Fastly (FSLY) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: 9.45%
• EPS Growth: 11.76%
• Country: US
• Employees: 1,100
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 149,400,000
• 10 Day Avg. Volume: 4,595,972
• 30 Day Avg. Volume: 3,985,554
• PEG Ratio: -0.77
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -62.65
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: -36.31
• 1Y Price Target: $11.10
• Price Target Upside: -10.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): $612.82M

• Rating: 61 Neutral
• Price Target: $11.50 ▼(-6.81% Downside)

Fastly's overall stock score reflects a combination of strong earnings performance and technical momentum, offset by valuation challenges and ongoing profitability issues. The positive earnings call and technical indicators are significant strengths, while the negative P/E ratio and profitability concerns weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth, with a 15% YoY increase, indicates strong market demand and effective business strategies, supporting long-term expansion.

Security Revenue Growth

The significant growth in security revenue highlights Fastly's successful expansion into high-demand services, enhancing competitive positioning.

Cross-Sell Success

Effective cross-selling strategies increase customer lifetime value and strengthen customer relationships, supporting sustained revenue growth.

Negative Factors

Profitability Challenges

Ongoing net losses and negative profit margins indicate challenges in achieving profitability, which may hinder long-term financial stability.

Free Cash Flow Concerns

Negative free cash flow growth suggests potential issues in cash management, impacting the company's ability to reinvest and sustain operations.

Seasonality Concerns

Potential seasonality in revenue growth may lead to inconsistent financial performance, affecting strategic planning and investor confidence.

Fastly Business Overview & Revenue Model

Company Description

Fastly, Inc. is a cloud computing services provider that specializes in content delivery network (CDN) services, enabling businesses to deliver their digital content quickly and securely to users across the globe. The company operates in the technology sector, focusing on edge cloud services that enhance website performance, security, and reliability. Fastly's core offerings include content delivery, edge computing, image optimization, and real-time analytics, catering primarily to developers and enterprises looking to improve their online presence.

How the Company Makes Money

Fastly generates revenue primarily through a subscription-based model, charging customers for its CDN services based on usage metrics such as data transfer and requests processed. The company has tiered pricing plans that cater to a variety of business sizes, allowing for scalability as customer needs grow. Key revenue streams include fees from data delivery, additional services like security features, and add-ons such as image optimization. Significant partnerships with major tech companies and integrations with platforms like AWS and Google Cloud also contribute to its earnings by expanding its market reach and enhancing service offerings.

Fastly Financial Statement Overview

Summary

Fastly exhibits a mixed financial performance. While there is some revenue growth and improved cash flow, the company continues to face profitability challenges with negative margins and return on equity. The balance sheet shows a manageable level of debt, but the company needs to focus on enhancing operational efficiency and profitability to strengthen its financial position.

Income Statement

Fastly's income statement shows a mixed performance. The company has seen a modest revenue growth rate of 3.68% in the TTM, indicating a slowdown compared to previous years. Gross profit margin remains stable at around 53%, but the net profit margin is negative at -25.85%, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational challenges. Despite some revenue growth, profitability remains a concern.

Balance Sheet

The balance sheet presents a moderate financial position. The debt-to-equity ratio has improved to 0.44, indicating a manageable level of leverage compared to previous years. However, return on equity is negative at -15.40%, reflecting continued losses. The equity ratio is stable, suggesting a solid asset base, but the company needs to improve profitability to enhance shareholder value.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 70.26% in the TTM. The operating cash flow to net income ratio is 0.17, indicating some cash generation capability despite net losses. The free cash flow to net income ratio is positive at 0.53, suggesting better cash management. While cash flow is improving, sustained profitability is necessary for long-term stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.99M	543.68M	505.99M	432.73M	354.33M	290.87M
Gross Profit	320.51M	295.94M	266.33M	209.78M	187.33M	170.87M
EBITDA	-36.70M	-79.07M	-19.01M	-120.48M	-167.35M	-80.81M
Net Income	-139.06M	-158.06M	-133.09M	-190.77M	-222.70M	-95.93M
Balance Sheet
Total Assets	1.47B	1.45B	1.53B	1.90B	2.16B	1.22B
Cash, Cash Equivalents and Short-Term Investments	342.91M	295.88M	322.72M	517.97M	527.86M	194.18M
Total Debt	408.91M	404.66M	433.32M	833.54M	1.05B	90.53M
Total Liabilities	533.64M	486.11M	545.70M	940.96M	1.15B	158.09M
Stockholders Equity	936.97M	965.25M	979.49M	955.16M	1.01B	1.06B
Cash Flow
Free Cash Flow	43.45M	-20.81M	-31.91M	-149.95M	-88.87M	-57.43M
Operating Cash Flow	77.23M	16.41M	362.00K	-69.63M	-38.48M	-19.92M
Investing Cash Flow	-178.27M	178.90M	294.94M	235.75M	-794.51M	-275.02M
Financing Cash Flow	-3.41M	-17.10M	-331.38M	-189.15M	936.55M	272.74M

Fastly Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLY, the sentiment is Positive. The current price of 12.34 is above the 20-day moving average (MA) of 10.34, above the 50-day MA of 9.20, and above the 200-day MA of 7.54, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 70.17 is Negative, neither overbought nor oversold. The STOCH value of 64.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSLY.

Fastly Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEMR	67 Neutral	$1.01B	―	-1.68%	―	19.87%	-136.93%
MLNK	66 Neutral	―	―	-5.41%	―	5.96%	50.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FSLY	61 Neutral	$1.74B	―	-14.59%	―	9.45%	11.76%
PD	58 Neutral	$1.42B	9.46	-8.04%	―	7.01%	―
AMPL	52 Neutral	$1.32B	―	-37.47%	―	12.78%	-20.47%
BLND	48 Neutral	$794.83M	―	―	―	-15.41%	71.18%

Fastly Corporate Events

Fastly, Inc. Achieves Record Revenue in Latest Earnings Call

Fastly, Inc. Reports Outstanding Quarter with Record Revenue and Strategic Wins

Fastly, Inc. Reports Record Q3 2025 Financial Results

Fastly, Inc. is a leading provider of edge cloud platforms, offering solutions that enhance the performance and security of websites and applications across the globe. Operating in the technology sector, Fastly is known for its innovative approach to improving internet experiences for top brands worldwide.

Fastly, Inc. Earnings Call Highlights Growth and Optimism

Fastly, Inc. recently held its earnings call, showcasing a positive sentiment with significant achievements in revenue growth, record security revenue, and improved margins. The company highlighted strong cash flow and increased revenue guidance, overshadowing concerns about the CFO transition and reported net loss.

Fastly Reports Record Revenue and Positive Cash Flow

Fastly, Inc., a prominent player in the global edge cloud platform sector, is known for its innovative solutions that enhance online experiences through edge compute, delivery, security, and observability offerings. The company serves top brands worldwide, providing fast, secure, and engaging internet experiences.