partnership with Jio Platforms to power the upgraded JioCDN content delivery network across India. Under the arrangement, Fastly’s programmable edge cloud runs on Jio’s 5G and fixed broadband network, which gives the platform a carrier-scale distribution path. Any link between that agreement and the stock’s jump is still an open question, since the deal came before the current session.
GPU Cloud Names Split From Fastly
Fastly stock is far outpacing the cloud computing fund, and its lead over the GPU providers is wider still, which keeps the spotlight on Fastly’s edge business, a model tied to how much web traffic flows across its network.
Edge positioning gives Fastly a direct line to the rise in machine-generated traffic, a corner of the market where GPU rental plays no part. Company disclosures describe AI traffic as reshaping the internet and lifting demand for tools such as bot management and distributed denial-of-service protection. Reddit, Universal Music Group, and SeatGeek are among the brands already running on Fastly’s platform.
Optimists see that shift in traffic turning into wider adoption of Fastly’s security and compute products, but skeptics counter that a sharp one-session jump can fade quickly when the broad market is slipping and the stock has already outrun its sector fund. Steady demand for AI computing capacity supports the optimism. For Nebius and CoreWeave, the heavy spending needed for that expansion keeps a lid on it (we covered seven suppliers riding that same AI expansion, from power to networking, in a free report).
Jio Deal Sets Up Fastly’s Next Report
Fastly’s upcoming quarterly report will show whether the expanded Jio partnership shows up. Shareholders can watch for whether management puts specific figures behind the JioCDN launch and the India traffic it carries. Hard evidence of that contribution is what would turn a sharp rally into a story grounded in results.
Running this far ahead of both the SKYY cloud fund and the SPY ETF leaves Fastly stock with little buffer if the cloud rebound cools off. Traders may prefer to keep their exposure small until Fastly’s next quarterly report is released.
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Oppenheimer zvýšil doporučení pro Fastly na „Outperform“ a stanovil cílovou cenu na 35 USD s odkazem na růstové vyhlídky, bezpečnostní produkty a monetizaci AI.
Fastly, Inc. (NASDAQ:FSLY) stock is edging lower in Monday’s premarket trading after surging 15.86% on Friday, following a bullish analyst upgrade driven by improving growth prospects and artificial intelligence opportunities.
Oppenheimer Sees Growth PotentialOn Friday, Oppenheimer analyst Param Singh upgraded Fastly from Perform to Outperform and announced a $35 price forecast.
The analyst cited improving growth prospects, supported by larger customer contracts, stronger demand for security products and early efforts to monetize agentic AI traffic.
Earnings In FocusFastly is scheduled to report quarterly earnings on Nov. 4, 2026.
Analysts expect earnings of 12 cents per share, compared with 7 cents a year earlier. Revenue is projected to reach $187.70 million, up from $158.22 million.
The stock carries a consensus Buy rating and an average analyst price forecast of $28.70. Recent analyst actions include:
Oppenheimer: Upgraded Fastly to Outperform from Perform with a $35 price forecast on Oct. 9. DA Davidson: Maintained a Neutral rating with a $23 price forecast on Sept. 24. Freedom Broker: Maintained a Buy rating and raised its price forecast to $37 on Sept. 23. The iShares U.S. Digital Infrastructure and Real Estate ETF (NYSE:IDGT) holds a 5.90% portfolio weighting in Fastly, providing investors with indirect exposure to the company.
Technical AnalysisFastly remains in an uptrend, trading above its 20-day, 50-day, 100-day and 200-day simple moving averages.
The 20-day average stands at $25.78, while the 50-day average is $24.85. The 100-day and 200-day averages are $21.81 and $20.36, respectively.
Moreover, the moving average convergence divergence indicator, or MACD, remains above its signal line. This suggests positive momentum.
Traders are watching resistance near $31 and support around $24.50.
The stock’s 52-week range stands between $7.74 and $34.82.
FSLY Price ActionFSLY Price Action: Fastly shares were down 0.38% at $29.19 during premarket trading on Monday, according to Benzinga Pro data.
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Key Takeaways Fastly's edge cloud platform delivers digital experiences close to end users.AI agents require low-latency execution and continuous querying.Fastly boasts robust earnings growth. Fastly Company OverviewZacks Rank #2 (Buy) company Fastly ((FSLY - Free Report) ) is an edge cloud platform that helps developers build, secure, and deliver digital experiences close to end users. The company is positioned at the convergence of traditional content delivery networks (CDNs0 and modern cloud-based infrastructure services, expanding into areas such as application security and AI-driven workloads. Fastly combines CDN functionality with security and application delivery capabilities traditionally provided by appliances.
Headquartered in San Francisco, Fastly operates an Infrastructure-as-a-Service (IaaS) model centered on its edge cloud platform. This platform enables customers, ranging from startups to Fortune 500 enterprises, to build, secure, and deliver applications closer to end users.
Agentic AI is a Massive Catalyst for FastlyAs the artificial intelligence buildout matures, the agentic AI wave has arrived. Agentic AI systems can perceive their environment, reason, set goals, make decisions, and independently execute multi-step workflows using tools and APIs without constant human supervision. Top AI companies, including OpenAI, Anthropic, and Alphabet ((GOOGL - Free Report) ) have each launched agentic AI platforms in recent months. Meanwhile, Meta Platforms’ ((META - Free Report) ) “Muse” has become one of the fastest-growing consumer applications in history.
Image Source: appfigures
Fastly benefits from the surge in new agentic AI applications because, unlike traditional large language models, autonomous agents must continuously query models, parse incoming state changes, and trigger downstream actions. Fastly’s specialized AI accelerators and edge-compute frameworks let these systems run closer to the end user, ensuring the near-instant responsiveness autonomous agent demand. Additionally, Fastly’s distributed edge network helps AI companies serve frequent queries by reducing redundant calls back to centralized model providers. In other words, Fastly makes agentic workflows more cost-efficient and scalable. Finally, Fastly’s edge-security tools help AI companies manage, filter, or block unauthorized AI scrapers.
Does Meta Muse Use Fastly?Twitter user @OddDiligence created several test websites and ran 738 controlled tests to send traffic from Muse agents to websites. Based on IP addresses, Muse sent roughly a third of its traffic through Fastly. Although it has not been made public yet, Meta’s wildly popular agentic platform appears to be leveraging Fastly technology.
Fastly: Robust Earnings Growth and Track RecordZacks Consensus Estimates suggest that Fastly will grow earnings 71.43% next quarter and 307.69% for full-year 2026.
Image Source: Zacks Investment Research
Meanwhile, Fastly has consistently beaten Wall Street expectations. Over the past four quarters, Fastly has beaten Zacks Consensus Analyst Estimates by an average of 92.26%.
Image Source: Zacks Investment Research
Fastly Technical View
Fastly shares are trying to emerge from a five-month base structure after Oppenheimer upgraded the stock to outperform, citing early monetization of agentic AI traffic.
Image Source: TradingView
Bottom Line
As the AI landscape transitions toward autonomous agents, Fastly is uniquely positioned to capitalize. Fastly’s unique position at the network edge and its security against unauthorized scrapers make it a top beneficiary of the agentic AI revolution.
Oppenheimer just handed Fastly a rare upgrade, arguing the market is sleeping on something sitting directly in front of one of tech's fastest-growing workloads. Whether the trade holds depends on products that launched weeks ago and have yet to earn…
Fastly (NYSE:FSLY) shares gained 15% to $29.04 after Oppenheimer upgraded the edge network operator to Outperform from Neutral. The call highlights how directly Fastly’s traffic-metered business sits in front of fast-growing artificial intelligence (AI) workloads, a link Oppenheimer believes the market hasn’t fully priced.
Meanwhile, Datadog (NASDAQ:DDOG | DDOG Price Prediction) shares are at $284.62, up 4%. Cloudflare (NYSE:NET) stock is at $350.31, up 2%, trailing Fastly despite running the same kind of edge network.
For a sector read, the First Trust Cloud Computing ETF (NASDAQ:SKYY) is up 1.6%, lagging both Cloudflare and Datadog shares. A wider benchmark, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), is up 0.5%. The cloud sector is being bid as a group, while Fastly stock’s far larger move shows that the upgrade doing much of the work.
Oppenheimer Points to Bigger Deals and AI Agent Traffic Oppenheimer analyst Param Singh coupled the upgrade with a $35 price target on Fastly stock, building the call on industry checks. Those checks point to rising average deal sizes as customers add Fastly’s newer security products, and they also flag early monetization of agentic AI traffic, which raises network volume and demand for its bot management tools.
Singh argued that Fastly stock trades at a steep discount to other infrastructure software vendors and that the gap can narrow as growth comes through. The newest products in Fastly’s security lineup (AI Runtime, AI Firewall and API Enforcement) reached general availability in September. None of the three has contributed significantly to revenue yet, so the cross-sell the upgrade is built on still lies ahead.
Why Fastly Is Moving Harder Than Cloudflare and Datadog Fastly runs a content delivery and edge security network and charges largely on traffic volume, so automated requests from AI agents flow straight into its billing.
Cloudflare, the closest and much larger comparison, runs the same kind of edge network with a broader platform on top. Datadog sells observability software, a weaker link to the same trend. That difference in direct exposure lines up with Fastly’s bigger move.
On the bullish side, a traffic-metered business sits in front of a fast-growing workload, and Singh’s discount argument leaves room for a rerate. Rising security deal sizes would add a second engine, part of the same AI expansion we mapped across power, cooling, and networking suppliers in a free report on seven AI infrastructure names.
The bear case: an upgrade built on industry checks and weeks-old products is still an expectation waiting for proof. Fastly has also long been the smaller competitor in a market Cloudflare has been winning, and a steep discount can persist if growth comes in slower.
