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Second Quarter 2026 Investor Supplement
Product Innovation and Developments
•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.
•Released C++ SDK for Fastly Compute, enabling enterprises to secure, scale, and accelerate their C++ AI workloads, gaming features, and other low-latency applications.
Customer Highlights
•A leading UK health and beauty retailer expanded its use of Fastly’s platform with a multi-year, multi-million dollar commitment, replacing a long-time incumbent security vendor as part of a broader platform modernization.
•Le Monde is using Fastly’s Bot Management solution to set the terms for how their content gets accessed, transforming a scraping problem into controlled, licensed, revenue-generating relationships.
•A global education technology firm chose Fastly’s Next-Gen WAF after suffering a significant data breach when its prior WAF failed to adequately mitigate attacks.
•A leading fintech company selected Fastly after a rigorous evaluation, leveraging its resiliency and security capabilities to overcome a history of service disruptions with alternative solutions.
•A major auto-shopping platform added Fastly’s Bot Management and DDoS Protection to gain visibility and control over automated traffic, giving them the governance capabilities they need to run their business.

Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Revenue by Product ($ in millions):
Network Services Revenue$107.4$110.1$113.3$114.9$118.8$130.8$126.2$133.9
Security Revenue26.226.926.429.334.035.438.841.7
Other Revenue3.63.64.84.55.46.48.07.7
Total Revenue$137.2$140.6$144.5$148.7$158.2$172.6$173.0$183.3
Key Metrics:
Large Customer Count(6)
576 596 595 622 627 628 634 624 
Large Customer Revenue %92 %93 %93 %94 %94 %94 %94 %94 %
Top Ten Customer Revenue %33 %32 %33 %31 %32 %34 %34 %37 %
LTM Net Retention Rate (NRR)(2)
105 %102 %100 %104 %106 %110 %113 %117 %
Remaining Performance Obligations (RPO)(1)
$231.1$227.6$225.9$247.1$268.0$353.8$368.7$340.9
Current RPO %(7)
78.0 %79.0 %69.0 %76.0 %77.0 %70.0 %75.0 %79.0 %
Exhibit 99.2
Corporate 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.
•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.
Key Financial & Metrics Highlights
•Total revenue of $183.3 million, representing 23% year-over-year growth highlighted by Security revenue growing 43% year-over-year and representing 23% of total revenue.
•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.
•Remaining Performance Obligations (RPO)1 were $341 million, up 38% from $247 million in the second quarter of 2025.
•Last 12-month net retention rate (LTM NRR)2 increased to 117% in the second quarter from 113% in the first quarter of 2026.
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)(3)
$20.0 - $24.0$88.0 - $96.0
Non-GAAP Net Income per share(3)(4)(5)
$0.11 - $0.13$0.50 - $0.54
Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 1
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Key Metrics
1.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.
2.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.
3.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement. 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.
4.Assumes weighted average diluted shares outstanding of 181.4 million in Q3 2026 and 180.3 million for the full year 2026.
5.Non-GAAP net income per share is calculated as Non-GAAP net income divided by weighted average diluted shares for 2026.
6.Our large customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
7.Current RPO % is calculated as RPO expected to be recognized over the next 12 months divided by total RPO.






Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 2
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Forward-Looking Statements

This investor supplement 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.
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, net gain on extinguishment of debt, impairment expense, restructuring charges, gain on modification of lease, 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, net gain on extinguishment of debt, impairment expense, executive transition costs, restructuring charges, 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.

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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, principal payments of finance lease liabilities, 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 adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. 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.
Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. 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.
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.
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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 investor supplement.

Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 5
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Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share data)

Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Revenue$137,206 $140,579 $144,474 $148,709 $158,223 $172,612 $173,021 $183,317 
Cost of revenue(1)
62,466 65,516 67,676 67,593 65,894 66,652 64,840 67,366 
Gross profit74,740 75,063 76,798 81,116 92,329 105,960 108,181 115,951 
Operating expenses:
Research and development(1)
31,884 32,742 37,429 42,221 41,421 41,591 41,972 42,071 
Sales and marketing(1)
45,994 50,050 49,313 51,100 49,998 51,023 55,114 56,735 
General and administrative(1)
27,173 26,154 28,235 24,323 29,698 28,436 34,990 31,578 
Impairment expense559 448 — 415 — — — — 
Restructuring charges
9,720 — — — — — — — 
Total operating expenses115,330 109,394 114,977 118,059 121,117 121,050 132,076 130,384 
Loss from operations(40,590)(34,331)(38,179)(36,943)(28,788)(15,090)(23,895)(14,433)
Net gain on extinguishment of debt— 1,365 — — — 941 — — 
Interest income3,819 3,267 2,975 3,084 3,080 3,151 2,927 2,842 
Interest expense(473)(1,231)(3,173)(3,164)(3,161)(3,201)(3,306)(3,348)
Other (expense) income, net(317)(815)(80)39 (55)(625)(380)(400)
Loss before income taxes
(37,561)(31,745)(38,457)(36,984)(28,924)(14,824)(24,654)(15,339)
Income tax expense (benefit)455 1,141 691 557 559 681 (4,130)252 
Net loss$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)$(20,524)$(15,591)
Net loss per share attributable to common stockholders, basic and diluted$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)$(0.10)$(0.13)$(0.10)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted139,237 141,085 143,284 145,780 148,129 150,324 153,579 157,596 
__________
(1)Includes stock-based compensation expense as follows:
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Cost of revenue$1,911 $1,910 $1,939 $2,573 $2,861 $2,764 $2,536 $2,757 
Research and development7,378 7,922 8,893 11,755 11,915 11,890 10,030 11,902 
Sales and marketing7,113 7,047 6,693 8,176 8,754 9,348 9,353 10,344 
General and administrative8,614 8,066 8,057 3,831 9,599 8,275 13,062 10,169 
Total$25,016 $24,945 $25,582 $26,335 $33,129 $32,277 $34,981 $35,172 


Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 6
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Reconciliation of GAAP to Non-GAAP Financial Measures – Quarterly
(unaudited, in thousands, except per share data)
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Gross profit
GAAP gross profit$74,740$75,063$76,798$81,116$92,329$105,960$108,181$115,951
Stock-based compensation expense and related employer payroll taxes(1)
1,9111,9101,9392,5732,8612,7642,7483,026
Amortization of capitalized stock-based compensation - cost of revenue1,3381,3711,6411,5811,6641,6621,6881,694
Amortization of acquired intangible assets2,4752,4752,4752,4752,475———
Non-GAAP gross profit$80,464$80,819$82,853$87,745$99,329$110,386$112,617$120,671
GAAP gross margin54.5%53.4%53.2%54.5%58.4%61.4%62.5%63.3%
Non-GAAP gross margin58.6%57.5%57.3%59.0%62.8%64.0%65.1%65.8%
Research and development
GAAP research and development$31,884$32,742$37,429$42,221$41,421$41,591$41,972$42,071
Stock-based compensation expense and related employer payroll taxes(1)
(7,378)(7,922)(8,893)(11,755)(11,915)(11,890)(11,388)(12,967)
Executive transition costs————(326)(221)——
Non-GAAP research and development$24,506$24,820$28,536$30,466$29,180$29,480$30,584$29,104
Sales and marketing
GAAP sales and marketing$45,994$50,050$49,313$51,100$49,998$51,023$55,114$56,735
Stock-based compensation expense and related employer payroll taxes(1)
(7,113)(7,047)(6,693)(8,176)(8,754)(9,348)(10,140)(10,869)
Amortization of acquired intangible assets(2,300)(2,299)(2,301)(2,279)(2,159)(2,159)(2,159)(2,160)
Executive transition costs——————(262)—
Non-GAAP sales and marketing$36,581$40,704$40,319$40,645$39,085$39,516$42,553$43,706
General and administrative
GAAP general and administrative$27,173$26,154$28,235$24,323$29,698$28,436$34,990$31,578
Stock-based compensation expense and related employer payroll taxes(1)
(8,614)(8,066)(8,057)(3,831)(9,599)(8,275)(13,592)(10,710)
Executive transition costs——(335)—(643)—(1,061)—
Gain on modification of lease———736————
Non-GAAP general and administrative$18,559$18,088$19,843$21,228$19,456$20,161$20,337$20,868
Operating income (loss)
GAAP operating loss$(40,590)$(34,331)$(38,179)$(36,943)$(28,788)$(15,090)$(23,895)$(14,433)
Stock-based compensation expense and related employer payroll taxes(1)
25,01624,94525,58226,33533,12932,27737,86837,572
Amortization of capitalized stock-based compensation - cost of revenue1,3381,3711,6411,5811,6641,6621,6881,694
Restructuring charges9,720———————
Executive transition costs——335—9692211,323—
Gain on modification of lease———(736)————
Amortization of acquired intangible assets4,7754,7744,7764,7544,6342,1592,1592,160
Impairment expense559448—415————
Non-GAAP operating income (loss)$818$(2,793)$(5,845)$(4,594)$11,608$21,229$19,143$26,993
Net income (loss)
GAAP net loss$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)$(20,524)$(15,591)
Stock-based compensation expense and related employer payroll taxes(1)
25,01624,94525,58226,33533,12932,27737,86837,572
Amortization of capitalized stock-based compensation - cost of revenue1,3381,3711,6411,5811,6641,6621,6881,694
Restructuring charges9,720———————
Executive transition costs——335—9692211,323—
Gain on modification of lease———(736)————
Amortization of acquired intangible assets4,7754,7744,7764,7544,6342,1592,1592,160
Net gain on extinguishment of debt—(1,365)———(941)——
Impairment expense559448—415————
Amortization of debt issuance costs358318217217216257401366
Non-GAAP net income (loss)$3,750$(2,395)$(6,597)$(4,975)$11,129$20,130$22,915$26,201
GAAP net loss per common share — basic and diluted$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)$(0.10)$(0.13)$(0.10)
Non-GAAP net income (loss) per common share — basic$0.03$(0.02)$(0.05)$(0.03)$0.08$0.13$0.15$0.17
Non-GAAP net income (loss) per common share — diluted$0.03$(0.02)$(0.05)$(0.03)$0.07$0.12$0.13$0.15
Weighted average basic common shares139,237141,085143,284145,780148,129150,324153,579157,596
Weighted average diluted common shares143,415141,085143,284145,780161,229164,074176,494180,304
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(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 – Quarterly (Continued)
(unaudited, in thousands, except per share data)

Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares139,237 141,085 143,284 145,780 148,129 150,324 153,579 157,596 
Other dilutive equity awards4,178 — — — 13,100 13,750 22,915 22,708 
Non-GAAP diluted shares143,415 141,085 143,284 145,780 161,229 164,074 176,494 180,304 
Non-GAAP diluted net income (loss) per share$0.03 $(0.02)$(0.05)$(0.03)$0.07 $0.12 $0.13 $0.15 

Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Adjusted EBITDA
GAAP net loss$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)$(20,524)$(15,591)
Stock-based compensation expense and related employer payroll taxes(1)
25,016 24,945 25,582 26,335 33,129 32,277 37,868 37,572 
Amortization of capitalized stock-based compensation - cost of revenue1,338 1,371 1,641 1,581 1,664 1,662 1,688 1,694 
Gain on modification of lease— — — (736)— — — — 
Depreciation and other amortization13,781 13,911 13,650 13,505 14,101 13,725 10,320 11,129 
Amortization of acquired intangible assets4,775 4,774 4,776 4,754 4,634 2,159 2,159 2,160 
Amortization of debt discount and issuance costs358 318 217 217 216 257 401 366 
Net gain on extinguishment of debt— (1,365)— — — (941)— — 
Impairment expense559 448 — 415 — — — — 
Executive transition costs— — 335 — 969 221 1,323 — 
Restructuring charges9,720 — — — — — — — 
Interest income(3,819)(3,267)(2,975)(3,084)(3,080)(3,151)(2,927)(2,842)
Interest expense115 913 2,956 2,947 2,945 2,944 2,905 2,982 
Other expense (income), net317 815 80 (39)55 625 380 400 
Income tax expense (benefit)455 1,141 691 557 559 681 (4,130)252 
Adjusted EBITDA$14,599 $11,118 $7,805 $8,911 $25,709 $34,954 $29,463 $38,122 
(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.

Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 8
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Non-GAAP Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share data)
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Revenue$137,206 $140,579 $144,474 $148,709 $158,223 $172,612 $173,021 $183,317 
Cost of revenue(1)(2)(3)
56,742 59,760 61,621 60,964 58,894 62,226 60,404 62,646 
Gross profit(1)(2)
80,464 80,819 82,853 87,745 99,329 110,386 112,617 120,671 
Operating expenses:
Research and development(1)(4)
24,506 24,820 28,536 30,466 29,180 29,480 30,584 29,104 
Sales and marketing(1)(3)(4)
36,581 40,704 40,319 40,645 39,085 39,516 42,553 43,706 
General and administrative(1)(4)(5)
18,559 18,088 19,843 21,228 19,456 20,161 20,337 20,868 
Total operating expenses(1)(2)(3)(4)(5)(6)(7)
79,646 83,612 88,698 92,339 87,721 89,157 93,474 93,678 
Income (loss) from operations(1)(2)(3)(4)(5)(6)(7)
818 (2,793)(5,845)(4,594)11,608 21,229 19,143 26,993 
Interest income3,819 3,267 2,975 3,084 3,080 3,151 2,927 2,842 
Interest expense(8)
(115)(913)(2,956)(2,947)(2,945)(2,944)(2,905)(2,982)
Other (expense) income, net(317)(815)(80)39 (55)(625)(380)(400)
Income (loss) before income taxes(1)(2)(3)(4)(5)(6)(7)(8)(9)
4,205 (1,254)(5,906)(4,418)11,688 20,811 18,785 26,453 
Income tax expense (benefit)455 1,141 691 557 559 681 (4,130)252 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)(9)
$3,750 $(2,395)$(6,597)$(4,975)$11,129 $20,130 $22,915 $26,201 
Net income (loss) per share attributable to common stockholders, basic
$0.03 $(0.02)$(0.05)$(0.03)$0.08 $0.13 $0.15 $0.17 
Net income (loss) per share attributable to common stockholders, diluted
$0.03 $(0.02)$(0.05)$(0.03)$0.07 $0.12 $0.13 $0.15 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic139,237141,085143,284145,780148,129150,324153,579157,596
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted143,415141,085143,284145,780161,229164,074176,494180,304

(1)Excludes stock-based compensation expense and related employer payroll taxes. See GAAP to Non-GAAP reconciliations.
(2)Excludes amortization of capitalized stock-based compensation - cost of revenue. See GAAP to Non-GAAP reconciliations.
(3)Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(4)Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(5)Excludes gain on modification of lease. See GAAP to Non-GAAP reconciliations.
(6)Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(7)Excludes restructuring charges. See GAAP to Non-GAAP reconciliations.
(8)Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(9)Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.


