Fastly, Inc.NASDAQ: FSLY

Second Quarter 2026 Investor Presentation

Aug 5, 2026 at 11:56 PM UTC · Issued by Fastly, Inc.

Watch Fastly explain itFastly, Inc. (FSLY) Q2 2026 Earnings Call · Replay · Aug 5

Investor Presentation

Q2 FY 2026

August 5, 2026

Investment highlights

Large and growing addressable marfiet

Internet and AI trends driving significant opportunity

Multiple ways to accelerate and sustain growth

Unified platform centered on innovation

Mission-critical platform vital for customer operations

Clear marfiet leader with differentiated technology

$687M

LTM Revenue Q2'2026

23.3%

YoY Revenue Growth Q2'2026

+97%

Average CSAT Score

~$22B

TAM1 2026

5.0+ Trillion

Average daily requests served3

1,100+

Employees2

117%

LTM NRR

Our mission is to make the internet a better place, where all experiences are fast, safe, and engaging.

600+

Large Customers

32%

Faster average time to first byte than other CDNs4

Note: All figures as of June 30, 2026 unless noted otherwise. LTM indicates last twelve month period. See Appendix for definitions.

1 TAM based on an average of forecasts from Gartner Edge Distribution Platforms Worldwide, 2025 and IDC Custom Solutions TAM Analysis, 2025

2 As of December 31, 2025

3 As of March 31, 2026

4 Based on Google's Chrome User Experience Report and data set run on October 17-18, 2023

Growth of internet consumption presents a significant opportunity for Fastly

2026 traffic growth estimate: 15.4% YoY 1

Reached 33 exabytes per day 2

Growing coverage
Service affordability
4K TV dominance
More Access + Pixels
Peak events
Downloads
Live event network traffic spike
Events + Live Streaming
AI generated content
AI queries
AI Inferencing
Agentic AI
API G Bot-heavy traffic

AI Agents

1 IBIS World

2 AppLogic Networks (f.k.a. Sandvine) 2024 Report

Faster, more consistent user experiences
Better performance at scale with lower costs
Time-critical decisions, site-local state and caching, pre-processing/stream analytics
"First-mile" enforcement (policy, security, QoS) near users and device

Fastly partners with the Central Cloud with the goal of:

Edge Cloud positioning

Central Cloud

Edge Cloud

End Users

Private Cloud

Edge Cloud connects Central Cloud to the Users

Personalized,

dyn able

users and device

amic, customiz

e e

"First-mile"

enfo licy,

xperiences at th

Helps applications remain available at global scale

rcement (po

sec ear

urity, QoS) n

Lower egress traffic cost

Edge

Low latency (faster sites),

snappier apps

Lower Cost

Enforcement G Security

ssion Critic

Resilient G Mi al

Configurable

Speed

Observability

Compute / AI

Security

Content G Application Delivery

What is better done at the Edge?

Why is the Edge better?

Fastly's strategic global edge network

Legacy Solutions

Deploying thousands of small, scattered POPs

Slow and requires extensive hardware

166

POPs

622 Tbps

Edge networfi capacity

✔ Fewer, more powerful POPs at strategic marfiets around the world

✔ Less hardware to deliver comprehensive global reach

Single POP Multiple POPs Planned new POP Planned upgrade

Note: All figures as of June 30, 2026

An Architecture for the Modern Internet

Recognized by analysts and customers

LEADER

Edge Development Only Vendor Awarded Customer Halo

CUSTOMERS' CHOICE

Edge Distribution Platforms

CUSTOMERS' CHOICE

Web App/API Protection

7 years in a row

2025 STUDY

CUSTOMER VALUE

App Security ROI 235%

Select customers in key industry verticals

624

Large Customers

$1.11M

Avg Large Customer Spend Annualized

117%

LTM NRR

Media, Gaming G Entertainment

Omnichannel Retail

SaaS Solutions

Travel G Leisure

FinTech

Note: All figures as of June 30, 2026

Platform strategy and transformation

Strong momentum across our offerings driven by a

platform-focused approach

Other

(4%) ● Compute +69%

Observability Q2 YoY Growth

Security

(23%) ● WAF

Networfi

Bot Management
DDoS
API Discovery
+43%
Q2 YoY Growth
Services (73%)
● CSP
- Delivery
  - Media Shield
  - Live Streaming
  - VOD

+17%

Q2 YoY Growth

Note: All figures as of June 30, 2026

Our growth drivers

Platform strategy and cross-sell opportunities

Accelerated RGD innovation and feature velocity

Share gains on competitive take-outs

Deeper penetration into international markets

Q2 FY 2026

Fastly Q2 2026 Earnings Investor Deck (8/5/2026)

Financial Results

Q2 2026 Financial highlights

$687M

LTM Revenue

23%

YoY Revenue Growth

43%

YoY Security Revenue Growth

65.8%

Non-GAAP Gross Margin (vs 59.0% in Q2 2025)*

$341M

Remaining Performance Obligations (RPO) Grew 38% YoY

$34M

LTM Free Cash Flow*

*Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Total revenue ($M), YoY growth and Non-GAAP gross margin

