Fastly, Inc. reported a significant increase in its financial performance for the second quarter of 2026, with revenue reaching $183.3 million, a 23% increase from $148.7 million in the same period last year. For the first half of 2026, revenue totaled $356.3 million, up 22% from $293.2 million in the first half of 2025. The company's gross profit also saw substantial growth, rising to $116.0 million for the second quarter, compared to $81.1 million a year earlier, resulting in a gross margin of 63%, up from 55%. Despite these gains, Fastly reported a net loss of $15.6 million for the quarter, an improvement from a net loss of $37.5 million in Q2 2025.

The company’s revenue growth was primarily driven by existing customers, with new customer contributions remaining below 10%. Notably, revenue from Network Services increased by 17% year-over-year, while Security revenue surged by 43%, reflecting strong demand for Fastly's Next-Gen Web Application Firewall (WAF). The Other category, which includes Compute solutions, also experienced a 69% increase, indicating a growing adoption of Fastly's diverse product offerings.

Operationally, Fastly's customer base included 624 large customers as of June 30, 2026, which accounted for 94% of total annualized current quarter revenue. The Last-Twelve Months Net Retention Rate (LTM NRR) improved to 117.2%, up from 104.4% a year prior, highlighting the company's success in expanding usage among existing clients. The company continues to focus on enhancing its product experience and expanding its international presence, which has added complexity and cost to its operations.

Fastly's total operating expenses increased to $130.4 million for the second quarter, up 10% from the previous year, driven by higher sales and marketing costs. The company reported a decrease in its cash and cash equivalents to $89.8 million as of June 30, 2026, down from $180.6 million at the end of 2025. This decline was attributed to cash used in investing activities, including significant purchases of marketable securities and property and equipment. Fastly's outlook remains cautious, as it anticipates continued investments in its platform and infrastructure to support growth, which may impact short-term profitability.

About Fastly, Inc.

Fastly, Inc. operates an edge cloud platform that enables organizations to deliver fast, secure, and engaging digital experiences. Its services include content delivery, edge computing, security solutions, and observability tools, serving enterprises and developers worldwide. The company's business model focuses on programmable, scalable infrastructure, real-time visibility, and security, supporting diverse industries and fostering innovation through a global network, strategic partnerships, and developer-centric products.

This description was generated via AI from an annual report. Updated about 1 year ago.

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