Charles Lacey “Kip” Compton III, CEO of Fastly, Inc. (FSLY +4.48%), sold 18,485 shares of Class A Common Stock on July 16 and July 17, 2026, at a weighted average price of $20.74 per share according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value~$383,400Shares sold18,485Post-transaction shares (directly held)1,045,460Post-transaction value$21.66 millionTransaction value based on SEC Form 4 weighted average sale price ($20.74); post-transaction value based on July 17, 2026 market close.
Key questionsWhat was the context for this transaction?
The disposal was executed under a Rule 10b5-1 trading plan established on August 27, 2025, which allows insiders to set up a pre-arranged schedule for selling shares to avoid concerns about trading on non-public information.How do the current holdings reflect the insider's long-term commitment?
Despite the sale of 18,485 shares, the CEO continues to hold 1,045,460 shares directly, representing a 0.67% ownership stake in the company. The insider also holds derivative securities that further align his interests with shareholders.How has the company's financial profile evolved leading up to this filing?
Fastly reported trailing twelve-month revenue of $652.6 million and a net loss of $103.1 million, maintaining a market capitalization of $3.2 billion as of the July 17, 2026 close. The stock has delivered a 202% return over the one-year period ending on the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-07-17)$20.72Market Capitalization$3.2 billionRevenue (TTM)$652.6 millionNet Income (TTM)-$103.1 millionCompany SnapshotFastly provides an advanced edge cloud computing platform that enables developers to build, secure, and deliver digital experiences at the internet's edge, with primary revenue derived from Infrastructure as a Service (IaaS) offerings across North America, Asia Pacific, Europe, and international markets.The company operates a subscription-based business model where customers pay for access to its customizable edge cloud platform, which optimizes web and application delivery while providing security and performance management capabilities.Fastly primarily serves enterprise customers, developers, and digital-first organizations that require high-performance content delivery, edge computing, and application security solutions across global markets.Fastly is a specialized edge cloud infrastructure provider, serving as a critical infrastructure partner for enterprises requiring optimized content delivery and edge computing capabilities. The company operates a highly customizable platform designed to address the growing demand for distributed computing resources at the internet's edge, enabling rapid digital experience delivery with integrated security features.
With 1,140 employees, Fastly competes in the infrastructure software market by offering differentiated edge computing capabilities that address latency, performance, and security requirements for modern digital applications.
What this transaction means for investorsThe sale of Fastly stock on July 16 and July 17 does not appear to be a cause for investor concern. The July 16 disposition involved 11,412 shares and these were sold to satisfy tax withholding obligations related to the vesting of restricted stock units.
The remaining 7,073 shares sold by CEO Kip Compton on July 17 was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan. Given he retained over one million shares after this sale, Compton maintains a substantial equity stake in the company.
Although Fastly’s first-quarter earnings report did not impress Wall Street, contributing to the stock falling from a 52-week high of $34.82 in April, the company posted record revenue of $173 million. That represents excellent 20% year-over-year growth.
Even so, Fastly remains unprofitable with a Q1 operating loss of $23.9 million. Yet its price-to-sales ratio of about four is higher than it was a year ago, suggesting the stock’s valuation is elevated, which is likely another contributor to its share price decline.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fastly. The Motley Fool has a disclosure policy.
Experian today announced that Fastly (NASDAQ: FSLY), a leading global edge cloud platform, has joined the growing Experian Agent Trust⢠ecosystem. Together,
COSTA MESA, Calif.--(BUSINESS WIRE)--Experian today announced that Fastly (NASDAQ: FSLY), a leading global edge cloud platform, has joined the growing Experian Agent Trust™ ecosystem. Together, the companies will help enterprises verify AI agents, authorize transactions, and make trust decisions in real time as autonomous commerce continues to grow. "Agentic commerce represents one of the most significant shifts in digital commerce since the rise of mobile," said Kathleen Peters, Chief Innovati.
SummaryFastly (FSLY) is rated a buy, driven by diversified demand across AI, cybersecurity, and IoT, not just AI hype. FSLY’s programmable edge computing and consumption-based model appeal to AI developers, though pricing may deter some compared to Cloudflare. FSLY’s 17.90% levered free cash flow margin and attractive price/sales ratio offset concerns about negative net income due to stock-based compensation. Risks include potential AI spending slowdowns, IoT adoption deceleration, and competitive threats, but FSLY’s diversified exposure lowers risk versus pure AI plays. Alistair Berg/DigitalVision via Getty Images
Thesis Fastly (FSLY) is rated as a buy owing to strong but relatively diversified demand for its products and services. The AI boom has driven Fastly’s prospects in recent months, but Fastly is not solely
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SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leading global edge cloud platform, today announced that it will host investors and analysts at its 2026 Investor Day at the Nasdaq MarketSite in New York City on September 22, 2026. This half-day event will feature presentations by Fastly's executives who will provide updates on the company's strategy, product roadmap, financials, and business outlook. Fastly will host a live virtual webcast of the event beginning at 1:00 PM ET. To.
SummaryFastly is in technical breakout mode, trading above major resistance and bouncing off its 50-EMA, signaling bullish momentum.I expect FSLY's 200-EMA and anchored VWAP around $17 to provide a strong downside floor, with institutional demand supporting these levels.The options market anticipates a 14.5% move ahead of the August 5th earnings, with key levels at $22 resistance and $17 support.My strategy is to ride the momentum up to earnings, using a breach of the 50-EMA as a stop and avoiding fundamental risk. Ekaterina Vakhrusheva/iStock via Getty Images
Cloud and cybersecurity firm Fastly (FSLY) has been on a rollercoaster over the past few months, sitting near the middle of its YTD track record. The stock, which started the year around $10, peaked at $33.50 in April before
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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%.
