Key Highlights

  • Revenue for the third quarter of 2026 was USD 190.2 million, up about 20.2% (calculated) from USD 158.2 million, while nine-month Revenue reached USD 546.5 million.
  • Net loss narrowed to USD 11.3 million, or USD 0.07 per share, from USD 29.5 million, or USD 0.20 per share, in the same quarter of 2025.
  • Gross profit rose to USD 120.4 million from USD 92.3 million, a calculated gross Margin of about 63.3% against 58.4% a year earlier.
  • Last-twelve-months net retention rate reached 118.9% versus 105.8%, and large customers, those above USD 100,000 in annualized revenue, rose to 634 from 627.

Revenue Growth Outpaces Cost of Delivery

Fastly (NASDAQ:FSLY) filed its Quarterly Report on November 4, 2026, for the period ended September 30. Revenue of USD 190.2 million grew about 20.2% (calculated), while cost of revenue rose only to USD 69.8 million from USD 65.9 million. That widened Gross Profit by USD 28.1 million (calculated). The company has a full valuation allowance in the United States, so its tax line mainly reflects foreign taxes. Its direct sales teams focus on expanding usage among existing customers, including fast-growing companies, and on adding new ones, and international expansion adds cost and complexity. Fastly operates an edge cloud platform that delivers content, security and developer services close to end users. For nine months, revenue was USD 546.5 million against USD 451.4 million, and gross profit was USD 344.5 million versus USD 250.2 million.

Operating Loss Shrinks as Spending Rises Modestly

Loss from operations narrowed to USD 11.3 million from USD 28.8 million, with total operating expenses of USD 131.7 million, up from USD 121.1 million. Sales and Marketing rose to USD 56.6 million from USD 50.0 million, Research and Development to USD 42.8 million from USD 41.4 million, and general and administrative to USD 31.3 million from USD 29.7 million. An Impairment expense of USD 1.0 million was recorded. Nine-month net loss was USD 47.4 million, or USD 0.30 per share, against USD 106.2 million, or USD 0.73. Interest expense was USD 3.3 million against interest income of USD 2.8 million. The quarterly tax line was a benefit of USD 0.5 million, helped by Canadian tax credits.

Cash Pile Supports Convertible Note Obligations

Cash, cash equivalents and marketable securities totalled USD 365.2 million at September 30, 2026, with cash and equivalents alone at USD 113.5 million versus USD 180.6 million at the prior year-end. Nine-month purchases of marketable securities of USD 319.6 million exceeded maturities of USD 251.4 million. Net cash from Operating Activities was USD 108.2 million for nine months against USD 72.0 million. Material cash requirements include the 2028 and 2030 convertible notes, purchase commitments and leases, and a Credit agreement amendment was signed on August 17, 2026, with no amounts drawn. Large customers generated about 94% of annualized revenue a year earlier, which shows how concentrated usage is. The company says it may continue to post operating losses and that tariffs and supplier concentration are risks. No guidance appears in the extract.

Where Things Stand

Both: faster revenue growth and a better mix of costs did the work. Fastly (NASDAQ:FSLY) grew revenue about 20.2% (calculated) while gross margin widened by about five points (calculated), and that cut the net loss to USD 11.3 million. Retention at 118.9% supports the growth, though large customer count barely moved. The company is still unprofitable, carries convertible notes due 2028 and 2030, and gave no outlook in the filing. Watch for the next gross margin print and whether operating spending keeps rising more slowly than revenue.