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.
Released C++ SDK for Fastly Compute, enabling enterprises to secure, scale, and accelerate their C++ AI workloads, gaming features, and other low-latency applications.
Customer HighlightsA leading UK health and beauty retailer expanded its use of Fastly's platform with a multi-year, multi-million dollar commitment, replacing a long-time incumbent security vendor as part of a broader platform modernization.
Le Monde is using Fastly's Bot Management solution to set the terms for how their content gets accessed, transforming a scraping problem into controlled, licensed, revenue-generating relationships.
A global education technology firm chose Fastly's Next-Gen WAF after suffering a significant data breach when its prior WAF failed to adequately mitigate attacks.
A leading fintech company selected Fastly after a rigorous evaluation, leveraging its resiliency and security capabilities to overcome a history of service disruptions with alternative solutions.
Non-GAAP Net Income per share(3)(4)(5)
$0.11 - $0.13
$0.50 - $0.54
A major auto-shopping platform added Fastly's Bot
Corporate HighlightsAnnounced 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.
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.
Key Financial G Metrics HighlightsTotal revenue of $183.3 million, representing 23% year-over-year growth highlighted by Security revenue growing 43% year-over-year and representing 23% of total revenue.
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.
Remaining Performance Obligations (RPO)1 were $341 million, up 38% from $247 million in the second quarter of 2025.
Last 12-month net retention rate (LTM NRR)2 increased to 117% in the second quarter from 113% in the first quarter of 2026.
Q3 2026 Full Year 2026
Total Revenue (millions) $184.0 - $190.0 $732.0 - $746.0
Management and DDoS Protection to gain visibility
and control over automated traffic, giving them the governance capabilities they need to run their business.
Non-GAAP Operating Income (millions)(3)
$20.0 - $24.0 $88.0 - $96.0
Calculations of Key and Other Selected Metrics - Quarterly (unaudited)Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
Revenue by Product ($ in millions): | ||||||||
Network Services Revenue | $ 107.4 | $ 110.1 | $ 113.3 | $ 114.9 | $ 118.8 | $ 130.8 | $ 126.2 | $ 133.9 |
Security Revenue | 26.2 | 26.9 | 26.4 | 29.3 | 34.0 | 35.4 | 38.8 | 41.7 |
Other Revenue | 3.6 | 3.6 | 4.8 | 4.5 | 5.4 | 6.4 | 8.0 | 7.7 |
Total Revenue | $ 137.2 | $ 140.6 | $ 144.5 | $ 148.7 | $ 158.2 | $ 172.6 | $ 173.0 | $ 183.3 |
Key Metrics: | ||||||||
Large Customer Count(6) | 576 | 596 | 595 | 622 | 627 | 628 | 634 | 624 |
Large Customer Revenue % | 92 % | 93 % | 93 % | 94 % | 94 % | 94 % | 94 % | 94 % |
Top Ten Customer Revenue % | 33 % | 32 % | 33 % | 31 % | 32 % | 34 % | 34 % | 37 % |
LTM Net Retention Rate (NRR)(2) | 105 % | 102 % | 100 % | 104 % | 106 % | 110 % | 113 % | 117 % |
Remaining Performance Obligations (RPO)(1) | $ 231.1 | $ 227.6 | $ 225.9 | $ 247.1 | $ 268.0 | $ 353.8 | $ 368.7 | $ 340.9 |
Current RPO %(7) | 78.0 % | 79.0 % | 69.0 % | 76.0 % | 77.0 % | 70.0 % | 75.0 % | 79.0 % |
1. 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.
2. 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.
3. For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement. 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.
4. Assumes weighted average diluted shares outstanding of 181.4 million in Q3 2026 and 180.3 million for the full year 2026.
5. Non-GAAP net income per share is calculated as Non-GAAP net income divided by weighted average diluted shares for 2026.
6. Our large customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
7. Current RPO % is calculated as RPO expected to be recognized over the next 12 months divided by total RPO.
Forward-Loofiing StatementsThis investor supplement 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.
Non-GAAP Financial MeasuresTo 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.