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leader in global edge cloud platforms, will release financial results for the second quarter of 2026 after market close on Wednesday, August 5, 2026. Fastly will host an investor conference call that day to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET. 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 confir.
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leading global edge cloud platform, today announced it has become a participant of DIMPACT, the coalition of leading organizations working to align industry changemakers and policymakers around meaningful, science-based solutions that reduce the environmental impacts of serving digital media products. As the first edge cloud platform provider to join the coalition, Fastly brings critical, real-world edge network data and infrastruct.
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leader in global edge cloud platforms, today announced it has been recognized as a 2026 Gartner® Peer Insights™ Customers' Choice for Edge Distribution Platforms. This distinction is based entirely on verified peer reviews, where Fastly received overall high ratings across the board for its platform performance and reliability, dedication to customer experience, and ongoing customer support.Fastly received the highest overall rating.
On June 17, 2026, Fastly (FSLY +5.71%) President of Go to Market, Scott R. Lovett, executed an open-market sale of 41,716 shares of Common Stock for a total value of approximately $741,000, according to an SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)41,716Transaction value$741,293Post-transaction shares (direct)1,392,778Post-transaction value (direct ownership)$24.25 millionTransaction value based on SEC Form 4 reported price ($17.77); post-transaction value based on June 17, 2026 market close ($17.41).
Key questionsHow does this sale compare to Scott Lovett’s historical selling activity?
The 41,716-share sale is below the historical mean sale size of ~48,452 shares for Lovett’s prior open-market dispositions, reflecting both reduced capacity after a series of larger sales and a disciplined ongoing cadence.What proportion of total and direct holdings did this transaction represent?
The sale accounted for 2.91% of Lovett’s direct holdings at the time, leaving a substantial remaining position of 1,392,778 shares under direct ownership.Did this transaction involve indirect holdings or derivatives?
No indirect entities or derivative securities participated; all shares sold were directly held Common Stock, and Lovett’s remaining position is solely direct Class A Common Stock.What market context surrounded the sale and what does it imply for future capacity?
The transaction occurred as Fastly shares were priced at $17.41 at the June 17, 2026 close (with a one-year total return of 162.6% as of that date), and the declining trade sizes over time are a function of Lovett’s shrinking available holdings, rather than a discretionary reduction in sales pace.Company overviewMetricValuePrice (as of market close June 17, 2026)$17.41Market capitalization$2.68 billionRevenue (TTM)$652.57 million1-year price change162.6%* 1-year price change calculated using June 17, 2026 as the reference date.
Company snapshotFastly offers an advanced edge cloud platform, including Compute@Edge, edge security services, content delivery, streaming, and developer tools for application deployment and protection.It delivers edge computing and security solutions as Infrastructure as a Service (IaaS).The company serves digital publishers, media and entertainment firms, technology companies, e-commerce, travel, hospitality, and financial services clients globally.Fastly operates a global edge cloud platform that enables rapid, secure, and programmable delivery of digital experiences for enterprise customers. The company differentiates itself through a highly customizable infrastructure, robust developer resources, and integrated security solutions designed for performance and scalability.
With a focus on serving demanding digital businesses, Fastly leverages its technology to address complex content delivery, security, and application deployment needs at the network edge.
What this transaction means for investorsInsider Scott Lovett’s June 17 sale of Fastly stock came at a time when shares had fallen substantially from their 52-week high of $34.82 reached in April. However, his disposition is not a red flag for investors.
The sale was a non-discretionary transaction executed as part of a pre-arranged Rule 10b5-1 trading plan adopted back in February of 2025. Such plans are often implemented by insiders to avoid accusations of trading based on insider information.
In addition, Lovett still held over one million shares after his sale. This indicates he maintains a substantial equity position in the company.
Fastly shares fell after a spectacular run fueled by investor enthusiasm over rising internet traffic from artificial intelligence bots scouring for information online. It’s likely investors decided to cash in after Fastly’s stock valuation became sky-high.
Despite the share price drop, the company is doing well. It posted 20% year-over-year revenue growth to $173 million in the first quarter. Fastly management forecasted full-year sales of at least $710 million, up from the $624 million produced in 2025.
Fastly remains a compelling AI-driven edge cloud platform despite a sharp post-earnings sell-off tied to disappointing Q2 guidance. FSLY achieved 20% year-over-year revenue growth in Q1'26 and posted its fifth consecutive quarter of positive free cash flow. Shares trade at a discounted 3.6X forward P/S, well below Cloudflare and Akamai, reflecting market overreaction to near-term deceleration.
Key Takeaways Fastly's security revenues rose 47% YoY to $38.8M, hitting 22% of total revenues in Q1. Next-Gen WAF led, but DDoS Protection, Bot Management and API Discovery gained traction with new customers. Seven-figure security deals and smaller wins supported growth as AI bot traffic and shadow API risks rose. Fastly, Inc. (FSLY - Free Report) delivered a strong first-quarter 2026 performance in its security business, with security revenues increasing 47% year over year to $38.8 million. Security accounted for 22% of total revenues in the quarter, reaching record levels for the company. The segment also grew 9% sequentially, marking the fourth straight quarter of accelerating security revenue growth.