What to Watch Next Signs that AI Runtime, AI Firewall and API Enforcement are lifting average deal sizes will be worth watching, along with bot management demand tied to agentic AI traffic, which connects the AI theme most directly to the metered network.
Fastly stock at $29.04 still sits below Param Singh’s $35 target. However, a 15% jump on an upgrade tied to products that launched in September leaves the shares exposed to any sign the cross-sell is arriving slowly. Until the new security tools show up in reported revenue, position sizes should stay measured.
Contact [email protected] for any questions or corrections.
Engineers Gate Manager LP ve 2. čtvrtletí snížil svůj podíl ve Fastly o 84 % a prodal 112 646 akcií. Po prodeji držel 21 510 akcií v hodnotě 395 000 USD.
Engineers Gate Manager LP trimmed its position in shares of Fastly, Inc. (NASDAQ:FSLY – Free Report) by 84.0% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 21,510 shares of the company’s stock after selling 112,646 shares during the period. Engineers Gate Manager LP’s holdings in Fastly were worth $395,000 at the end of the most recent quarter.
Other hedge funds have also recently bought and sold shares of the company. Integrated Wealth Concepts LLC acquired a new position in shares of Fastly during the 2nd quarter worth $48,000. IFP Advisors Inc boosted its stake in Fastly by 1,621.7% in the second quarter. IFP Advisors Inc now owns 1,429 shares of the company’s stock valued at $26,000 after buying an additional 1,346 shares in the last quarter. Spark Investment Management LLC acquired a new stake in Fastly in the second quarter valued at about $340,000. Nykredit A S bought a new position in Fastly in the second quarter valued at about $77,000. Finally, AlphaGrep UK Ltd bought a new position in Fastly in the second quarter valued at about $366,000. 79.71% of the stock is owned by institutional investors.
Fastly Stock Down 10.0% NASDAQ:FSLY opened at $26.68 on Friday. Fastly, Inc. has a one year low of $7.74 and a one year high of $34.82. The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36. The company has a market cap of $4.25 billion, a PE ratio of -50.34 and a beta of 0.36. The firm’s 50 day simple moving average is $23.67 and its 200 day simple moving average is $22.65.
Fastly (NASDAQ:FSLY – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.15 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.08. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%.The firm had revenue of $183.32 million for the quarter, compared to analyst estimates of $173.94 million. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. On average, research analysts anticipate that Fastly, Inc. will post -0.29 earnings per share for the current year. Insiders Place Their Bets In other Fastly news, insider Scott Lovett sold 41,815 shares of Fastly stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $24.64, for a total value of $1,030,321.60. Following the completion of the sale, the insider directly owned 1,281,583 shares in the company, valued at approximately $31,578,205.12. The trade was a 3.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey Ford sold 45,832 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $24.65, for a total value of $1,129,758.80. Following the completion of the transaction, the insider directly owned 249,861 shares in the company, valued at approximately $6,159,073.65. This trade represents a 15.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 826,730 shares of company stock valued at $20,967,633. 4.20% of the stock is currently owned by insiders.
More Fastly News Here are the key news stories impacting Fastly this week:
Positive Sentiment: Fastly’s Investor Day highlighted a broader edge-cloud strategy, including its new AI Firewall, AI Runtime Control and API Security products. These offerings could expand the company’s addressable market as demand for AI applications and agentic traffic grows. Fastly AI Firewall article Positive Sentiment: Fastly set long-term revenue growth goals of approximately 14% to 21% annually through 2029 and emphasized improving margins and operating leverage. Its latest quarter also exceeded expectations, with $183.3 million in revenue and $0.15 in adjusted EPS, while fiscal 2026 EPS guidance is $0.50 to $0.54. Positive Sentiment: Freedom Broker raised its price target to $37 from $32 and maintained a buy rating, reflecting optimism about Fastly’s security, edge-compute and AI opportunities. Neutral Sentiment: Analyst opinion remains mixed. DA Davidson raised its target to $23 but kept a neutral rating, while BofA said Fastly’s platform expansion is promising but cautioned that the AI opportunity remains uncertain. Citi analyst Fatima Boolani also remained neutral, questioning whether recent AI-related enthusiasm is sustainable. Neutral Sentiment: Options activity was unusually high, including elevated call buying, indicating substantial speculative interest but also the potential for heightened volatility. Broader technology stocks were pressured by rising Treasury yields and an Oracle selloff. Negative Sentiment: Investors appear to be locking in gains after Fastly’s sharp recent advance. The stock had already risen substantially this year, leaving it vulnerable to profit-taking when management’s long-term targets failed to provide an immediate earnings catalyst. Negative Sentiment: CTO Artur Bergman sold 27,900 shares for approximately $776,000, following an earlier sale of 49,146 shares. The transactions were executed under a pre-arranged Rule 10b5-1 plan, limiting their significance, but repeated insider selling may still weigh on sentiment. Fastly insider sales article Wall Street Analyst Weigh In FSLY has been the subject of a number of research reports. Freedom Capital raised shares of Fastly to a “strong-buy” rating in a report on Thursday, July 16th. Piper Sandler lifted their price target on shares of Fastly from $27.00 to $28.00 and gave the company a “neutral” rating in a report on Thursday, August 6th. Freedom Broker upped their price objective on shares of Fastly from $32.00 to $37.00 and gave the stock a “buy” rating in a research report on Wednesday. Evercore reissued an “outperform” rating on shares of Fastly in a research note on Wednesday. Finally, Canaccord Genuity Group initiated coverage on shares of Fastly in a research report on Friday, July 17th. They issued a “buy” rating and a $27.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $26.73.
View Our Latest Stock Analysis on Fastly
Fastly Company Profile (Free Report)
Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.
Fastly’s product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.
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Fastly tento týden vystřelila na 31,3 USD, nejvýše od 6. května, po představení a spuštění nového AI firewallu. Akcie jsou od červencového minima výše o více než 88 %.
Fastly stock jumped to $31.3 this week, reaching its highest level since May 6 as investors cheered its presentation and the recent launch of its AI firewall product. It has jumped by over 88% from its lowest level in July. So, will this rally continue?
Fastly is a top software company that is used by some of the biggest firms globally. Its top clients include companies like the New York Times, Stripe, The Guardian, and Github.
The company's main product is the CDN that helps companies to deliver their websites seamlessly globally. Its platform is also essential in ensuring website security by protecting customers from bots.
This demand will likely continue rising in the coming years now that many AI companies are launching their AI agents.
Fastly has also launched a new AI firewall and AI runtime control to secure and scale AI. The solutions will help companies and other organizations govern AI model access and usage, protect AI apps, and control how AI agents access enterprise APIS.
The AI Runtime control routes model calls through a single endpoint, while the AI firewall protects AI applications. API security, enforces AI contracts, applying consistent rules to agentic, agent-assisted, and conventional traffic.
The most recent results showed that Fastly’s business continued rising in the second quarter. Its revenue jumped by 23% to $183 million, driven by its network services. Most notably, its remaining performance obligations (RPO) rose by 38% to $341 million.
Top analysts believe that Fastly's revenue has more room to grow in the near term. The average estimate among analysts is that Fastly's annual revenue will be $740 million, up by 19% from a year earlier. Its revenue will then jump to $846 million next year, with its earnings per share (EPS) rising to 53 cents this year and 63 cents in 2027.
The challenge, however, there are signs that Fastly’s shares have moved much higher than what analysts expect. Kyro data shows that the average estimate among analysts is $19.45, down by about 31% from the current level. RBC Capital has a target of $28, lower than the current $30. The same is true with other analysts, including companies like Piper Sandler, KeyBanc, Canaccord Genuity, and Citigroup.
FSLY stock chart | Source: TradingView
The daily chart shows that the FSLY stock has rebounded from the double-bottom low of $15.70 to the current $30. It has soared above the 23.6% Fibonacci Retracement level. Also, it has moved above the first support of the Andrews pitchfork tool.
Fastly has also remained above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls have prevailed. It is also hovering at an important level, which aligns with the highest level in August.
Therefore, the stock will likely continue rising, especially when it clears the key resistance level at $30. If this happens, the next key level to watch will be at $34.77, its highest level in April.
Fastly na Investor Day uvedla cíl tržeb ve výši 1,1 až 1,3 miliardy USD do roku 2029 a těží z prudkého růstu AI provozu. AI provoz roste 6,5krát rychleji než lidský.
Fastly’s Q2 Rally Shows Investors Are Buying the Edge AI TurnaroundFastly NASDAQ: FSLY outlined a strategy centered on expanding its unified edge cloud platform, increasing multi-product adoption, broadening its geographic reach and targeting revenue of $1.1 billion to $1.3 billion by 2029 at its Investor Day.
Chief Executive Officer Kip Compton said the company sees a $22 billion total addressable market for products it already offers and described the edge as a complementary layer to hyperscale cloud infrastructure. Fastly’s distributed network is designed for applications requiring lower latency, high throughput, security and resiliency, he said.
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3 Beaten-Down Small Caps Building Momentum for a 2025 RallyCompton said Fastly processes more than 5 trillion requests on an average day and reported a 97% average customer satisfaction score. He also highlighted recent operating momentum, including three consecutive quarters of at least 20% year-over-year growth, five straight quarters of improving net revenue retention and six consecutive quarters of positive free cash flow.
Platform Strategy and Multi-Product Adoption The company emphasized that it is shifting from selling discrete products toward selling platform-based solutions across delivery, security, compute and observability. Fastly operates a single global network with 166 points of presence, a design Compton said allows resources to be shared across different workloads and product suites.
