Cloud computing firm Fastly beats Q3 revenue estimates

Fastly

05/11/2025 21:35

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/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$158.22 mln
$150.80 mln (9 Analysts)
Q3 Adjusted EPS
$0.08
Q3 EPS
-$0.20
Q3 Net Income
-$29.48 mln
Q3 Gross Margin
58.40%
Q3 Gross Profit
$92.33 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 is $7.75, about 2.7% below its November 4 closing price of $7.96

Press Release: ID:nBwb04krba

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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.)