Fastly's Security Sales Jump 32% As Revenue Hits A Record $190.2 Million
The edge cloud company guided full-year revenue to $744.0 million-$748.0 million while its quarterly loss narrowed to $11.3 million.
Fastly, which runs an edge cloud platform that helps developers build, secure and deliver websites and apps, reported record third-quarter revenue of $190.2 million, up 20% from a year earlier, in an 8-K filed Wednesday. Security, its fastest-growing major line, rose 32%, and the net loss shrank to $11.3 million.
Security leads the product mix
Revenue was $158.2 million a year earlier. Security revenue reached $44.7 million, network services rose 16% to $138.0 million, and other revenue, which covers compute and observability, climbed 37% to $7.4 million.
The net loss per share was $0.07, against $0.20 a year earlier, when the loss was $29.5 million. On an adjusted basis, operating income rose to $31.2 million from $11.6 million.
Operating cash flow was $40.0 million, up from $28.9 million, and free cash flow was $25.2 million, up from $18.1 million. Gross margin on standard accounting was 63.3%, against 58.4%.
"Our record third quarter results reflect strong execution as customers continued to adopt more of our products and deepen their use of our platform," said CEO Kip Compton.
Customers buy more, but concentration rises
The last-12-month net retention rate, which measures how much existing customers spend versus a year earlier, reached 119%, its highest since 2022, from 117% in the second quarter. Among large customers, 74% use two or more product suites, up 7 percentage points, and 34% use four or more, up 15 points.
The top ten customers made up 39% of revenue, compared with 32% a year earlier. Remaining performance obligations, committed future revenue, were $334 million, up 24% from $268 million.
Fastly said it expanded its AI portfolio with AI Runtime Control, AI Firewall and new API security tools, and partnered with Comcast to bring its software into Comcast's network.
Guidance for the rest of 2026
Fastly guided fourth-quarter revenue to $198.0 million-$202.0 million and full-year revenue to $744.0 million-$748.0 million. It expects full-year adjusted earnings of $0.61-$0.63 per share and adjusted operating income of $107.0 million-$111.0 million.
The company held its earnings call at 4:30 p.m. ET Wednesday.
Fourth-quarter results will test the $198.0 million-$202.0 million revenue forecast.
Sources
- 8-K Filing — Fastly, Inc. (FSLY) — SEC EDGAR
- Exhibit ex991-fslypressrelease93026.htm — Fastly, Inc. 8-K exhibit — SEC EDGAR
- Exhibit ex992-investorsupplement93.htm — Fastly, Inc. 8-K exhibit — SEC EDGAR
- Fastly Q3 2026 Earnings Call Transcript — benzinga.com
- Fastly Reports Double Beat, Raises Guidance, Shares Fall: What Investors Should Know — benzinga.com
- Fastly Announces Third Quarter 2026 Financial Results — businesswire.com