MarketBeat Week in Review – 11/6 - 11/10Fastly said 72% of customers now use at least two product suites, while 30% use four or more. The four-or-more metric has increased from 7% two years ago and 14% one year ago, according to management.
Chief Product Officer Kelly Shortridge said security has become an important entry point to the broader platform. Half of Fastly’s new business deals over the past four quarters included security products, she said. The company’s security business grew 43% year over year in the latest reported quarter, while Bot Management and DDoS Protection each posted triple-digit growth, according to Shortridge.
Fastly recently introduced AI Runtime Control, AI Firewall and API Enforcement as part of its Fastly for AI offerings. Shortridge said the products are intended to help enterprises govern AI-related activity across cloud, private infrastructure and multiple AI models. She described Fastly’s architecture as cloud-neutral and model-neutral, allowing customers to use the platform without being tied to a single infrastructure or AI vendor.
Management also discussed opportunities for edge compute. Compton said Fastly is not seeking to replicate centralized cloud-computing services offered by hyperscalers, but instead aims to support workloads that benefit specifically from being deployed close to end users. The company expects to broaden its compute portfolio over time, similar to its earlier expansion of security products.
AI Traffic and Edge Opportunity Founder and Chief Technology Officer Artur Bergman said AI and agentic software are creating new types of traffic and increasing the complexity of internet infrastructure. He cited public Python Package Index data showing a sharp increase in software package downloads following the release of AI coding tools, saying such activity reflects automated agent behavior rather than solely human usage.
Compton said Fastly is seeing AI traffic grow 6.5 times faster than human traffic. The company also reported a sevenfold increase in AI model distribution across its platform in the past month, 11 times growth in Model Context Protocol traffic and services so far this year, and 34 times growth in code-generation activity in recent months.
Management said AI could benefit Fastly through increased traffic volumes, security and control products for AI-driven applications, and potentially edge inference for smaller models. Bergman said large language models may remain more suited to centralized infrastructure in the near term, while smaller models could run closer to users at the edge.
Go-to-Market Expansion President of Go-to-Market Scott Lovett said Fastly is focusing its sales resources on customers and industries where performance is mission-critical, including streaming, e-commerce, financial services, gaming and other always-on businesses. He said customers increasingly prioritize uptime, cache-clearing speed, security and operational response over the lowest-cost delivery option.
Lovett said Fastly is adding technical field resources to work directly with customers and expanding internationally. The company plans additional points of presence in India, the Middle East, Thailand, Southeast Asia and Latin America. Fastly also plans to work with service-provider partners that can extend its software and network capabilities in local markets.
Chief Financial Officer Rich Wong said Fastly will change its revenue reporting beginning in 2027, moving from separate Network Services, security and other revenue lines to a single revenue figure accompanied by multi-product adoption metrics. The company plans to report both the current and revised formats for the next two earnings releases to assist investors with the transition.
Revenue of $1.1 billion to $1.3 billion, representing a 14% to 21% compound annual growth rate from 2026. Gross margin of 67% to 71%. Operating margin of 20% to 22%. Free cash flow margin of 12% to 15%. Capital expenditures of roughly 10% to 12% of revenue, subject to adjustment based on growth. Wong said the company expects its single-network architecture, product expansion, customer cross-selling, international growth and operating discipline to support the targets. Fastly maintained its 2026 free cash flow guidance of $40 million to $50 million.
About Fastly (NASDAQ:FSLY)Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.
Fastly's product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Fastly uvedla, že výnosy za poslední čtvrtletí meziročně vzrostly o 23 % na 183 milionů USD. Tahounem byl bezpečnostní segment, jehož výnosy stouply o 43 %.
Fastly’s Q2 Rally Shows Investors Are Buying the Edge AI TurnaroundFastly NASDAQ: FSLY executives said demand remained healthy across the company’s delivery, security and compute offerings, with CFO Rich Wong pointing to broad-based growth and increasing customer commitments.
Speaking at a Piper Sandler conference, Wong said Fastly generated $183 million in revenue in the most recent quarter, up 23% year over year. Delivery services revenue increased 17%, security revenue rose 43%, and the company’s “other” category, primarily Compute, also contributed to growth.
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3 Beaten-Down Small Caps Building Momentum for a 2025 RallyWong said customers have shown a greater willingness to enter commitments amid component shortages. Remaining performance obligations increased 38% year over year during the quarter, while the current portion of RPO increased 44%.
Delivery demand spans media and full-site customers Fastly has historically been strong in live events and streaming, where reliability and performance are important, Wong said. However, he said demand has also expanded across what the company calls full-site delivery, including e-commerce, hospitality and other web properties.
MarketBeat Week in Review – 11/6 - 11/10“We tend to win where performance matters,” Wong said of the company’s position in live-event delivery. He added that Fastly continues to see demand for full-site delivery as customers contend with more complicated traffic patterns, including bots and distributed denial-of-service attacks.
Wong said the company has continued pursuing competitive customer takeouts following the disruption in the content-delivery-network market associated with Edgio. He said Fastly had already experienced customer wins before Edgio’s business issues and has now lapped the related 2024 headwinds.
According to Wong, Fastly’s broader product portfolio has aided those efforts, particularly as customers increasingly evaluate delivery and security capabilities together.
AI traffic supports security opportunity Wong said machine-to-machine traffic is growing faster than human traffic on a request basis. Fastly has published research indicating that machine traffic is moving at 6.5 times the pace of human traffic, he said, and such traffic represents nearly half of total requests on the company’s network. However, it remains a relatively small part of transferred gigabytes compared with bandwidth-intensive uses such as high-definition video.
Fastly sees the nearer-term benefit from AI and agentic activity in security, particularly its bot management and DDoS offerings. Customers are increasingly seeking tools to determine whether machine traffic is legitimate or malicious and to protect their services from automated activity, Wong said.
Over the longer term, he said Fastly expects edge computing to play a larger role as agents and machine-to-machine interactions expand. Frontier AI models are currently concentrated in centralized cloud environments, but Wong said more agentic workloads could ultimately move closer to the edge.
Security growth tied to product expansion and sales execution Wong attributed Fastly’s 43% security revenue growth to both a broadened product suite and changes in go-to-market execution. He said Scott Lovett, who joined as head of sales in mid-2024, introduced greater sales discipline and security-selling expertise. Lovett previously worked at Akamai and Imperva, according to Wong.
At the same time, Fastly expanded from one primary security offering, its web application firewall, to five security products. Wong said the combination of products and sales execution was necessary to drive the business forward.
Vernon Essi, Fastly’s vice president of investor relations, said bot management has been a particularly strong offering. He also highlighted ContentGuard, a feature intended to help customers mitigate website scraping and establish monetization streams around content access.
Wong said Fastly’s bot management and DDoS products each posted triple-digit year-over-year growth in the latest quarter, while the company’s web application firewall remains its largest security product.
Fastly reported net retention of 117% in the quarter, which Wong described as a four-year high. He said the result reflected a combination of delivery-service upsells, security and compute cross-selling, and continued focus on existing customers.
Compute strategy emphasizes edge software and existing network capacity Essi said Fastly does not currently see a compelling value proposition in building large, centralized GPU inference capacity for specific customer applications. Instead, the company is focusing on its software-defined edge network, which uses broadly available hardware and supports a multi-cloud, model-neutral approach.
He said Fastly aims to attract developers through open standards and development tools, including support for MCP Server and Real Simple Licensing. The company believes its edge positioning could be useful for agentic workloads and orchestration layers over time.
Wong said Compute uses CPU capacity that may otherwise be underutilized within Fastly’s existing network. He said that network efficiency contributed to 96% gross-margin flow-through over the last 12 months, meaning 96 cents of every incremental revenue dollar became gross profit.
Company flags potential episodic demand drivers Looking ahead, Wong cited several potential episodic demand events, including the expected release of Grand Theft Auto VI and U.S. midterm elections. Gaming downloads are a portion of Fastly’s revenue, and Wong said record gaming downloads contributed to the company’s fourth-quarter outperformance last year.
He also identified holiday shopping and NFL activity as recurring fourth-quarter events. Fastly factors known seasonal activity into its planning, he said, while taking a prudent approach to less predictable events such as a major game release and election-related traffic.
Fastly plans to hold an investor day at Nasdaq MarketSite in New York, where executives expect to discuss a longer-term operating model, multi-product adoption and the company’s outlook over the next three years. Wong said the company does not plan to provide fiscal 2027 guidance at the event.
About Fastly (NASDAQ:FSLY)Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.
Fastly's product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.
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Fastly v posledním čtvrtletí zvýšila tržby o 23,3 % na 183 milionů USD a dosáhla rekordní hrubé marže 65,8 %. Firma zároveň uvedla, že poptávka po AI podporuje růst v segmentech security a compute.
Fastly’s Q2 Rally Shows Investors Are Buying the Edge AI TurnaroundFastly NASDAQ: FSLY CFO Rich Wong said the edge cloud provider has accelerated revenue growth, expanded margins and generated positive free cash flow as management reshaped operating processes during his first 13 months at the company.
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Speaking at Citi’s TMT Conference, Wong said Fastly reported $183 million in revenue in its most recent quarter, up 23.3% year over year. He said delivery revenue grew 17%, security revenue increased 43%, and the company’s “other” segment, which includes compute and observability, rose 69%.
3 Beaten-Down Small Caps Building Momentum for a 2025 Rally“We’ve really hit a reset on the business, a lot of transformation,” Wong said. “We’ve accelerated revenue growth.”
Fastly reported record gross margin of 65.8% in the quarter, Wong said, along with about 15% operating margin. The company has posted four consecutive profitable quarters and six straight quarters of positive free cash flow, according to Wong.
