Fastly Reports 20% Revenue Growth to $173M in Q1 2026

Fastly, Inc. reported a revenue of $173.0 million for the first quarter of 2026, marking a 20% increase from $144.5 million in the same period of 2025. The company's gross profit also saw significant growth, rising to $108.2 million from $76.8 million, resulting in a gross margin of 63%, up from 53% year-over-year. Despite this revenue growth, Fastly recorded a net loss of $20.5 million, an improvement from the $39.1 million loss reported in the prior year. The net loss per share attributable to common stockholders was $0.13, compared to $0.27 in the previous year.

The increase in revenue was primarily driven by growth in existing customer usage, particularly in the Network Services and Security segments, which generated $126.2 million and $38.8 million, respectively. Network Services revenue increased by 11%, while Security revenue surged by 47%, largely due to heightened demand for Next-Gen Web Application Firewall (WAF) services. The company also reported a significant rise in its Other revenue category, which includes Compute solutions, growing by 67% to $8.0 million.

Fastly's operational metrics showed a positive trend, with the number of large customers—those generating over $100,000 in annualized revenue—growing to 634, up from 595 a year earlier. The Last-Twelve Months Net Retention Rate (LTM NRR) improved to 113.0%, indicating a strong ability to retain and expand revenue from existing customers. The company continues to focus on enhancing its product offerings and expanding its market presence, particularly in international markets.

In terms of financial health, Fastly's cash, cash equivalents, and marketable securities totaled $330.5 million as of March 31, 2026. The company reported net cash provided by operating activities of $28.9 million, a notable increase from $17.3 million in the same quarter of the previous year. However, cash used in investing activities was $27.0 million, primarily due to purchases of marketable securities and property and equipment. The company also repaid the remaining balance of its 2026 convertible senior notes during the quarter.

Looking ahead, Fastly remains committed to investing in its platform and expanding its customer base. The company plans to enhance its sales and marketing efforts, particularly in international markets, while continuing to innovate its product offerings to meet the evolving needs of its customers. Despite the challenges of operating in a competitive landscape, Fastly's management believes that its strategic initiatives will support long-term growth and improve profitability.