FSLY earnings analysis
What we found in FSLY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Fastly's Q1 2026 results show a robust recovery with $173 million in revenue, up 20% year-over-year, and an EPS of $0.13, exceeding analyst expectations. The growth is bolstered by a significant rise in security revenue, which increased by 47%, alongside strong operational improvements that drove gross margins to 63%. Despite these achievements, the company continues to face challenges, including ongoing operational losses and competitive pressures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Record Revenue Growth
- Fastly reported revenue of $173 million for Q1 2026, representing a 20% increase year-over-year from $144.5 million.
- Strong EPS Performance
- The company achieved an EPS of $0.13, significantly higher than the consensus estimate of $0.05.
- Improved Gross Margin
- Gross margin improved to 63% for Q1 2026, compared to 53% in Q1 2025.
- Surging Security Revenue
- Security segment revenue increased by 47% to $38.8 million in Q1 2026, compared to $26.4 million in the prior year.
- Operational Cash Flow Positive
- Operating cash flow was $28.9 million in Q1 2026, up from $17.3 million in Q1 2025.
- Increased Large Customer Count
- Fastly has increased its large customer count to 634 in Q1 2026 from 595 in the prior year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Continued Operating Losses
- Net loss for Q1 2026 was $20.5 million, though improved from $39.1 million in Q1 2025.
- High Operating Expenses
- Operating expenses rose to $132.1 million, representing a 15% increase from $115 million in the same quarter last year.
- Increased Dependence on Major Customers
- The top 10 customers accounted for 32% of revenue, raising risks from customer concentration.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.13
- Gross margin
- 63%
- Operating margin
- -13%
- Segment
- Network Services
- Segment
- Security
- Segment
- Other
What they said about what is next.
Q2 2026 revenue guidance increased to $170-$176 million, and full year guidance raised to $710-$725 million.
The filing reads better than the one before it.
What came before.
- 10-K · February 25, 2026
- Fastly positions itself as an AI-ready unified edge cloud platform focused on programmable edge compute, security, and CDN capabilities. Fiscal 2025 shows an inflection: revenue rose to $624.0M (from $544.0M in 2024),…
- 10-Q · May 7, 2025
- Fastly reported revenue of $144,474,000 for the quarter ended March 31, 2025, up from $133,520,000 a year ago, with gross profit of $76,798,000 and an improving operating loss of $(38,179,000). Operating cash flow was…
- 10-K · February 26, 2025
- Fastly positions itself as a programmable edge cloud platform focused on performance, security and developer-friendly tooling (including Fastly Compute built on WebAssembly). Revenue grew to $543.7M in 2024 from $506.0M…
- 10-Q · August 8, 2024
- Fastly reported Q2 revenue of $132,371,000, up from $122,831,000 a year ago, with gross profit of $72,901,000. Operating loss narrowed to $(46,734,000) from $(49,827,000) year-over-year, but GAAP net loss widened to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing FSLY makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever