Fastly (FSLY) AI Stock Analysis

• Market Cap: $1.46B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• 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: 2,722,183
• 30 Day Avg. Volume: 2,659,465
• 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: 1.22
• Enterprise Value/Revenue: 3.00
• Enterprise Value/Gross Profit: 5.55
• Enterprise Value/Ebitda: -48.44
• 1Y Price Target: $11.30
• Price Target Upside: 9.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $667.79M

• Rating: 63 Neutral
• Price Target: $10.50 ▲(2.14% Upside)

Fastly's overall score reflects strong earnings performance and positive technical momentum, tempered by ongoing profitability challenges and valuation concerns. The strategic move to Nasdaq and positive earnings call sentiment contribute positively, but financial performance remains a key area for improvement.

Positive Factors

Strong free cash flow growth

A 70% TTM free cash flow growth materially improves the company’s ability to fund operations, invest in product and security enhancements, pay down debt, or weather downturns without relying on equity issuance. This strengthens financial resilience over the medium term.

Security revenue acceleration

Rapid security revenue growth to 21% of total signals successful product expansion into higher-value, sticky offerings. Security products typically have higher renewal rates and cross-sell potential, improving revenue diversification and margin sustainability over several quarters.

Successful cross-sell and platform adoption

Winning a top-10 account across multiple product lines demonstrates platform stickiness and an effective cross-sell motion. Multi-product deployment raises customer lifetime value, reduces churn risk, and supports scalable revenue expansion as clients consolidate on the vendor.

Negative Factors

Persistently negative net margins

A sustained negative net margin near -26% indicates the company still struggles to convert revenue into profit. Long-term profitability is required to justify reinvestment and support returns; continued losses constrain capital allocation and increase dependence on external financing.

Modest trailing revenue growth

TTM revenue growth under 4% signals slowing top-line momentum relative to cloud and edge-market expansion. Slow revenue expansion limits operating-leverage gains and makes it harder to absorb fixed costs, pressuring margins and longer-term competitiveness without renewed product-led growth.

RPO calculation error and recast

A historical RPO miscalculation undermines visibility into forward contracted revenue and suggests weaknesses in controls or reporting. Reliable backlog metrics are crucial for forecasting, sales effectiveness assessment, and investor trust; the recast complicates trend analysis and planning.

Fastly Business Overview & Revenue Model

Company Description

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet. It is a programmable platform designed for web and application delivery. The company offers Compute@Edge; developer hub that includes solution library patterns and recipes, API and language references, change logs, and Fastly Fiddle solutions; device detection and geolocation, edge dictionaries, edge access control lists, and edge authentication services; full site delivery services, such as dynamic site acceleration, origin shield, instant purge, surrogate keys, real-time logging and stats, cloud optimizer, programmatic control, edge databases, content compression, reliability, and modern protocols and performance services; and streaming solutions and services, including live streaming, media shield, and origin connect. It also provides edge security solutions, such as DDoS protection and cloud, edge web application firewall (WAF), transport layer security (TLS), platform TLS, and compliance services; unified web application and API protection solutions that includes runtime self-application protection, advanced rate limiting, API and ATO protection, account takeover protection, bot protection, and next generation WAF. In addition, the company offers edge applications, such as load balancers and image optimizers; video on demand; and managed edge delivery services. It serves customers operating in digital publishing, media and entertainment, technology, online retail, travel and hospitality, and financial services industries. The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

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 shows mixed financial performance with modest revenue growth and improved cash flow, but ongoing profitability challenges with negative margins and return on equity. The balance sheet indicates manageable debt levels, yet profitability needs enhancement.

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: 10.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 10.28 is above the 20-day moving average (MA) of 9.66, below the 50-day MA of 10.40, and above the 200-day MA of 8.22, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 73.64 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	70 Outperform	$1.80B	-388.27	-1.68%	―	19.87%	-136.93%
FSLY	63 Neutral	$1.46B	-10.68	-14.59%	―	9.45%	11.76%
PD	62 Neutral	$1.04B	6.85	70.46%	―	7.01%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLND	52 Neutral	$755.86M	-27.87	―	―	-15.41%	71.18%
AMPL	52 Neutral	$1.40B	-12.62	-37.47%	―	12.78%	-20.47%

Fastly Corporate Events

Fastly Finalizes $20M Convertible Notes Offering

Fastly, Inc., a provider of cloud-based solutions, announced the issuance of additional $20 million worth of 0% Convertible Senior Notes due 2030, as part of a private offering initially closed on December 9, 2025. On December 17, 2025, the company finalized the sale, resulting in net proceeds of $19.4 million, which will partially be used for privately negotiated capped call transactions aimed at reducing dilution or offsetting cash payments tied to note conversions. These capped call transactions, with a cap price of $23.04 per share, are designed to mitigate potential operational impacts on the company’s equity.

The most recent analyst rating on (FSLY) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Fastly stock, see the FSLY Stock Forecast page.

Fastly Issues $160M Convertible Notes with Capped Call

On December 9, 2025, Fastly, Inc. issued $160 million in 0% Convertible Senior Notes due 2030, with an option for initial purchasers to acquire an additional $20 million. These notes are senior unsecured obligations and will mature on December 15, 2030, with various conversion and redemption options available to noteholders. Concurrently, Fastly entered into capped call transactions to mitigate potential stock dilution from note conversions and used proceeds to repurchase $150 million of its 2026 notes, potentially impacting the trading price of its Class A Common Stock.

The most recent analyst rating on (FSLY) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Fastly stock, see the FSLY Stock Forecast page.

Fastly to Transfer Stock Listing to Nasdaq

On November 26, 2025, Fastly, Inc. announced its decision to transfer the listing of its Class A common stock from the New York Stock Exchange to the Nasdaq Global Select Market, effective December 9, 2025. This strategic move aligns Fastly with a growth-driven market and is part of its broader transformation efforts to unlock long-term value for customers and shareholders. The company will continue trading under the ticker symbol ‘FSLY’.

The most recent analyst rating on (FSLY) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Fastly stock, see the FSLY Stock Forecast page.