Fastly’s security momentum is becoming stronger. Its Next-Gen WAF remained a core driver, but newer products also gained traction. These include DDoS Protection, Bot Management, and API Discovery and Inventory. Among instances of security products sold to new customers in the quarter, almost half came from these newer offerings. This indicates that Fastly’s security portfolio is expanding beyond one flagship product and gaining relevance across a wider set of customer needs.
Customer activity also supported the security growth story. Fastly closed multiple seven-figure deals that included security, while smaller wins also contributed. This suggests the quarter’s growth was not associated with just one isolated transaction.
AI-related traffic and security risks are also adding to the relevance of Fastly’s tools. ContentGuard was added by a long-standing media customer facing daily malicious AI bot traffic, while API security tools were positioned to help address shadow API risks as AI speeds up code delivery.
Fastly’s security business is becoming a more meaningful part of the company’s revenue mix. With stronger adoption across both established and newer security products, the segment’s momentum reflects improving product depth, broader customer engagement and a clearer role for security within Fastly’s platform strategy.
NET and AKAM Benefit From Rising Security and AI DemandCloudflare, Inc. (NET - Free Report) reported fourth-quarter 2025 revenues of $614.5 million, up nearly 34% year over year, while full-year revenues increased about 30% to $2.17 billion. Management highlighted strong demand related to AI, enterprise security and connectivity workloads. Cloudflare also noted that large customer revenues grew 42% year over year and accounted for 73% of total revenues. NET continues to see traction across its Zero Trust, application security and Cloudflare Workers offerings.
Akamai Technologies, Inc. (AKAM - Free Report) also reported steady security momentum in its latest quarter. Akamai Technologies’ fourth-quarter 2025 revenues increased 7% year over year to $1,095 million. Akamai Technologies’ security revenues rose 11% year over year to $592 million, while Guardicore Segmentation and API Security revenues jumped 36% to $90 million. These figures show that AKAM continues to see demand for cybersecurity, API protection and segmentation offerings.
FSLY Stock Price Performance, Valuation & EstimatesShares of Fastly have surged a whopping 314.3% over the past year against the industry’s decline of 8%.
FSLY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, FSLY trades at a forward price-to-sales ratio of 6.69, higher than the industry’s average of 3.8.
FSLY Valuation Compared to Industry
Image Source: Zacks Investment Research
Fastly (FSLY 1.75%), a real-time content delivery network provider, closed Thursday at $19.50, down 38.23%. The stock sank after record Q1 results and raised 2026 guidance failed to ease concerns about slowing core networking services growth. Trading volume reached 47.1 million shares, about 208% above its three-month average of 15.3 million shares. Fastly IPO'd in 2019 and has fallen 19% since going public.
How the markets moved todayThe S&P 500 slipped 0.38% to 7,337, while the Nasdaq Composite eased 0.13% to finish at 25,806. Industry peers Akamai Technologies closed at $116.69 (-4.34%) and Cloudflare ended at $257.05 (+3.40%), underscoring mixed reactions to recent earnings.
What this means for investorsFastly grew sales by 20% in Q1 and delivered profitability on an adjusted EPS basis, beating Wall Street’s estimates. However, while it raised 2026 guidance to include 15% sales growth, the market sold the stock off on the prospect that sales growth would decelerate, and Fastly’s core Network Services segment grew revenue by only 11%.
While this deceleration was disappointing, management noted this 11% growth was still double the market’s rate. Meanwhile, its nascent Security and Compute units -- which account for roughly one-fourth of Fastly’s sales now -- delivered revenue growth of 67% and 47%, respectively.
However, trading at 71 times forward earnings after its stock tripled over the last year, I’m just going to watch Fastly for now, especially as management believes its infrastructure capex (as a percentage of revenue) will more than double in 2026.
Josh Kohn-Lindquist has positions in Cloudflare. The Motley Fool has positions in and recommends Cloudflare and Fastly. The Motley Fool recommends Akamai Technologies. The Motley Fool has a disclosure policy.
Shares of Fastly (NYSE:FSLY) just earned a strong endorsement from Raymond James, which upgraded the edge cloud platform to Outperform from Market Perform with a $23 price target. The call lands in the wake of a 38% one-day decline that followed an in-line quarter, making this a clearly contrarian view. Raymond James argues the market overreacted and that an AI-driven traffic inflection is the dominant longer-term theme.
The split with peers is the story. Piper Sandler reiterated a Hold on Fastly stock the same week, framing the quarter as a thesis crack rather than a setup. For broader context on how analysts are positioning around AI infrastructure names, see our recent coverage of AI infrastructure analyst upgrades.
Ticker Company Firm Action Old Rating New Rating Old Target New Target FSLY Fastly Raymond James Upgrade Market Perform Outperform n/a $23 The Analyst’s Case Raymond James believes Fastly has reached an “inflection” in operational performance, with rising demand for its network capacity and security products. The firm sees AI-driven traffic increases continuing to benefit delivery networks with more advanced capabilities.
Crucially, the analyst points to structure. Fastly’s network runs through major interconnected data centers positioned to capture incremental AI and inference-related traffic as those workloads scale, an architectural moat the firm is willing to underwrite at $23.
Company Snapshot Fastly operates an edge cloud platform spanning Network Services, Security, and Compute & Observability. In Q1 2026, revenue grew 20% year over year to $173.02 million, with Security up 47% and Compute & Observability up 67%.
