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Fastly
(NASDAQ:FSLY)
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Rating:62Neutral
Price Target:
$17.50
▼(-28.75% Downside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by an improving financial profile (better margins, lower leverage, and positive cash flow) and a strong, guidance-raising earnings call with accelerating security/compute traction and better customer metrics. Offsetting these positives are weaker intermediate technical signals (below key moving averages with negative MACD) and limited valuation support due to a negative P/E and no dividend.
Positive Factors
Margin Expansion & Profitability
Material gross-margin expansion and a return to operating profitability reflect sustained improvements in unit economics and scale across Fastly's platform. Higher and more stable margins support reinvestment in product and sales, reduce reliance on external capital, and improve durable cash generation over coming quarters.
Negative Factors
Price Erosion in Network Services
Mid-single-digit price erosion in core Network Services signals persistent competitive pressure in the legacy CDN business. Structural pricing declines can cap revenue per traffic unit and force reliance on volume growth or faster adoption of higher-margin products to sustain overall revenue and margins over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Material gross-margin expansion and a return to operating profitability reflect sustained improvements in unit economics and scale across Fastly's platform. Higher and more stable margins support reinvestment in product and sales, reduce reliance on external capital, and improve durable cash generation over coming quarters.
Read all positive factors
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 (FSLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.68B
Dividend YieldN/A
Average Volume (3M)9.28M
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth17.66%
EPS Growth36.83%
CountryUS
Employees1,100
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.69
Shares Outstanding156,500,000
10 Day Avg. Volume6,142,050
30 Day Avg. Volume9,283,105
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 Cap1.11
Enterprise Value/Revenue4.56
Enterprise Value/Gross Profit7.77
Enterprise Value/Ebitda-2.21K
Forecast
1Y Price Target
$25.17Price Target Upside2.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.32
Revenue Forecast (FY)$718.09M
Fastly Business Overview & Revenue Model
Company Description
Fastly, Inc. offers an advanced edge cloud computing platform designed to efficiently manage, distribute, and safeguard client applications across a global footprint, including North America, the Asia Pacific region, Europe, and other internationa...
How the Company Makes Money
Fastly primarily makes money by selling cloud-based edge services to businesses, with revenue largely generated from customer usage of its platform. Its core revenue stream is its CDN and edge delivery services, where customers pay for delivering ...
Fastly Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: healthy top-line growth (20% Y/Y) with notable acceleration in security (47% Y/Y) and compute (67% Y/Y), record gross margins and a return to profitability and positive cash flow. Customer metrics (RPO, NRR, large customer growth) and product wins reinforce durable demand and successful portfolio expansion. Headwinds include network services price erosion, front-loaded infrastructure CapEx (10%–12% of revenue guidance), supply‑chain/memory price pressure, and a modest decline in free cash flow and cash balance in the quarter. Management provided constructive forward guidance and emphasized security/compute as growth engines, so on balance the positive operational and financial developments outweigh the near-term capital and pricing challenges.Positive Updates
Revenue Growth and Guidance Raise
Q1 revenue of $173.0M, up 20% year-over-year and at the high end of guidance. Company raised FY2026 revenue guidance to $710M–$725M, implying ~15% Y/Y growth at the midpoint.
Negative Updates
Network Services Seasonality and Perceived Softness vs Expectations
Network Services growth, while positive (11% Y/Y), was described as lighter versus some expectations given an especially strong Q4 comp driven by gaming downloads and holiday e-commerce seasonality; management attributes Q1 to typical seasonal normalization.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth and Guidance Raise
Q1 revenue of $173.0M, up 20% year-over-year and at the high end of guidance. Company raised FY2026 revenue guidance to $710M–$725M, implying ~15% Y/Y growth at the midpoint.
