Exhibit 99.1
Fastly Announces Second Quarter 2026 Financial Results

Record second quarter revenue of $183.3 million grew 23% year-over-year
Record second quarter gross margin of 63.3% and record non-GAAP gross margin of 65.8%
LTM NRR of 117% reaches highest level in over three years

SAN FRANCISCO — August 5, 2026 — Fastly, Inc. (NASDAQ: FSLY), a leader in global edge cloud platforms, today announced financial results for its second quarter ended June 30, 2026.
"Record second quarter results reflect strong execution and the deep trust customers place in our technology and our teams," said Kip Compton, CEO of Fastly. "Our platform strategy is driving business momentum, giving us the confidence to raise our full-year outlook."
($ in thousands, except per share data) (unaudited)Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Revenue$183,317 $148,709 $356,338 $293,183 
Gross margin
GAAP gross margin63.3 %54.5 %62.9 %53.9 %
Non-GAAP gross margin(1)
65.8 %59.0 %65.5 %58.2 %
Operating loss
GAAP operating loss$(14,433)$(36,943)$(38,328)$(75,122)
Non-GAAP operating income (loss)(1)
$26,993 $(4,594)$46,136 $(10,439)
Net income (loss) per share
GAAP net loss per common share — basic and diluted$(0.10)$(0.26)$(0.23)$(0.53)
Non-GAAP net income (loss) per common share — basic(1)
$0.17 $(0.03)$0.32 $(0.08)
Non-GAAP net income (loss) per common share — diluted(1)
$0.15 $(0.03)$0.28 $(0.08)
For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this press release.
Second Quarter 2026 Financial Summary
•Total revenue of $183.3 million, representing 23% year-over-year growth. Network Services revenue of $133.9 million, representing 17% year-over-year growth. Security revenue of $41.7 million, representing 43% year-over-year growth. Other revenue of $7.7 million, representing 69% year-over-year growth. Network Services revenue includes solutions designed to improve performance of websites, apps, APIs, and digital media. Security revenue includes products designed to protect websites, apps, APIs, and users. Other revenue includes Compute and Observability solutions.
•Generated $39.3 million of operating cash flow compared to $25.8 million of operating cash flow in the second quarter of 2025. Generated $3.6 million of positive free cash flow compared to $10.9 million in the second quarter of 2025.
•GAAP gross margin of 63.3%, compared to 54.5% in the second quarter of 2025. Non-GAAP gross margin1 of 65.8%, compared to 59.0% in the second quarter of 2025.
•GAAP net loss of $15.6 million, compared to $37.5 million in the second quarter of 2025. Non-GAAP net income1 of $26.2 million, compared to non-GAAP net loss1 of $5.0 million in the second quarter of 2025.
•GAAP net loss per basic and diluted share of $0.10, compared to $0.26 in the second quarter of 2025. Non-GAAP net income per basic share1 of $0.17, compared to non-GAAP net loss per basic share1 of $0.03 in the second quarter of 2025. Non-GAAP net income per diluted share1 of $0.15, compared to non-GAAP net loss per diluted share1 of $0.03 in the second quarter of 2025.
Key Metrics
•Remaining Performance Obligations (RPO)2 were $341 million, up 38% from $247 million in the second quarter of 2025.
•Fastly's top ten customers accounted for 37% of revenue in the second quarter of 2026 compared to 31% in the second quarter of 2025.




•Last 12-month net retention rate (LTM NRR)3 increased to 117% in the second quarter from 113% in the first quarter of 2026.
Second Quarter Business and Product Highlights
•Announced new research showing how rapidly growing AI traffic is reshaping the internet, growing 6.5x faster than human traffic this year, and why organizations need new strategies to manage machine traffic.
•Released a joint announcement with LALIGA on the collaboration of anti-piracy solutions that are designed to address illegal streaming of live sports and help rights holders prevent lost revenue.
•Announced a new partnership with Skyfire, enabling trusted commerce at the edge so enterprises can now securely identify, verify, and transact with AI agents in real time and at global scale, without re-architecting existing infrastructure.
•Released C++ SDK for Fastly Compute, enabling enterprises to secure, scale, and accelerate their C++ AI workloads, gaming features, and other low-latency applications.

Third Quarter and Full Year 2026 Guidance
Q3 2026Full Year 2026
Total Revenue (millions)$184.0 - $190.0$732.0 - $746.0
Non-GAAP Operating Income (millions)
$20.0 - $24.0$88.0 - $96.0
Non-GAAP Net Income per share(4)(5)
$0.11 - $0.13$0.50 - $0.54
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future and cannot be reasonably determined or predicted at this time, although it is important to note that these factors could be material to Fastly’s future GAAP financial results.
Conference Call Information
Fastly will host an investor conference call to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET on Wednesday, August 5, 2026.
To access the conference call, please pre-register and dial-in using this link at least 15 minutes prior to the 1:30 p.m. PT start time. Registrants will receive an email confirmation with dial-in details.
A live webcast of the event can be accessed using this link. A replay of the webcast will be available on https://investors.fastly.com starting approximately two hours after the event and archived on the site for one quarter.

