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Fastly
(NASDAQ:FSLY)
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Rating:69Neutral
Price Target:
$23.50
▲(0.90% Upside)
Action:Reiterated
Date:08/18/26
FSLY scores 69 driven primarily by strong earnings-call momentum (raised guidance, record margins, and improved operating profitability outlook) and supportive technical trend (price well above key moving averages). The score is held back by only moderate underlying financial statement quality (still negative GAAP profitability/ROE despite better cash generation) and weak valuation signals (negative P/E and no dividend yield provided).
Positive Factors
Customer Expansion
Net retention of 117% shows existing customers are increasing platform usage and adopting additional services. Combined with 24 new customers above $100,000 ARR, this supports durable expansion within the installed base and broader enterprise adoption over coming quarters.
Negative Factors
Unresolved GAAP Losses
Fastly has improved margins but has not yet achieved sustained GAAP profitability. Continued net and EBIT losses limit reported returns, make earnings quality less proven, and could constrain the company’s ability to consistently reinvest from internally generated earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Customer Expansion
Net retention of 117% shows existing customers are increasing platform usage and adopting additional services. Combined with 24 new customers above $100,000 ARR, this supports durable expansion within the installed base and broader enterprise adoption over coming quarters.
Read all positive factors
Fastly Key Performance Indicators (KPIs)
Any
Large Customers
Tracks the total number of customers, providing insight into market reach and growth potential as the company attracts new clients.
Tracks the total number of customers, providing insight into market reach and growth potential as the company attracts new clients.
Data provided by:
The Fly
The FlyFastly (FSLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.28B
Dividend YieldN/A
Average Volume (3M)5.73M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth20.35%
EPS Growth48.42%
CountryUS
Employees1,140
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.53
Shares Outstanding159,300,000
10 Day Avg. Volume3,520,417
30 Day Avg. Volume5,734,554
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.61
Price to Sales (P/S)2.40
P/FCF Ratio22.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$26.50Price Target Upside13.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.52
Revenue Forecast (FY)$740.56M
Fastly Business Overview & Revenue Model
Company Description
Fastly, Inc. offers an advanced edge cloud computing platform designed to efficiently manage, distribute, and safeguard client applications across a global footprint, including North America, the Asia Pacific region, Europe, and other internationa...
How the Company Makes Money
Fastly primarily makes money by selling cloud-based edge services to businesses, with revenue largely generated from customer usage of its platform. Its core revenue stream is its CDN and edge delivery services, where customers pay for delivering ...
Fastly Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive momentum: record revenue, record gross margins, meaningful operating profitability improvements, sustained free cash flow, and accelerating platform adoption—especially in security and compute. Management acknowledged near-term variability from episodic events, some customer concentration, higher front-loaded CapEx due to supply-chain mitigation, and mid-single-digit price erosion in network services. Overall the company presented improving unit economics, stronger RPO, and raised full-year guidance while flagging execution items and normalization of OpEx in the back half.Positive Updates
Record Revenue and Reaccelerated Growth
Revenue of $183.3 million in Q2 (record) increased 23% year-over-year and exceeded the high end of guidance ($170M–$176M). Company reported the highest revenue growth quarter in almost four years.
Negative Updates
Revenue Variability and Episodic Contributions
Management attributed part of the Q2 upside (~less than half of a $10M upside to guide) to episodic events (e.g., World Cup and other live events). The consumption-based revenue model creates quarter-to-quarter variability and makes comps event-sensitive.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Reaccelerated Growth
Revenue of $183.3 million in Q2 (record) increased 23% year-over-year and exceeded the high end of guidance ($170M–$176M). Company reported the highest revenue growth quarter in almost four years.
