Fastly, Inc. (FSLY) Balance Sheet

Over the ten quarters, total assets remained flat around $1.5B, but equity increased from $991.8M in Q1 2024 to $990.8M in Q2 2026, despite cumulative net losses, indicating that equity is being supported by capital raises or other comprehensive income. The decline in total liabilities from $514.1M to $512.8M over the same period, coupled with a reduction in total debt from $425.7M to $398.3M, suggests a gradual deleveraging. However, cash dropped sharply from $150.8M to $89.8M in Q2 2026, reflecting heavy investment in network infrastructure and operations, which may pressure liquidity if the trend continues.

The D/E ratio has remained relatively stable in the 0.40-0.46 range over the past ten quarters, suggesting that management is not aggressively leveraging the balance sheet. Total debt declined from $425.7M to $398.3M, while cash fell to $89.8M, implying that the company may be using cash to pay down debt or fund operations. Given the current cash position, refinancing risk appears low, but the company's ability to service debt depends on sustained cash flow improvement, which has been positive in recent quarters.

The asset base is dominated by goodwill from the Signal Sciences acquisition, which has not been impaired, but its size relative to equity (68% of equity) suggests potential impairment risk if growth expectations falter. PPE net increased from $252.5M to $278.6M over the period, reflecting continued investment in network points of presence, which is consistent with the company's infrastructure-heavy business model. The rise in PPE, coupled with a decline in cash, indicates that capital is being redeployed into fixed assets, which may support future revenue growth but also increases depreciation expenses.

The accumulated deficit has grown by over $300M over the past ten quarters, reflecting ongoing GAAP losses, yet total equity has remained roughly flat, indicating that the company has raised capital through equity offerings or other means to offset these losses. Stock-based compensation, which exceeded net losses in Q2 2026, likely contributes to dilution and masks the true economic cost of equity. Investors should monitor the pace of dilution and the company's ability to generate retained earnings, as the current trajectory suggests that equity quality is being eroded by operational losses.

The current ratio has fluctuated significantly, peaking at 4.21 in Q4 2024 and dipping to 1.46 in Q3 2025, before recovering to 3.36 in Q2 2026. This volatility suggests that working capital management is inconsistent, possibly due to timing of receivables and payables. Cash and cash equivalents have declined from $286.2M in Q4 2024 to $89.8M in Q2 2026, a 69% drop, which may indicate that the company is burning through its cash reserves to fund operations and capex. While the current ratio appears healthy, the absolute cash level is low relative to the company's scale, and investors should monitor whether operating cash flow can sustain the business without additional financing.