Revenue mix and product expansion MarketBeat Week in Review – 11/6 - 11/10Network services, Fastly’s delivery business, represented 73% of quarterly revenue and grew 17% year over year. Security accounted for about 23% of revenue, while the remainder came from the other category.
Wong said Fastly’s security growth has been supported by an expanded product lineup. The company began with a web application firewall and has since added distributed denial-of-service protection, bot management, API security and client-side protection.
That broader suite has enabled Fastly to compete for more requests for proposals and to sell delivery and security offerings together, Wong said. Security and other revenue combined were nearly $50 million in the most recent quarter, including approximately $49.4 million cited by Wong, and grew more than 50% year over year.
Compute was about $7 million during the quarter and remains the company’s fastest-growing product area, Wong said. He described the business as early-stage but said customers are working with Fastly to explore compute use cases tied to artificial intelligence.
Management expects the revenue mix to gradually shift toward security and compute as those businesses continue to outgrow delivery, while maintaining investment in the delivery operation.
Pricing, customer commitments and traffic trends Vernon Essi, Fastly’s head of investor relations, said pricing in the content delivery network market has been relatively stable for roughly the past three quarters after a period of what he described as irrational pricing from smaller competitors that later exited the market.
Even in the more stable environment, delivery pricing continues to decline in the mid- to high-single-digit percentage range year over year, Essi said. Fastly has been offsetting that trend with growing traffic volumes and broader customer adoption of its platform.
Wong said the company has focused less on standalone delivery pricing and more on selling a portfolio of services based on customer needs. He said customers increasingly seek partnership-based arrangements rather than simply choosing the lowest-cost provider.
Fastly’s remaining performance obligations grew 38% year over year, while current remaining performance obligations rose 44%, Wong said.
Essi said machine-generated traffic is showing the strongest growth on Fastly’s network, though it remains a small portion of total traffic. The company has seen a sixfold increase in this type of traffic based on requests, he said, rather than on gigabits delivered.
Fastly recently introduced ContentGuard, a product designed to help publishers identify bots and agents accessing and scraping their content. Essi said publishers can use the offering to gain visibility into content access and potentially establish licensing or monetization arrangements.
Wong said AI-related demand may have a nearer-term financial impact on security and compute because those services are priced on a requests-per-second basis. In contrast, much of the delivery business is priced per gigabit, and AI traffic often consists of many small requests rather than high-bandwidth video streams.
Margins, customer concentration and capital spending Wong said Fastly generated approximately 96% gross-margin flow-through over the past 12 months, meaning it converted 96 cents of each incremental revenue dollar into gross profit. The company does not disclose gross margins by segment because its single network and 166 global points of presence support delivery, security and compute products together.
He said compute can utilize CPU capacity that was previously underused within Fastly’s existing infrastructure, while delivery and security consume different resources across the same network.
Fastly’s top 10 customers represented 37% of revenue in the most recent quarter. Wong said the concentration does not concern him because those customers are adopting multiple products, including security and compute, which he said makes relationships more durable. Revenue outside the top 10 customers grew 12% year over year, he added, while the company had 624 large customers.
Net retention rate was 117% in the most recent quarter, which Wong said was a three- or four-year high. He indicated that retention among the top 10 customers was above the companywide figure.
On infrastructure investment, Wong said Fastly expects capital expenditures equal to 10% to 12% of revenue, representing an approximately 40% to 45% year-over-year increase in spending. He said the company’s single-network architecture allows it to invest efficiently and that Fastly currently can support its compute business using CPUs rather than deploying GPUs.
Wong said he believes investors should view Fastly as more than a commodity CDN provider, pointing to the company’s expanding edge-cloud capabilities in security, bot management, DDoS protection and compute.
About Fastly (NASDAQ:FSLY)Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.
Fastly's product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Fastly za poslední měsíc klesla o 6,9 %, ale ve 2. čtvrtletí zvýšila tržby o 23,3 % na 183,32 mil. USD a zvýšila celoroční výhled tržeb na 732–746 mil. USD.
It has been about a month since the last earnings report for Fastly (FSLY - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Fastly due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Fastly Q2 Earnings Beat as Security Growth Spurs 2026 Outlook HikeFastly reported second-quarter 2026 adjusted earnings of 15 cents per share versus a loss of 3 cents a year ago. The figure topped the Zacks Consensus Estimate by 114.29%.
Revenues rose 23.3% year over year to $183.32 million and surpassed the consensus mark by 5.34%. Strength across Network Services, Security and Compute supported the upside, while the last-12-month net retention rate climbed to 117%.
FSLY's Platform Strategy Drives Broad GrowthNetwork Services revenues increased 17% year over year to $133.9 million, accounting for 73% of total revenues. Management attributed the performance to higher traffic among its largest customers, along with a smaller contribution from live sporting events.
Fastly also said it is gaining share where performance is critical. The company highlighted major global sporting events that generated record traffic and cited customer wins tied to resilience, flexibility and consolidated edge services.
Fastly's Security Momentum Lifts Revenue MixSecurity revenues advanced 43% year over year to $41.7 million and represented 23% of revenues, up from 20% a year earlier. Management said DDoS protection and bot management grew at triple-digit rates, while its next-generation web application firewall continued to gain traction.
Other revenues, which include Compute and Observability, climbed 69% to $7.7 million. Compute demand benefited from customers building low-latency applications and managing artificial intelligence (AI)-related traffic, supporting a combined Security and Other annual revenue run rate of nearly $200 million.
Fastly's Platform Strategy Gains TractionManagement said customers are adopting more products on Fastly’s unified platform, strengthening cross-sell and upsell activity. The company highlighted triple-digit growth in DDoS protection and bot management, while its web application firewall continued to gain traction.
AI-generated and agentic traffic also remained a demand catalyst. Fastly noted that machine traffic requires real-time decisions around authorization, caching, throttling and blocking, supporting adoption across Security, Compute and Network Services.
The company expanded its product reach through a partnership with Skyfire, designed to verify AI-agent identities and enable transactions at the edge. It also released a C++ software development kit for Fastly Compute to support low-latency AI, gaming and other workloads.
Fastly also highlighted its collaboration with LALIGA on an AI-driven system that detects and stops pirated streams in real time. The project illustrates how the company is pairing content delivery with security and edge-compute capabilities.
FSLY's Customer Metrics Show Deeper AdoptionThe last-12-month net retention rate improved from 113% in the first quarter and 104% in the year-ago quarter. The increase reflected broader product adoption and higher usage across a range of customers as Fastly expanded cross-selling and upselling efforts.
Large customer count was 624 at the end of the quarter. Average annualized spend per large customer was $1.11 million, reflecting broader use of the platform across delivery, security and emerging edge-compute workloads.
The top 10 customers represented 37% of revenues. Revenues from this group grew 48% year over year, while revenues from customers outside the top 10 increased 12%. Remaining performance obligations climbed 38% to $341 million, with the current portion rising 44%.
Fastly Expands Margins & Operating LeverageNon-GAAP gross margin expanded 680 basis points year over year to a record 65.8%. Management attributed the improvement to higher revenues relative to infrastructure costs and continued cost discipline.
Non-GAAP operating expenses were $93.7 million. Non-GAAP operating income totaled $27 million compared with an operating loss of $4.6 million a year ago. Adjusted EBITDA increased to $38.1 million from $8.9 million, while adjusted EBITDA margin reached 21%.
FSLY’s Balance Sheet DetailsAs of June 30, 2026, cash, cash equivalents, marketable securities and investments totaled approximately $337 million, up $7 million from March 31, 2026. Fastly ended the quarter with a positive net cash balance of $14 million.
Net cash provided by operating activities was $39.3 million, compared with $25.8 million a year earlier. Free cash flow totaled $3.6 million versus $10.9 million in the prior-year quarter, as infrastructure capital expenditures represented approximately 17% of revenues.
FSLY Raises 2026 Outlook, Sees AI as TailwindFor the third quarter of fiscal 2026, FSLY expects revenues to be in the range of $184-$190 million and non-GAAP earnings of 11-13 cents per share. The company projects non-GAAP operating income of $20-$24 million.
Fastly raised its 2026 revenue guidance to $732-$746 million and non-GAAP earnings outlook to 50-54 cents per share. Non-GAAP operating income is expected between $88 million and $96 million, reflecting an operating margin of approximately 12% at the midpoint.
Management views AI-driven demand as a tailwind across the business. AI tool usage is contributing to traffic growth among some of Fastly’s fastest-growing customers, with the impact most pronounced in Security and Compute and also evident in Network Services.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 45.33% due to these changes.
VGM ScoresAt this time, Fastly has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fastly has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerFastly belongs to the Zacks Internet - Software industry. Another stock from the same industry, CCC Intelligent Solutions Holdings Inc. (CCC - Free Report) , has gained 11.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
CCC Intelligent Solutions reported revenues of $285.93 million in the last reported quarter, representing a year-over-year change of +9.8%. EPS of $0.10 for the same period compares with $0.09 a year ago.
CCC Intelligent Solutions is expected to post earnings of $0.11 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
CCC Intelligent Solutions has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Fastly čelí žalobě kvůli údajným nepravdivým tvrzením o růstu a poptávce; soud ponechal klíčové nároky v platnosti. Po slabších tržbách v únoru 2024 akcie spadly o 31 %.
, /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP advises Fastly, Inc. (NASDAQ: FSLY) investors that the firm is investigating potential legal claims arising from alleged false and misleading statements about growth and the impact of macroeconomic trends on the company's business. Current shareholders are encouraged to contact the firm here: https://www.classactionlawyers.com/fastly.
