Fastly Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did FSLY Beat Earnings? Q3 2025 Results
Fastly delivered a standout third quarter for fiscal 2025, posting earnings per share of $0.07 against a consensus estimate of just $0.00, a beat of 34,900%, while revenue of $158.22 million topped expectations of $151.04 million by 4.76% and grew 15.3% year over year. The clearest driver behind the numbers was a dramatic improvement in operating leverage, with non-GAAP operating income surging to $11.61 million from $818,000 a year ago, as Security revenue, growing 30% year over year to $34 million, shifted the revenue mix toward higher-value offerings. Free cash flow flipped positive to $18.09 million from negative $7.11 million in Q3 2024, marking what the company called a significant inflection point. The performance puts Fastly in increasingly competitive territory with <a href="https://247wallst.com/investing/2025/10/30/cloudflare-net-accelerates-revenue-growth-as-losses-vanish-2/">edge cloud rivals also gaining momentum</a>. Looking ahead, Fastly guided Q4 2025 revenue to $159 million to $163 million, with full-year 2025 revenue expected between $610 million and $614 million, signaling continued confidence in sustaining its growth trajectory.
- Security revenue grew 30% YoY, representing 21% of total revenue
- Strong go-to-market cross-sell execution driving security product adoption
- GAAP gross margin improved to 58.4% from 54.5% YoY; Non-GAAP gross margin improved to 62.8% from 58.6%
- Enterprise customer count grew to 627, up 51 from Q3 2024
- LTM Net Retention Rate increased to 106% from 104% in Q2 2025
- Revenue from customers outside top ten grew 17% YoY, outpacing top ten customer revenue growth of 12%
- RPO grew 16% YoY to $268 million
“We delivered record revenue, operating profit and free cash flow this quarter, delivering on the objective I set out for the team of accelerating growth and achieving operating leverage. The pace of feature roll-outs to our platform has improved dramatically over the last year and we're winning business with some of the most sought after customers worldwide. Our Security revenue growth of 30% year-over-year is a result of this momentum combined with our strong go-to-market cross-sell execution.”
Fastly CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Fastly expects total revenue of $159.0 million to $163.0 million, non-GAAP operating income of $8.0 million to $12.0 million, and non-GAAP net income per diluted share of $0.04 to $0.08 (assuming 167.8 million weighted average diluted shares). For the full year 2025, the company expects total revenue of $610.0 million to $614.0 million, non-GAAP operating income of $9.0 million to $13.0 million, and non-GAAP net income per diluted share of $0.03 to $0.07 (assuming 160.4 million weighted average diluted shares).
FSLY YoY Financials
FSLY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.