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, net gain on extinguishment of debt, impairment expense, executive transition costs, restructuring charges, 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, 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. 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 adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. 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. Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. 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. Stocfi-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 Stocfi-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 investor supplement.
Consolidated Statements of Operations - Quarterly (unaudited, in thousands, except per share data)
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
Revenue | $ 137,206 | $ 140,579 | $ 144,474 | $ 148,709 | $ 158,223 | $ 172,612 | $ 173,021 | $ 183,317 |
Cost of revenue(1) | 62,466 | 65,516 | 67,676 | 67,593 | 65,894 | 66,652 | 64,840 | 67,366 |
Gross profit | 74,740 | 75,063 | 76,798 | 81,116 | 92,329 | 105,960 | 108,181 | 115,951 |
Operating expenses: | ||||||||
Research and development(1) | 31,884 | 32,742 | 37,429 | 42,221 | 41,421 | 41,591 | 41,972 | 42,071 |
Sales and marketing(1) | 45,994 | 50,050 | 49,313 | 51,100 | 49,998 | 51,023 | 55,114 | 56,735 |
General and administrative(1) | 27,173 | 26,154 | 28,235 | 24,323 | 29,698 | 28,436 | 34,990 | 31,578 |
Impairment expense | 559 | 448 | - | 415 | - | - | - | - |
Restructuring charges | 9,720 | - | - | - | - | - | - | - |
Total operating expenses | 115,330 | 109,394 | 114,977 | 118,059 | 121,117 | 121,050 | 132,076 | 130,384 |
Loss from operations | (40,590) | (34,331) | (38,179) | (36,943) | (28,788) | (15,090) | (23,895) | (14,433) |
Net gain on extinguishment of debt | - | 1,365 | - | - | - | 941 | - | - |
Interest income | 3,819 | 3,267 | 2,975 | 3,084 | 3,080 | 3,151 | 2,927 | 2,842 |
Interest expense | (473) | (1,231) | (3,173) | (3,164) | (3,161) | (3,201) | (3,306) | (3,348) |
Other (expense) income, net | (317) | (815) | (80) | 39 | (55) | (625) | (380) | (400) |
Loss before income taxes | (37,561) | (31,745) | (38,457) | (36,984) | (28,924) | (14,824) | (24,654) | (15,339) |
Income tax expense (benefit) | 455 | 1,141 | 691 | 557 | 559 | 681 | (4,130) | 252 |
Net loss | $ (38,016) | $ (32,886) | $ (39,148) | $ (37,541) | $ (29,483) | $ (15,505) | $ (20,524) | $ (15,591) |
Net loss per share attributable to common stockholders, basic and | $ (0.27) | $ (0.23) | $ (0.27) | $ (0.26) | $ (0.20) | $ (0.10) | $ (0.13) | $ (0.10) |
diluted | ||||||||
Weighted-average shares used in computing net loss per share basic and diluted | 139,237 | 141,085 | 143,284 | 145,780 | 148,129 | 150,324 | 153,579 | 157,596 |
attributable to common stockholders,
(1) Includes stock-based compensation expense as follows:
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
Cost of revenue | $ 1,911 | $ 1,910 | $ 1,939 | $ 2,573 | $ 2,861 | $ 2,764 | $ 2,536 | $ 2,757 |
Research and development | 7,378 | 7,922 | 8,893 | 11,755 | 11,915 | 11,890 | 10,030 | 11,902 |
Sales and marketing | 7,113 | 7,047 | 6,693 | 8,176 | 8,754 | 9,348 | 9,353 | 10,344 |
General and administrative | 8,614 | 8,066 | 8,057 | 3,831 | 9,599 | 8,275 | 13,062 | 10,169 |
Total | $ 25,016 | $ 24,945 | $ 25,582 | $ 26,335 | $ 33,129 | $ 32,277 | $ 34,981 | $ 35,172 |
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 Q2 2026 | ||
Gross profit | ||||||||
GAAP gross profit | $ 74,740 | $ 75,063 | $ 76,798 | $ 81,116 | $ 92,329 | $105,960 | $108,181 | $115,951 |
Stock-based compensation expense and related employer payroll taxes(1) | 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 employer payroll taxes(1) | (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 $ 24,506 $ 24,820 $ 28,536 $ 30,466 $ 29,180 $ 29,480 $ 30,584 $ 29,104 | ||||||||
Sales and marketing | ||||||||
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 employer payroll taxes(1) | (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 $ 36,581 $ 40,704 $ 40,319 $ 40,645 $ 39,085 $ 39,516 $ 42,553 $ 43,706 | ||||||||
General and administrative | ||||||||
