Overview

* Fastly Q3 revenue of $158.2 mln beats analyst expectations

* Company reports non-GAAP net income per share of $0.08, up from $0.03 last year

* Security revenue grows 30% yr/yr, driven by strong cross-sell execution

Outlook

* Company expects Q4 2025 revenue between $159 mln and $163 mln

* Fastly projects full-year 2025 revenue between $610 mln and $614 mln

* Company anticipates Q4 2025 non-GAAP net income per share of $0.04 to $0.08

Result Drivers

* SECURITY REVENUE GROWTH - Security revenue increased 30% yr/yr, driven by improved feature roll-outs and cross-sell execution

* CASH FLOW IMPROVEMENT - Operating cash flow increased to $28.9 mln from $5.0 mln in Q3 2024, and free cash flow turned positive at $18.1 mln

* GROSS MARGIN INCREASE - GAAP gross margin improved to 58.4% from 54.5% in Q3 2024

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $158.22 $150.80

Revenue mln mln (9

Analysts

)

Q3 $0.08

Adjusted

EPS

Q3 EPS -$0.20

Q3 Net -$29.48

Income mln

Q3 Gross 58.40%

Margin

Q3 Gross $92.33

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Fastly Inc ( FSLY ) is $7.75, about 2.7% below its November 4 closing price of $7.96

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)