On August 10, 2026, U.S. District Judge Jon S. Tigar ruled for the second time that key claims in a securities fraud lawsuit against Fastly and its former CEO and CFO will move forward. The lawsuit alleges that between November 2023 and August 2024, the company misled investors about weakening demand and macroeconomic conditions, despite knowing that revenues were declining and that some of Fastly's largest customers had reduced usage of the company's platform. During this period, company insiders reported over $17 million in Fastly stock sales. The November 2023 statement allegedly caused Fastly's stock to trade at artificially inflated prices. Judge Tigar found the complaint sufficiently alleged that this misleading statement was made with knowledge or deliberate recklessness. When Fastly subsequently reported lower-than-expected revenue results in February 2024, its stock price fell 31%.
We are investigating potential wrongdoing by Fastly's directors and officers in connection with these allegations.
If you own Fastly stock, you may have legal options. Visit https://www.classactionlawyers.com/fastly to learn more.
About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents consumers in class actions and shareholders in derivative actions against corporate officers and directors. The firm is based in San Francisco and, with the help of co-counsel, litigates cases nationwide.
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Fastly rozšiřuje své bezpečnostní portfolio a těží z poptávky po AI. Ve čtvrtletí vykázala meziroční růst tržeb o 23,3 % a provozní zisk ve výši 27 milionů USD.
3 Beaten-Down Small Caps Building Momentum for a 2025 RallyFastly NASDAQ: FSLY executives outlined the company’s efforts to broaden its security portfolio, improve go-to-market execution and capitalize on demand related to artificial intelligence at KeyBanc Capital Markets’ Technology Leadership Forum.
Rich Wong, Fastly’s chief financial officer, said the company operates as an Edge Cloud provider, offering content delivery, security, compute and observability services designed to make internet applications faster, more reliable and safer. He said Fastly’s strategy is centered on pairing its edge capabilities with customers’ central-cloud environments.
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MarketBeat Week in Review – 11/6 - 11/10Wong, who marked his one-year anniversary with Fastly, said he joined because he believed the company had strong technology but needed to improve execution and expand its product offerings. He pointed to leadership changes under Chief Executive Officer Kip Compton and go-to-market initiatives led by Scott Lovett as important elements of the company’s recent progress.
Security portfolio and sales execution Wong said Fastly previously had a single security offering, its web application firewall, or WAF, which originated with the company’s 2020 acquisition of Signal Sciences. After integrating that technology into Fastly’s network, the company expanded its security lineup to include distributed denial-of-service protection, bot management, API security and client-side protection.
Fastly shifts into the fast lane toward profits “Having that full suite enabled us to really be a true security player versus just a single security product,” Wong said.
He said the broader portfolio has changed customer discussions from conversations centered solely on content delivery networks to conversations involving the full set of delivery and security products. According to Wong, security products such as DDoS protection, WAF and bot management can also be necessary for Fastly to participate in certain content-delivery requests for proposals.
Lovett, who joined in mid-2024, elevated Fastly’s go-to-market organization by bringing in sales personnel with security experience and changing compensation plans, Wong said. He added that sales and marketing expense at the end of 2025 was lower than it had been during 2024, while the company generated an additional $80 million to $90 million of year-over-year revenue.
Fastly reported 23.3% year-over-year revenue growth in its latest quarter, Wong said, marking its third consecutive quarter with growth above 20%. He also cited 65.8% gross margin, $27 million in operating profit, four consecutive quarters of operating profit and six consecutive quarters of free-cash-flow generation.
Customer concentration and retention Vern Essi, Fastly’s vice president of investor relations, said investors have responded positively to the company’s increased revenue diversification, security momentum and top-line growth. He said some investors have also raised concerns about customer concentration, with Fastly’s top 10 customers accounting for approximately 26% of revenue.
Essi said the company remains comfortable with its ability to grow its largest-customer cohort while continuing to expand other parts of the business. He also highlighted a trailing-12-month net retention rate of 117%, which he described as a four-year high for the company.
Fastly’s “other” revenue category, which includes compute, grew 70% year over year, Essi said. That category generated roughly $8 million in revenue during the latest quarter, according to Wong.
AI opportunities centered on security and edge compute Executives said AI is creating opportunities across Fastly’s business, although they characterized some areas as early-stage. Essi said the most immediate AI-related growth vector has been bot management, including the company’s ContentGuard product.
Fastly has publicly discussed a win with French media organization Le Monde, which uses ContentGuard to identify and manage automated agents accessing its network, Essi said. The product can help customers determine whether to reject agents or permit access, including in cases where a customer has an existing relationship with the organization behind the agent.
Wong said AI traffic can generate high numbers of requests, though it often involves lower amounts of delivered data. Customers have not pushed back significantly on the associated delivery traffic, he said, because they view AI visibility as potentially beneficial to brand exposure and customer discovery.
“AI is now the new SEO,” Wong said, referring to search-engine optimization.
Fastly is also discussing agentic compute workloads with customers, but Essi said it remains too early to determine the scale of that opportunity. The company does not plan to build a GPU-focused “neocloud,” he said, arguing that Fastly’s edge positioning and open cloud platform provide a more attractive approach without requiring large capital investments in graphics-processing-unit infrastructure.
Capital efficiency and greater revenue visibility Wong said Fastly’s single network supports both delivery and security products, including the acquired Signal Sciences WAF. He said that architecture contributes to capital efficiency compared with competitors that may operate separate networks for different product categories.
The company changed its server depreciation cycle from five years to six years earlier this year, citing longer equipment life. Wong said Fastly’s infrastructure capital-expenditure guidance is 10% to 12% of revenue, with spending in 2026 weighted toward the first half after the company ordered components early amid supply-shortage concerns. He said much of the infrastructure spending is directed toward new points of presence in regions including Latin America and Southeast Asia.
While Fastly remains a consumption-based business, Wong said the company has increased revenue visibility through larger customer commitments. He cited year-over-year growth of 38% in remaining performance obligations and 44% in current remaining performance obligations.
About Fastly (NASDAQ:FSLY)Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.
Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.
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The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.
Fastly vyskočila o 21 % v poledne po silných výsledcích za 2. čtvrtletí a zvýšení celoročního výhledu. Tržby dosáhly 183,3 milionu USD a upravený EPS byl 0,15 USD.
Fastly (NYSE:FSLY) stock is surging Monday afternoon, changing hands up 21% to $27.69 in midday trading. The move is one of the largest single-day rallies of the year for the edge-cloud provider, pushing Fastly shares to their highest levels since early 2024.
The rally is a delayed reaction to Q2 2026 results reported after the close on August 5, when Fastly stock initially traded roughly flat. Today’s surge appears to be the market catching up, helped by fresh analyst target hikes and a broad bounce across AI-cloud names.
Coming into today, Fastly stock was already up 41% over the past month and up 171% year to date (YTD), so momentum was already building before the breakout confirmed itself.
Q2 Beat and Raised Guidance Finally Get Their Due Fastly’s Q2 report ticked every box investors wanted. Revenue landed at $183.3 million, up 23.3% year over year (YoY), comfortably ahead of the roughly $174 million expected. The company’s adjusted EPS came in at $0.15 versus the $0.0663 estimate, representing a fifth straight beat.
The profitability metrics stood out. Fastly delivered a record non-GAAP gross margin of 65.8%, adjusted EBITDA of $38.1 million, and net retention of 117%. The company’s Security segment grew 43% to $41.7 million, now a meaningful share of the mix.
Fastly’s management raised the company’s full-year outlook to $732 million to $746 million in revenue (up from about $717.5 million prior) and $0.50 to $0.54 in adjusted EPS. CEO Kip Compton declared, “Our platform strategy is driving business momentum, giving us the confidence to raise our full-year outlook.”
Analyst reactions helped power today’s move. Evercore ISI reiterated an Outperform for FSLY stock with a $32 price target, and KeyBanc stayed bullish with a $30 target. Coverage notes flag Fastly trading around 6x price-to-sales versus Cloudflare (NYSE:NET | NET Price Prediction) above roughly 49x, a valuation gap that the bulls see closing.
AI-Cloud Peers Join the Rally, With One Exception The broader AI-cloud complex is bid up today. Datadog (NASDAQ:DDOG) stock is up 9% to $255.93, rebounding after selling off 19% following its August 6 report. Datadog’s Q3 guide implied a sharp deceleration tied to its largest customer (widely believed to be OpenAI) trimming usage after a nine-figure renewal. Bank of America reiterated Buy with a $305 target, arguing growth outside that account is accelerating to the high-20s in percentage points.
Cloudflare shares are up 2% to $306.77 on sector tailwinds rather than a company-specific catalyst. Oracle (NYSE:ORCL) stock is up 3% to $150.88 on the same AI-cloud theme. The First Trust Cloud Computing ETF (NASDAQ:SKYY) is up 3% to $160.95, a clean sector proxy that holds all four names, and reflects the breadth of today’s cloud bid. It is a concentrated, unleveraged thematic fund, so sector-specific risk applies.
CoreWeave (NASDAQ:CRWV) stock is the laggard, down 2% to $89.09. The AI infrastructure firm reports earnings after tomorrow’s close on August 11, and pre-earnings de-risking plus a run of insider Rule 10b5-1 sales are keeping shares in check.
What to Watch Next The immediate question is whether Fastly stock can hold above the $27 level into the close, or whether some of today’s gains fade as traders take profits on a move this large. A close near the highs would extend the technical breakout.
The next scheduled catalyst for the AI-cloud cohort is CoreWeave’s report tomorrow afternoon. Investors can watch for how CoreWeave’s backlog conversion and margin commentary shape sentiment across the group, including whether Fastly’s momentum carries through the week.
Contact [email protected] for any questions or corrections.
