Fastly (FSLY) AI Stock Analysis

• Market Cap: $920.93M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: 6.26%
• EPS Growth: -9.54%
• Country: US
• Employees: 1,100
• Sector: Technology
• Sector Strength: 90
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 144,800,000
• 10 Day Avg. Volume: 2,144,741
• 30 Day Avg. Volume: 2,088,492
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: -14.32
• 1Y Price Target: $7.33
• Price Target Upside: 13.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $7.50 ▲(15.92% Upside)

Fastly's overall score reflects challenges in profitability and valuation, balanced by revenue growth and a strategic focus on diversification. The positive earnings call sentiment and leadership transition offer potential upside, but operational and market uncertainties remain significant.

Positive Factors

Leadership

Kip Compton, the company’s chief product officer, has been appointed CEO and to the board, bringing continuity and strategic vision to Fastly.

Revenue Growth

Fastly reported solid results with revenue growth driven by traffic growth and market share gains in network services.

Negative Factors

Financial Challenges

The company has yet to achieve positive operating income and free cash flow, indicating financial challenges.

Market Deceleration

The core market, which accounts for 78% of revenues, continues to decelerate, and there is skepticism about Fastly's ability to execute against the guidance.

Fastly Business Overview & Revenue Model

Company Description

Fastly, Inc. is a global edge cloud platform provider that delivers content delivery network (CDN) services, edge compute, and security solutions. The company operates in the technology sector, focusing on improving internet performance and providing real-time insights for businesses. Fastly's core products include its content delivery network, which accelerates the delivery of digital content, edge cloud services that enable developers to deploy and run applications closer to end users, and security solutions that protect against cyber threats.

How the Company Makes Money

Fastly makes money primarily through a usage-based model, where customers pay for the volume of data delivered through its content delivery network. The company charges based on the amount of data transferred and the number of requests processed. Additionally, Fastly generates revenue from its edge compute and security services, which are typically priced based on the level of usage and the specific features required by the customer. Fastly has partnered with various companies to expand its service offerings, and its earnings are influenced by its ability to attract and retain customers in an increasingly competitive market for cloud and CDN services.

Fastly Financial Statement Overview

Summary

Fastly shows consistent revenue growth and a strong gross margin of 53.19%, but faces challenges with negative net income and cash flow. The balance sheet is stable with a high equity ratio and manageable debt, yet negative returns on equity highlight profitability issues.

Income Statement

Fastly's income statement shows a consistent growth in revenue over the years, with a TTM revenue of $554.63 million, marking a 2.02% increase from the previous year. However, the company is experiencing negative net income and EBIT margins, indicating profitability challenges. The gross profit margin is 53.19%, which is relatively strong, but the negative net profit margin of -27.72% suggests ongoing struggles with cost management.

Balance Sheet

The balance sheet reflects a healthy equity ratio of 66.05%, showing a stable capital structure dominated by equity. The debt-to-equity ratio is 0.42, which indicates a moderate level of leverage, suggesting manageable debt levels. However, the return on equity is negative at -16.06%, highlighting the impact of net losses on shareholder returns.

Cash Flow

Fastly's cash flow statement reveals a negative free cash flow, though it improved from prior years. The operating cash flow to net income ratio is negative, indicating that cash generated from operations is insufficient to cover net losses. Free cash flow to net income ratio is also negative, underscoring liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	543.68M	505.99M	432.73M	354.33M	290.87M
Gross Profit	295.94M	266.33M	209.78M	187.33M	170.87M
EBITDA	-79.07M	-19.01M	-81.85M	-167.35M	-77.29M
Net Income	-158.06M	-133.09M	-190.77M	-222.70M	-95.93M
Balance Sheet
Total Assets	1.45B	1.53B	1.90B	2.15B	1.16B
Cash, Cash Equivalents and Short-Term Investments	295.88M	322.72M	517.97M	527.86M	194.18M
Total Debt	404.66M	433.32M	833.54M	1.05B	90.53M
Total Liabilities	486.11M	545.70M	940.96M	1.14B	158.09M
Stockholders Equity	965.25M	979.49M	955.16M	1.01B	1.00B
Cash Flow
Free Cash Flow	-20.81M	-31.91M	-149.95M	-88.87M	-59.09M
Operating Cash Flow	16.41M	362.00K	-69.63M	-38.48M	-19.92M
Investing Cash Flow	178.90M	294.94M	235.75M	-794.51M	-276.68M
Financing Cash Flow	-17.10M	-331.38M	-189.15M	936.55M	274.40M

Fastly Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLY, the sentiment is Negative. The current price of 6.47 is below the 20-day moving average (MA) of 6.96, below the 50-day MA of 7.15, and below the 200-day MA of 7.71, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 37.10 is Neutral, neither overbought nor oversold. The STOCH value of 10.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSLY.

Fastly Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	81 Outperform	$1.19B	9.83	21.03%	―	6.40%	9.72%
VMEO	72 Outperform	$601.32M	37.44	3.29%	―	-0.05%	23.22%
DSP	70 Neutral	$852.78M	452.82	4.15%	―	30.64%	―
VTEX	67 Neutral	$1.06B	70.01	6.26%	―	7.71%	―
Sector *	63 Neutral	£521.99M	21.49	-8.07%	2.77%	3.30%	-18.10%
FSLY	58 Neutral	$920.93M	―	-15.78%	―	6.26%	-9.54%
BLND	53 Neutral	$920.34M	―	-93.00%	―	-0.40%	63.36%

Fastly Corporate Events

Fastly Announces New CEO Amid Leadership Transition

On June 13, 2025, Fastly, Inc. announced the resignation of Todd Nightingale as CEO and President, effective June 16, 2025, with his advisory role continuing until June 30, 2025. Charles ‘Kip’ Compton, previously the Chief Product Officer, has been appointed as the new CEO, bringing over 25 years of senior leadership experience in cloud, video, and networking. The transition is expected to strengthen Fastly’s business and maintain its strategic momentum, as Compton has been instrumental in accelerating the company’s portfolio strategy and growth. Fastly also reaffirmed its financial guidance for the second quarter and full year 2025.

The most recent analyst rating on (FSLY) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Fastly stock, see the FSLY Stock Forecast page.

Fastly Holds 2025 Annual Stockholders Meeting

On June 11, 2025, Fastly, Inc. held its 2025 Annual Meeting of Stockholders, where key decisions were made regarding the election of directors, the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, and the approval of executive compensation. All three directors proposed were elected to serve until the 2028 Annual Meeting, Deloitte & Touche LLP’s selection was ratified, and the executive compensation was approved on an advisory basis, reflecting shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (FSLY) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Fastly stock, see the FSLY Stock Forecast page.