Fastly

Fastly (FSLY) Q2 2025 Earnings

Reported Aug 6, 2025 at 4:09 PM ET · SEC Source

Q2 25 EPS

$-0.03

BEAT +42.75%

Est. $-0.05

Q2 25 Revenue

$148.7M

BEAT +2.66%

Est. $144.9M

vs S&P Since Q2 25

+134.7%

BEATING MARKET

FSLY +152.5% vs S&P +17.8%

Market Reaction

Did FSLY Beat Earnings? Q2 2025 Results

Fastly posted a notably clean second quarter, reporting a loss of just $0.03 per share against a consensus estimate of $0.05, a 42.75% beat, while revenue of $148.71 million cleared Wall Street's $144.86 million target by 2.66% and grew 12.3% year-ov… Read more Fastly posted a notably clean second quarter, reporting a loss of just $0.03 per share against a consensus estimate of $0.05, a 42.75% beat, while revenue of $148.71 million cleared Wall Street's $144.86 million target by 2.66% and grew 12.3% year-over-year to a company record. The most material driver behind the outperformance was a dramatic improvement in free cash flow, which swung to positive $10.91 million from negative $18.54 million a year ago, signaling that Fastly's long-awaited path to profitability is gaining credibility. Security revenue, up 15% year-over-year to $29.30 million, now accounts for 20% of total sales, reflecting meaningful platform diversification, while the company's net retention rate climbed to 104% and remaining performance obligations hit a record $315.10 million, up 41% year-over-year. In a competitive edge computing landscape where peers are also beating estimates, Fastly raised its full-year 2025 revenue guidance to $594.00 million to $602.00 million and now expects positive free cash flow for the year.

Key Takeaways

  • Go-to-market transformation driving increased customer acquisition and cross-sell
  • Security revenue growing 15% YoY and reaching 20% of total revenue
  • LTM net retention rate improved to 104% from 100% in Q1 2025
  • Product package deals grew more than 50% YoY; renewal-based packages grew over 130% YoY
  • Revenue from customers outside top 10 grew 17% YoY, diversifying revenue base
  • Record RPO of $315 million, up 41% YoY
24/7 Wall St

FSLY YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

FSLY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Fastly's second quarter performance resulted in another record revenue quarter, outperforming both our revenue and operating loss guidance. We are raising our financial guidance for 2025 and now expect to generate positive free cash flow for the year.”

— Kip Compton, Q2 2025 Earnings Press Release