Fastly oznámila rekordní tržby za 2. čtvrtletí ve výši 183,3 mil. USD, meziročně o 23 %, a zlepšila ziskovost. Zároveň zvýšila celoroční výhled tržeb na 732 až 746 mil. USD.
3 Red-Hot Cloud Infrastructure Stocks Powering 2025 GrowthFastly NYSE: FSLY reported record second-quarter revenue and improved profitability as customers expanded their use of its network, security and Compute products. The company also raised its full-year 2026 revenue and operating-profit outlook.
Revenue for the second quarter rose 23% year over year to $183.3 million, exceeding Fastly’s guidance range of $170 million to $176 million. Non-GAAP operating income was $27 million, above the company’s forecast of $12 million to $16 million, while non-GAAP operating margin reached 14.7%.
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3 Beaten-Down Small Caps Building Momentum for a 2025 Rally“Fastly delivered another exceptional quarter, demonstrating the success of our platform strategy efforts,” CEO Kip Compton said. He said the company’s results reflected customers adopting more products on its unified platform, alongside operational discipline and investment in higher-value growth opportunities.
Security and Compute Growth Fastly said security revenue increased 43% from a year earlier to $41.7 million, representing 23% of total revenue compared with 20% in the prior-year quarter. Network services revenue grew 17% to $133.9 million, while other products revenue increased 69% to $7.7 million, primarily driven by Compute sales related to AI and associated customer requirements.
Akamai: AI Tailwinds Drive Edge Computing and Security GrowthCompton said Fastly’s security and other revenue combined grew 46% year over year and reached an annual run rate of nearly $200 million. DDoS Protection and Bot Management each recorded triple-digit year-over-year growth, according to the company.
The company cited AI-driven and agentic traffic as a tailwind across its business, particularly in security and Compute. Compton said AI-generated traffic is growing at roughly 6.5 times the rate of human traffic, increasing demand for tools that can determine whether requests should be authorized, cached, throttled, monetized or blocked.
During the question-and-answer session, Compton said the company does not separately disclose AI traffic volumes but has identified customers where AI tools appear to be driving traffic growth. He said AI and agentic traffic are producing a larger effect in security and Compute than in network services, in part because AI requests can have high request volumes but lower bandwidth needs than streaming events.
Chief Financial Officer Rich Wong said the company’s Next-Gen Web Application Firewall, along with DDoS and Bot Management offerings, were key contributors to security growth. He characterized DDoS and bot-management adoption as still being in the “second inning” and said those products offer substantial cross-selling opportunity.
Customer Expansion and Major Events Fastly’s trailing 12-month net retention rate rose to 117%, compared with 113% in the first quarter and 104% a year earlier. The company said the increase reflected expansion across a broad range of customers using more of its platform.
Large customers, defined as those with more than $100,000 in annualized revenue, totaled 624 at quarter-end. Remaining performance obligations reached $341 million, up 38% from a year earlier, with the current portion of RPO growing 44%.
The company said the revenue outperformance was driven by increased traffic from its largest customers and, to a lesser extent, live sporting events and other one-time activities. Fastly’s top 10 customers accounted for 37% of second-quarter revenue and grew revenue 48% year over year. Revenue from customers outside the top 10 rose 12%.
Wong said less than half of the $10 million by which revenue exceeded the midpoint of guidance was attributable to episodic activity. He noted that 75% of World Cup games occurred in the second quarter, with the remaining 25% expected in the third quarter. Fastly also supported other live events, including an event held on the White House lawn.
Compton said Fastly believes it is gaining share in network services where performance matters, with customer wins often tied to platform reliability, resilience and security effectiveness rather than price discounting. He added that the company wants to generate more new customer wins and growth beyond its largest accounts, even as top customers continue to expand.
Margins, Cash Flow and Outlook Fastly’s non-GAAP gross margin reached a record 65.8%, up from 59% a year earlier and above the company’s guidance midpoint of 64%. Wong said the improvement reflected higher revenue relative to infrastructure costs as well as expense discipline in cost of revenue. He said the company believes gross margins can be sustained around current levels.
Non-GAAP net income was $26.2 million, or $0.15 per diluted share, compared with a loss of $5 million, or $0.03 per share, in the year-earlier quarter. Adjusted EBITDA totaled $38.1 million, or 21% of revenue, compared with $8.9 million, or 6% of revenue, a year earlier.
Fastly ended the quarter with approximately $337 million in cash equivalents, marketable securities and investments, and a positive net cash balance of $14 million. Operating cash flow was $39.3 million, while free cash flow was $3.6 million, marking the company’s sixth consecutive quarter of positive free cash flow.
Third-quarter revenue is projected at $184 million to $190 million. Third-quarter non-GAAP operating income is expected to be $20 million to $24 million. Full-year 2026 revenue guidance was raised to $732 million to $746 million. Full-year non-GAAP operating income guidance was increased to $88 million to $96 million. Fastly maintained its full-year free-cash-flow outlook of $40 million to $50 million. For 2026, Fastly expects gross margin of approximately 65%, plus or minus 50 basis points. The company anticipates infrastructure capital spending of 10% to 12% of revenue, with spending weighted toward the first half as it added equipment amid supply-chain constraints. Wong said Fastly continues to monitor memory-component supply conditions and is using software-defined infrastructure and server upgrades to expand capacity efficiently.
Fastly plans to discuss its platform strategy, growth opportunities and financial disclosures further at its Investor Day on Sept. 22 in New York.
About Fastly (NYSE:FSLY)Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly's real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.
Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.
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Fastly, Inc. (FSLY) Q2 2026 Earnings Call August 5, 2026 4:30 PM EDT
Company Participants
Vernon Essi - Head of IR
Kip Compton - CEO & Director
Richard Wong - Chief Financial Officer
Conference Call Participants
Aidan Daniels - KeyBanc Capital Markets Inc., Research Division
Frank Louthan - Raymond James & Associates, Inc., Research Division
Peter Levine - Evercore ISI Institutional Equities, Research Division
James Fish - Piper Sandler & Co., Research Division
Paramveer Singh - Oppenheimer & Co. Inc., Research Division
Rudy Kessinger - D.A. Davidson & Co., Research Division
Fatima Boolani - Citigroup Inc., Research Division
Daniel Hibshman - Craig-Hallum Capital Group LLC, Research Division
Presentation
Operator
Good afternoon. My name is Corey, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly Second Quarter 2026 Earnings Conference Call. [Operator Instructions]
Please be advised that today's conference is being recorded. I would now like to turn the conference over to Vern Essi, Investor Relations at Fastly. Please go ahead.
Vernon Essi
Head of IR
Thank you, and welcome, everyone, to our second quarter 2026 earnings conference call. We have Fastly's CEO, Kip Compton; and CFO, Rich Wong, with us today.
The webcast of this call can be accessed through our website, fastly.com, and will be archived for 1 quarter. A copy of today's earnings press release, related financial tables and supplement, all of which are furnished in our 8-K filing today, can be found in the Investor Relations portion of Fastly's website, along with the investor presentation.
During this call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, product and services, sales and growth, strategy, long-term growth and overall future prospects. These statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those projected
Fastly ve 2. čtvrtletí zvýšila tržby o 23 % na 183,3 mil. USD a vykázala čistou ztrátu 15,6 mil. USD. Firma zároveň zvedla celoroční výhled tržeb na 732–746 mil. USD.
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leader in global edge cloud platforms, today announced financial results for its second quarter ended June 30, 2026.
"Record second quarter results reflect strong execution and the deep trust customers place in our technology and our teams," said Kip Compton, CEO of Fastly. "Our platform strategy is driving business momentum, giving us the confidence to raise our full-year outlook."
($ in thousands, except per share data) (unaudited)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Revenue
$
183,317
$
148,709
$
356,338
$
293,183
Gross margin
GAAP gross margin
63.3
%
54.5
%
62.9
%
53.9
%
Non-GAAP gross margin(1)
65.8
%
59.0
%
65.5
%
58.2
%
Operating loss
GAAP operating loss
$
(14,433
)
$
(36,943
)
$
(38,328
)
$
(75,122
)
Non-GAAP operating income (loss)(1)
$
26,993
$
(4,594
)
$
46,136
$
(10,439
)
Net income (loss) per share
GAAP net loss per common share — basic and diluted
$
(0.10
)
$
(0.26
)
$
(0.23
)
$
(0.53
)
Non-GAAP net income (loss) per common share — basic(1)
$
0.17
$
(0.03
)
$
0.32
$
(0.08
)
Non-GAAP net income (loss) per common share — diluted(1)
$
0.15
$
(0.03
)
$
0.28
$
(0.08
)
For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this press release.
