Key Highlights

  • Revenue was USD 190.2 million against an estimate of USD 187.82 million and USD 158.2 million a year earlier.
  • EPS of USD 0.17 compares with an estimate of USD 0.12, while the net loss was USD 0.07 per share.
  • LTM net retention was 118.9% against 105.8%, with 634 large customers and USD 333.5 million of remaining performance obligations.
  • Cash and marketable securities totaled USD 365.2 million, and the 2026 convertible notes matured and were repaid in full.

How did usage from existing customers shape a quarter in which Revenue reached USD 190.2 million? Fastly, Inc. (NASDAQ:FSLY) reported revenue up 20% from USD 158.2 million, and attributed the increase primarily to expanded use of its platform and product suites by existing customers. The net loss attributable to common stockholders was USD 11.26 million against USD 29.48 million a year earlier.

Usage, Retention and Large Customers

Last-twelve-months net retention stood at 118.9% at September 30, against 105.8% a year earlier. Large customers, defined as those with annualized current-quarter revenue above USD 100,000, numbered 634 against 627, and generated 95% of annualized current-quarter revenue against 94%. Remaining performance obligations were USD 333.5 million.

Management described the platform as an edge cloud that combines content delivery with security functions such as web application firewalls, bot detection and DDoS protection. It said automated, AI-driven traffic is increasing demands on infrastructure and described agentic AI workloads and AI traffic management as areas where it is supporting customers. The majority of revenue is usage based, and the company noted that changes in usage by its largest customers can create volatility.

Margins and Operating Costs

Gross profit was USD 120.41 million against USD 92.33 million, and gross Margin was 63% against 58%. Management said revenue growth outpaced the cost increases needed to support its network. Cost of revenue was USD 69.78 million against USD 65.89 million, including a USD 4.0 million increase in colocation costs, partly offset by lower intangible asset amortization and lower Depreciation after a change in the useful life of servers.

Operating expenses were USD 131.68 million against USD 121.12 million. Sales and Marketing was USD 56.63 million against USD 50.0 million, Research and Development was USD 42.77 million against USD 41.42 million, and general and administrative was USD 31.27 million against USD 29.70 million. The loss from operations was USD 11.27 million against USD 28.79 million, and the net loss was USD 0.07 per share against USD 0.20. The EPS of USD 0.17 and its USD 0.12 estimate are the headline figures used here, with the GAAP loss per share shown alongside.

Cash, Debt and Network Investment

Cash provided by Operating Activities was USD 108.2 million over nine months, against USD 72.0 million. Purchases of property and equipment were USD 63.6 million, which the company tied to expanding its network, against USD 18.5 million a year earlier.

The 0% convertible senior notes due 2026 matured and were repaid in full during the nine months. Remaining convertible debt consists of USD 150.0 million of 7.75% notes due June 1, 2028 and USD 180.0 million of 0% notes due December 15, 2030. No amounts were drawn on the Credit agreement during the nine months. It was amended for a fourth time on August 17, 2026, and management said it was in compliance with its covenants.

What Management Pointed To

Revenue of USD 190.2 million sits alongside gross margin of 63%, net retention of 118.9% and cash and marketable securities of USD 365.2 million. Management said it plans to keep increasing discretionary marketing spend, expanding its sales teams outside the United States, adding points of presence and upgrading technology and hardware. It also named the 2028 and 2030 convertible notes among its material cash requirements, together with purchase commitments and Lease obligations, and said its cash, borrowing capacity and operating cash flows cover needs for at least the next 12 months.