Fastly (FSLY) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.09
• Revenue Growth: 6.26%
• EPS Growth: -9.54%
• Country: US
• Employees: 1,100
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.05
• Shares Outstanding: 144,800,000
• 10 Day Avg. Volume: 2,122,205
• 30 Day Avg. Volume: 2,685,898
• PEG Ratio: 0.29
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.65
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 5.72
• Enterprise Value/Ebitda: -5.88
• 1Y Price Target: $7.29
• Price Target Upside: -0.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 61 Neutral
• Price Target: $7.00 ▼(-4.24%Downside)

Fastly's overall score reflects strong earnings call results and strategic leadership change, offset by significant financial and valuation challenges. The company demonstrates growth potential, but needs to address profitability and operational efficiency.

Positive Factors

Earnings

Fastly delivered a strong quarter, beating expectations on both revenue and pro forma EPS while also raising its 2025 guidance range despite maintaining a conservative view.

Product Expansion

Fastly's security suite is now fully developed with the addition of a DDoS solution, which enhances its competitive positioning in the web security market.

Revenue Growth

Fastly's focus on reaccelerating growth in the broader customer base is showing results, with non-top 10 customer revenues growing 17% YoY.

Negative Factors

Financial Performance

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

Market Growth

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.

Operational Challenges

There are operational hurdles for Fastly in expanding its Security and Compute/Observability portfolios and ensuring their adoption.

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 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 demonstrates revenue growth and a strong gross margin, yet faces challenges with profitability and cash flow, as evidenced by negative income margins and free cash flow. The balance sheet is stable with moderate leverage and a solid equity base, but improvements in operational efficiency and profitability are needed.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	217.83M	543.68M	505.99M	432.73M	354.33M	290.87M
Gross Profit	121.96M	295.94M	266.33M	209.78M	187.33M	170.87M
EBITDA	-28.90M	-79.07M	-19.01M	-81.85M	-167.35M	-77.29M
Net Income	-53.81M	-158.06M	-133.09M	-190.77M	-222.70M	-95.93M
Balance Sheet
Total Assets	163.74M	1.45B	1.53B	1.90B	2.15B	1.16B
Cash, Cash Equivalents and Short-Term Investments	67.12M	295.88M	322.72M	517.97M	527.86M	194.18M
Total Debt	52.23M	404.66M	433.32M	833.54M	1.05B	90.53M
Total Liabilities	73.78M	486.11M	545.70M	940.96M	1.14B	158.09M
Stockholders Equity	89.95M	965.25M	979.49M	955.16M	1.01B	1.00B
Cash Flow
Free Cash Flow	-55.38M	-20.81M	-31.91M	-149.95M	-88.87M	-59.09M
Operating Cash Flow	-28.41M	16.41M	362.00K	-69.63M	-38.48M	-19.92M
Investing Cash Flow	-74.34M	178.90M	294.94M	235.75M	-794.51M	-276.68M
Financing Cash Flow	173.84M	-17.10M	-331.38M	-189.15M	936.55M	274.40M

Fastly Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 7.31 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.13, and below the 200-day MA of 7.75, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.51 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 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
YALA	81 Outperform	$1.11B	9.54	21.03%	―	6.40%	9.72%
VMEO	72 Outperform	$650.74M	40.51	4.29%	―	-0.05%	23.22%
VTEX	71 Outperform	$1.19B	76.17	6.26%	―	7.71%	―
Sector *	69 Neutral	¥229.66B	14.25	7.50%	2.73%	9.14%	8.34%
DSP	65 Neutral	$856.54M	458.80	4.15%	―	30.64%	―
FSLY	61 Neutral	$1.02B	―	-15.78%	―	6.26%	-9.54%
BLND	49 Neutral	$894.49M	―	-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.