CEO Kip Compton stated that Fastly delivered “record revenue, gross margin, and RPO” in the quarter. Management raised full-year guidance to $710 million to $725 million in revenue, with non-GAAP EPS of $0.27 to $0.33.
Why the Move Matters Now Fastly stock closed at $19.50 on May 7 after the post-earnings selloff, well below its 52-week high of $34.82. The Raymond James $23 target sits just above the $22.75 consensus analyst target, reframing the post-earnings drawdown as opportunity rather than damage.
The bull case rests on CDN economics shifting in an AI-heavy traffic environment. Inference traffic is more compute-intensive than static content delivery, which favors Fastly’s edge compute and security stack. RPO of $369 million grew 63% year over year, and net retention ticked up to 113%.
What It Means for Your Portfolio For prudent investors, Fastly stock now sits at the center of a genuine analyst debate. The bear case from Piper Sandler centers on volume softness and pricing pressure in core delivery, alongside competition from hyperscaler-affiliated CDN alternatives. Customer concentration also remains elevated, with the top 10 customers representing 34% of revenue.
The bull case is the one Raymond James is buying: durable growth from AI traffic, edge compute monetization, and security cross-sell. With shares up 98% year to date despite the recent drop, position sizing matters.
When two reputable firms split this sharply on the same name in the same week, the narrative is in flux. Investors comfortable with usage-based volatility may find the risk/reward attractive at current levels, while more conservative readers might wait for the next quarter to settle the inflection question.
Key Takeaways FSLY posted Q1 2026 non-GAAP EPS of 13 on $173M revenue, up 19.8% year over year.FSLY security revenues rose 47% to $38.8M; RPO jumped 63% to $369M, signaling stronger commitments. FSLY lifted 2026 guidance to $710-$725M revenue, citing AI tailwinds in security & compute. Fastly (FSLY - Free Report) reported first-quarter 2026 non-GAAP earnings of 13 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 5 cents per share in the year-ago quarter.
Revenues were $173 million, up 19.8% year over year, and edged past the consensus mark by 0.76%. The quarterly results reflected strong execution across the platform, highlighted by accelerating security momentum and rising compute demand tied to increasingly complex edge workloads. Remaining performance obligations (RPO) ended the quarter at $369 million, up 63% year over year, pointing to improved upfront customer commitments.
FSLY Revenue Mix Highlights Platform BreadthFSLY’s first-quarter growth leaned on continued share gains in core delivery, alongside faster expansion in newer products. Network Services revenues rose 11% year over year to $126.2 million, supported by performance-driven wins in use cases where speed and reliability matter.
Security remained the standout, growing 47% year over year to $38.8 million and reaching record levels in both dollars and mix. The “Other” category, which includes Compute and Observability, jumped 67% year over year to $8 million, reflecting a meaningful step-up in compute adoption versus the year-ago quarter.
Fastly Expands Customer Base and CommitmentsFastly ended the quarter with 634 large customers, defined as those producing more than $100,000 in annualized revenues in the quarter. Management noted it is placing greater emphasis on large customer acquisition as a more meaningful gauge of go-to-market progress.
Retention also improved, with trailing 12-month net retention rising to 113% from 110% in the prior quarter. The company highlighted that retention gains are extending beyond the very largest accounts into a broader range of customers, aligning with a platform approach that supports upsell and cross-sell across network, security and compute.
FSLY Lifts Margins on Efficiency and Accounting ShiftProfitability improved sharply in the quarter as the company continued to emphasize traffic engineering and platform efficiency. Non-GAAP gross margin reached 65.1%, up from 57.3% reported in the year-ago quarter.
Operating expenses increased 15% year over year to $132.1 million.
FSLY’s non-GAAP operating income came in at $19.1 million against an operating loss of $5.85 million.
Fastly Generates Cash Despite Higher Infrastructure SpendFSLY ended the quarter with approximately $330 million in cash, cash equivalents and investments. Management highlighted a $31 million sequential decline in cash, primarily driven by the retirement of $39 million of long-term debt that came due in March 2026.
Fastly produced $28.9 million of cash flow from operations in the reported quarter, up from $17.3 million in the year-ago period.
Free cash flow was $4.1 million, though down from $8.2 million a year earlier as infrastructure spending increased year over year.
FSLY Raises 2026 Outlook, Sees AI as TailwindFor the second quarter of 2026, FSLY guided revenues to $170-$176 million and non-GAAP earnings to 5-8 cents per share.
The company also raised 2026 revenue guidance to $710-$725 million and expects non-GAAP earnings of 27-33 cents per share, reflecting improved profitability expectations as the business scales.
Management framed AI-driven demand as a meaningful tailwind, citing stronger interest in security and compute as customers work to secure and scale automated and agent-driven traffic.
Fastly is seeing agentic-related volume tailwinds in network services and more pronounced security attach as customers protect AI workloads. The company also noted that pricing dynamics in Network Services remain similar to recent quarters as customers unlock volume discounts under existing contracts.
Zacks Rank & Upcoming Earnings to ConsiderFastly currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are Cisco Systems (CSCO - Free Report) , Applied Materials (AMAT - Free Report) and Keysight Technologies (KEYS - Free Report) . Keysight Technologies sports a Zacks Rank #1 (Strong Buy) at present, while Cisco and Applied Materials carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco, Applied Materials and Keysight Technologies are set to report their respective quarterly results on May 13, May 14 and May 19. Year to date, shares of Cisco, Applied Materials and Keysight Technologies have returned 19.7%, 59.9% and 74.8%, respectively.
