Fastly AI Stock Analysis
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Fastly (FSLY) AI Stock Analysis
Fastly
(NASDAQ:FSLY)
The score is driven primarily by improving financial performance (stronger margins, narrowing losses, positive TTM operating/free cash flow, and a solid balance sheet) and a very constructive earnings update with raised guidance and record profitability metrics. Offsetting these positives, technicals are notably weak with the stock far below key moving averages and bearish momentum indicators, while valuation offers limited support due to ongoing losses and no dividend yield.
Fastly Key Performance Indicators (KPIs)
Large CustomersTracks the total number of customers, providing insight into market reach and growth potential as the company attracts new clients.
Large Customers rose steadily from ~445 to 634, showing consistent enterprise traction and bigger multi‑year deals — corroborated by a 63% RPO jump and 75% current RPO. That lift underpins margin expansion and recurring revenue, driven by security/compute wins and multimillion‑ARR customers. Caveats: top‑10 customers still ~34% of revenue (concentration risk) and mid‑single‑digit price erosion in Network Services plus front‑loaded infrastructure CapEx and a one‑time accounting gross‑margin benefit mean revenue‑per‑customer and margins could face near‑term pressure even as customer counts grow.
The FlyFastly (FSLY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.78B
- Dividend Yield
- ―
- Average Volume (3M)
- 6.45M
- Price to Earnings (P/E)
- -43.1
- Beta (1Y)
- 1.00
- Revenue Growth
- 21.48%
- EPS Growth
- 57.83%
- Country
- US
- Employees
- 1,140
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
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 international m...
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 edg...
Fastly Earnings Call Summary
The call was strongly positive, supported by record revenue, operating income and gross margin, four consecutive quarters of at least 20% revenue growth, expanding net retention, increasing multiproduct adoption, positive free cash flow and raised full-year guidance. The main challenges were the planned go-to-market leadership transition, slower growth among customers outside the top 10, increased customer concentration, consumption-driven variability and supply chain monitoring. Management expressed confidence that the transition plan, leadership bench strength, platform strategy and ongoing go-to-market investments would support continued progress.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fourth quarter, Fastly expects revenue in the range of $198 million to $202 million, representing 16% annual growth at the midpoint; gross margins of 65.5%, plus or minus 50 basis points; OpEx to increase mid-single-digit millions on a sequential basis; non-GAAP operating profit of $30 million to $34 million, reflecting an operating margin of 16% at the midpoint; and non-GAAP net earnings per diluted share of $0.16 to $0.18. For calendar year 2026, Fastly raised revenue guidance to a range of $744 million to $748 million, reflecting annual growth of 20% at the midpoint; expects gross margins of 65.5%, plus or minus 50 basis points; non-GAAP operating profit of $107 million to $111 million, reflecting an operating margin of 15% at the midpoint; non-GAAP net earnings per diluted share of $0.61 to $0.63; infrastructure capital spend of approximately 10% of revenue; and free cash flow guidance in the range of $50 million to $60 million.
Fastly Financial Statement Overview
Summary
Fundamentals are improving but not fully proven. Revenue is growing and gross margin expanded meaningfully, while losses narrowed versus prior years. Cash generation improved with positive operating cash flow and free cash flow in TTM, and the balance sheet is relatively solid with low leverage. The main drag is continued GAAP unprofitability (negative operating/net results and negative ROE), which limits resilience versus best-in-class software peers.
Income Statement
46NeutralBalance Sheet
72PositiveCash Flow
64Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 719.14M | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M |
| Gross Profit | 450.50M | 356.20M | 295.94M | 266.33M | 209.78M | 187.33M |
| EBITDA | 9.63M | -28.64M | -79.07M | -57.23M | -120.48M | -167.35M |
| Net Income | -62.88M | -121.68M | -158.06M | -133.09M | -190.77M | -222.70M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.50B | 1.45B | 1.53B | 1.90B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 365.22M | 361.76M | 295.88M | 322.72M | 517.97M | 527.86M |
| Total Debt | 410.54M | 430.19M | 404.66M | 433.32M | 833.54M | 1.05B |
| Total Liabilities | 540.41M | 569.90M | 486.11M | 545.70M | 940.96M | 1.15B |
| Stockholders Equity | 1.00B | 929.58M | 965.25M | 979.49M | 955.16M | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 49.23M | 65.75M | -20.81M | -31.91M | -149.95M | -88.87M |
| Operating Cash Flow | 130.62M | 94.44M | 16.41M | 362.00K | -69.63M | -38.48M |
| Investing Cash Flow | -108.30M | -213.03M | 178.90M | 294.94M | 235.75M | -794.51M |
| Financing Cash Flow | -21.91M | 12.76M | -17.10M | -331.38M | -189.15M | 936.55M |
Fastly Technical Analysis
Price Trends
Market Momentum
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 17.26 is below the 20-day moving average (MA) of 21.75, below the 50-day MA of 23.63, and below the 200-day MA of 21.81, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 12.53 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.
Latest Risks Added
3 New RisksFastly Peers Comparison
Overall Rating
API67Neutral- FSLY61Neutral
EGHT59Neutral
KC54Neutral
RBBN53Neutral
WIX46Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| API | 67Neutral | $402.10M | 34.80 | 1.96% | ― | 13.62% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| FSLY | 61Neutral | $2.62B | -43.15 | -6.45% | ― | 21.48% | 57.83% |
| EGHT | 59Neutral | $316.60M | 48.52 | 4.98% | ― | 4.31% | ― |
| KC | 54Neutral | $2.58B | -5.99 | -7.08% | ― | 34.93% | 74.60% |
| RBBN | 53Neutral | $250.84M | 13.36 | 4.51% | ― | -7.78% | ― |
| WIX | 46Neutral | $2.69B | -17.75 | 19.26% | ― | 13.97% | -254.82% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FSLY | Fastly, Inc | 17.26 | 5.82 | 50.87% | |
| EGHT | 8x8 Inc | 2.30 | 0.33 | 16.75% | |
| RBBN | Ribbon Communications | 1.47 | -1.57 | -51.64% | |
| WIX | Wix.com Ltd | 68.34 | -58.58 | -46.16% | |
| KC | Kingsoft Cloud Holdings Ltd. | 8.52 | -2.63 | -23.59% | |
| API | Agora, Inc. | 4.32 | 0.92 | 26.91% |
Fastly Corporate Events
Fastly Reports Record Third-Quarter Revenue and Stronger Growth
PositiveFastly, a global edge cloud platform provider, announced on November 4, 2026, that third-quarter revenue reached a record $190.2 million for the period ended September 30, up 20% year over year. GAAP gross margin rose to 63.3%, while non-GAAP operati...
Fastly Announces President Lovett’s Planned Retirement and Transition
NeutralOn October 30, 2026, Fastly said President, Go to Market Scott R. Lovett had notified the company of his planned retirement during 2027. The company signed a transition and separation agreement that kept him in the role through his retirement date, w...
Fastly Expands Credit Facility, Enhancing Financial Flexibility
PositiveOn 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 August...
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.
Date of analysis: Nov 06, 2026