Fastly Reports 12% Revenue Growth in Q2 2025 Despite Net Loss

Fastly, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $148.7 million, a 12% increase from $132.4 million in the same period last year. For the first half of 2025, revenue reached $293.2 million, up 10% from $265.9 million in the first half of 2024. Despite the revenue growth, the company recorded a net loss of $37.5 million for the quarter, an improvement from a net loss of $43.7 million in Q2 2024. The loss for the first half of 2025 was $76.7 million, compared to $87.2 million for the same period in the previous year.

The company’s cost of revenue increased to $67.6 million for the second quarter, up 14% from $59.5 million a year earlier, primarily due to rising bandwidth costs and increased depreciation expenses. Gross profit for the quarter was $81.1 million, maintaining a gross margin of 55%, consistent with the previous year. Fastly's operational expenses decreased slightly to $118.1 million from $119.6 million in Q2 2024, with notable reductions in general and administrative costs.

Fastly's customer base saw a decline, with total customers at 3,097 as of June 30, 2025, down from 3,295 a year prior. However, the number of enterprise customers, defined as those generating over $100,000 in annual revenue, increased to 622, contributing significantly to the company’s revenue. The Last-Twelve Months Net Retention Rate (LTM NRR) was reported at 104.4%, down from 109.6% in the previous year, indicating a slight decrease in revenue growth from existing customers.

In terms of strategic developments, Fastly announced the appointment of Richard Wong as Chief Financial Officer, effective August 11, 2025, succeeding Ronald W. Kisling, who will remain in an advisory role until mid-September. The company continues to focus on expanding its edge cloud platform, which integrates performance and security solutions, and aims to enhance its product offerings to attract new customers while retaining existing ones.

Looking ahead, Fastly anticipates continued investment in its platform and infrastructure to support growth, despite the expectation of ongoing operating losses. The company believes its cash reserves, along with available credit facilities, will be sufficient to meet its operational needs for at least the next twelve months. However, it acknowledges potential challenges related to market conditions and competition, which could impact its ability to attract and retain customers.