Companies /Technology

Fastly Inc - Class A

NYSE: FSLY Software - Application
$20.77
▲ $0.34 (+1.67%) today
Markets open · 10:52am ET

Q2 2025 Earnings

Reported Aug 6, 2025, 4:09pm ET · SEC source
$-0.03
Beat +42.75%
EPS · est. $-0.05
$148.7M
Beat +2.66%
Revenue · est. $144.9M
−0.3%
Trailing market
FSLY vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%0+6%Aug 6Aug 7report 4:09pm ETearnings+0.1%+5.3%
−6%0+6%Aug 6Aug 7earnings+0.1%+5.3%
FSLY +5.3%S&P 500 +0.1%
−6%0+6%Aug 6Aug 7report 4:09pm ETearnings+0.6%+5.3%
−6%0+6%Aug 6Aug 7earnings+0.6%+5.3%
FSLY +5.3%NASDAQ +0.6%
−10%−5%0+5%Aug 5Aug 14report 4:09pm ETearnings+2.0%−2.4%
−10%−5%0+5%Aug 5Aug 14earnings+2.0%−2.4%
FSLY −2.4%S&P 500 +2.0%
−10%−5%0+5%Aug 5Aug 14report 4:09pm ETearnings+2.2%−2.4%
−10%−5%0+5%Aug 5Aug 14earnings+2.2%−2.4%
FSLY −2.4%NASDAQ +2.2%
+14.42%
Day of report
−6.30%
Next session
−7.37%
One week
+2.55%
30 days

S&P 500 over the same 30 days: +2.86%.

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-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 <a href="https://247wallst.com/investing/2025/07/31/live-is-cloudflare-net-the-next-ai-stock-to-top-earnings-expectations-2/">peers are also beating estimates</a>, 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

“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.”

Fastly CEO, on the earnings call

Forward Guidance & Outlook

Fastly raised its full-year 2025 financial guidance and now expects to generate positive free cash flow for the year. For Q3 2025, the company guides total revenue of $149.0–$153.0 million, non-GAAP operating income (loss) of ($1.0)–$3.0 million, and non-GAAP net income (loss) per share of ($0.02)–$0.02. For full year 2025, revenue is expected at $594.0–$602.0 million, non-GAAP operating loss of ($9.0)–($3.0) million, and non-GAAP net income (loss) per share of ($0.10)–($0.04).

FSLY YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$60.0M$120.0M$132.4M$148.7MRevenue$72.9M$81.1MGross Profit$-30,544,026$-36,943,000Operating Income$-32,887,429$-37,541,000Net Income
$0$60.0M$120.0MRevenueGross ProfitOperating IncomeNet Income

FSLY Revenue by Segment

Network Services$114.9M+10.0%
Security$29.3M+15.0%
Other (Compute and Observability)$4.5M+60.0%

Figures from SEC filings and company reports. Not investment advice.