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Fastly
(NASDAQ:FSLY)
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Rating:66Neutral
Price Target:
$24.00
▲(3.05% Upside)
Action:Downgraded
Date:09/25/26
The score is driven primarily by improving fundamentals and a strong earnings-call outlook (raised guidance, record margins, and continued positive free cash flow), supported by a clear uptrend in the technicals. These positives are tempered by still-negative GAAP profitability/returns and weak traditional valuation support (negative P/E and no dividend yield).
Positive Factors
Platform Adoption
Higher net retention and expanding remaining performance obligations indicate that customers are increasing their use of Fastly’s platform and committing to more future consumption. This supports recurring revenue durability, improves customer lifetime value, and provides stronger visibility into medium-term growth.
Negative Factors
Persistent GAAP Losses
Fastly has improved its operating profile but still reports negative GAAP profitability and returns. Continued losses can constrain internally generated capital, reduce the quality of reported earnings, and make durable shareholder returns dependent on further execution and sustained margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform Adoption
Higher net retention and expanding remaining performance obligations indicate that customers are increasing their use of Fastly’s platform and committing to more future consumption. This supports recurring revenue durability, improves customer lifetime value, and provides stronger visibility into medium-term growth.
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
$3.89B
Dividend YieldN/A
Average Volume (3M)7.40M
Price to Earnings (P/E)―
Beta (1Y)0.80
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. Volume6,658,214
30 Day Avg. Volume7,401,629
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 Cap0.76
Enterprise Value/Revenue4.30
Enterprise Value/Gross Profit6.99
Enterprise Value/Ebitda2.25K
Forecast
1Y Price Target
$28.56Price Target Upside22.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)0.52
Revenue Forecast (FY)$741.02M
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 subscription-based cloud services that are commonly consumed on a usage-driven basis. The company’s revenue model is centered on charging customers for delivering and processing internet traffic through its ...
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 | 1.31M | -28.64M | -79.07M | -57.23M | -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
Positive
23.29
Price Trends
24.53
Negative
22.47
Positive
21.06
Positive
Market Momentum
-0.43
Positive
49.52
Neutral
24.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLY, the sentiment is Positive. The current price of 23.29 is below the 20-day moving average (MA) of 25.05, below the 50-day MA of 24.53, and above the 200-day MA of 21.06, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 24.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.89B | -46.06 | -8.46% | ― | 20.35% | 48.42% | |
64 Neutral | $3.43B | -23.14 | 28.08% | ― | 14.18% | -218.58% | |
62 Neutral | $307.65M | 64.55 | 3.34% | ― | 3.66% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $416.12M | 35.89 | 1.96% | ― | 13.62% | ― | |
57 Neutral | $2.58B | -6.06 | -7.08% | ― | 34.93% | 74.60% | |
52 Neutral | $250.35M | 15.32 | 3.85% | ― | -7.62% | ― |
* Technology Sector Average
FSLY
Fastly
24.41
16.09
193.39%
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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...
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.