Second Quarter 2026 Financial Summary
Total revenue of $183.3 million, representing 23% year-over-year growth. Network Services revenue of $133.9 million, representing 17% year-over-year growth. Security revenue of $41.7 million, representing 43% year-over-year growth. Other revenue of $7.7 million, representing 69% year-over-year growth. Network Services revenue includes solutions designed to improve performance of websites, apps, APIs, and digital media. Security revenue includes products designed to protect websites, apps, APIs, and users. Other revenue includes Compute and Observability solutions. Generated $39.3 million of operating cash flow compared to $25.8 million of operating cash flow in the second quarter of 2025. Generated $3.6 million of positive free cash flow compared to $10.9 million in the second quarter of 2025. GAAP gross margin of 63.3%, compared to 54.5% in the second quarter of 2025. Non-GAAP gross margin1 of 65.8%, compared to 59.0% in the second quarter of 2025. GAAP net loss of $15.6 million, compared to $37.5 million in the second quarter of 2025. Non-GAAP net income1 of $26.2 million, compared to non-GAAP net loss1 of $5.0 million in the second quarter of 2025. GAAP net loss per basic and diluted share of $0.10, compared to $0.26 in the second quarter of 2025. Non-GAAP net income per basic share1 of $0.17, compared to non-GAAP net loss per basic share1 of $0.03 in the second quarter of 2025. Non-GAAP net income per diluted share1 of $0.15, compared to non-GAAP net loss per diluted share1 of $0.03 in the second quarter of 2025. Key Metrics
Remaining Performance Obligations (RPO)2 were $341 million, up 38% from $247 million in the second quarter of 2025. Fastly's top ten customers accounted for 37% of revenue in the second quarter of 2026 compared to 31% in the second quarter of 2025. Last 12-month net retention rate (LTM NRR)3 increased to 117% in the second quarter from 113% in the first quarter of 2026. Second Quarter Business and Product Highlights
Announced new research showing how rapidly growing AI traffic is reshaping the internet, growing 6.5x faster than human traffic this year, and why organizations need new strategies to manage machine traffic. Released a joint announcement with LALIGA on the collaboration of anti-piracy solutions that are designed to address illegal streaming of live sports and help rights holders prevent lost revenue. Announced a new partnership with Skyfire, enabling trusted commerce at the edge so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure. Released C++ SDK for Fastly Compute, enabling enterprises to secure, scale, and accelerate their C++ AI workloads, gaming features, and other low-latency applications. Third Quarter and Full Year 2026 Guidance
Q3 2026
Full Year 2026
Total Revenue (millions)
$184.0 - $190.0
$732.0 - $746.0
Non-GAAP Operating Income (millions)
$20.0 - $24.0
$88.0 - $96.0
Non-GAAP Net Income per share(4)(5)
$0.11 - $0.13
$0.50 - $0.54
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Fastly’s future GAAP financial results.
Conference Call Information
Fastly will host an investor conference call to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, August 5, 2026.
To access the conference call, please pre-register and dial-in using this link at least 15 minutes prior to the 1:30 p.m. PT start time. Registrants will receive an email confirmation with dial-in details.
A live webcast of the event can be accessed using this link. A replay of the webcast will be available on https://investors.fastly.com starting approximately two hours after the event and archived on the site for one quarter.
About Fastly, Inc.
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.
Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance and shareholder returns, including our outlook and guidance and ability to maintain and strengthen our liquidity position; our ability to acquire new customers, expand cross-sell opportunities, and grow market share; our ability to enrich our revenue mix with platform enhancements; the performance of our existing and new platform enhancements; our ability to accelerate global growth; our partnerships and collaborations; the performance, capabilities, and expectations regarding customer experiences with Fastly Compute, including its C++ SDK, Bot Management and DDoS Protection, and Next-Gen WAF; and Fastly's strategies, platform, and business plans. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2025. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and other filings and reports that Fastly may file from time to time with the SEC. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense and related employer payroll taxes, amortization of capitalized stock-based compensation - cost of revenue, amortization of acquired intangible assets, executive transition costs, and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense and related employer payroll taxes, amortization of capitalized stock-based compensation - cost of revenue, gain on modification of lease, depreciation and other amortization expenses, amortization of acquired intangible assets, impairment expense, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, other expense (income), net, and income taxes.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, and capitalized internal-use software costs. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Gain on Modification of Lease: consists of a one-time non-cash charge recognized with respect to the modification of our leases. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other (Expense) Income, Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense and Related Employer Payroll Taxes: consists of expenses for stock options, restricted stock units, performance awards and other shares issued under our equity incentive plans or our Employee Stock Purchase Plan ("ESPP"), as applicable, and the related employer payroll taxes. Although stock-based compensation and its related employer payroll taxes are expenses for the Company, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because they are expenses not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Amortization of Capitalized Stock-Based Compensation - Cost of Revenue: in order to reflect the performance of our core business, ongoing operating results, or future outlook, and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies, similar to stock-based compensation, management considers it appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this press release.
Key Metrics
1 Beginning with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) per common share — basic and non-GAAP net income (loss) per common share — diluted, because we consider our operating results without this activity when evaluating our ongoing non-GAAP net income (loss) performance and our adjusted EBITDA performance. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes.
2 Remaining Performance Obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. During the third quarter of 2025, we identified an error in RPO calculations from certain contracts with a termination-for-convenience clause. We recast the presentation of RPO for all prior periods presented to reflect the correction of this error.
3 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
4 Non-GAAP net income per share is calculated as Non-GAAP net income divided by weighted average diluted shares for 2026.
5 Assumes weighted average diluted shares outstanding of 181.4 million in Q3 2026 and 180.3 million for the full year 2026.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Revenue
$
183,317
$
148,709
$
356,338
$
293,183
Cost of revenue(1)
67,366
67,593
132,206
135,269
Gross profit
115,951
81,116
224,132
157,914
Operating expenses:
Research and development(1)
42,071
42,221
84,043
79,650
Sales and marketing(1)
56,735
51,100
111,849
100,413
General and administrative(1)
31,578
24,323
66,568
52,558
Impairment expense
—
415
—
415
Total operating expenses
130,384
118,059
262,460
233,036
Loss from operations
(14,433
)
(36,943
)
(38,328
)
(75,122
)
Interest income
2,842
3,084
5,769
6,059
Interest expense
(3,348
)
(3,164
)
(6,654
)
(6,337
)
Other (expense) income, net
(400
)
39
(780
)
(41
)
Loss before income taxes
(15,339
)
(36,984
)
(39,993
)
(75,441
)
Income tax expense (benefit)
252
557
(3,878
)
1,248
Net loss
$
(15,591
)
$
(37,541
)
$
(36,115
)
$
(76,689
)
Net loss per share attributable to common stockholders, basic and diluted
$
(0.10
)
$
(0.26
)
$
(0.23
)
$
(0.53
)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
157,596
145,780
155,598
144,539
________________ (1) Includes stock-based compensation expense as follows:
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Cost of revenue
$
2,757
$
2,573
$
5,293
$
4,512
Research and development
11,902
11,755
21,932
20,648
Sales and marketing
10,344
8,176
19,697
14,869
General and administrative
10,169
3,831
23,231
11,888
Total
$
35,172
$
26,335
$
70,153
$
51,917
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands, except per share data)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Gross profit
GAAP gross profit
$
115,951
$
81,116
$
224,132
$
157,914
Stock-based compensation expense and related employer payroll taxes(1)
3,026
2,573
5,773
4,512
Amortization of capitalized stock-based compensation - Cost of revenue
1,694
1,581
3,383
3,222
Amortization of acquired intangible assets
—
2,475
—
4,950
Non-GAAP gross profit
$
120,671
$
87,745
$
233,288
$
170,598
GAAP gross margin
63.3
%
54.5
%
62.9
%
53.9
%
Non-GAAP gross margin
65.8
%
59.0
%
65.5
%
58.2
%
Research and development
GAAP research and development
$
42,071
$
42,221
$
84,043
$
79,650
Stock-based compensation expense and related employer payroll taxes(1)
(12,967
)
(11,755
)
(24,355
)
(20,648
)
Non-GAAP research and development
$
29,104
$
30,466
$
59,688
$
59,002
Sales and marketing
GAAP sales and marketing
$
56,735
$
51,100
$
111,849
$
100,413
Stock-based compensation expense and related employer payroll taxes(1)
(10,869
)
(8,176
)
(21,009
)
(14,869
)
Amortization of acquired intangible assets
(2,160
)
(2,279
)
(4,319
)
(4,580
)
Executive transition costs
—
—
(262
)
—
Non-GAAP sales and marketing
$
43,706
$
40,645
$
86,259
$
80,964
General and administrative
GAAP general and administrative
$
31,578
$
24,323
$
66,568
$
52,558
Stock-based compensation expense and related employer payroll taxes(1)
(10,710
)
(3,831
)
(24,302
)
(11,888
)
Executive transition costs
—
—
(1,061
)
(335
)
Gain on modification of lease
—
736
—
736
Non-GAAP general and administrative
$
20,868
$
21,228
$
41,205
$
41,071
Operating income (loss)
GAAP operating loss
$
(14,433
)
$
(36,943
)
$
(38,328
)
$
(75,122
)
Stock-based compensation expense and related employer payroll taxes(1)
37,572
26,335
75,439
51,917
Amortization of capitalized stock-based compensation - Cost of revenue
1,694
1,581
3,383
3,222
Executive transition costs
—
—
1,323
335
Gain on modification of lease
—
(736
)
—
(736
)
Amortization of acquired intangible assets
2,160
