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Fastly Posts Narrower Loss in Q2 Earnings, Revenues Rise Y/Y
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Key Takeaways
{\"0\":\"FSLY posted Q2 loss of 3 cents per share, beating estimates and improving from last year\'s 6-cent loss.\",\"1\":\"Revenues rose 12.3% to $148.7M, with security revenues up 15% and network services up 10% year over year.\",\"2\":\"Adjusted EBITDA margin expanded to 6% from 1.5%, while enterprise customer count grew to 622.\"}
Fastly (FSLY - Free Report) reported second-quarter 2025 non-GAAP loss of 3 cents per share, beating the Zacks Consensus Estimate by 40%. The figure was narrower than the company’s year-ago quarter loss of 6 cents per share.
Revenues increased 12.3% year over year to $148.7 million, surpassing the Zacks Consensus Estimate by 2.51%.
FSLY shares rose 10.6% in pre-market trading. Year to date, Fastly shares plunged 30.9% underperforming the broader Zacks Computer and Technology sector’s return of 11%.
FSLY’s Quarter Details
In second-quarter 2025, Network services revenues increased 10% year over year to $114.9 million. Security revenues climbed 15% year over year to $29.3 million.
Enterprise customer count was 622 in the second quarter, up 21 from the year-ago quarter. The top 10 customers accounted for 31% of revenues in the second quarter compared to 34% in the year-ago quarter. Revenues from the top 10 increased 2% year over year, while revenues from customers other than the top 10 increased 17% year over year.
The non-GAAP gross margin was 59%, contracting 40 basis points (bps) year over year.
Research and development expenses increased 12.3% year over year to $30.5 million. General and administrative expenses increased 9.6% year over year to $21.2 million. Sales and marketing expenses decreased 6.8% year over year to $40.6 million.
Adjusted EBITDA margin expanded 450 bps year over year to 6% in the reported quarter.
Fastly reported non-GAAP operating loss of $4.6 million, narrower than the $11.5 million loss reported in the year-ago quarter.
FSLY’s Balance Sheet Details
As of June 30, 2025, cash and cash equivalents were $1.07 billion compared with $924.7 million as of March 31.
Fastly Issues Q3 and 2025 Guidance
Fastly expects third-quarter 2025 revenues between $149 million and $153 million. The Zacks Consensus Estimate for revenues is currently pegged at $148.1 million, indicating 7.9% growth from the year-ago reported quarter.
Non-GAAP operating income is expected between a loss of $1 million and earnings of $3 million. The bottom line is expected between a loss of 2 cents and earnings of 2 cents per share for the third quarter. The consensus mark for third-quarter 2025 loss is pegged at 1 cent per share.
For 2025, Fastly expects revenues between $594 million and $602 million. The Zacks Consensus Estimate for revenues is currently pegged at $590.5 million, indicating 8.6% growth from 2024.
Non-GAAP operating income is expected between a loss of $9 million and $3 million. The bottom line is expected between a loss of 10 cents and 4 cents per share for 2025. The consensus mark for 2025 loss is pegged at 9 cents per share.
Image: Bigstock
Fastly Posts Narrower Loss in Q2 Earnings, Revenues Rise Y/Y
Key Takeaways
Fastly (FSLY - Free Report) reported second-quarter 2025 non-GAAP loss of 3 cents per share, beating the Zacks Consensus Estimate by 40%. The figure was narrower than the company’s year-ago quarter loss of 6 cents per share.
Revenues increased 12.3% year over year to $148.7 million, surpassing the Zacks Consensus Estimate by 2.51%.
FSLY shares rose 10.6% in pre-market trading. Year to date, Fastly shares plunged 30.9% underperforming the broader Zacks Computer and Technology sector’s return of 11%.
FSLY’s Quarter Details
In second-quarter 2025, Network services revenues increased 10% year over year to $114.9 million. Security revenues climbed 15% year over year to $29.3 million.
Fastly, Inc. Price, Consensus and EPS Surprise
Fastly, Inc. price-consensus-eps-surprise-chart | Fastly, Inc. Quote
Enterprise customer count was 622 in the second quarter, up 21 from the year-ago quarter. The top 10 customers accounted for 31% of revenues in the second quarter compared to 34% in the year-ago quarter. Revenues from the top 10 increased 2% year over year, while revenues from customers other than the top 10 increased 17% year over year.
The non-GAAP gross margin was 59%, contracting 40 basis points (bps) year over year.
Research and development expenses increased 12.3% year over year to $30.5 million. General and administrative expenses increased 9.6% year over year to $21.2 million. Sales and marketing expenses decreased 6.8% year over year to $40.6 million.
Adjusted EBITDA margin expanded 450 bps year over year to 6% in the reported quarter.
Fastly reported non-GAAP operating loss of $4.6 million, narrower than the $11.5 million loss reported in the year-ago quarter.
FSLY’s Balance Sheet Details
As of June 30, 2025, cash and cash equivalents were $1.07 billion compared with $924.7 million as of March 31.
Fastly Issues Q3 and 2025 Guidance
Fastly expects third-quarter 2025 revenues between $149 million and $153 million. The Zacks Consensus Estimate for revenues is currently pegged at $148.1 million, indicating 7.9% growth from the year-ago reported quarter.
Non-GAAP operating income is expected between a loss of $1 million and earnings of $3 million. The bottom line is expected between a loss of 2 cents and earnings of 2 cents per share for the third quarter. The consensus mark for third-quarter 2025 loss is pegged at 1 cent per share.
For 2025, Fastly expects revenues between $594 million and $602 million. The Zacks Consensus Estimate for revenues is currently pegged at $590.5 million, indicating 8.6% growth from 2024.
Non-GAAP operating income is expected between a loss of $9 million and $3 million. The bottom line is expected between a loss of 10 cents and 4 cents per share for 2025. The consensus mark for 2025 loss is pegged at 9 cents per share.
Zacks Rank & Stocks to Consider
Fastly currently carries a Zacks Rank #3 (Hold).
OptimizeRx (OPRX - Free Report) , StoneCo (STNE - Free Report) and Vipshop (VIPS - Free Report) are some stocks worth considering in the broader Zacks Computer and Technology sector. Each of the three stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OptimizeRx shares have jumped 156.8% year to date. OptimizeRx is set to report its second-quarter 2025 results on Aug. 7.
StoneCo shares have appreciated 68.2% year to date. StoneCo is set to report its second-quarter 2025 results on Aug. 7.
Vipshop shares are up 13.1% year to date. Vipshop is set to report its second-quarter 2025 results on Aug. 14.