📊 FSLY Key Takeaways
Is FSLY a Good Investment? Thesis Analysis
Fastly demonstrates strong revenue growth (14.8% YoY) and solid gross margins (57.1%), with positive free cash flow generation ($65.8M) indicating operational efficiency. However, persistent operating losses (-19.1% margin) and negative net income (-$121.7M) reveal the company has not achieved profitability despite scale, presenting a critical execution risk for a mature SaaS platform.
Why Buy FSLY? Key Strengths
- Revenue growth of 14.8% YoY shows demand for core CDN/edge computing services
- Gross margin of 57.1% demonstrates pricing power and scalable unit economics
- Positive free cash flow of $65.8M (10.5% FCF margin) indicates operational cash generation despite GAAP losses
- Strong balance sheet with $180.6M cash, 2.61x current ratio, and reasonable 0.35x debt/equity leverage
- Operating cash flow of $94.4M covers capex 3.3x, suggesting sustainable core business
FSLY Investment Risks to Consider
- Persistent operating losses (-$119.0M) and negative net income (-$121.7M) indicate structural profitability challenges after years of operation
- Operating margin of -19.1% and negative ROE (-13.1%) show the company is destroying shareholder value despite revenue growth
- High insider trading activity (36 Form 4 filings in 90 days) may signal management concerns about valuation or business trajectory
- Negative interest coverage ratio (-9.4x) indicates inability to cover debt service from operating earnings, relying on balance sheet reserves
- No clear path to profitability visible; company appears to be trading growth against losses indefinitely
Key Metrics to Watch
- Operating margin trend toward positive territory or deterioration toward -25%+
- Free cash flow sustainability as revenue growth moderates
- Cash burn rate and runway given current cash balance of $180.6M
- Customer concentration and churn rates driving revenue quality
- Operating expense reduction initiatives and path to operating breakeven
FSLY Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.61x current ratio provides a solid financial cushion.
FSLY Profitability Ratios
FSLY vs Technology Sector
How Fastly, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FSLY Overvalued or Undervalued?
Based on fundamental analysis, Fastly, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FSLY Balance Sheet & Liquidity
FSLY 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Fastly, Inc.'s revenue has grown significantly by 76% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.03 indicates the company is currently unprofitable.
FSLY Growth Metrics (YoY)
FSLY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $137.2M | -$29.5M | $-0.20 |
| Q2 2025 | $132.4M | -$37.5M | $-0.26 |
| Q1 2025 | $133.5M | -$39.1M | $-0.27 |
| Q3 2024 | $127.8M | -$38.0M | $-0.27 |
| Q2 2024 | $122.8M | -$10.7M | $-0.08 |
| Q1 2024 | $117.6M | -$43.4M | $-0.32 |
| Q3 2023 | $108.5M | -$54.3M | $-0.42 |
| Q2 2023 | $102.5M | -$10.7M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FSLY Capital Allocation
FSLY SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Fastly, Inc. (CIK: 0001517413)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773952217.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773433109.xml | View → |
| Mar 11, 2026 | 4 | xslF345X05/wk-form4_1773261278.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773175952.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773175946.xml | View → |
❓ Frequently Asked Questions about FSLY
What is the AI rating for FSLY?
Fastly, Inc. (FSLY) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSLY's key strengths?
Claude: Revenue growth of 14.8% YoY shows demand for core CDN/edge computing services. Gross margin of 57.1% demonstrates pricing power and scalable unit economics.
What are the risks of investing in FSLY?
Claude: Persistent operating losses (-$119.0M) and negative net income (-$121.7M) indicate structural profitability challenges after years of operation. Operating margin of -19.1% and negative ROE (-13.1%) show the company is destroying shareholder value despite revenue growth.
What is FSLY's revenue and growth?
Fastly, Inc. reported revenue of $624.0M.
Does FSLY pay dividends?
Fastly, Inc. does not currently pay dividends.
Where can I find FSLY SEC filings?
Official SEC filings for Fastly, Inc. (CIK: 0001517413) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FSLY's EPS?
Fastly, Inc. has a diluted EPS of $-0.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FSLY a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Fastly, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FSLY stock overvalued or undervalued?
Valuation metrics for FSLY: ROE of -13.1% (sector avg: 22%), net margin of -19.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FSLY stock in 2026?
Our dual AI analysis gives Fastly, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FSLY's free cash flow?
Fastly, Inc.'s operating cash flow is $94.4M, with capital expenditures of $28.7M. FCF margin is 10.5%.
How does FSLY compare to other Technology stocks?
Vs Technology sector averages: Net margin -19.5% (avg: 18%), ROE -13.1% (avg: 22%), current ratio 2.61 (avg: 2.5).