Fastly, Inc. Earnings Recaps
Q1 2026
May 8, 2026
Fastly's stock plunged 39.7% following earnings, reflecting investor disappointment with the cautious outlook and indications of deceleration despite headline revenue growth and margin gains.
Key takeaways
- Reported revenue of $173 million, up 20% year-over-year and near the high end of guidance.
- Security revenue grew 47% year-over-year, comprising 22% of total revenue, signaling strong product momentum in this segment.
- Compute category revenue increased 67% year-over-year, marking the largest quarter-on-quarter step-up in this segment's history.
- Network Services grew 11% year-over-year, roughly double the market growth rate, supported by ongoing customer wins and platform reliability.
- Management emphasized AI as a future growth driver with new product developments and pipeline momentum, but no explicit guidance upgrades were given.
Q3 2025
Nov 6, 2025
Fastly delivered a stellar Q3 2025, outperforming revenue and operating profit expectations while achieving record free cash flow, showcasing significant progress in its growth and profitability strategy.
Key takeaways
- Q3 revenue reached $158.2 million, exceeding guidance and representing a 15% year-over-year growth.
- Gross margin improved to 62.8%, a 380 basis point sequential increase, driven by operational leverage.
- Record operating income of $11.6 million, significantly above the guidance midpoint of $1 million.
- Security revenue surged by 30% year-over-year, buoyed by cross-sell initiatives and strategic multi-product wins.
- Free cash flow achieved a record of $18 million, reflecting disciplined financial management and operational efficiency.