About Fastly, Inc.
Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.

Forward-Looking Statements
This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance and shareholder returns, including our outlook and guidance and ability to maintain and strengthen our liquidity position; our ability to acquire new customers, expand cross-sell opportunities, and grow market share; our ability to enrich our revenue mix with platform enhancements; the performance of our existing and new platform enhancements; our ability to accelerate global growth; our partnerships and collaborations; the performance, capabilities, and expectations regarding customer experiences with Fastly Compute, including its C++ SDK, Bot Management and DDoS Protection, and Next-Gen WAF; and Fastly's strategies, platform, and business plans. Except as required by law, we assume no




obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including those more fully described in Fastly’s Annual Report on Form 10-K for the year ended December 31, 2025. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, and other filings and reports that Fastly may file from time to time with the SEC. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Use of Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense and related employer payroll taxes, amortization of capitalized stock-based compensation - cost of revenue, amortization of acquired intangible assets, executive transition costs, and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense and related employer payroll taxes, amortization of capitalized stock-based compensation - cost of revenue, gain on modification of lease, depreciation and other amortization expenses, amortization of acquired intangible assets, impairment expense, executive transition costs, interest income, interest expense, including amortization of debt discount and issuance costs, other expense (income), net, and income taxes.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, and capitalized internal-use software costs. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The




presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Gain on Modification of Lease: consists of a one-time non-cash charge recognized with respect to the modification of our leases. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other (Expense) Income, Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense and Related Employer Payroll Taxes: consists of expenses for stock options, restricted stock units, performance awards and other shares issued under our equity incentive plans or our Employee Stock Purchase Plan ("ESPP"), as applicable, and the related employer payroll taxes. Although stock-based compensation and its related employer payroll taxes are expenses for the Company, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because they are expenses not believed by management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Amortization of Capitalized Stock-Based Compensation - Cost of Revenue: in order to reflect the performance of our core business, ongoing operating results, or future outlook, and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies, similar to stock-based compensation, management considers it appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this press release.
Key Metrics
1 Beginning with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP net income (loss) per common share — basic and non-GAAP net income (loss) per common share — diluted, because we consider our operating results without this activity when evaluating our ongoing non-GAAP net income (loss) performance and our adjusted EBITDA performance. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes.
2 Remaining Performance Obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. During the third quarter of 2025, we identified an error in RPO calculations from certain contracts with a termination-for-convenience clause. We recast the presentation of RPO for all prior periods presented to reflect the correction of this error.




3 We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
4 Non-GAAP net income per share is calculated as Non-GAAP net income divided by weighted average diluted shares for 2026.
5 Assumes weighted average diluted shares outstanding of 181.4 million in Q3 2026 and 180.3 million for the full year 2026.




Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Revenue$183,317 $148,709 $356,338 $293,183 
Cost of revenue(1)
67,366 67,593 132,206 135,269 
Gross profit115,951 81,116 224,132 157,914 
Operating expenses:
Research and development(1)
42,071 42,221 84,043 79,650 
Sales and marketing(1)
56,735 51,100 111,849 100,413 
General and administrative(1)
31,578 24,323 66,568 52,558 
Impairment expense— 415 — 415 
Total operating expenses130,384 118,059 262,460 233,036 
Loss from operations(14,433)(36,943)(38,328)(75,122)
Interest income2,842 3,084 5,769 6,059 
Interest expense(3,348)(3,164)(6,654)(6,337)
Other (expense) income, net(400)39 (780)(41)
Loss before income taxes(15,339)(36,984)(39,993)(75,441)
Income tax expense (benefit) 252 557 (3,878)1,248 
Net loss$(15,591)$(37,541)$(36,115)$(76,689)
Net loss per share attributable to common stockholders, basic and diluted$(0.10)$(0.26)$(0.23)$(0.53)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted157,596 145,780 155,598 144,539 
__________
(1)Includes stock-based compensation expense as follows:
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Cost of revenue$2,757 $2,573 $5,293 $4,512 
Research and development11,902 11,755 21,932 20,648 
Sales and marketing10,344 8,176 19,697 14,869 
General and administrative10,169 3,831 23,231 11,888 
Total$35,172 $26,335 $70,153 $51,917 




















Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands, except per share data)
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Gross profit
GAAP gross profit$115,951 $81,116 $224,132 $157,914 
Stock-based compensation expense and related employer payroll taxes(1)
3,026 2,573 5,773 4,512 
Amortization of capitalized stock-based compensation - Cost of revenue
1,694 1,581 3,383 3,222 
Amortization of acquired intangible assets— 2,475 — 4,950 
Non-GAAP gross profit$120,671 $87,745 $233,288 $170,598 
GAAP gross margin63.3 %54.5 %62.9 %53.9 %
Non-GAAP gross margin65.8 %59.0 %65.5 %58.2 %
Research and development
GAAP research and development$42,071 $42,221 $84,043 $79,650 
Stock-based compensation expense and related employer payroll taxes(1)
(12,967)(11,755)(24,355)(20,648)
Non-GAAP research and development$29,104 $30,466 $59,688 $59,002 
Sales and marketing
GAAP sales and marketing$56,735 $51,100 $111,849 $100,413 
Stock-based compensation expense and related employer payroll taxes(1)
(10,869)(8,176)(21,009)(14,869)
Amortization of acquired intangible assets(2,160)(2,279)(4,319)(4,580)
Executive transition costs— — (262)— 
Non-GAAP sales and marketing$43,706 $40,645 $86,259 $80,964 
General and administrative
GAAP general and administrative$31,578 $24,323 $66,568 $52,558 
Stock-based compensation expense and related employer payroll taxes(1)
(10,710)(3,831)(24,302)(11,888)
Executive transition costs— — (1,061)(335)
Gain on modification of lease— 736 — 736 
Non-GAAP general and administrative$20,868 $21,228 $41,205 $41,071 
Operating income (loss)
GAAP operating loss$(14,433)$(36,943)$(38,328)$(75,122)
Stock-based compensation expense and related employer payroll taxes(1)
37,572 26,335 75,439 51,917 
Amortization of capitalized stock-based compensation - Cost of revenue
1,694 1,581 3,383 3,222 
Executive transition costs— — 1,323 335 
Gain on modification of lease— (736)— (736)
Amortization of acquired intangible assets2,160 4,754 4,319 9,530 
Impairment expense— 415 — 415 
Non-GAAP operating income (loss)$26,993 $(4,594)$46,136 $(10,439)
Net income (loss)
GAAP net loss$(15,591)$(37,541)$(36,115)$(76,689)
Stock-based compensation expense and related employer payroll taxes(1)
37,572 26,335 75,439 51,917 
Amortization of capitalized stock-based compensation - Cost of revenue
1,694 1,581 3,383 3,222 
Executive transition costs— — 1,323 335 
Gain on modification of lease— (736)— (736)
Amortization of acquired intangible assets2,160 4,754 4,319 9,530 
Impairment expense— 415 — 415 
Amortization of debt discount and issuance costs366 217 767 434 
Non-GAAP net income (loss)$26,201 $(4,975)$49,116 $(11,572)
Non-GAAP net income (loss) per common share — basic$0.17 $(0.03)$0.32 $(0.08)
Non-GAAP net income (loss) per common share — diluted$0.15 $(0.03)$0.28 $(0.08)
Weighted average basic common shares157,596 145,780 155,598 144,539 
Weighted average diluted common shares180,304 145,780 178,410 144,539 




(1) Similar to stock-based compensation, we believe it is also appropriate to exclude employer payroll taxes related to stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP financial measures. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes. Refer to Non-GAAP Financial Measures definition for further details.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(unaudited, in thousands, except per share data)

Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Reconciliation of GAAP to Non-GAAP diluted shares
GAAP diluted shares157,596 145,780 155,598 144,539 
Other dilutive equity awards22,708 — 22,812 — 
Non-GAAP diluted shares180,304 145,780 178,410 144,539 
Non-GAAP diluted net income (loss) per share$0.15 $(0.03)$0.28 $(0.08)



Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Adjusted EBITDA
GAAP net loss$(15,591)$(37,541)$(36,115)$(76,689)
Stock-based compensation expense and related employer payroll taxes(1)
37,572 26,335 75,439 51,917 
Amortization of capitalized stock-based compensation - Cost of revenue1,694 1,581 3,383 3,222 
Gain on modification of lease— (736)— (736)
Depreciation and other amortization11,129 13,505 21,449 27,155 
Amortization of acquired intangible assets2,160 4,754 4,319 9,530 
Amortization of debt discount and issuance costs366 217 767 434 
Impairment expense— 415 — 415 
Executive transition costs— — 1,323 335 
Interest income(2,842)(3,084)(5,769)(6,059)
Interest expense2,982 2,947 5,887 5,903 
Other expense (income), net400 (39)780 41 
Income tax expense (benefit) 252 557 (3,878)1,248 
Adjusted EBITDA$38,122 $8,911 $67,585 $16,716 


(1)Similar to stock-based compensation, we believe it is also appropriate to exclude employer payroll taxes related to stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2026, we are excluding stock-based compensation related employer payroll taxes from our non-GAAP financial measures. We did not recast the presentation for all prior periods presented due to the immaterial amount of such payroll taxes. Refer to Non-GAAP Financial Measures definition for further details.




