Summary
Fastly closed FY2025 Q4 with revenue of $172.6 million, up 22.8% from $140.6 million in FY2024 Q4, according to reported figures. Full-year revenue was $624.0 million, up 14.8% from $543.7 million. GAAP gross profit was $106.0 million for the quarter, up 41.2% from $75.1 million, and GAAP gross margin was 61.4%, up 8.0 percentage points from 53.4%. Non-GAAP gross margin was 64.0% in Q4 versus 57.5% in FY2024 Q4. For the full year, gross profit was $356.2 million, up 20.4% from $295.9 million, and gross margin was 57.1%, up 2.6 percentage points from 54.4%. The company described the quarter as a record for revenue and gross margin.
Profitability remains negative on a GAAP basis. Q4 operating loss was $15.1 million, narrower than the $34.3 million loss a year earlier. Q4 net loss was $15.5 million, narrower than $32.9 million. Full-year operating loss was $119.0 million, narrower than $167.9 million, and full-year net loss was $121.7 million, narrower than $158.1 million. Full-year diluted EPS was -$0.83, narrower than -$1.14. Operating margin improved to -8.7% in Q4 from -24.4%, and full-year operating margin was -19.1% versus -30.9%. Non-GAAP operating income was $21.2 million in Q4 compared with a non-GAAP operating loss of $2.8 million a year earlier, and full-year non-GAAP operating income was $22.4 million compared with a non-GAAP operating loss of $22.0 million. Cash generation improved: Q4 operating cash flow was $22.4 million, up from $5.2 million, and full-year operating cash flow was $94.4 million, up 475.7% from $16.4 million. Free cash flow, a non-GAAP measure, was positive $8.6 million in Q4 compared with negative $7.9 million a year earlier. Capital expenditures were $10.2 million in Q4, up 105.1% from $5.0 million, and $28.7 million for the full year, up 177.8% from $10.3 million.
RPO was $353.8 million at quarter end, up 44.8% from $244.4 million a year earlier. Deferred revenue was $40.8 million, up 38.0% from $29.6 million. Enterprise customer count was 628, up from 596 in FY2024 Q4. LTM net retention rate rose to 110% from 106% in Q3 2025. Top ten customers accounted for 34% of Q4 revenue, up from 32% a year earlier. The quarter included product updates: API Inventory for API security, a beta of AI Assistant, broader availability of Custom Dashboards and Alerts, an enhanced Adaptive Threat Engine for DDoS protection, and Compute performance features such as Early Hints and a beta C++ SDK. Fastly also named customer wins including a Fortune 500 restaurant chain, a large home retailer, a cloud observability and security provider, and a print-on-demand marketplace.
Guidance covers both the first quarter of 2026 and full-year 2026. The company guided to Q1 2026 non-GAAP operating income of $14.0 million to $18.0 million and non-GAAP net income per share of $0.07 to $0.10. For full-year 2026, it guided to non-GAAP operating income of $50.0 million to $60.0 million and non-GAAP net income per share of $0.23 to $0.29. The company assumed weighted average diluted shares of 175.4 million for Q1 2026 and 179.0 million for full-year 2026. Risks include customer concentration, with the top ten at 34% of Q4 revenue, and specific exposure to TikTok. The 10-K says TikTok was one of Fastly's largest customers for 2025 and remains a customer, and the company does not know how the restructuring may affect traffic levels. Other risks include international expansion costs, higher bandwidth costs outside the United States and Europe, supply chain and tariff pressure on hardware components, network capacity management, and the need to keep investing in the platform. The company raised $180.0 million in gross proceeds from 0% convertible notes due 2030 and used $149.0 million to repurchase notes due 2026.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $172.6M | $158.2M | +9.1% | $140.6M | +22.8% |
| Gross profit | $106.0M | $92.3M | +14.8% | $75.1M | +41.2% |
| Gross margin | 61.4% | 58.4% | +3.0 pp | 53.4% | +8.0 pp |
| Research & development | $41.6M | $41.4M | +0.4% | $32.7M | +27.0% |
| Sales & marketing | $51.0M | $50.0M | +2.1% | $50.0M | +1.9% |
| General & administrative | $28.4M | $29.7M | -4.2% | $26.2M | +8.7% |
| Total operating expenses | $121.0M | $121.1M | -0.1% | $109.4M | +10.7% |
| Operating income (loss) | -$15.1M | -$28.8M | +47.6% | -$34.3M | +56.0% |
| Operating margin | -8.7% | -18.2% | +9.5 pp | -24.4% | +15.7 pp |
| Net income (loss) | -$15.5M | -$29.5M | +47.4% | -$32.9M | +52.9% |
| Net margin | -9.0% | -18.6% | +9.6 pp | -23.4% | +14.4 pp |
| Diluted EPS | -$0.11 | -$0.20 | +$0.09 | -$0.24 | +$0.13 |
Risks
The 10 largest customers generated 32% of revenue in the trailing 12 months ended December 31, 2025, and affiliated customers that are business units of a single company generated 10% of revenue for the year ended December 31, 2025. TikTok was one of the largest customers for the year ended December 31, 2025 and remains a customer, but the company states it does not know how the January 2026 TikTok USDS Joint Venture restructuring may impact its traffic levels.