Fastly (FSLY) is rated a buy, with a fair value estimate of $30 versus a current price of $20.50, driven by accelerating growth and robust fundamentals. FSLY posted Q1 2026 revenue of $173M (+20% YoY), security revenue up 47% YoY, net retention rate at 113%, and RPO up 63% YoY to $369M. Management raised 2026 revenue guidance to $710–$725M and EPS guidance by 15%, signaling fundamental earnings model reset and durable growth trajectory.
Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of StockMarketBeat
MarketAxess Holdings Inc. (NASDAQ:MKTX - Get Free Report) General Counsel Scott Pintoff sold 100 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $116.03, for a total transaction of $11,603.00. Following the transaction, the general counsel owned 11,786 shares in the company, valued at approximately $1,367,529.58. The trade was a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.
NASDAQ:MKTX
Read Insider Selling: MarketAxess (NASDAQ:MKTX) General Counsel Sells 100 Shares of Stock
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Fastly (FSLY - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for Fastly basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Fastly, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for FastlyFor the fiscal year ending December 2026, this cloud software developer is expected to earn $0.29 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Fastly. Over the past three months, the Zacks Consensus Estimate for the company has increased 24.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Fastly to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Fastly posted record Q1 revenues of $173M, up 20% year over year, extending late-2025 acceleration.Security revenues climbed 47% to $38.8M, while compute-driven Other revenues surged 67% to $8M.LTM net retention rose to 113%, and remaining performance obligations hit a record $369M, up 63%. Fastly, Inc. (FSLY - Free Report) entered 2026 with strong momentum, as first-quarter revenues increased 20% year over year to a record $173 million. Rising demand across edge cloud, security and compute services helped the company sustain one of its strongest growth phases in recent years.
The performance followed 23% revenue growth in the fourth quarter of 2025, showing that Fastly has largely held on to the acceleration seen over the past several quarters. Quarterly growth had earlier remained in single digits through much of 2024 before rebounding sharply in late 2025, making the latest 20% increase notable.
The composition of growth remains important. Network Services revenues, still the company’s largest business, increased 11% year over year to $126.2 million. Security revenues climbed 47% to $38.8 million and represented 22% of total revenues, while Other revenues, primarily driven by compute products, surged 67% to $8 million. This mix shows that Fastly’s growth is being supported by both its core delivery business and faster-growing newer categories.
Fastly also benefited from expansion within its customer base. LTM net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader mix of customers. The company also reported record remaining performance obligations of $369 million, up 63% year over year, indicating stronger contracted revenue visibility.
Even so, the pace may gradually normalize from recent highs. Second-quarter 2026 revenue guidance of $170-$176 million implies 16% year-over-year growth at the midpoint, while full-year 2026 guidance of $710-$725 million points to a 15% increase. This indicates that while growth is expected to cool from the recent peak, Fastly still sees a mid-teens revenue trajectory for 2026.
NET & AKAM Benefit From AI-Driven Revenue MomentumCloudflare, Inc. (NET - Free Report) posted first-quarter 2026 revenues of $639.8 million, up 34% year over year, driven by strong adoption of its AI, developer and security offerings. NET also highlighted accelerating enterprise traction, with large customer revenues rising 38% year over year. Cloudflare further noted that AI-driven and agentic workloads are becoming a major growth catalyst, with management calling AI the “biggest tailwind” in the company’s history.
Akamai Technologies, Inc. (AKAM - Free Report) generated first-quarter 2026 revenues of $1,074 million, reflecting 6% year-over-year growth. AKAM continued benefiting from strong momentum in cloud infrastructure and security services, with cloud infrastructure services revenues jumping 40% year over year. Akamai Technologies also emphasized growing AI-related demand and signed a landmark $1.8 billion cloud infrastructure deal during the quarter.
FSLY Stock Price Performance, Valuation & EstimatesShares of Fastly have surged 139.7% over the past year against the industry’s decline of 14.6%.
FSLY Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, FSLY trades at a forward price-to-sales ratio of 4.11, higher than the industry’s average of 3.75.
FSLY Valuation Compared to Industry
Image Source: Zacks Investment Research
Key Takeaways FSLY's Q1 2026 security revenues rose 47% to $38.8M, reaching 22% of total revenues. FSLY is selling beyond Next-Gen WAF into DDoS, Bot Management and API Discovery, driving new wins.FSLY net retention improved to 113% from 100%, as customers expand into broader multi-product deployments. Fastly, Inc. (FSLY - Free Report) is increasingly demonstrating that its cross-selling strategy is becoming a meaningful growth driver as the company expands customer adoption across its network, security and compute portfolio. The first quarter of 2026 showed that FSLY is not only adding products to its platform but also turning customer relationships into broader multi-product deployments.
The trend became particularly visible in the first quarter as Fastly’s broader security stack gained traction alongside its core web application firewall business. Security revenues jumped 47% year over year to $38.8 million and accounted for 22% of total revenues. The growth was supported by new customer wins as well as expansion within the existing customer base.
Fastly is now seeing enterprises adopt multiple security products simultaneously rather than entering through a single offering. Demand expanded beyond the company’s flagship Next-Gen WAF into newer products such as DDoS Protection, Bot Management and API Discovery and Inventory. Almost half of the security product instances sold to new customers during the quarter came from these newer offerings.
The strategy is also translating into larger deal sizes and broader deployments. A leading digital payment conglomerate expanded its relationship with Fastly by adding 10 new products and services, while a global social media corporation selected Fastly in a cross-sell security win tied to securing global API traffic.
