Key Highlights

  • Fastly (NYSE:FSLY) was quoted at USD 18.02 premarket on November 5, 2026, down 14.33%, after third quarter results released November 4, 2026.
  • Third quarter Revenue was a record USD 190.2 million, up 20% from USD 158.2 million, with a GAAP net loss of USD 11.3 million, or USD 0.07 per share.
  • Security revenue grew 32% to USD 44.7 million, and adjusted EBITDA reached USD 43.5 million, up from USD 25.7 million a year earlier.
  • Fourth quarter guidance is revenue of USD 198.0 million to USD 202.0 million and non-GAAP EPS of USD 0.16 to USD 0.18.

Record Quarter Meets a Sharp Premarket Reaction

Fastly, Inc. (NYSE:FSLY) reported third quarter 2026 results on November 4, 2026, and shares were quoted at USD 18.02 in premarket trading on November 5, 2026, down 14.33%, per the premarket quote. The company delivered revenue of USD 190.2 million, up 20% from USD 158.2 million a year earlier. GAAP net loss narrowed to USD 11.3 million, or USD 0.07 per basic and diluted share, from USD 0.20 per share in the third quarter of 2025. Non-GAAP income from operations was USD 31.2 million, a 16.4% margin, against USD 11.6 million a year ago.

Security Growth, Cash Flow and Guidance

Network Services revenue was USD 138.0 million, up 16%, while security revenue rose 32% to USD 44.7 million and other revenue, which groups compute and observability, was USD 7.4 million, up 37%. Adjusted EBITDA was USD 43.5 million versus USD 25.7 million. Operating Cash Flow was USD 40.0 million and free cash flow was USD 25.2 million. At September 30, 2026, Fastly held USD 113.5 million in cash and cash equivalents and USD 251.7 million in marketable securities. Multiproduct adoption among large customers reached 74% for two or more product suites, and last-twelve-month net retention rose to 119% from 117% in the second quarter. Guidance for the fourth quarter is revenue of USD 198.0 million to USD 202.0 million and non-GAAP EPS of USD 0.16 to USD 0.18. For 2026 the company guides revenue of USD 744.0 million to USD 748.0 million, non-GAAP income from operations of USD 107 million to USD 111 million and non-GAAP EPS of USD 0.61 to USD 0.63.

Concentration, Expectations and What Comes Next

Comparisons with analyst consensus for this quarter were not confirmed here, so the reason for the premarket decline is not established by the filing. One datapoint worth noting is customer concentration: the top ten customers made up 39% of revenue, up from 32%, which means a single large account change can move results. Investors will watch whether security and compute growth continues to outpace the larger Network Services line, whether net retention holds near 119%, and whether fourth quarter revenue lands inside the guided range.

Where Things Stand

Fastly (NYSE:FSLY) is down in premarket trading despite a quarter that, on the filed numbers, was strong: record revenue, narrower GAAP losses, higher margins and positive free cash flow. The move more likely reflects high expectations, the rise in customer concentration and the sensitivity of a growth-priced stock to any guidance nuance than a deterioration in the business, though that cannot be confirmed from the release alone. The quoted decline of 14.33% is a premarket figure and can change at the open. The next catalyst is the fourth quarter report, with guidance of USD 198.0 million to USD 202.0 million as the benchmark.