Revenue growth reaccelerated to 23.3% year-over-year in Q2 2026, with gross margin expanding to 63.3% and operating margin improving to -7.9%, marking the strongest quarter in the ten-quarter period.
Fastly, Inc. (FSLY) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 687.17M | 624.02M | 543.68M | 505.99M | 432.73M | 354.33M | 290.87M | 200.46M | 144.56M | 104.9M |
| Revenue Growth % | 20.35% | 14.78% | 7.45% | 16.93% | 22.12% | 21.82% | 45.1% | 38.67% | 37.81% | - |
| Cost of Goods Sold | 264.75M | 267.81M | 247.74M | 239.66M | 222.94M | 167M | 120.01M | 88.32M | 65.5M | 48.67M |
| COGS % of Revenue | - | 42.92% | 45.57% | 47.36% | 51.52% | 47.13% | 41.26% | 44.06% | 45.31% | 46.4% |
| Gross Profit | 422.42M | 356.2M | 295.94M | 266.33M | 209.78M | 187.33M | 170.87M | 112.14M | 79.06M | 56.23M |
| Gross Margin % | 61.47% | 57.08% | 54.43% | 52.64% | 48.48% | 52.87% | 58.74% | 55.94% | 54.69% | 53.6% |
| Gross Profit Growth % | - | 20.36% | 11.12% | 26.96% | 11.99% | 9.63% | 52.37% | 41.83% | 40.61% | - |
| Operating Expenses | 504.63M | 474.79M | 463.85M | 464.36M | 455.98M | 406.35M | 278.08M | 158.69M | 108.2M | 87.26M |
| OpEx % of Revenue | - | 76.09% | 85.32% | 91.77% | 105.37% | 114.68% | 95.6% | 79.16% | 74.85% | 83.18% |
| Selling, General & Admin | 337.57M | 312.13M | 312.01M | 307.85M | 300.67M | 279.49M | 203.26M | 112.2M | 73.58M | 58.27M |
| SG&A % of Revenue | - | 50.02% | 57.39% | 60.84% | 69.48% | 78.88% | 69.88% | 55.97% | 50.9% | 55.55% |
| Research & Development | 167.06M | 162.66M | 137.98M | 152.19M | 155.31M | 126.86M | 74.81M | 46.49M | 34.62M | 28.99M |
| R&D % of Revenue | - | 26.07% | 25.38% | 30.08% | 35.89% | 35.8% | 25.72% | 23.19% | 23.95% | 27.63% |
| Other Operating Expenses | 0 | 0 | 13.86M | 4.32M | 0 | 0 | 0 | 0 | -741K | -539K |
| Operating Income | -81.98M | -117.8M | -167.91M | -198.03M | -246.2M | -219.02M | -107.21M | -46.55M | -29.14M | -31.03M |
| Operating Margin % | -11.93% | -18.88% | -30.89% | -39.14% | -56.89% | -61.81% | -36.86% | -23.22% | -20.16% | -29.58% |
| Operating Income Growth % | - | 29.85% | 15.21% | 19.57% | -12.41% | -104.29% | -130.33% | -59.75% | 6.1% | - |
| EBITDA | -13M | -20.57M | -94.28M | -87.78M | -181.88M | -168.98M | -82.16M | -27.7M | -15.74M | -21.39M |
| EBITDA Margin % | -1.89% | -3.3% | -17.34% | -17.35% | -42.03% | -47.69% | -28.24% | -13.82% | -10.89% | -20.39% |
| EBITDA Growth % | 80.79% | 78.18% | -7.41% | 51.74% | -7.63% | -105.69% | -196.64% | -75.98% | 26.42% | - |
| D&A (Non-Cash Add-back) | 66.54M | 97.22M | 73.64M | 110.25M | 64.31M | 50.04M | 25.06M | 18.85M | 13.4M | 9.64M |
| EBIT | -70.72M | -106.49M | -152.71M | -129.26M | -184.79M | -217.38M | -105.86M | -45.82M | -28.94M | -31.13M |
| Net Interest Income | -1.02M | -409K | 12.12M | 14.13M | 1.16M | -3.96M | 79K | -1.95M | -871K | -673K |
| Interest Income | 12M | 12.29M | 14.87M | 18.19M | 7.04M | 1.28M | 1.63M | 3.29M | 939K | 443K |