Revenue and Non-GAAP gross margin performance

Quarterly Results

Revenue Non-GAAP GM

64.0%

65.1% 65.8%

62.8%

Annual Results

60.9%

58.8%

$183

$544

$624

58.6% 57.5% 57.3% 59.0%

$137

$141

$144

$149

$158

$173

YoY

Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 Q4:25 Q1:26 Q2:26

2024 2025

revenue 7%

growth

2% 8%

12%

15%

23%

20%

23%

7% 15%

Note: Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Opex leverage over time

Total Non-GAAP operating expenses % of revenue

Quarterly Results Annual Results

Non-GAAP RGD% Non-GAAP SGM% Non-GAAP GGA% Non-GAAP OPEX%

58% 59%

61% 62%

55%

52%

54%

51%

63%

57%

27% 29% 28% 27%

25% 23% 25% 24%

29%

18%

14%

18%

20%

13%

20%

14%

18%

14%

17%

18%

12%

16%

11%

19% 19%

14%

26%

13%

Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 2024 2025

Note: Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. Percentages do not sum due to rounding.

Increasingly efficient operating model

Quarterly Results

Non-GAAP Income from operations and FCF ($M)

Non-GAAP OP Inc ($M) Free Cash Flow ($M)

$27

Annual Results

$46

$18

$21

$19

$22

$(3)

$(7) $(8)

$(6) $(5)

$11

$12

$4 $4

$(22)

$(36)

Q3:24 Q4:24 Q1:25 Q2:25 Q3:25 Q4:25 Q1:26 Q2:26 2024 2025

1% (5)%

(2)% (6)%

(4)% 6% (3)% 7% 7% 11% 12% 5% 11% 2% 15% 2%

Margin (% of revenue)

(4)% (7)%

4% 7%

Note: Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Financial Guidance

	Q3 2026	FY 2026
Revenue (millions)	$184.0 - $190.0	$732.0 - $746.0
Growth % YoY (midpoint)	18%	18%
Gross Margin*	65.0%, +/- 50 bps	65.0%, +/- 50 bps
Operating Income* (millions)	$20.0 - $24.0	$88.0 - $96.0
EPS, fully diluted*	$0.11 - $0.13	$0.50 - $0.54
Free Cash Flow* (millions)	-	$40.0 - $50.0

* Non-GAAP measures. See Appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Note: These forward loofiing statements were provided by us on August 5, 2026. This forward loofiing guidance speafis only as of such date and the inclusion of such guidance in this presentation should not be interpreted as a confirmation or affirmation of such guidance as of any other date. Except as required by law, we assume no obligation and do not intend to update these forward-loofiing statements or to conform these statements to actual results or to changes in our expectations. All guidance figures presented, other than revenue, are on an adjusted, non-GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-loofiing basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future.

Fastly Q2 2026 Earnings Investor Deck (8/5/2026)

Appendix

Definitions

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, net gain on extinguishment of debt, impairment expense, restructuring charges, gain on modification of lease, and amortization of debt discount and issuance costs.

Average large customer spend: Our average large customer spend is calculated by taking the annualized current quarter revenue contributed by large customers existing as of the current period, and dividing that by the number of large customers as of the current period.

Large customers: Our large customer count is defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue we recognized for each customer in the current quarter and multiplying it by four.

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, principal payments of finance lease liabilities, 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.

LTM Net Retention Rate (LTM NRR): 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.

Remaining Performance Obligations (RPO): 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.

Gross profit	Q3 2024		Q4 2024		Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026
GAAP gross profit	$ 74,740		$ 75,063		$ 76,798		$ 81,116		$ 92,329		$ 105,960		$ 108,181		$ 115,951

employer payroll taxes	1,911	1,910		1,939		2,573		2,861		2,764		2,748		3,026
Amortization of capitalized stock-based	1,338	1,371		1,641		1,581		1,664		1,662		1,688		1,694
Amortization of acquired intangible assets	2,475	2,475		2,475		2,475		2,475		-		-		-
Non-GAAP gross profit $ 80,464 $ 80,819 $ 82,853 $ 87,745 $ 99,329 $ 110,386 $ 112,617 $ 120,671
GAAP gross margin	54.5 %		53.4 %		53.2 %		54.5 %		58.4 %		61.4 %		62.5 %		63.3 %
Non-GAAP gross margin	58.6 %		57.5 %		57.3 %		59.0 %		62.8 %		64.0 %		65.1 %		65.8 %
Research and development
GAAP research and development	$ 31,884		$ 32,742		$ 37,429		$ 42,221		$ 41,421		$ 41,591		$ 41,972		$ 42,071
Stock-based compensation expense and related	(7,378)		(7,922)		(8,893)		(11,755)		(11,915)		(11,890)		(11,388)		(12,967)
Executive transition costs	-		-		-		-		(326)		(221)		-		-
Non-GAAP research and development Sales and marketing	$ 24,506		$ 24,820		$ 28,536		$ 30,466		$ 29,180		$ 29,480		$ 30,584		$ 29,104
GAAP sales and marketing	$ 45,994		$ 50,050		$ 49,313		$ 51,100		$ 49,998		$ 51,023		$ 55,114		$ 56,735
Stock-based compensation expense and related	(7,113)		(7,047)		(6,693)		(8,176)		(8,754)		(9,348)		(10,140)		(10,869)
Amortization of acquired intangible assets	(2,300)		(2,299)		(2,301)		(2,279)		(2,159)		(2,159)		(2,159)		(2,160)
Executive transition costs	-		-		-		-		-		-		(262)		-
Non-GAAP sales and marketing General and administrative	$ 36,581		$ 40,704		$ 40,319		$ 40,645		$ 39,085		$ 39,516		$ 42,553		$ 43,706
GAAP general and administrative	$ 27,173		$ 26,154		$ 28,235		$ 24,323		$ 29,698		$ 28,436		$ 34,990		$ 31,578
Stock-based compensation expense and related	(8,614)		(8,066)		(8,057)		(3,831)		(9,599)		(8,275)		(13,592)		(10,710)
Executive transition costs	-		-		(335)		-		(643)		-		(1,061)		-
Gain on modification of lease	-		-		-		736		-		-		-		-
Non-GAAP general and administrative	$ 18,559		$ 18,088		$ 19,843		$ 21,228		$ 19,456		$ 20,161		$ 20,337		$ 20,868

