Revenue growth rebounded to 19.8% in 2026Q1, while gross margins expanded to 62.5% from a 51.3% trough in 2025Q2, suggesting improved network capacity utilization.
| Sales/Revenue | 652.57M | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M | 290.87M | 200.46M | 144.56M | 104.9M |
| Revenue Growth % | 17.66% | 14.78% | 7.45% | 16.93% | 22.12% | 21.82% | 45.1% | 38.67% | 37.81% | - |
| Cost of Goods Sold | 269.78M | 267.81M | 247.74M | 239.66M | 222.94M | 167M | 120.01M | 88.32M | 65.5M | 48.67M |
| COGS % of Revenue | - | 42.92% | 45.57% | 47.36% | 51.52% | 47.13% | 41.26% | 44.06% | 45.31% | 46.4% |
| Gross Profit | 382.79M | 356.2M | 295.94M | 266.33M | 209.78M | 187.33M | 170.87M | 112.14M | 79.06M | 56.23M |
| Gross Margin % | 58.66% | 57.08% | 54.43% | 52.64% | 48.48% | 52.87% | 58.74% | 55.94% | 54.69% | 53.6% |
| Gross Profit Growth % | - | 20.36% | 11.12% | 26.96% | 11.99% | 9.63% | 52.37% | 41.83% | 40.61% | - |
| Operating Expenses | 487.09M | 474.79M | 463.85M | 464.36M | 455.98M | 406.35M | 278.08M | 158.69M | 108.2M | 87.26M |
| OpEx % of Revenue | - | 76.09% | 85.32% | 91.77% | 105.37% | 114.68% | 95.6% | 79.16% | 74.85% | 83.18% |
| Selling, General & Admin | 324.68M | 312.13M | 312.01M | 307.85M | 300.67M | 279.49M | 203.26M | 112.2M | 73.58M | 58.27M |
| SG&A % of Revenue | - | 50.02% | 57.39% | 60.84% | 69.48% | 78.88% | 69.88% | 55.97% | 50.9% | 55.55% |
| Research & Development | 167.21M | 162.66M | 137.98M | 152.19M | 155.31M | 126.86M | 74.81M | 46.49M | 34.62M | 28.99M |
| R&D % of Revenue | - | 26.07% | 25.38% | 30.08% | 35.89% | 35.8% | 25.72% | 23.19% | 23.95% | 27.63% |
| Other Operating Expenses | -1000K | 0 | 13.86M | 4.32M | 0 | 0 | 0 | 0 | -741K | -539K |
| Operating Income | -104.08M | -117.8M | -167.91M | -198.03M | -246.2M | -219.02M | -107.21M | -46.55M | -29.14M | -31.03M |
| Operating Margin % | -15.95% | -18.88% | -30.89% | -39.14% | -56.89% | -61.81% | -36.86% | -23.22% | -20.16% | -29.58% |
| Operating Income Growth % | - | 29.85% | 15.21% | 19.57% | -12.41% | -104.29% | -130.33% | -59.75% | 6.1% | - |
| EBITDA | -31.8M | -20.57M | -94.28M | -87.78M | -181.88M | -168.98M | -82.16M | -27.7M | -15.74M | -21.39M |
| EBITDA Margin % | -4.87% | -3.3% | -17.34% | -17.35% | -42.03% | -47.69% | -28.24% | -13.82% | -10.89% | -20.39% |
| EBITDA Growth % | 62.28% | 78.18% | -7.41% | 51.74% | -7.63% | -105.69% | -196.64% | -75.98% | 26.42% | - |
| D&A (Non-Cash Add-back) | 72.28M | 97.22M | 73.64M | 110.25M | 64.31M | 50.04M | 25.06M | 18.85M | 13.4M | 9.64M |
| EBIT | -95.1M | -106.49M | -152.71M | -129.26M | -184.79M | -217.38M | -105.86M | -45.82M | -28.94M | -31.13M |
| Net Interest Income | -211K | -409K | 12.12M | 14.13M | 1.16M | -3.96M | 79K | -1.95M | -871K | -673K |
| Interest Income | 12.24M | 12.29M | 14.87M | 18.19M | 7.04M | 1.28M | 1.63M | 3.29M | 939K | 443K |
| Interest Expense | 6.22M | 12.7M | 2.75M | 4.05M | 5.89M | 5.25M | 1.55M | 5.24M | 1.81M | 1.12M |
| Other Income/Expense | -1.31M | -1.39M | 12.46M | 64.72M | 55.52M | -3.61M | -200K | -4.51M | -1.61M | -1.21M |
| Pretax Income | -105.39M | -119.19M | -155.45M | -133.31M | -190.68M | -222.63M | -107.41M | -51.06M | -30.75M | -32.24M |
| Pretax Margin % | -16.15% | -19.1% | -28.59% | -26.35% | -44.06% | -62.83% | -36.93% | -25.47% | -21.27% | -30.74% |
| Income Tax | -2.33M | 2.49M | 2.6M | -221K | 94K | 69K | -11.48M | 492K | 185K | 208K |
| Effective Tax Rate % | 2.21% | -2.09% | -1.68% | 0.17% | -0.05% | -0.03% | 10.69% | -0.96% | -0.6% | -0.65% |
| Net Income | -103.05M | -121.68M | -158.06M | -133.09M | -190.77M | -222.7M | -95.93M | -51.55M | -30.93M | -32.45M |
| Net Margin % | -15.79% | -19.5% | -29.07% | -26.3% | -44.09% | -62.85% | -32.98% | -25.72% | -21.4% | -30.93% |
| Net Income Growth % | 32.99% | 23.02% | -18.76% | 30.24% | 14.33% | -132.14% | -86.1% | -66.64% | 4.67% | - |
| Net Income (Continuing) | -103.05M | -121.68M | -158.06M | -133.09M | -190.77M | -222.7M | -95.93M | -51.55M | -30.93M | -32.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.67 | -0.83 | -1.14 | -1.03 | -1.57 | -1.92 | -0.93 | -0.75 | -0.39 | -0.41 |
| EPS Growth % | 36.7% | 27.19% | -10.68% | 34.39% | 18.23% | -106.45% | -24% | -92.31% | 4.88% | - |
