Fastly (FSLY)
NASDAQ:FSLY
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Fastly
(NASDAQ:FSLY)
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Rating:74Outperform
Price Target:
$36.00
▲(7.46% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving financial fundamentals (turn to positive free cash flow and reduced leverage) and strong technical momentum, reinforced by upbeat 2026 guidance and improved operating profitability outlook. These positives are tempered by weaker valuation support (negative P/E, no dividend) and ongoing risks around consumption volatility and higher 2026 infrastructure spending.
Positive Factors
Free cash flow strength
Fastly's TTM operating cash flow (~$94M) and positive free cash flow (~$61M) mark a durable shift from prior years. Strong cash generation reduces reliance on dilutive financing, funds necessary infrastructure and product investment, and increases resilience to demand swings tied to consumption variability.
Negative Factors
Consumption-driven revenue volatility
Revenue tied to customer traffic and usage creates structural variability in top-line and can complicate forecasting and capacity planning. If traffic patterns soften, revenue and margin profiles can swing materially, stressing the need for consistent multi-product adoption to stabilize growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Fastly's TTM operating cash flow (~$94M) and positive free cash flow (~$61M) mark a durable shift from prior years. Strong cash generation reduces reliance on dilutive financing, funds necessary infrastructure and product investment, and increases resilience to demand swings tied to consumption variability.
Read all positive factors
Fastly (FSLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.09B
Dividend YieldN/A
Average Volume (3M)12.85M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth9.45%
EPS Growth11.76%
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.12
Shares Outstanding151,800,000
10 Day Avg. Volume13,228,053
30 Day Avg. Volume12,850,340
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.61
Price to Sales (P/S)2.40
P/FCF Ratio22.74
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue8.55
Enterprise Value/Gross Profit15.18
Enterprise Value/Ebitda-377.19
Forecast
1Y Price Target
$15.00Price Target Upside-55.22% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)0.27
Revenue Forecast (FY)$706.64M
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 en...
How the Company Makes Money
Fastly primarily makes money by selling subscriptions/usage-based access to its edge cloud platform, where customers pay to deliver and secure internet traffic over Fastly’s network. Revenue is largely driven by (1) network services such as conten...
Fastly Key Performance Indicators (KPIs)
Any
Customer Count
Tracks the total number of customers, providing insight into market reach and growth potential as the company attracts new clients.
Tracks the total number of customers, providing insight into market reach and growth potential as the company attracts new clients.
Data provided by:
The Fly
The FlyFastly Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights a clear and broad improvement in financial and operational performance: record quarterly revenue, substantial margin expansion, positive free cash flow, strong product momentum (notably security and compute), improving contracted backlog (RPO) and a strengthened liquidity position, together with confident 2026 guidance. The primary risks discussed are rising component costs and higher near‑term infrastructure CapEx, consumption-driven revenue variability, customer concentration, and macro/geopolitical uncertainty. On balance, the positive operational and financial developments and the forward guidance materially outweigh the identified challenges.Positive Updates
Record Q4 Revenue and Annual Growth
Q4 revenue of $172.6M, up 23% year-over-year (highest in >3 years) and above the top end of guidance; full-year 2025 revenue $624M, up 15% YoY. Company reported its first profitable fiscal year in 2025.
Negative Updates
Supply Chain and Component Cost Pressure
Company cited supply chain dynamics—particularly memory components—with memory pricing increases of ~25%–75% YoY in some cases, contributing to higher infrastructure cost expectations and influencing CapEx plans.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Revenue and Annual Growth
Q4 revenue of $172.6M, up 23% year-over-year (highest in >3 years) and above the top end of guidance; full-year 2025 revenue $624M, up 15% YoY. Company reported its first profitable fiscal year in 2025.
Read all positive updates
Company Guidance
Fastly guided Q1 2026 revenue of $168M–$174M (about 18% y/y at the midpoint) with gross margins of ~64% ±50 bps, non‑GAAP operating profit of $14M–$18M, non‑GAAP EPS of $0.07–$0.10 (based on ~175M fully diluted shares) and said it does not expect seasonal strength in Q1; for full‑year 2026 it guided revenue of $700M–$720M (≈14% y/y at the midpoint), gross margins of ~63% ±50 bps, non‑GAAP operating profit of $50M–$60M (implying ~8% operating margin at the midpoint, roughly double 2025’s 4%), non‑GAAP EPS of $0.23–$0.29, free cash flow of $40M–$50M, and infrastructure capital expenditures of 10%–12% of revenue (vs. 5% in 2025), noting roughly a ~$10M timing shift into 2026 (≈1.5% of revenue) and a normalized infrastructure CapEx increase of ~65% year‑over‑year.Fastly Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
74
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M |
| Gross Profit | 356.20M | 295.94M | 266.33M | 209.78M | 187.33M |
| EBITDA | -9.27M | -79.07M | -19.01M | -120.48M | -167.35M |
| Net Income | -121.68M | -158.06M | -133.09M | -190.77M | -222.70M |
Balance Sheet | |||||
| Total Assets | 1.50B | 1.45B | 1.53B | 1.90B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 361.76M | 295.88M | 322.72M | 517.97M | 527.86M |
| Total Debt | 430.19M | 404.66M | 433.32M | 833.54M | 1.05B |
| Total Liabilities | 569.90M | 486.11M | 545.70M | 940.96M | 1.15B |
| Stockholders Equity | 929.58M | 965.25M | 979.49M | 955.16M | 1.01B |
Cash Flow | |||||
| Free Cash Flow | 65.75M | -20.81M | -31.91M | -149.95M | -88.87M |
| Operating Cash Flow | 94.44M | 16.41M | 362.00K | -69.63M | -38.48M |
| Investing Cash Flow | -213.03M | 178.90M | 294.94M | 235.75M | -794.51M |
| Financing Cash Flow | 12.76M | -17.10M | -331.38M | -189.15M | 936.55M |
Fastly Technical Analysis
Positive
33.50
Price Trends
18.87
Positive
14.72
Positive
11.17
Positive
Market Momentum
3.38
Negative
72.11
Negative
85.21
Negative
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 33.5 is above the 20-day moving average (MA) of 26.31, above the 50-day MA of 18.87, and above the 200-day MA of 11.17, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 85.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSLY.
Fastly Risk Analysis
Fastly disclosed 75 risk factors in its most recent earnings report. Fastly reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fastly Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.09B | -12.29 | -12.92% | ― | 9.45% | 11.76% | |
69 Neutral | $1.80B | -93.17 | -6.73% | ― | 19.87% | -136.93% | |
64 Neutral | $543.87M | 5.56 | 77.23% | ― | 7.01% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $914.69M | -17.26 | -32.90% | ― | 12.78% | -20.47% | |
48 Neutral | $514.23M | -115.75 | -12.90% | ― | -15.41% | 71.18% |
* Technology Sector Average
FSLY
Fastly
33.50
28.37
553.02%
PD
PagerDuty
6.40
-8.58
-57.28%
SEMR
SEMrush Holdings
11.95
3.52
41.76%
BLND
Blend Labs
2.00
-1.28
-39.02%
AMPL
Amplitude
6.84
-2.10
-23.49%
Fastly Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Fastly Delivers Record Q4 2025 Results, Achieves Profitability
Positive
Feb 11, 2026
Fastly reported record fourth-quarter and full-year 2025 results on February 11, 2026, with revenue rising 23% year over year in the quarter to $172.6 million and 15% for the full year to $624.0 million. The company posted record gross margins, sh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.