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Sep 30
Fastly Q3 2025 Earnings Report
Fastly reported record revenue, operating profit, and free cash flow in the third quarter of 2025, driven by strong growth in security revenue and improved platform feature roll-outs.
Key Takeaways
Fastly delivered a strong third quarter in 2025, exceeding guidance with record revenue of $158.2 million, a 15% year-over-year increase. The company also achieved record operating cash flow of $28.9 million and positive free cash flow of $18.1 million, demonstrating significant operating leverage. Security revenue was a standout, growing 30% year-over-year.
Total revenue reached a record $158.2 million, surpassing the high end of guidance and representing a 15% year-over-year growth.
Security revenue demonstrated robust growth of 30% year-over-year, contributing $34.0 million to the total revenue.
The company achieved record operating cash flow of $28.9 million and positive free cash flow of $18.1 million, a significant improvement from the previous year.
Non-GAAP operating income was $11.6 million, a substantial increase from $0.8 million in the prior year, indicating strong operating leverage.
Fastly
Fastly
Fastly Revenue by Segment
Revenue by Segment
Network Services Revenue
CapyFin.comSecurity Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Fastly provided optimistic guidance for the fourth quarter and full year 2025, projecting continued revenue growth and non-GAAP operating income, indicating confidence in their strategic initiatives and market position.
Positive Outlook
- Q4 2025 total revenue is projected to be between $159.0 million and $163.0 million, indicating continued growth.
- Full year 2025 total revenue is expected to be between $610.0 million and $614.0 million.
- Non-GAAP operating income for Q4 2025 is guided between $8.0 million and $12.0 million, showing sustained profitability.
- Full year 2025 non-GAAP operating income is projected between $9.0 million and $13.0 million.
- Non-GAAP net income per share for Q4 2025 is expected to be between $0.04 and $0.08.
Challenges Ahead
- The forward-looking non-GAAP guidance measures are not reconciled to GAAP measures due to the uncertainty of future expenses, which could be material.
- Non-GAAP net income per share for the full year 2025 is projected to be relatively low, between $0.03 and $0.07.
- The guidance for non-GAAP operating income for the full year is a wide range, indicating some uncertainty.
- The company assumes a weighted average diluted shares outstanding of 167.8 million in Q4 2025, which could impact per-share metrics.
- No specific negative forward-looking statements were explicitly mentioned beyond the general risks associated with forward-looking statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income