| Interest Expense | 13.02M | 12.7M | 2.75M | 4.05M | 5.89M | 5.25M | 1.55M | 5.24M | 1.81M | 1.12M |
| Other Income/Expense | -1.76M | -1.39M | 12.46M | 64.72M | 55.52M | -3.61M | -200K | -4.51M | -1.61M | -1.21M |
| Pretax Income | -83.74M | -119.19M | -155.45M | -133.31M | -190.68M | -222.63M | -107.41M | -51.06M | -30.75M | -32.24M |
| Pretax Margin % | -12.19% | -19.1% | -28.59% | -26.35% | -44.06% | -62.83% | -36.93% | -25.47% | -21.27% | -30.74% |
| Income Tax | -2.64M | 2.49M | 2.6M | -221K | 94K | 69K | -11.48M | 492K | 185K | 208K |
| Effective Tax Rate % | 3.15% | -2.09% | -1.68% | 0.17% | -0.05% | -0.03% | 10.69% | -0.96% | -0.6% | -0.65% |
| Net Income | -81.1M | -121.68M | -158.06M | -133.09M | -190.77M | -222.7M | -95.93M | -51.55M | -30.93M | -32.45M |
| Net Margin % | -11.8% | -19.5% | -29.07% | -26.3% | -44.09% | -62.85% | -32.98% | -25.72% | -21.4% | -30.93% |
| Net Income Growth % | 45.05% | 23.02% | -18.76% | 30.24% | 14.33% | -132.14% | -86.1% | -66.64% | 4.67% | - |
| Net Income (Continuing) | -81.1M | -121.68M | -158.06M | -133.09M | -190.77M | -222.7M | -95.93M | -51.55M | -30.93M | -32.45M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.51 | -0.83 | -1.14 | -1.03 | -1.57 | -1.92 | -0.93 | -0.75 | -0.39 | -0.41 |
| EPS Growth % | 48.54% | 27.19% | -10.68% | 34.39% | 18.23% | -106.45% | -24% | -92.31% | 4.88% | - |
| EPS (Basic) | - | -0.83 | -1.14 | -1.03 | -1.57 | -1.92 | -0.93 | -0.75 | -0.39 | -0.41 |
| Diluted Shares Outstanding | 157.6M | 146.9M | 138.1M | 128.77M | 121.72M | 116.05M | 103.55M | 68.35M | 78.92M | 78.92M |
| Basic Shares Outstanding | 157.6M | 146.9M | 138.1M | 128.77M | 121.72M | 116.05M | 103.55M | 68.35M | 78.92M | 78.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying FSLY stock.
For fiscal year 2025, Fastly, Inc. (FSLY) reported total revenue of $624.0M. This represents a 494.9% increase compared to $104.9M in 2017.
Fastly, Inc. (FSLY) reported a net loss of $121.7M for the fiscal year ending 2025.
Fastly, Inc. (FSLY) reported an operating income of $-117.8M, resulting in an operating profit margin of -18.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Fastly, Inc. (FSLY) generated $356.2M in gross profit for the year, representing a gross profit margin of 57.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and competitive pricing
Metrics are mathematically derived from official filings.
Revenue Growth Reaccelerates
Fastly's revenue growth accelerated to 23.3% year-over-year in Q2 2026, up from 12.3% in Q2 2025, according to the latest income statement data.
The sequential acceleration from 19.8% in Q1 2026 to 23.3% in Q2 2026 suggests that the company is gaining traction, possibly driven by increased adoption of its edge compute and security offerings. However, the growth is still below the hyper-growth rates seen in earlier years, indicating a maturing but improving trajectory. Investors should monitor whether this acceleration is sustainable or a one-time boost from seasonal or customer-specific factors.