| EPS (Basic) | - | -0.83 | -1.14 | -1.03 | -1.57 | -1.92 | -0.93 | -0.75 | -0.39 | -0.41 |
| Diluted Shares Outstanding | 153.58M | 146.9M | 138.1M | 128.77M | 121.72M | 116.05M | 103.55M | 68.35M | 78.92M | 78.92M |
| Basic Shares Outstanding | 153.58M | 146.9M | 138.1M | 128.77M | 121.72M | 116.05M | 103.55M | 68.35M | 78.92M | 78.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Usage-based revenue volatility
As reported in recent financial filings, Fastly's year-over-year revenue growth accelerated to 19.8% in 2026Q1, marking a significant recovery from the 2.0% growth rate observed in 2024Q4, suggesting that recent go-to-market adjustments may be successfully capturing increased demand within the edge computing and security segments.
The recent acceleration in top-line growth indicates that the company's shift toward simplified pricing models may be reducing sales friction. Investors should monitor whether this momentum is sustainable or if it reflects a temporary spike in seasonal usage patterns that could revert in subsequent quarters.
Based on the company's income statement data, gross margins expanded to 62.5% in 2026Q1, a notable improvement from the 51.3% trough recorded in 2025Q2, which suggests that management is successfully optimizing network capacity utilization and potentially shifting the revenue mix toward higher-margin security and compute services.
This margin expansion is critical for a company operating with high fixed infrastructure costs, as it provides the necessary leverage to eventually reach GAAP profitability. However, the sustainability of these margins remains uncertain given the competitive pricing pressures inherent in the CDN market.
According to quarterly income statements, while gross profit has grown, operating expenses continue to consume a significant portion of revenue, resulting in an operating margin of -13.8% in 2026Q1, which indicates that the company has yet to achieve the necessary scale to fully absorb its fixed overhead.
The persistent negative operating margin suggests that despite revenue growth, the company's cost structure remains bloated relative to its current scale. Further investigation into the efficiency of SG&A spending is warranted to determine if the company can achieve operating break-even in the near term.
As evidenced by historical data, the company has relied heavily on stock-based compensation, which averaged over $25 million per quarter through 2025, effectively masking the true cash burn and complicating the assessment of underlying profitability until the recent reduction in reported SBC expenses in 2026Q1.
The sudden drop in SBC to zero in 2026Q1 warrants careful scrutiny, as it may represent a change in accounting presentation or a temporary pause in equity-based incentives. Investors should be cautious about the potential for future dilution if the company resumes aggressive stock-based compensation to retain talent.
Based on an analysis of the income statement, the company's reliance on usage-based revenue creates inherent volatility, as evidenced by the inconsistent growth rates observed between 2024 and 2026, which may leave the firm vulnerable to sudden shifts in enterprise customer traffic and competitive pricing actions.
Short-sellers may focus on the fact that despite revenue growth, the company has struggled to maintain consistent profitability, suggesting that the business model may be more commoditized than management implies. The lack of long-term, fixed-fee contract stability remains a primary risk factor for future cash flow predictability.
Quick answers to the most common questions about buying FSLY stock.
For fiscal year 2025, Fastly, Inc. (FSLY) reported total revenue of $624.0M. This represents a 494.9% increase compared to $104.9M in 2017.
Fastly, Inc. (FSLY) reported a net loss of $121.7M for the fiscal year ending 2025.
Fastly, Inc. (FSLY) reported an operating income of $-117.8M, resulting in an operating profit margin of -18.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Fastly, Inc. (FSLY) generated $356.2M in gross profit for the year, representing a gross profit margin of 57.1%. This demonstrates the company's core pricing power and production efficiency.