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 employer payroll taxes(1) | (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 | ||||||||
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 related employer payroll taxes(1) | 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 | 559 | 448 | - | 415 | - | - | - | - |
Non-GAAP operating income (loss) $ 818 $ (2,793) $ (5,845) $ (4,594) $ 11,608 $ 21,229 $ 19,143 $ 26,993 | ||||||||
Net income (loss) | ||||||||
GAAP net loss | $(38,016) | $(32,886) | $(39,148) | $(37,541) | $(29,483) | $(15,505) | $(20,524) | $(15,591) |
Stock-based compensation expense and related employer payroll taxes(1) | 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 | - | - | - | - |
Amortization of debt issuance costs | 358 | 318 | 217 | 217 | 216 | 257 | 401 | 366 |
Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (unaudited, in thousands, except per share data)
compensation - cost of revenue
compensation - cost of revenue
compensation - cost of revenue
Non-GAAP net 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 | $ (0.27) $ (0.23) $ (0.27) $ (0.26) $ (0.20) $ (0.10) $ (0.13) $ (0.10) |
Non-GAAP net income (loss) per common | $ 0.03 $ (0.02) $ (0.05) $ (0.03) $ 0.08 $ 0.13 $ 0.15 $ 0.17 |
Non-GAAP net income (loss) per common | $ 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 |
and diluted share - basic share - diluted
(1) Similar to stock-based compensation, we believe it is also appropriate to exclude employer payroll taxes related to stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP financial measures. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes. Refer to Non-GAAP Financial Measures definition for further details.
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
Reconciliation of GAAP to Non-GAAP | ||||||||
GAAP diluted shares | 139,237 | 141,085 | 143,284 | 145,780 | 148,129 | 150,324 | 153,579 | 157,596 |
Other dilutive equity awards | 4,178 | - | - | - | 13,100 | 13,750 | 22,915 | 22,708 |
Non-GAAP diluted shares | 143,415 | 141,085 | 143,284 | 145,780 | 161,229 | 164,074 | 176,494 | 180,304 |
Non-GAAP diluted net income (loss) per share | $ 0.03 | $ (0.02) | $ (0.05) | $ (0.03) | $ 0.07 | $ 0.12 | $ 0.13 | $ 0.15 |
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
Adjusted EBITDA | ||||||||
GAAP net loss | $ (38,016) | $ (32,886) | $ (39,148) | $ (37,541) | $ (29,483) | $ (15,505) | $ (20,524) | $ (15,591) |
Stock-based compensation expense and related employer payroll taxes(1) 25,016 24,945 25,582 26,335 33,129 32,277 37,868 37,572 | ||||||||
Amortization of capitalized stock- revenue | 1,338 | 1,371 | 1,641 | 1,581 | 1,664 | 1,662 | 1,688 | 1,694 |
Gain on modification of lease | - | - | - | (736) | - | - | - | - |
Depreciation and other amortization | 13,781 | 13,911 | 13,650 | 13,505 | 14,101 | 13,725 | 10,320 | 11,129 |
Amortization of acquired intangible assets | 4,775 | 4,774 | 4,776 | 4,754 | 4,634 | 2,159 | 2,159 | 2,160 |
Amortization of debt discount and issuance costs | 358 | 318 | 217 | 217 | 216 | 257 | 401 | 366 |
Net gain on extinguishment of debt | - | (1,365) | - | - | - | (941) | - | - |
Impairment expense | 559 | 448 | - | 415 | - | - | - | - |
Executive transition costs | - | - | 335 | - | 969 | 221 | 1,323 | - |
Restructuring charges | 9,720 | - | - | - | - | - | - | - |
Interest income | (3,819) | (3,267) | (2,975) | (3,084) | (3,080) | (3,151) | (2,927) | (2,842) |
Interest expense | 115 | 913 | 2,956 | 2,947 | 2,945 | 2,944 | 2,905 | 2,982 |
Other expense (income), net | 317 | 815 | 80 | (39) | 55 | 625 | 380 | 400 |
Income tax expense (benefit) | 455 | 1,141 | 691 | 557 | 559 | 681 | (4,130) | 252 |
Adjusted EBITDA | $ 14,599 | $ 11,118 | $ 7,805 | $ 8,911 | $ 25,709 | $ 34,954 | $ 29,463 | $ 38,122 |
Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued) (unaudited, in thousands, except per share data)
diluted shares:
based compensation - cost of
Similar to stock-based compensation, we believe it is also appropriate to exclude employer payroll taxes related to stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP financial measures. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes. Refer to Non-GAAP Financial Measures definition for further details.
