The earnings call reflected strong revenue growth, record security revenue, and improved financial metrics. However, there were concerns regarding leadership transitions and revenue uncertainties related to TikTok.

Company Guidance

During Fastly's second quarter 2025 earnings call, the company reported a revenue of $148.7 million, surpassing the high end of their guidance with a 12% year-over-year growth. Security revenue reached a record high, comprising 20% of total revenue and growing 15% year-over-year. Fastly experienced a gross margin of 59%, a 170 basis point gain quarter-over-quarter, driven by improved network efficiency and favorable pricing. The operating loss was $4.6 million, outperforming the guidance midpoint, and cash flow from operations was $26 million or 17% of revenue. Fastly raised its 2025 revenue guidance by $8 million and operating loss guidance by $3 million at their respective midpoints, anticipating double-digit growth rates year-over-year for the third quarter. The company also noted an increase in enterprise customers by 27% from the last quarter, with a long-term net retention rate (NRR) of 104% and record high remaining performance obligations (RPO) of $315 million, reflecting a 41% year-over-year growth.

Strong Revenue Growth

Fastly reported Q2 revenue of $148.7 million, above the high end of guidance, with a year-over-year growth rate of 12%, an improvement from 8% in Q1.

Record Security Revenue

Security revenue reached a record high, accounting for 20% of total revenue, with 15% year-over-year growth, driven by new security product adoption.

Improved Gross Margin

Gross margin increased to 59%, a 170 basis point quarter-over-quarter improvement, due to margin leverage, network efficiency, and favorable pricing.

Operating Loss Reduction

Operating loss was $4.6 million, outperforming the guidance midpoint of a $6 million loss, with operating expenses up just 2% year-over-year compared to 12% revenue growth.

Positive Free Cash Flow Guidance

Fastly is now guiding to positive free cash flow for the year, with expected range between breakeven and positive $10 million.

Increased Customer Base

Total customer count rose to 3,097, and enterprise customer count increased by 27% from last quarter. LTM NRR increased to 104% from 100% in Q1.

Fastly (FSLY) Earnings, Revenues Date & History

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FSLY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 29, 2025	2025 (Q3)	0.00 / -	0.02	―	―	―
Aug 06, 2025	2025 (Q2)	-0.05 / -0.03	-0.07	57.14% (+0.04)	―
May 07, 2025	2025 (Q1)	-0.07 / -0.05	-0.05	0.00% (0.00)	―
Feb 12, 2025	2024 (Q4)	>-0.01 / -0.03	0.01	-400.00% (-0.04)	―
Nov 06, 2024	2024 (Q3)	-0.06 / 0.02	-0.06	133.33% (+0.08)	―
Aug 07, 2024	2024 (Q2)	-0.08 / -0.07	-0.04	-75.00% (-0.03)	―
May 01, 2024	2024 (Q1)	-0.06 / -0.05	-0.09	44.44% (+0.04)	―
Feb 14, 2024	2023 (Q4)	-0.03 / 0.01	-0.08	112.50% (+0.09)	―
Nov 01, 2023	2023 (Q3)	-0.07 / -0.06	-0.14	57.14% (+0.08)	―
Aug 02, 2023	2023 (Q2)	-0.10 / -0.04	-0.23	82.61% (+0.19)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

FSLY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	$6.52	$7.46	+14.42%
May 07, 2025	$6.03	$7.62	+26.37%
Feb 12, 2025	$10.07	$7.97	-20.85%
Nov 06, 2024	$8.16	$8.17	+0.12%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.