Gross Margin Expansion Signals Mix Shift
Gross margin improved to 63.3% in Q2 2026 from 51.3% a year earlier, as reported in financial statements, suggesting a favorable shift toward higher-margin security and compute services.
The 12-percentage-point expansion in gross margin over the past year is a significant structural improvement, likely reflecting a revenue mix shift away from low-margin commodity delivery toward security and edge compute. This aligns with the company's strategic focus on higher-value offerings. However, the gross margin remains below pure-play software peers like Cloudflare (74.5%), indicating that Fastly still carries infrastructure-related costs. The sustainability of this margin expansion will depend on the company's ability to maintain pricing power in the face of hyperscale competition.
Operating Leverage Emerges
Operating margin improved to -7.9% in Q2 2026 from -24.6% in Q2 2025, per income statement data, as revenue growth outpaced expense growth.
The dramatic improvement in operating margin from -24.6% to -7.9% over the past year indicates that the company is beginning to realize operating leverage. Revenue grew 23.3% year-over-year while total operating expenses (R&D + SG&A) grew at a slower pace, with SG&A actually declining sequentially from $90.1M to $88.3M. This suggests that management is gaining control over overhead costs. However, the company is still not profitable on a GAAP basis, and the path to breakeven will require continued revenue growth and disciplined expense management.
SBC Masks True Cash Burn
Stock-based compensation of $35.2M in Q2 2026 exceeded the net loss of $15.6M, according to reported figures, indicating that cash burn is higher than GAAP losses suggest.
The high level of SBC relative to revenue (19.2% of revenue in Q2 2026) is a significant drag on earnings quality. While GAAP net loss improved to -$15.6M, the cash impact of SBC is non-cash, but it dilutes shareholders. The company's adjusted EBITDA, if disclosed, would likely be positive, but the persistent SBC expense suggests that the company is using equity as a significant component of employee compensation. This may indicate a reliance on equity to conserve cash, but it also raises concerns about dilution and the true cost of operations.
SG&A Efficiency Gains
SG&A as a percentage of revenue fell to 48.2% in Q2 2026 from 50.7% in Q2 2025, based on income statement data, reflecting improved sales efficiency.
The reduction in SG&A intensity, despite a 23.3% revenue increase, suggests that the company is achieving better productivity from its sales and marketing investments. This is a positive sign for scalability, as it indicates that the go-to-market engine is becoming more efficient. However, R&D spending has remained relatively flat as a percentage of revenue (around 23%), indicating continued investment in product innovation. The balance between cost discipline and investment will be crucial for achieving profitability.
Q2 2026 Marks Turning Point
Q2 2026 stands out as an inflection point with revenue growth accelerating to 23.3% and operating margin improving to -7.9%, the best in the ten-quarter period.
The combination of accelerating revenue growth and significant margin improvement in Q2 2026 suggests that the company may have turned a corner. The sequential improvement from Q1 2026 (operating margin of -13.8%) to Q2 2026 (-7.9%) is notable, and the raised full-year guidance indicates management's confidence in sustaining this momentum. However, it is important to note that this is just one quarter, and the company has previously shown volatility. Investors should watch for continued execution in the coming quarters to confirm that this inflection is durable.
What Could Invalidate the Base Case
Despite the recent beat, the sustainability of Fastly's growth and margin expansion is questionable given intense competition from hyperscalers and persistent SBC dilution, as per income statement data.
Short-sellers might argue that the Q2 2026 improvement is a temporary reprieve, not a structural shift. The gross margin expansion could be driven by one-time factors or a favorable mix that may not persist if hyperscale cloud providers continue aggressive pricing on CDN services. Additionally, the high SBC expense (19.2% of revenue) suggests that reported losses understate the true cash burn, and the company's reliance on equity compensation may indicate a lack of free cash flow generation. If revenue growth decelerates again or if pricing pressures intensify, the operating leverage gains could reverse, leaving the company still far from GAAP profitability.