4,754
4,319
9,530
Impairment expense
—
415
—
415
Non-GAAP operating income (loss)
$
26,993
$
(4,594
)
$
46,136
$
(10,439
)
Net income (loss)
GAAP net loss
$
(15,591
)
$
(37,541
)
$
(36,115
)
$
(76,689
)
Stock-based compensation expense and related employer payroll taxes(1)
37,572
26,335
75,439
51,917
Amortization of capitalized stock-based compensation - Cost of revenue
1,694
1,581
3,383
3,222
Executive transition costs
—
—
1,323
335
Gain on modification of lease
—
(736
)
—
(736
)
Amortization of acquired intangible assets
2,160
4,754
4,319
9,530
Impairment expense
—
415
—
415
Amortization of debt discount and issuance costs
366
217
767
434
Non-GAAP net income (loss)
$
26,201
$
(4,975
)
$
49,116
$
(11,572
)
Non-GAAP net income (loss) per common share — basic
$
0.17
$
(0.03
)
$
0.32
$
(0.08
)
Non-GAAP net income (loss) per common share — diluted
$
0.15
$
(0.03
)
$
0.28
$
(0.08
)
Weighted average basic common shares
157,596
145,780
155,598
144,539
Weighted average diluted common shares
180,304
145,780
178,410
144,539
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(unaudited, in thousands, except per share data)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Reconciliation of GAAP to Non-GAAP diluted shares
GAAP diluted shares
157,596
145,780
155,598
144,539
Other dilutive equity awards
22,708
—
22,812
—
Non-GAAP diluted shares
180,304
145,780
178,410
144,539
Non-GAAP diluted net income (loss) per share
$
0.15
$
(0.03
)
$
0.28
$
(0.08
)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Adjusted EBITDA
GAAP net loss
$
(15,591
)
$
(37,541
)
$
(36,115
)
$
(76,689
)
Stock-based compensation expense and related employer payroll taxes(1)
37,572
26,335
75,439
51,917
Amortization of capitalized stock-based compensation - Cost of revenue
1,694
1,581
3,383
3,222
Gain on modification of lease
—
(736
)
—
(736
)
Depreciation and other amortization
11,129
13,505
21,449
27,155
Amortization of acquired intangible assets
2,160
4,754
4,319
9,530
Amortization of debt discount and issuance costs
366
217
767
434
Impairment expense
—
415
—
415
Executive transition costs
—
—
1,323
335
Interest income
(2,842
)
(3,084
)
(5,769
)
(6,059
)
Interest expense
2,982
2,947
5,887
5,903
Other expense (income), net
400
(39
)
780
41
Income tax expense (benefit)
252
557
(3,878
)
1,248
Adjusted EBITDA
$
38,122
$
8,911
$
67,585
$
16,716
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
As of
June 30, 2026
As of
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
89,798
$
180,563
Marketable securities
247,700
181,196
Accounts receivable, net of allowance for credit losses
114,216
118,029
Prepaid expenses and other current assets
27,333
26,921
Total current assets
479,047
506,709
Property and equipment, net
220,354
186,785
Operating lease right-of-use assets, net
58,213
52,067
Goodwill
670,356
670,356
Intangible assets, net
21,232
25,771
Other assets
54,441
57,789
Total assets
$
1,503,643
$
1,499,477
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
20,124
$
17,612
Accrued expenses
52,937
70,669
Long-term debt, current
—
38,557
Operating lease liabilities, current
30,100
24,427
Deferred revenue
34,266
35,234
Other current liabilities
5,096
7,499
Total current liabilities
142,523
193,998
Long-term debt, net
323,958
323,282
Operating lease liabilities, non-current
44,234
43,921
Other long-term liabilities
2,111
8,698
Total liabilities
512,826
569,899
Stockholders’ equity:
Common stock
3
3
Additional paid-in capital
2,141,909
2,044,103
Accumulated other comprehensive loss
(493
)
(41
)
Accumulated deficit
(1,150,602
)
(1,114,487
)
Total stockholders’ equity
990,817
929,578
Total liabilities and stockholders’ equity
$
1,503,643
$
1,499,477
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Three months ended
June 30,
Six months ended
June 30,
2026
2025
2026
2025
Cash flows from operating activities:
Net loss
$
(15,591
)
$
(37,541
)
$
(36,115
)
$
(76,689
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense
12,720
14,962
24,612
30,129
Amortization of intangible assets
2,262
4,878
4,539
9,778
Non-cash lease expense
6,887
5,694
13,085
11,349
Amortization of debt discount and issuance costs
366
217
767
434
Amortization of deferred contract costs
4,733
4,847
9,491
9,697
Stock-based compensation
35,172
26,335
70,153
51,917
Deferred income taxes
(23
)
327
(4,353
)
749
Provision for credit losses
1,014
1,048
2,532
1,994
(Gain) loss on disposals of property and equipment
(9
)
(43
)
267
(43
)
Accretion of discounts and amortization of premiums, net
(1,019
)
(1,356
)
(1,817
)
(1,982
)
Impairment expense
—
415
—
415
Non-cash interest expense
969
969
969
969
Other adjustments
(57
)
(84
)
(275
)
292
Changes in operating assets and liabilities:
Accounts receivable, net
14,807
669
1,281
(3,324
)
Prepaid expenses and other current assets
2,227
121
(412
)
2,337
Other assets
(3,195
)
(6,076
)
(1,845
)
(8,171
)
Accounts payable
1,497
3,446
8,309
6,021
Accrued expenses
(2,651
)
1,577
872
(1,806
)
Operating lease liabilities
(7,114
)
(2,332
)
(12,923
)
(7,888
)
Other liabilities
(13,661
)
7,725
(10,937
)
16,908
Net cash provided by operating activities
39,334
25,798
68,200
43,086
Cash flows from investing activities:
Purchases of marketable securities
(87,262
)
(93,440
)
(266,602
)
(272,926
)
Maturities of marketable securities
24,329
37,836
201,472
45,805
Purchases of property and equipment
(31,623
)
(9,852
)
(52,644
)
(12,457
)
Proceeds from sale of property and equipment
10
44
10
44
Capitalized internal-use software
(4,148
)
(4,542
)
(7,884
)
(9,305
)
Net cash used in investing activities
(98,694
)
(69,954
)
(125,648
)
(248,839
)
Cash flows from financing activities:
Repayment of convertible senior notes
—
—
(38,593
)
—
Payments of other debt issuance costs
—
—
(502
)
—
Repayments of finance lease liabilities
—
(537
)
—
(2,248
)
Proceeds from exercise of vested stock options
92
279
1,135
687
Proceeds from employee stock purchase plan
2,397
1,240
4,676
3,371
Net cash provided by (used in) financing activities
2,489
982
(33,284
)
1,810
Effects of exchange rate changes on cash and cash equivalents
Fastly se připojila k DIMPACT jako první poskytovatel edge cloudu, aby zlepšila měření digitálních emisí. Firma také uvedla výhled tržeb na 170–176 milionů USD a non-GAAP EPS 5–8 centů pro 2. čtvrtletí 2026.
Key Takeaways Fastly joined DIMPACT as its first edge cloud provider to improve digital emissions measurement. Fastly's platform data and sustainability dashboard help customers track electricity use and emissions. Fastly projects Q2 2026 revenues of $170-$176 million and non-GAAP EPS of 5 cents to 8 cents. Fastly (FSLY - Free Report) shares have surged 96.8% in the year-to-date period, significantly outperforming the Zacks Computer and Technology sector’s 17.0% gain. The rally reflects improving financial performance, accelerating security revenue growth and growing adoption of the company's edge cloud platform.
Fastly is strengthening its long-term growth prospects by expanding its digital sustainability initiatives. As global internet traffic and artificial intelligence (AI) workloads continue to rise, enterprises are increasingly seeking infrastructure providers that not only deliver high performance but also help measure and reduce the environmental impact of digital operations.
Fastly Expands Digital Sustainability Through DIMPACTFastly joined DIMPACT, a leading collaboration focused on measuring and reducing the carbon footprint of digital media. As the first edge cloud platform provider to participate in the initiative, Fastly will contribute edge network expertise, emissions data and technical insights to help develop more accurate methodologies for measuring emissions across digital content delivery.
The partnership is expected to benefit media companies, streaming providers, publishers and other digital businesses by improving visibility into emissions generated throughout the internet delivery chain. As organizations place greater emphasis on Scope 3 emissions reporting and sustainability goals, Fastly's participation could strengthen its relationships with enterprise customers seeking environmentally responsible infrastructure partners.
This integration of Fastly's global edge platform data with DIMPACT's sustainability framework is expected to help customers optimize digital delivery, reduce environmental impact and strengthen Fastly's position as a trusted infrastructure provider.
Sustainability Initiatives Strengthen Fastly's Growth StoryFastly's participation in DIMPACT leverages the scale of its global edge cloud platform, which processes more than 5 trillion requests daily across 578 terabits per second of edge capacity. The company can provide real-world operational data that helps enterprises better measure and manage the environmental impact of digital content delivery as customer traffic flows through its infrastructure before reaching end users.
FSLY offers a sustainability dashboard that tracks electricity consumption and greenhouse gas emissions associated with platform usage, complementing DIMPACT's goal of establishing industry standards for digital emissions. These capabilities could strengthen Fastly's relationships with multinational streaming, publishing and enterprise customers seeking both high-performance edge services and greater carbon transparency.
The initiative also supports Fastly's international expansion strategy, particularly as sustainability reporting requirements continue to evolve globally. The company continues to expand its presence in Asia-Pacific, including a new Singapore office, while positioning sustainability and carbon transparency as differentiators for enterprise customers. Its improving execution is reflected in first-quarter 2026 revenue growth of 20% to $173 million, 47% growth in security revenues and a 63% increase in remaining performance obligations to $369 million.
Fastly Offers Strong Q2 2026 OutlookFastly's expanding AI, security and edge cloud platform, together with improving enterprise demand, are expected to support revenue growth.
For the second quarter of 2026, FSLY guided revenues to $170-$176 million and non-GAAP earnings to 5-8 cents per share.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $174.03 million, indicating year-over-year growth of approximately 17.02%.
The consensus mark for second-quarter 2026 earnings is pegged at 7 cents per share, which has remained unchanged over the past 30 days, indicating year-over-year growth of 333.33%.
FSLY's Zacks Rank & Stocks to ConsiderCurrently, Fastly carries a Zacks Rank #3 (Hold).
Digital Turbine (APPS - Free Report) , Dell Technologies (DELL - Free Report) and Analog Devices (ADI - Free Report) are some top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Analog Devices sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 99% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 239.3% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of ADI have gained 42.3% in the year-to-date period. The long-term earnings growth rate for Analog Devices is pegged at 28.76%.