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | ||||||
Revenue | $ 137,206 | $ 140,579 | $ 144,474 | $ 148,709 | $ 158,223 | $ 172,612 | $ 173,021 | $ 183,317 | |||||
Cost of revenue(1)(2)(3) | 56,742 | 59,760 | 61,621 | 60,964 | 58,894 | 62,226 | 60,404 | 62,646 | |||||
Gross profit(1)(2) | 80,464 | 80,819 | 82,853 | 87,745 | 99,329 | 110,386 | 112,617 | 120,671 | |||||
Operating expenses: | |||||||||||||
Research and development(1)(4) | 24,506 | 24,820 | 28,536 | 30,466 | 29,180 | 29,480 | 30,584 | 29,104 | |||||
Sales and marketing(1)(3)(4) | 36,581 | 40,704 | 40,319 | 40,645 | 39,085 | 39,516 | 42,553 | 43,706 | |||||
General and administrative(1)(4)(5) | 18,559 | 18,088 | 19,843 | 21,228 | 19,456 | 20,161 | 20,337 | 20,868 | |||||
Total operating expenses(1)(2)(3)(4)(5)(6)(7) | 79,646 | 83,612 | 88,698 | 92,339 | 87,721 | 89,157 | 93,474 | 93,678 | |||||
Income (loss) from | 818 | (2,793) | (5,845) | (4,594) | 11,608 | 21,229 | 19,143 | 26,993 | |||||
Interest income | 3,819 | 3,267 | 2,975 | 3,084 | 3,080 | 3,151 | 2,927 | 2,842 | |||||
Interest expense(8) | (115) | (913) | (2,956) | (2,947) | (2,945) | (2,944) | (2,905) | (2,982) | |||||
Other (expense) income, net | (317) | (815) | (80) | 39 | (55) | (625) | (380) | (400) | |||||
Income (loss) before income | 4,205 | (1,254) | (5,906) | (4,418) | 11,688 | 20,811 | 18,785 | 26,453 | |||||
Income tax expense (benefit) | 455 | 1,141 | 691 | 557 | 559 | 681 | (4,130) | 252 | |||||
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)(9) | $ 3,750 $ (2,395) | $ | (6,597) | $ | (4,975) | $ | 11,129 | $ | 20,130 | $ | 22,915 | $ | 26,201 |
Net income (loss) per share attributable to common stockholders, basic | $ 0.03 $ (0.02) | $ | (0.05) | $ | (0.03) | $ | 0.08 | $ | 0.13 | $ | 0.15 | $ | 0.17 |
Net income (loss) per share attributable to common stockholders, | $ | 0.03 $ (0.02) $ | (0.05) | $ | (0.03) | $ | 0.07 | $ | 0.12 | $ | 0.13 | $ | 0.15 |
Weighted-average shares used in computing net income (loss) per share basic | 139,237 141,085 143,284 | 145,780 | 148,129 | 150,324 | 153,579 | 157,596 | |||||||
Weighted-average shares used in computing net income (loss) per share diluted | 143,415 | 141,085 | 143,284 | 145,780 | 161,229 | 164,074 | 176,494 | 180,304 | |||||
Non-GAAP Consolidated Statements of Operations - Quarterly (unaudited, in thousands, except per share data)
operations(1)(2)(3)(4)(5)(6)(7)
taxes(1)(2)(3)(4)(5)(6)(7)(8)(9)
diluted
attributable to common stockholders,
attributable to common stockholders,
Excludes stock-based compensation expense and related employer payroll taxes. See GAAP to Non-GAAP reconciliations.