Customer expansion trends continued to strengthen. Fastly’s trailing 12-month net retention rate improved to 113% from 100% a year ago, reflecting higher spending across a broader range of customers. The latest quarter indicates that Fastly’s broader platform is helping deepen customer adoption, with security cross-sell, multi-product deployments and improved net retention pointing to stronger wallet-share capture across its customer base.
What Do the Latest Metrics Say About Fastly?Fastly, which competes with Akamai Technologies, Inc. (AKAM - Free Report) and Cloudflare, Inc. (NET - Free Report) , has seen its shares rally 120.7% over the past year against the industry’s decline of 12.4%. Shares of Akamai Technologies and Cloudflare have gained 89% and 33.6%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Fastly's forward 12-month price-to-sales ratio stands at 3.4, lower than the industry’s 3.81. The company is trading at a discount to AKAM (with a forward 12-month P/S ratio of 4.57) as well as NET (24.44).
Fastly is delivering robust growth and margin expansion, driven by AI-native products like Fastly Compute and strong security offerings. FSLY's consumption-based pricing model shields it from SaaS sector headwinds, supporting rising net retention rates even in a challenging macro environment. Security products now comprise 22% of revenue, growing nearly 50% y/y, further diversifying FSLY's growth drivers beyond AI compute.
A month has gone by since the last earnings report for Fastly (FSLY - Free Report) . Shares have added about 2.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Fastly due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
FSLY Q1 Earnings Beat Estimates on Security and Compute GrowthFastly reported first-quarter 2026 non-GAAP earnings of 13 cents per share, beating the Zacks Consensus Estimate by 62.5%. The company reported a loss of 5 cents per share in the year-ago quarter.
Revenues were $173 million, up 19.8% year over year, and edged past the consensus mark by 0.76%. The quarterly results reflected strong execution across the platform, highlighted by accelerating security momentum and rising compute demand tied to increasingly complex edge workloads. Remaining performance obligations (RPO) ended the quarter at $369 million, up 63% year over year, pointing to improved upfront customer commitments.
FSLY Revenue Mix Highlights Platform BreadthFSLY’s first-quarter growth leaned on continued share gains in core delivery, alongside faster expansion in newer products. Network Services revenues rose 11% year over year to $126.2 million, supported by performance-driven wins in use cases where speed and reliability matter.
Security remained the standout, growing 47% year over year to $38.8 million and reaching record levels in both dollars and mix. The “Other” category, which includes Compute and Observability, jumped 67% year over year to $8 million, reflecting a meaningful step-up in compute adoption versus the year-ago quarter.
Fastly Expands Customer Base and CommitmentsFastly ended the quarter with 634 large customers, defined as those producing more than $100,000 in annualized revenues in the quarter. Management noted it is placing greater emphasis on large customer acquisition as a more meaningful gauge of go-to-market progress.
Retention also improved, with trailing 12-month net retention rising to 113% from 110% in the prior quarter. The company highlighted that retention gains are extending beyond the very largest accounts into a broader range of customers, aligning with a platform approach that supports upsell and cross-sell across network, security and compute.
FSLY Lifts Margins on Efficiency and Accounting ShiftProfitability improved sharply in the quarter as the company continued to emphasize traffic engineering and platform efficiency. Non-GAAP gross margin reached 65.1%, up from 57.3% reported in the year-ago quarter.
Operating expenses increased 15% year over year to $132.1 million.
FSLY’s non-GAAP operating income came in at $19.1 million against an operating loss of $5.85 million.
Fastly Generates Cash Despite Higher Infrastructure SpendFSLY ended the quarter with approximately $330 million in cash, cash equivalents and investments. Management highlighted a $31 million sequential decline in cash, primarily driven by the retirement of $39 million of long-term debt that came due in March 2026.
Fastly produced $28.9 million of cash flow from operations in the reported quarter, up from $17.3 million in the year-ago period.
Free cash flow was $4.1 million, though down from $8.2 million a year earlier as infrastructure spending increased year over year.
FSLY Raises 2026 Outlook, Sees AI as TailwindFor the second quarter of 2026, FSLY guided revenues to $170-$176 million and non-GAAP earnings to 5-8 cents per share.
The company also raised 2026 revenue guidance to $710-$725 million and expects non-GAAP earnings of 27-33 cents per share, reflecting improved profitability expectations as the business scales.
Management framed AI-driven demand as a meaningful tailwind, citing stronger interest in security and compute as customers work to secure and scale automated and agent-driven traffic.
Fastly is seeing agentic-related volume tailwinds in network services and more pronounced security attach as customers protect AI workloads. The company also noted that pricing dynamics in Network Services remain similar to recent quarters as customers unlock volume discounts under existing contracts.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresAt this time, Fastly has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. 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. Notably, Fastly has a Zacks Rank #3 (Hold). We expect an in-line 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, DigitalOcean Holdings, Inc. (DOCN - Free Report) , has gained 20% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
DigitalOcean reported revenues of $257.9 million in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $0.44 for the same period compares with $0.56 a year ago.
DigitalOcean is expected to post earnings of $0.26 per share for the current quarter, representing a year-over-year change of -55.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DigitalOcean. Also, the stock has a VGM Score of F.
New Fastly Research Reveals Rapidly Growing AI Traffic is Reshaping the Internet, Driving Need for Machine Traffic Strategies
SAN FRANCISCO--(BUSINESS WIRE)--Fastly, Inc. (NASDAQ: FSLY), a leading global edge cloud platform, today released new research showing that AI-generated traffic is emerging as a distinct layer of internet activity, requiring organizations to rethink how they manage automated requests, protect infrastructure, and capture value from machine interactions.