Read all positive updates
Company Guidance
Fastly guided Q3 revenue of $184M–$190M (midpoint +18% YoY), with gross margin ~65% ±50 bps, non‑GAAP operating profit of $20M–$24M (≈12% operating margin at the midpoint) and non‑GAAP net EPS of $0.11–$0.13; for full‑year 2026 it raised revenue guidance to $732M–$746M (≈+18% at midpoint), expects full‑year gross margin ~65% ±50 bps, non‑GAAP operating profit $88M–$96M (≈12% operating margin at midpoint), non‑GAAP net EPS $0.50–$0.54, infrastructure CapEx of 10%–12% of revenue (front‑loaded vs. 5% in 2025), and free cash flow of $40M–$50M, while noting OpEx will normalize higher in H2 due to headcount additions and discretionary spend.Fastly Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 687.17M | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M |
| Gross Profit | 422.42M | 356.20M | 295.94M | 266.33M | 209.78M | 187.33M |
| EBITDA | -4.18M | -9.27M | -79.07M | -19.01M | -120.48M | -167.35M |
| Net Income | -81.10M | -121.68M | -158.06M | -133.09M | -190.77M | -222.70M |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.50B | 1.45B | 1.53B | 1.90B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 337.50M | 361.76M | 295.88M | 322.72M | 517.97M | 527.86M |
| Total Debt | 398.29M | 430.19M | 404.66M | 433.32M | 833.54M | 1.05B |
| Total Liabilities | 512.83M | 569.90M | 486.11M | 545.70M | 940.96M | 1.15B |
| Stockholders Equity | 990.82M | 929.58M | 965.25M | 979.49M | 955.16M | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 42.23M | 65.75M | -20.81M | -31.91M | -149.95M | -88.87M |
| Operating Cash Flow | 119.56M | 94.44M | 16.41M | 362.00K | -69.63M | -38.48M |
| Investing Cash Flow | -89.84M | -213.03M | 178.90M | 294.94M | 235.75M | -794.51M |
| Financing Cash Flow | -22.33M | 12.76M | -17.10M | -331.38M | -189.15M | 936.55M |
Fastly Technical Analysis
Negative
23.29
Price Trends
22.20
Negative
21.44
Negative
18.65
Positive
Market Momentum
-0.58
Positive
41.29
Neutral
15.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLY, the sentiment is Negative. The current price of 23.29 is below the 20-day moving average (MA) of 24.73, above the 50-day MA of 22.20, and above the 200-day MA of 18.65, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 41.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSLY.
Fastly Risk Analysis
Fastly disclosed 76 risk factors in its most recent earnings report. Fastly reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fastly Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.07B | 6.67 | 70.79% | ― | 2.30% | ― | |
70 Outperform | $1.63B | -17.36 | -46.24% | ― | 18.26% | -0.63% | |
69 Neutral | $3.28B | -38.85 | -8.46% | ― | 20.35% | 48.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $364.23M | -18.76 | -1.22% | ― | -10.34% | 49.81% |
* Technology Sector Average
FSLY
Fastly
21.49
13.84
180.92%
PD
PagerDuty
13.32
-3.32
-19.95%
BLND
Blend Labs
1.49
-2.74
-64.78%
AMPL
Amplitude
12.52
1.12
9.82%
Fastly Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Fastly Expands Credit Facility, Enhancing Financial Flexibility
Positive
Aug 17, 2026
On August 17, 2026, Fastly amended its existing credit agreement with Silicon Valley Bank, increasing the size of its senior secured revolving credit facility from $60 million to $100 million and extending the scheduled maturity to as late as Augu...
Business Operations and StrategyFinancial Disclosures
Fastly Delivers Record Q2 Results and Raises Guidance
Positive
Aug 5, 2026
On August 5, 2026, Fastly reported record second quarter 2026 results, with revenue rising 23% year over year to $183.3 million and GAAP gross margin improving to 63.3%. Network services, security, and other products all posted strong growth, whil...
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Fastly Elevates Principal Accounting Officer, Affirms Governance Structure
Positive
Jun 9, 2026
On June 3, 2026, Fastly, Inc. appointed Jeffrey Ford, its Chief Accounting Officer since September 2025, as principal accounting officer, while confirming that Chief Financial Officer Richard Wong would relinquish the principal accounting officer ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.