Condensed Consolidated Balance Sheets
(unaudited, in thousands)
As of
June 30, 2026		As of
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents$89,798 $180,563 
Marketable securities
247,700 181,196 
Accounts receivable, net of allowance for credit losses114,216 118,029 
Prepaid expenses and other current assets27,333 26,921 
Total current assets479,047 506,709 
Property and equipment, net220,354 186,785 
Operating lease right-of-use assets, net58,213 52,067 
Goodwill670,356 670,356 
Intangible assets, net21,232 25,771 
Other assets54,441 57,789 
Total assets$1,503,643 $1,499,477 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$20,124 $17,612 
Accrued expenses52,937 70,669 
Long-term debt, current— 38,557 
Operating lease liabilities, current30,100 24,427 
Deferred revenue
34,266 35,234 
Other current liabilities5,096 7,499 
Total current liabilities142,523 193,998 
Long-term debt, net
323,958 323,282 
Operating lease liabilities, non-current44,234 43,921 
Other long-term liabilities2,111 8,698 
Total liabilities512,826 569,899 
Stockholders’ equity:
Common stock3 3 
Additional paid-in capital2,141,909 2,044,103 
Accumulated other comprehensive loss(493)(41)
Accumulated deficit(1,150,602)(1,114,487)
Total stockholders’ equity990,817 929,578 
Total liabilities and stockholders’ equity$1,503,643 $1,499,477 







Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Cash flows from operating activities:
Net loss$(15,591)$(37,541)$(36,115)$(76,689)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense12,720 14,962 24,612 30,129 
Amortization of intangible assets2,262 4,878 4,539 9,778 
Non-cash lease expense6,887 5,694 13,085 11,349 
Amortization of debt discount and issuance costs366 217 767 434 
Amortization of deferred contract costs4,733 4,847 9,491 9,697 
Stock-based compensation35,172 26,335 70,153 51,917 
Deferred income taxes(23)327 (4,353)749 
Provision for credit losses1,014 1,048 2,532 1,994 
(Gain) loss on disposals of property and equipment(9)(43)267 (43)
Accretion of discounts and amortization of premiums, net(1,019)(1,356)(1,817)(1,982)
Impairment expense— 415 — 415 
Non-cash interest expense969 969 969 969 
Other adjustments(57)(84)(275)292 
Changes in operating assets and liabilities:
Accounts receivable, net14,807 669 1,281 (3,324)
Prepaid expenses and other current assets2,227 121 (412)2,337 
Other assets(3,195)(6,076)(1,845)(8,171)
Accounts payable1,497 3,446 8,309 6,021 
Accrued expenses(2,651)1,577 872 (1,806)
Operating lease liabilities(7,114)(2,332)(12,923)(7,888)
Other liabilities(13,661)7,725 (10,937)16,908 
Net cash provided by operating activities39,334 25,798 68,200 43,086 
Cash flows from investing activities:
Purchases of marketable securities(87,262)(93,440)(266,602)(272,926)
Maturities of marketable securities24,329 37,836 201,472 45,805 
Purchases of property and equipment(31,623)(9,852)(52,644)(12,457)
Proceeds from sale of property and equipment10 44 10 44 
Capitalized internal-use software(4,148)(4,542)(7,884)(9,305)
Net cash used in investing activities(98,694)(69,954)(125,648)(248,839)
Cash flows from financing activities:
Repayment of convertible senior notes— — (38,593)— 
Payments of other debt issuance costs— — (502)— 
Repayments of finance lease liabilities— (537)— (2,248)
Proceeds from exercise of vested stock options92 279 1,135 687 
Proceeds from employee stock purchase plan2,397 1,240 4,676 3,371 
Net cash provided by (used in) financing activities2,489 982 (33,284)1,810 
Effects of exchange rate changes on cash and cash equivalents(1)177 (33)255 
Net decrease in cash and cash equivalents(56,872)(42,997)(90,765)(203,688)
Cash and cash equivalents at beginning of period146,670 125,484 180,563 286,175 
Cash and cash equivalents at end of period$89,798 $82,487 $89,798 $82,487 











Free Cash Flow
(unaudited, in thousands)
Three months ended
June 30,		Six months ended
June 30,
2026202520262025
Net cash provided by operating activities$39,334 $25,798 $68,200 $43,086 
Capital expenditures(1)
(35,761)(14,887)(60,518)(23,966)
Free Cash Flow$3,573 $10,911 $7,682 $19,120 
__________
(1)Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.




Contacts
Investor Contact
Vernon Essi, Jr.
ir@fastly.com

Media Contact
Stacey Hurwitz
press@fastly.com

Source: Fastly, Inc.