The company is betting on agentic AI traffic and AI workload enablement, but states the AI solutions market is evolving rapidly and it may not be successful in its AI initiatives or competitors may incorporate AI into their products or market their AI solutions more successfully. It also cites challenges such as a lack of talented personnel, inability to secure necessary infrastructure, and AI tools not delivering intended value.
The remaining 2026 Notes with an aggregate principal amount of $38.6 million mature on March 15, 2026, and the company issued $180.0 million of 0% convertible senior notes due 2030 in December 2025 while repurchasing $150.0 million of the 2026 Notes. Interest expense rose 362% to $12.7 million for the year ended December 31, 2025, and the company warns it may not have enough cash or be able to obtain financing when required to repay or repurchase the Notes.
The company has been subject to cyber-attacks from third parties it believes are sponsored by government actors and has experienced DDoS attacks of significant size and severity that strained its network, and it expects to continue to be subject to such attacks. Because customers share a multi-tenant architecture, an attack on one customer could negatively affect others, and the company notes it is incorporated into the supply chain of many companies worldwide.
Sales to enterprise customers may involve longer sales cycles due to competitive purchasing processes, formal approval processes, and more complex requirements, and the onboarding and ramping process with new and existing enterprise customers can take several months and be subject to delays. The company also notes most customer contracts are only one year in duration and many large customers have relatively low minimum usage commitments.
The company relies on a limited number of suppliers for server and POP components and warns that U.S. tariffs and potential retaliatory counter-tariffs may disrupt or delay its supply chain or raise prices. It also recognized $0.4 million of equipment, internal-use software project and right-of-use asset related write-off charges in the year ended December 31, 2025, and may need to write down excess server capacity in the future.
A putative securities class action filed in May 2024 remains active, with a second amended complaint filed October 24, 2025, a motion to dismiss filed December 9, 2025, and a hearing scheduled for April 30, 2026, alongside multiple stayed stockholder derivative actions. The company states defending these claims is costly and imposes a significant burden on management and employees.
The company faces substantial competition from legacy CDNs, cloud providers such as AWS, GCP and Azure, and appliance vendors, and notes some competitors offer services at lower prices, resulting in pricing pressures, or bundle competing services at lower or no additional cost. It also cites customers pursuing do-it-yourself CDNs or multi-vendor policies to reduce reliance on external providers like Fastly.
The company states there is significant competition for sales personnel with the required skills and technical knowledge, and that its ability to achieve revenue growth depends largely on recruiting, training, incentivizing and retaining sufficient sales personnel. New hires require significant training and may take significant time before achieving full productivity.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Total Customer Count
Remaining Performance Obligations (RPO)
Enterprise Customer Revenue %
Adjusted EBITDA
Enterprise Customer Count
Top Ten Customer Revenue %
Annual Revenue Retention Rate (ARR)
GAAP Gross Margin
Summary, forecast, risks and KPIs are extracted from Fastly, Inc.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.