GAAP to Non-GAAP Quarterly Reconciliation

Stock-based compensation expense and related compensation - Cost of revenue

employer payroll taxes

Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Operating income (loss)
GAAP operating loss	$ (40,590)	$ (34,331)	$ (38,179)	$ (36,943)	$ (28,788)	$ (15,090)	$ (23,895)	$ (14,433)
Stock-based compensation expense and	25,016	24,945	25,582	26,335	33,129	32,277	37,868	37,572
Amortization of capitalized stock-based	1,338	1,371	1,641	1,581	1,664	1,662	1,688	1,694
Restructuring charges	9,720	-	-	-	-	-	-	-
Executive transition costs	-	-	335	-	969	221	1,323	-
Gain on modification of lease	-	-	-	(736)	-	-	-	-
Amortization of acquired intangible assets	4,775	4,774	4,776	4,754	4,634	2,159	2,159	2,160
Impairment expense Non-GAAP operating income (loss) Net income (loss)	559 $ 818	448 $ (2,793)	- $ (5,845)	415 $ (4,594)	- $ 11,608	- $ 21,229	- $ 19,143	- $ 26,993
GAAP net loss	$ (38,016)	$ (32,886)	$ (39,148)	$ (37,541)	$ (29,483)	$ (15,505)	$ (20,524)	$ (15,591)
Stock-based compensation expense and	25,016	24,945	25,582	26,335	33,129	32,277	37,868	37,572
Amortization of capitalized stock-based	1,338	1,371	1,641	1,581	1,664	1,662	1,688	1,694
Restructuring charges	9,720	-	-	-	-	-	-	-
Executive transition costs	-	-	335	-	969	221	1,323	-
Gain on modification of lease	-	-	-	(736)	-	-	-	-
Amortization of acquired intangible assets	4,775	4,774	4,776	4,754	4,634	2,159	2,159	2,160
Net gain on extinguishment of debt	-	(1,365)	-	-	-	(941)	-	-
Impairment expense	559	448	-	415	-	-	-	-

GAAP to Non-GAAP Quarterly reconciliation (cont'd)

related employer payroll taxes compensation - Cost of revenue

Amortization of debt discount and issuance

358 318 217 217 216 257 401 366

costs

Non-GAAP income (loss) $ 3,750 $ (2,395) $ (6,597) $ (4,975) $ 11,129 $ 20,130 $ 22,915 $ 26,201

GAAP net loss per common share-basic and diluted

Non-GAAP net income (loss) per common share-basic

Non-GAAP net income (loss) per common

$ (0.27) $ (0.23) $ (0.27) $ (0.26) $ (0.20) $ (0.10) $ (0.13) $ (0.10)

$ 0.03 $ (0.02) $ (0.05) $ (0.03) $ 0.08 $ 0.13 $ 0.15 $ 0.17

$ 0.03 $ (0.02) $ (0.05) $ (0.03) $ 0.07 $ 0.12 $ 0.13 $ 0.15

Weighted average basic common shares	139,237	141,085 143,284 145,780 148,129	150,324	153,579	157,596
Weighted average diluted common shares	143,415	141,085 143,284 145,780 161,229	164,074	176,494	180,304

share- diluted

Free Cash Flow

	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025	Q1 2026	Q2 2026
Net cash flow provided by (used in) operations	$ 5,002	$ 5,220	$ 17,288	$ 25,798	$ 28,924	$ 22,434	$ 28,866	$ 39,334
Capital expenditures	(12,110)	(13,125)	(9,079)	(14,887)	(10,833)	(13,836)	(24,757)	(35,761)
Free cash flow	$ (7,108)	$ (7,905)	$ 8,209	$ 10,911	$ 18,091	$ 8,598	$ 4,109	$ 3,573

2026 Earnings Investor Deck (

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