Analysis of traffic across Fastly's global network found that AI requests grew approximately 30% between January and May 2026, which is about 6.5 times faster than human traffic during the same period. While AI traffic continues to grow in importance, Fastly's research suggests the more significant shift is how AI systems interact with digital infrastructure.
The findings point to a new reality for businesses: while stopping bad bots remains important, organizations increasingly need to think and act strategically to capture the growing value from automated interactions.
Fastly's research highlights several emerging trends:
Organizations are making increasingly strategic decisions about AI traffic management, balancing content protection, visibility, customer acquisition, and digital distribution, which can influence whether AI systems discover, reference, and surface their content and ultimately how customers find and engage with their business. Machine traffic now represents a significant share of internet activity, including AI crawlers, AI fetchers, bots, agents, and API-driven systems. AI traffic takes many forms, with crawlers and fetchers showing different patterns, purposes, and demands on infrastructure. AI fetchers and agents are becoming increasingly important, as AI assistants retrieve real-time information to answer questions, compare options, validate facts, and complete tasks on behalf of users. "AI traffic is fundamentally changing how the internet operates," said Artur Bergman, Founder and Chief Technology Officer at Fastly. "Businesses are moving beyond a world where humans are the primary users of digital experiences. The challenge is no longer simply blocking bots, it's understanding which machine interactions should be accelerated, managed, challenged, or stopped."
The research also identified two distinct categories of AI traffic – AI crawlers and AI fetchers. AI crawlers systematically gather information from the web to build and update AI models, while AI fetchers retrieve information in response to specific user requests through AI assistants and emerging agentic applications. Based on May 2026 data, these workloads also place different demands on infrastructure, with more than half (51%) of AI requests requiring origin access compared to less than 9% for human requests. Fastly also observed AI traffic growing at an exceptional rate, with Claude-related traffic increasing by more than 555% compared with its January 2026 baseline.
The findings suggest that AI traffic management is evolving from a security and infrastructure concern into a broader business strategy. As organizations evaluate how AI systems interact with their content, applications, and APIs, visibility and control are becoming increasingly important.
Fastly's analysis also highlights a growing divergence in how organizations are responding to AI traffic. In one case, a large company instituted a hard block against a sudden spike in AI fetcher traffic, most likely to maintain content authority. Another large company chose not to block AI agents, resulting in an increase in fetcher volume over multiple months and potentially greater visibility with AI-powered services. These examples illustrate how decisions about AI traffic can influence not only access to content, but also customer engagement in an increasingly agent-driven internet.
The research points to three foundational elements of an effective machine traffic strategy: visibility into which AI systems are interacting with digital properties, context around how those systems behave and whether they create business value, and the precision to respond differently based on intent and impact. Fastly helps customers execute that machine traffic strategy at the edge. In the path of every request, Fastly delivers the visibility, context, and precision required to balance performance, security, bot management, and origin access with real-time intelligence.
To get more detailed insights, read our blogs at fastly.com.
About Fastly
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 a 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 Fastly’s beliefs and assumptions and on information currently available to Fastly. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause its 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, those regarding expectations regarding the future growth, velocity, and composition of AI and automated traffic; the adoption rates and scale of agentic workloads and AI assistants; the behavioral patterns of AI crawlers and fetchers; the impacts of automated requests on web infrastructure; and the performance, capabilities, and expectations regarding customer experiences with Fastly’s products and services, including Fastly Bot Management. Except as required by law, Fastly assumes 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 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and our Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Intelligent Solution Brings Agent Identity and Payment Infrastructure to the Edge Cloud, Turning Autonomous AI Traffic into Trusted E-Commerce Opportunities
SAN FRANCISCO--(BUSINESS WIRE)--Fastly (NASDAQ: FSLY), a leader in global edge cloud platforms, and Skyfire, the agentic commerce platform providing identity and payment infrastructure for AI agents, today announced a new partnership that enables trusted agentic commerce at the edge. Skyfire has integrated its identity and payment-backed credentials into Fastly’s programmable edge cloud platform so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure.
As AI agents increasingly browse, negotiate, and complete transactions autonomously, businesses face a fundamental challenge: they must distinguish trusted, revenue-generating agents from malicious automation, in real time for billions of transactions. Together, Fastly and Skyfire can transform AI agent traffic from a potential security risk into an accountable, monetizable channel. This innovative solution uses enhanced intelligence to verify the AI agents, which can save customers valuable development time, while also automatically identifying which agents to trust and which to block.
Skyfire verifies the identity and the ability to pay for valid non-human requests while providing a resilient, secure and high-performance platform where decisions are made and enforced in real time and at global scale. Its developer-friendly, programmable architecture ensures that organizations have the flexible infrastructure that can adapt to business necessities. Additionally, it provides the open protocol and payment infrastructure designed specifically for AI agents and is complementary to Fastly’s AI Bot Management and Application Security (AppSec) solutions.
“AI agents are rapidly becoming autonomous consumers of APIs, content, and commerce,” said Amir Sarhangi, CEO of Skyfire. “The question for enterprises isn’t whether agents will show up – it is whether they can identify them and build sustainable business models around them. Our mission with Fastly is to integrate our verified agent identity and payment-backed credentials directly into the edge layer, transforming agent traffic from anonymous automation into accountable economic activity.”
