Stock Analysis

Stock Analysis · Fastly Inc (FSLY)

Overview

Fastly Inc. is a technology company that helps businesses deliver digital content and online applications to end users quickly and reliably. In simple terms, it runs a network of servers around the world so websites, apps, videos, and software updates can load faster and handle traffic spikes better. Fastly also offers tools that sit closer to the “edge” of the internet (near users rather than in a distant centralized data center), which can improve performance and support real-time use cases.

Fastly’s business is commonly described as an edge cloud platform, which includes content delivery (CDN), security, and compute capabilities. Customers typically pay based on usage (for example, how much data is delivered) and/or for specific products and service levels, under commercial agreements described in company filings.

In its filings, Fastly reports revenue as a single line item rather than breaking it into detailed public percentages by product. As a practical way to understand what drives revenue, the main revenue “buckets” discussed in company materials are:

Content delivery and edge delivery services (helping customers deliver websites, APIs, and media quickly)
Security products (helping protect web applications and traffic at the edge)
Edge compute and related platform services (running logic closer to users for speed and customization)

Over time, the company’s financial results show that revenue growth and cost control have been central themes, with ongoing investment in research and development and sales/marketing to expand product capabilities and customer adoption.

From 2021 to 2025, total revenue increased from about $354M to about $624M. Over the same period, gross profit also rose (about $187M to about $356M), while the company still reported net losses each year. Operating expenses stayed substantial, reflecting continued spending on product development and customer acquisition.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 16, 2026
Context
Sector	Technology
Industry	Software - Application
Market Cap ⓘ	$2.73B
Beta ⓘ	1.08
Fundamental
P/E Ratio ⓘ	N/A	27.48
Profit Margin ⓘ	-19.50%	7.66%
Revenue Growth ⓘ	22.80%	15.80%
Debt to Equity ⓘ	11.50%	24.71%
PEG ⓘ	N/A
Free Cash Flow ⓘ	$61.04M

Fastly’s market capitalization is about $2.73B, placing it in the small-to-mid cap range. The stock’s beta (~1.08) suggests price moves broadly in line with the overall market, though the historical price series shows periods of very large swings. The company’s latest profit margin is about -19.5% versus an industry median near +7.7%, meaning profitability remains a key gap versus many peers. On the other hand, the latest year-over-year revenue growth is about +22.8%, above the industry median near +15.8%. Leverage appears modest on this snapshot (debt-to-equity ~11.5% versus industry median ~24.7%). Trailing twelve-month free cash flow is about +$61.0M, which can be an important signal for funding operations without relying only on external capital.

Growth (Medium)

Fastly operates in an area shaped by long-term trends: more software moving online, more video and rich content, more security threats, and rising expectations for fast and reliable digital experiences. As businesses push applications closer to users for speed and responsiveness, edge-oriented infrastructure and security services remain strategically relevant.

A key question for long-term business growth is whether Fastly can expand beyond core delivery into higher-value services (such as security and edge compute) while keeping its network efficient. The company’s continued research and development spending in its financial statements reflects an effort to improve the platform and broaden what customers can do at the edge.

Revenue growth has fluctuated over time. After stronger growth earlier in the period shown, it slowed into late 2024 (down to low single digits) and then re-accelerated in 2025, reaching about +22.8% by year-end. For a company in infrastructure software, this pattern can matter because it may influence how efficiently fixed network and operating costs can be absorbed as the business scales.

Free cash flow was negative for several years in the period shown (including a low near -$147M in 2023), improved significantly by 2024, and is shown as +$61M on a trailing twelve-month basis in the latest table. If sustained, positive free cash flow can reduce financing pressure and give more flexibility for continued investment, though it does not by itself mean the company is profitable on a net income basis.