Read all positive updates
Company Guidance
Fastly guided Q2 revenue of $170–$176M (midpoint +16% YoY) with gross margin about 64% ±50 bps, non‑GAAP operating profit $12–$16M (≈8% operating margin at midpoint) and non‑GAAP EPS $0.05–$0.08. For full‑year 2026 Fastly raised its revenue guide to $710–$725M (midpoint +15% YoY), gross margin 64% ±50 bps, non‑GAAP operating profit $58–$68M (≈9% op margin at midpoint) and non‑GAAP EPS $0.27–$0.33. Management expects infrastructure CapEx of 10–12% of revenue (front‑loaded, implied ~$70–$80M vs. 5% in 2025) and maintained free cash flow guidance of $40–$50M. For context, Q1 results were $173M revenue (+20% YoY, high end of guide), 65.1% gross margin, $19.1M operating income, $29.5M adj. EBITDA (17% of revenue), $22.9M net income ($0.13/share), ~$330M cash, RPO $369M (+63% YoY; current portion 75% up 77%) and LTM NRR of 113%.Fastly Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 652.57M | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M |
| Gross Profit | 382.79M | 356.20M | 295.94M | 266.33M | 209.78M | 187.33M |
| EBITDA | -1.35M | -9.27M | -79.07M | -19.01M | -120.48M | -167.35M |
| Net Income | -103.05M | -121.68M | -158.06M | -133.09M | -190.77M | -222.70M |
Balance Sheet | ||||||
| Total Assets | 1.51B | 1.50B | 1.45B | 1.53B | 1.90B | 2.16B |
| Cash, Cash Equivalents and Short-Term Investments | 330.49M | 361.76M | 295.88M | 322.72M | 517.97M | 527.86M |
| Total Debt | 397.75M | 430.19M | 404.66M | 433.32M | 833.54M | 1.05B |
| Total Liabilities | 536.38M | 569.90M | 486.11M | 545.70M | 940.96M | 1.15B |
| Stockholders Equity | 977.15M | 929.58M | 965.25M | 979.49M | 955.16M | 1.01B |
Cash Flow | ||||||
| Free Cash Flow | 54.73M | 65.75M | -20.81M | -31.91M | -149.95M | -88.87M |
| Operating Cash Flow | 105.52M | 94.44M | 16.41M | 362.00K | -69.63M | -38.48M |
| Investing Cash Flow | -61.10M | -213.03M | 178.90M | 294.94M | 235.75M | -794.51M |
| Financing Cash Flow | -23.34M | 12.76M | -17.10M | -331.38M | -189.15M | 936.55M |
Fastly Technical Analysis
Neutral
24.56
Price Trends
20.56
Negative
21.12
Negative
15.35
Positive
Market Momentum
-0.95
Positive
43.23
Neutral
19.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLY, the sentiment is Neutral. The current price of 24.56 is above the 20-day moving average (MA) of 18.26, above the 50-day MA of 20.56, and above the 200-day MA of 15.35, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 19.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FSLY.
Fastly Risk Analysis
Fastly disclosed 76 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $701.04M | 4.35 | 77.20% | ― | 3.69% | ― | |
62 Neutral | $2.68B | -24.80 | -10.89% | ― | 17.66% | 36.83% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $983.08M | -11.06 | -35.68% | ― | 16.36% | 10.40% | |
49 Neutral | $418.86M | -18.29 | -12.24% | ― | -17.06% | 54.45% |
* Technology Sector Average
FSLY
Fastly
17.11
10.05
142.35%
PD
PagerDuty
9.09
-6.19
-40.51%
BLND
Blend Labs
1.73
-1.57
-47.58%
AMPL
Amplitude
7.41
-4.99
-40.24%
Fastly Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Fastly Elevates Principal Accounting Officer, Affirms Governance Structure
Positive
Jun 9, 2026
On June 3, 2026, Fastly, Inc. appointed Jeffrey Ford, its Chief Accounting Officer since September 2025, as principal accounting officer, while confirming that Chief Financial Officer Richard Wong would relinquish the principal accounting officer ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Fastly Posts Record Quarter, Raises 2026 Outlook Guidance
Positive
May 6, 2026
On May 6, 2026, Fastly reported record financial results for the quarter ended March 31, 2026, with revenue rising 20% year over year to $173 million, driven by strong 47% growth in security revenue and 67% growth in other revenue including comput...
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.