Excludes amortization of capitalized stock-based compensation - cost of revenue. See GAAP to Non-GAAP reconciliations.
Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
Excludes gain on modification of lease. See GAAP to Non-GAAP reconciliations.
Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
Excludes restructuring charges. See GAAP to Non-GAAP reconciliations.
Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.
Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 |
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ 217,514 $ 286,175 | $ 125,484 | $ 82,487 | $ 113,131 | $ 180,563 | $ 146,670 | $ 89,798 |
Marketable securities | 90,733 9,707 | 181,808 | 238,721 | 229,780 | 181,196 | 183,819 | 247,700 |
Accounts receivable, net of allowance for credit losses | 116,800 115,988 | 119,035 | 117,318 | 109,184 | 118,029 | 130,037 | 114,216 |
Prepaid expenses and other current assets | 28,011 28,325 | 26,243 | 26,137 | 27,689 | 26,921 | 29,560 | 27,333 |
Total current assets | 453,058 440,195 | 452,570 | 464,663 | 479,784 | 506,709 | 490,086 | 479,047 |
Property and equipment, net | 180,288 179,097 | 177,876 | 181,770 | 182,896 | 186,785 | 215,911 | 220,354 |
Operating lease right-of-use assets, net | 47,700 50,433 | 48,802 | 54,001 | 53,050 | 52,067 | 57,697 | 58,213 |
Goodwill | 670,356 670,356 | 670,356 | 670,356 | 670,356 | 670,356 | 670,356 | 670,356 |
Intangible assets, net | 47,776 42,876 | 37,976 | 32,814 | 28,055 | 25,771 | 23,494 | 21,232 |
Other assets | 72,576 68,402 | 61,665 | 59,573 | 56,461 | 57,789 | 55,984 | 54,441 |
Total assets | $1,471,754 $1,451,359 | $1,449,245 | $1,463,177 | $1,470,602 | $1,499,477 | $1,513,528 | $1,503,643 |
Liabilities and Stockholders' | |||||||
Current liabilities: | |||||||
Accounts payable | $ 11,354 $ 6,044 | $ 9,802 | $ 13,344 | $ 10,829 | $ 17,612 | $ 39,006 | $ 20,124 |
Accrued expenses | 40,854 41,622 | 37,165 | 45,282 | 60,421 | 70,669 | 45,523 | 52,937 |
Long-term debt, current | - - | 187,871 | 188,051 | 188,232 | 38,557 | - | - |
Finance lease liabilities, current | 4,882 2,328 | 617 | 80 | - | - | - | - |
Operating lease liabilities, current | 23,857 25,155 | 26,988 | 23,673 | 23,676 | 24,427 | 28,107 | 30,100 |
Deferred revenue | - - | - | - | - | 35,234 | 39,560 | 34,266 |
Other current liabilities | 33,261 29,307 | 38,442 | 42,373 | 45,757 | 7,499 | 11,244 | 5,096 |
Total current liabilities | 114,208 104,456 | 300,885 | 312,803 | 328,915 | 193,998 | 163,440 | 142,523 |
Long-term debt, net | 344,498 337,614 | 149,874 | 149,883 | 149,893 | 323,282 | 323,620 | 323,958 |
Operating lease liabilities, non-current | 40,565 39,561 | 36,615 | 48,577 | 47,106 | 43,921 | 46,019 | 44,234 |
Other long-term liabilities | 3,029 4,478 | 4,848 | 9,267 | 7,723 | 8,698 | 3,303 | 2,111 |
Total liabilities | 502,300 486,109 | 492,222 | 520,530 | 533,637 | 569,899 | 536,382 | 512,826 |
Stockholders' equity: | |||||||
Common stock | 3 3 | 3 | 3 | 3 | 3 | 3 | 3 |
Additional paid-in capital | 1,929,397 1,958,157 | 1,989,108 | 2,012,312 | 2,035,956 | 2,044,103 | 2,112,577 | 2,141,909 |