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Consolidated Balance Sheets – Quarterly
(unaudited, in thousands)
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Assets
Current assets:
Cash and cash equivalents$217,514 $286,175 $125,484 $82,487 $113,131 $180,563 $146,670 $89,798 
Marketable securities
90,733 9,707 181,808 238,721 229,780 181,196 183,819 247,700 
Accounts receivable, net of allowance for credit losses116,800 115,988 119,035 117,318 109,184 118,029 130,037 114,216 
Prepaid expenses and other current assets28,011 28,325 26,243 26,137 27,689 26,921 29,560 27,333 
Total current assets453,058 440,195 452,570 464,663 479,784 506,709 490,086 479,047 
Property and equipment, net180,288 179,097 177,876 181,770 182,896 186,785 215,911 220,354 
Operating lease right-of-use assets, net47,700 50,433 48,802 54,001 53,050 52,067 57,697 58,213 
Goodwill670,356 670,356 670,356 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net47,776 42,876 37,976 32,814 28,055 25,771 23,494 21,232 
Other assets72,576 68,402 61,665 59,573 56,461 57,789 55,984 54,441 
Total assets$1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 $1,499,477 $1,513,528 $1,503,643 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$11,354 $6,044 $9,802 $13,344 $10,829 $17,612 $39,006 $20,124 
Accrued expenses40,854 41,622 37,165 45,282 60,421 70,669 45,523 52,937 
Long-term debt, current— — 187,871 188,051 188,232 38,557 — — 
Finance lease liabilities, current4,882 2,328 617 80 — — — — 
Operating lease liabilities, current23,857 25,155 26,988 23,673 23,676 24,427 28,107 30,100 
Deferred revenue
— — — — — 35,234 39,560 34,266 
Other current liabilities33,261 29,307 38,442 42,373 45,757 7,499 11,244 5,096 
Total current liabilities114,208 104,456 300,885 312,803 328,915 193,998 163,440 142,523 
Long-term debt, net
344,498 337,614 149,874 149,883 149,893 323,282 323,620 323,958 
Operating lease liabilities, non-current40,565 39,561 36,615 48,577 47,106 43,921 46,019 44,234 
Other long-term liabilities3,029 4,478 4,848 9,267 7,723 8,698 3,303 2,111 
Total liabilities502,300 486,109 492,222 520,530 533,637 569,899 536,382 512,826 
Stockholders’ equity:
Common stock3 3 3 3 3 3 3 3 
Additional paid-in capital1,929,397 1,958,157 1,989,108 2,012,312 2,035,956 2,044,103 2,112,577 2,141,909 
Accumulated other comprehensive loss(22)(100)(130)(169)(12)(41)(423)(493)
Accumulated deficit(959,924)(992,810)(1,031,958)(1,069,499)(1,098,982)(1,114,487)(1,135,011)(1,150,602)
Total stockholders’ equity969,454 965,250 957,023 942,647 936,965 929,578 977,146 990,817 
Total liabilities and stockholders’ equity$1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 $1,499,477 $1,513,528 $1,503,643 






Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 10
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Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)

Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Cash flows from operating activities:
Net loss$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)$(20,524)$(15,591)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense13,656 13,786 15,167 14,962 15,639 15,263 11,892 12,720 
Amortization of intangible assets4,900 4,900 4,900 4,878 4,759 2,284 2,277 2,262 
Non-cash lease expense5,463 5,655 5,655 5,694 5,476 5,620 6,198 6,887 
Amortization of debt discount and issuance costs358 316 217 217 216 256 401 366 
Amortization of deferred contract costs4,773 4,746 4,850 4,847 4,869 4,803 4,758 4,733 
Stock-based compensation25,016 24,945 25,582 26,335 33,129 32,277 34,981 35,172 
Deferred income taxes
339 893 422 327 289 395 (4,330)(23)
Provision for credit losses1,054 1,434 946 1,048 1,236 951 1,518 1,014 
Loss (gain) on disposals of property and equipment— 96 — (43)— 229 276 (9)
Accretion of discounts and amortization of premiums, net(1,064)(507)(626)(1,356)(1,305)(1,416)(798)(1,019)
Impairment of operating lease right-of-use assets371 — — — — — — — 
Impairment expense559 448 — 415 — — — — 
Net gain on extinguishment of debt— (1,365)— — — (941)— — 
Non-cash interest expense— 840 2,906 969 2,906 969 2,906 969 
Other adjustments520 (897)376 (84)(189)446 (218)(57)
Changes in operating assets and liabilities:
Accounts receivable, net
(3,976)(622)(3,993)669 6,898 (9,796)(13,526)14,807 
Prepaid expenses and other current assets(2,589)(207)2,216 121 (1,526)768 (2,639)2,227 
Other assets(2,705)(4,140)(2,095)(6,076)(4,820)(6,554)1,350 (3,195)
Accounts payable4,754 (3,903)2,575 3,446 (2,741)1,209 6,812 1,497 
Accrued expenses2,707 1,220 (3,383)1,577 1,339 20 3,523 (2,651)
Operating lease liabilities(7,329)(7,200)(5,556)(2,332)(5,774)(7,045)(5,809)(7,114)
Other liabilities(3,789)(2,332)6,277 7,725 (1,994)(1,799)(182)(13,661)
Net cash provided by operating activities5,002 5,220 17,288 25,798 28,924 22,434 28,866 39,334 
Cash flows from investing activities:
Purchases of marketable securities(37,902)— (179,486)(93,440)(79,136)(37,775)(179,340)(87,262)
Sales of marketable securities— — — — 18,128 7,808 — — 
Maturities of marketable securities113,032 81,480 7,969 37,836 71,417 79,954 177,143 24,329 
Purchases of property and equipment(1,996)(4,969)(2,605)(9,852)(6,046)(10,191)(21,021)(31,623)
Proceeds from sale of property and equipment— — — 44 — — — 10 
Capitalized internal-use software(6,818)(5,602)(4,763)(4,542)(4,707)(3,645)(3,736)(4,148)
Net cash provided by (used in) investing activities
66,316 70,909 (178,885)(69,954)(344)36,151 (26,954)(98,694)
Cash flows from financing activities:
Repayment of convertible senior notes— — — — — — (38,593)— 
Proceeds from issuance of convertible notes— — — — — 180,000 — — 
Payments of other debt issuance costs— (5,729)— — — (5,924)(502)— 
Cash paid for debt extinguishment— — — — — (148,875)— — 
Payments for purchase of capped calls— — — — — (18,162)— — 
Repayments of finance lease liabilities(3,296)(2,554)(1,711)(537)(80)— — — 
Proceeds from exercise of vested stock options19 805 408 279 71 286 1,043 92 
Proceeds from employee stock purchase plan2,168 161 2,131 1,240 2,106 1,529 2,279 2,397 
Net cash (used in) provided by financing activities(1,109)(7,317)828 982 2,097 8,854 (35,773)2,489 
Effects of exchange rate changes on cash and cash equivalents109 (151)78 177 (33)(7)(32)(1)
Net increase (decrease) in cash and cash equivalents70,318 68,661 (160,691)(42,997)30,644 67,432 (33,893)(56,872)
Cash and cash equivalents at beginning of period147,196 217,514 286,175 125,484 82,487 113,131 180,563 146,670 
Cash and cash equivalents at end of period$217,514 $286,175 $125,484 $82,487 $113,131 $180,563 $146,670 $89,798 

Fastly Q2 2026 Earnings Investor Supplement (8/5/2026)                    Page 11
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Free Cash Flow
(unaudited, in thousands)
Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Net cash provided by operating activities$5,002 $5,220 $17,288 $25,798 $28,924 $22,434 $28,866 $39,334 
Capital expenditures(1):
Purchases of property and equipment(1,996)(4,969)(2,605)(9,852)(6,046)(10,191)(21,021)(31,623)
Proceeds from sale of property and equipment— — — 44 — — — 10 
Capitalized internal-use software(6,818)(5,602)(4,763)(4,542)(4,707)(3,645)(3,736)(4,148)
Repayments of finance lease liabilities(3,296)(2,554)(1,711)(537)(80)— — — 
Free Cash Flow$(7,108)$(7,905)$8,209 $10,911 $18,091 $8,598 $4,109 $3,573 
__________
(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.


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