With Skyfire’s protocol identity and payment-backed credentials and Fastly’s global distributed edge network, identity verification and payment validation can occur in milliseconds at the edge, making the solution faster, more reliable, and secure. This intelligent architecture enables enterprises to:
Identify who is behind every agent request with verified, tokenized Know Your Customer (KYC) credentials with real-time decisioning. Apply identity-based policies, limits, and pricing dynamically with programmable control over agent behavior without backend redesign. Maintain global scalability and resilience for high-concurrency agent traffic. Ensure compatibility with existing APIs, authentication systems, and checkout flows. "Many enterprises running on Fastly’s network are already seeing autonomous agents show up in their traffic, and those gaining an advantage are the ones treating that traffic as an economic signal, not just a security event,” said Jeff Alpen, Vice President of Global Partner Ecosystems at Fastly. “Our open platform enables us to deliver practical, immediate value by supporting key ecosystem integrations, such as Skyfire’s identity and payment capabilities. Together with Fastly’s AI Bot Management and Application Security solutions, the end result is customers being able to verify who's behind an agent request and attach real commercial value to it without rearchitecting their existing architecture."
About Fastly
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 a 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.
About Skyfire
Skyfire is the complete agentic commerce platform for AI agents and businesses. The platform provides everything agents need to securely access, transact, and pay across websites, APIs, and digital services, including tokenized Know Your Agent (KYA) identity, programmable payments, stablecoin wallets, and tokenized credit cards. Skyfire enables enterprises to transform AI agents from anonymous automation into trusted participants in the digital economy, unlocking new revenue streams while maintaining security and compliance. Learn more at https://skyfire.xyz.
Fastly and Skyfire Partner to Enable Trusted Agentic Commerce with Verified Identity at the Edge Fastly (NASDAQ: FSLY), a leader in global edge cloud platforms, and Skyfire, the agentic commerce platform providing identity and payment infrastructure for AI agents, today announced a new partnership that enables trusted agentic commerce at the edge. Skyfire has integrated its identity and payment-backed credentials into Fastly’s programmable edge cloud platform so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure.
As AI agents increasingly browse, negotiate, and complete transactions autonomously, businesses face a fundamental challenge: they must distinguish trusted, revenue-generating agents from malicious automation, in real time for billions of transactions. Together, Fastly and Skyfire can transform AI agent traffic from a potential security risk into an accountable, monetizable channel. This innovative solution uses enhanced intelligence to verify the AI agents, which can save customers valuable development time, while also automatically identifying which agents to trust and which to block.
Skyfire verifies the identity and the ability to pay for valid non-human requests while providing a resilient, secure and high-performance platform where decisions are made and enforced in real time and at global scale. Its developer-friendly, programmable architecture ensures that organizations have the flexible infrastructure that can adapt to business necessities. Additionally, it provides the open protocol and payment infrastructure designed specifically for AI agents and is complementary to Fastly’s AI Bot Management and Application Security (AppSec) solutions.
“AI agents are rapidly becoming autonomous consumers of APIs, content, and commerce,” said Amir Sarhangi, CEO of Skyfire. “The question for enterprises isn’t whether agents will show up – it is whether they can identify them and build sustainable business models around them. Our mission with Fastly is to integrate our verified agent identity and payment-backed credentials directly into the edge layer, transforming agent traffic from anonymous automation into accountable economic activity.”
With Skyfire’s protocol identity and payment-backed credentials and Fastly’s global distributed edge network, identity verification and payment validation can occur in milliseconds at the edge, making the solution faster, more reliable, and secure. This intelligent architecture enables enterprises to:
Identify who is behind every agent request with verified, tokenized Know Your Customer (KYC) credentials with real-time decisioning. Apply identity-based policies, limits, and pricing dynamically with programmable control over agent behavior without backend redesign. Maintain global scalability and resilience for high-concurrency agent traffic. Ensure compatibility with existing APIs, authentication systems, and checkout flows. "Many enterprises running on Fastly’s network are already seeing autonomous agents show up in their traffic, and those gaining an advantage are the ones treating that traffic as an economic signal, not just a security event,” said Jeff Alpen, Vice President of Global Partner Ecosystems at Fastly. “Our open platform enables us to deliver practical, immediate value by supporting key ecosystem integrations, such as Skyfire’s identity and payment capabilities. Together with Fastly’s AI Bot Management and Application Security solutions, the end result is customers being able to verify who's behind an agent request and attach real commercial value to it without rearchitecting their existing architecture."
About Fastly
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 a 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.
About Skyfire
Skyfire is the complete agentic commerce platform for AI agents and businesses. The platform provides everything agents need to securely access, transact, and pay across websites, APIs, and digital services, including tokenized Know Your Agent (KYA) identity, programmable payments, stablecoin wallets, and tokenized credit cards. Skyfire enables enterprises to transform AI agents from anonymous automation into trusted participants in the digital economy, unlocking new revenue streams while maintaining security and compliance. Learn more at https://skyfire.xyz.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260610660439/en/
Fastly trades at 4.3x EV/NTM revenue despite 20% revenue growth—the peer floor for comparable growth names is 5.5-6x, making the discount hard to justify on fundamentals alone. NRR accelerated from 100% to 113% in four consecutive quarters while RPO surged 63% YoY—both metrics signal the platform strategy is working, not hoping. Security revenue grew 47% YoY for the fourth straight quarter and now represents 22% of total revenue, directly driving a 9-point gross margin expansion since Q1 2025.