Accumulated other comprehensive loss | (22) (100) | (130) | (169) | (12) | (41) | (423) | (493) |
Accumulated deficit | (959,924) (992,810) | (1,031,958) | (1,069,499) | (1,098,982) | (1,114,487) | (1,135,011) | (1,150,602) |
Total stockholders' equity | 969,454 965,250 | 957,023 | 942,647 | 936,965 | 929,578 | 977,146 | 990,817 |
Total liabilities and stockholders' equity | $1,471,754 $1,451,359 | $1,449,245 | $1,463,177 | $1,470,602 | $1,499,477 | $1,513,528 | $1,503,643 |
Consolidated Balance Sheets - Quarterly (unaudited, in thousands)
Equity
Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Cash flows from operating activities:
Net loss | $ (38,016) | $ (32,886) | $ (39,148) | $ (37,541) | $ (29,483) | $ (15,505) | $ (20,524) | $ (15,591) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation expense | 13,656 | 13,786 | 15,167 | 14,962 | 15,639 | 15,263 | 11,892 | 12,720 |
Amortization of intangible assets | 4,900 | 4,900 | 4,900 | 4,878 | 4,759 | 2,284 | 2,277 | 2,262 |
Non-cash lease expense | 5,463 | 5,655 | 5,655 | 5,694 | 5,476 | 5,620 | 6,198 | 6,887 |
Amortization of debt discount and issuance costs | 358 | 316 | 217 | 217 | 216 | 256 | 401 | 366 |
Amortization of deferred contract costs | 4,773 | 4,746 | 4,850 | 4,847 | 4,869 | 4,803 | 4,758 | 4,733 |
Stock-based compensation | 25,016 | 24,945 | 25,582 | 26,335 | 33,129 | 32,277 | 34,981 | 35,172 |
Deferred income taxes | 339 | 893 | 422 | 327 | 289 | 395 | (4,330) | (23) |
Provision for credit losses | 1,054 | 1,434 | 946 | 1,048 | 1,236 | 951 | 1,518 | 1,014 |
Loss (gain) on disposals of property and equipment | - | 96 | - | (43) | - | 229 | 276 | (9) |
Accretion of discounts and amortization of premiums, | (1,064) | (507) | (626) | (1,356) | (1,305) | (1,416) | (798) | (1,019) |
Impairment of operating lease right-of-use assets | 371 | - | - | - | - | - | - | - |
Impairment expense | 559 | 448 | - | 415 | - | - | - | - |
Net gain on extinguishment of debt | - | (1,365) | - | - | - | (941) | - | - |
Non-cash interest expense | - | 840 | 2,906 | 969 | 2,906 | 969 | 2,906 | 969 |
Other adjustments | 520 | (897) | 376 | (84) | (189) | 446 | (218) | (57) |
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (3,976) | (622) | (3,993) | 669 | 6,898 | (9,796) | (13,526) | 14,807 |
Prepaid expenses and other current assets | (2,589) | (207) | 2,216 | 121 | (1,526) | 768 | (2,639) | 2,227 |
Other assets | (2,705) | (4,140) | (2,095) | (6,076) | (4,820) | (6,554) | 1,350 | (3,195) |
Accounts payable | 4,754 | (3,903) | 2,575 | 3,446 | (2,741) | 1,209 | 6,812 | 1,497 |
Accrued expenses | 2,707 | 1,220 | (3,383) | 1,577 | 1,339 | 20 | 3,523 | (2,651) |
Operating lease liabilities | (7,329) | (7,200) | (5,556) | (2,332) | (5,774) | (7,045) | (5,809) | (7,114) |
Other liabilities | (3,789) | (2,332) | 6,277 | 7,725 | (1,994) | (1,799) | (182) | (13,661) |
Net cash provided by operating activities | 5,002 | 5,220 | 17,288 | 25,798 | 28,924 | 22,434 | 28,866 | 39,334 |
