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Jun 30
Fastly Q2 2025 Earnings Report
Fastly reported record revenue and outperformed guidance in Q2 2025, driven by growth in network services, security, and other revenue segments, and achieved positive free cash flow.
Key Takeaways
Fastly delivered a strong second quarter in 2025, achieving record revenue of $148.7 million, surpassing its own guidance. The company also reported positive free cash flow of $10.9 million, a significant improvement from the previous year, and raised its financial guidance for the full year 2025.
Record revenue of $148.7 million, exceeding the high end of guidance, representing 12% year-over-year growth.
Achieved positive free cash flow of $10.9 million in Q2 2025, a substantial improvement from negative free cash flow in Q2 2024.
Increased enterprise customer count to 622, up 21 from the second quarter of 2024, and LTM net retention rate improved to 104%.
Remaining Performance Obligations (RPO) reached a record $315 million, a 41% increase year-over-year, indicating growing customer commitments.
Fastly
Fastly
Fastly Revenue by Segment
Revenue by Segment
Network Services Revenue
CapyFin.comSecurity Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Fastly has raised its financial guidance for the full year 2025, expecting total revenue between $594.0 million and $602.0 million, and non-GAAP operating income (loss) between -$9.0 million and -$3.0 million. The company also anticipates non-GAAP net income (loss) per share between -$0.10 and -$0.04 for the full year.
Positive Outlook
- Raised full-year 2025 revenue guidance to $594.0 - $602.0 million.
- Anticipates improved non-GAAP operating income (loss) for full year 2025, ranging from -$9.0 million to -$3.0 million.
- Projects non-GAAP net income (loss) per share for full year 2025 to be between -$0.10 and -$0.04, indicating a narrower loss.
- Q3 2025 revenue guidance of $149.0 - $153.0 million suggests continued growth.
- Q3 2025 non-GAAP operating income (loss) guidance of -$1.0 million to $3.0 million indicates potential for profitability.
Challenges Ahead
- Still projecting a non-GAAP net loss per share for the full year 2025.
- GAAP operating loss and net loss are not provided in forward guidance, making a full comparison difficult.
- Uncertainty of future expenses makes reconciliation of non-GAAP guidance to GAAP measures unavailable.
- The range for non-GAAP operating income (loss) for Q3 2025 still includes a potential loss.
- No specific guidance on free cash flow for future periods, despite achieving positive free cash flow in Q2.
Revenue & Expenses
Visualization of income flow from segment revenue to net income