Cash flows from investing activities: | ||||||||
Purchases of marketable securities | (37,902) | - | (179,486) | (93,440) | (79,136) | (37,775) | (179,340) | (87,262) |
Sales of marketable securities | - | - | - | - | 18,128 | 7,808 | - | - |
Maturities of marketable securities | 113,032 | 81,480 | 7,969 | 37,836 | 71,417 | 79,954 | 177,143 | 24,329 |
Purchases of property and equipment | (1,996) | (4,969) | (2,605) | (9,852) | (6,046) | (10,191) | (21,021) | (31,623) |
Proceeds from sale of property and equipment | - | - | - | 44 | - | - | - | 10 |
Capitalized internal-use software | (6,818) | (5,602) | (4,763) | (4,542) | (4,707) | (3,645) | (3,736) | (4,148) |
Net cash provided by (used in) investing activities | 66,316 | 70,909 | (178,885) | (69,954) | (344) | 36,151 | (26,954) | (98,694) |
Cash flows from financing activities: | ||||||||
Repayment of convertible senior notes | - | - | - | - | - | - | (38,593) | - |
Proceeds from issuance of convertible notes | - | - | - | - | - | 180,000 | - | - |
Payments of other debt issuance costs | - | (5,729) | - | - | - | (5,924) | (502) | - |
Cash paid for debt extinguishment | - | - | - | - | - | (148,875) | - | - |
Payments for purchase of capped calls | - | - | - | - | - | (18,162) | - | - |
Repayments of finance lease liabilities | (3,296) | (2,554) | (1,711) | (537) | (80) | - | - | - |
Proceeds from exercise of vested stock options | 19 | 805 | 408 | 279 | 71 | 286 | 1,043 | 92 |
Proceeds from employee stock purchase plan | 2,168 | 161 | 2,131 | 1,240 | 2,106 | 1,529 | 2,279 | 2,397 |
Net cash (used in) provided by financing activities | (1,109) | (7,317) | 828 | 982 | 2,097 | 8,854 | (35,773) | 2,489 |
Effects of exchange rate changes on cash and cash equivalents | 109 | (151) | 78 | 177 | (33) | (7) | (32) | (1) |
Net increase (decrease) in cash and cash equivalents | 70,318 | 68,661 | (160,691) | (42,997) | 30,644 | 67,432 | (33,893) | (56,872) |
Cash and cash equivalents at beginning of period | 147,196 | 217,514 | 286,175 | 125,484 | 82,487 | 113,131 | 180,563 | 146,670 |
Cash and cash equivalents at end of period | $ 217,514 | $ 286,175 | $ 125,484 | $ 82,487 | $ 113,131 | $ 180,563 | $ 146,670 | $ 89,798 |
net
(unaudited, in thousands)
Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Net cash provided by operating activities $ 5,002 $ 5,220 $ 17,288 $ 25,798 $ 28,924 $ 22,434 $ 28,866 $ 39,334
Capital expenditures(1):
Purchases of property and equipment (1,996) (4,969) (2,605) (9,852) (6,046) (10,191) (21,021) (31,623)
Proceeds from sale of property and
Capitalized internal-use software (6,818) (5,602) (4,763) (4,542) (4,707) (3,645) (3,736) (4,148)
equipment - - - 44 - - - 10
Free Cash Flow $ (7,108) $ (7,905) $ 8,209 $ 10,911 $ 18,091 $ 8,598 $ 4,109 $ 3,573
Repayments of finance lease liabilities (3,296) (2,554) (1,711) (537) (80) - - -
(1) Capital expenditures are defined as 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.
Fastly Q2 2026 Earnings Investor Supplement (8/5/2026) Page