📊 FSLY Key Takeaways
Is Fastly, Inc. (FSLY) a Good Investment?
Fastly demonstrates strong revenue growth (14.8% YoY) with excellent gross margins (62.5%) and narrowing losses, supported by positive free cash flow generation and a solid balance sheet. However, the company remains unprofitable at the operating level with negative interest coverage, requiring demonstrated momentum toward profitability to justify a more constructive stance.
Fastly shows credible top-line momentum with 14.8% revenue growth and solid cash generation, including positive operating cash flow and a 10.5% free cash flow margin. However, the business remains meaningfully unprofitable at the operating and net income levels, and negative interest coverage indicates that earnings quality and fixed-charge absorption still need improvement before the fundamentals look clearly stronger.
Why Buy Fastly, Inc. Stock? FSLY Key Strengths
- Strong revenue growth (14.8% YoY) with improving profitability trajectory (net loss improving 23% YoY, EPS improving 27.2% YoY)
- Excellent gross margins (62.5%) indicating strong unit economics, pricing power, and product/market fit typical of high-quality SaaS
- Positive free cash flow ($7.8M) and operating cash flow ($28.9M) despite accounting losses, suggesting losses are non-cash driven with sustainable cash generation
- Strong balance sheet: $146.7M cash, 3.0x current ratio, and reasonable leverage (0.33x debt/equity) providing financial flexibility
- Revenue growth remains healthy, suggesting continued demand and customer expansion
- Positive operating cash flow and free cash flow indicate improving cash conversion despite GAAP losses
- Liquidity is solid with a 2.61x current ratio and leverage remains manageable at 0.35x debt-to-equity
FSLY Stock Risks: Fastly, Inc. Investment Risks
- Significant profitability gap with negative operating margin (-13.8%) and inability to cover interest expenses with operating income (interest coverage -7.2x), raising sustainability concerns
- Negative returns on equity (-2.1%) and assets (-1.4%) indicating current value destruction despite positive cash flow
- Low free cash flow margin (4.5%) leaves minimal margin for error; path to sustained profitability remains unproven with downside risk if growth momentum slows
- Operating and net margins remain deeply negative, showing the business has not reached sustainable profitability
- Interest coverage is negative, indicating current earnings do not support financing costs well
- Net income remains weak despite revenue growth, raising concern about the pace of operating leverage improvement
Key Metrics to Watch
- Operating margin progression toward positive territory and timeline to operating profitability
- Interest coverage ratio improvement and ability to generate positive operating income
- Revenue growth sustainability, gross margin maintenance, and customer unit economics
- Operating margin trend and progress toward sustained GAAP profitability
- Free cash flow margin durability alongside revenue growth
Fastly, Inc. (FSLY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.00x current ratio provides a solid financial cushion.
FSLY Profit Margin, ROE & Profitability Analysis
FSLY vs Technology Sector: How Fastly, Inc. Compares
How Fastly, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fastly, Inc. Stock Overvalued? FSLY Valuation Analysis 2026
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.
Fastly, Inc. Balance Sheet: FSLY Debt, Cash & Liquidity
FSLY Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
FSLY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $144.5M | -$20.5M | $-0.13 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fastly, Inc. Dividends, Buybacks & Capital Allocation
FSLY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fastly, Inc. (CIK: 0001517413)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FSLY
What is the AI rating for FSLY?
Fastly, Inc. (FSLY) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FSLY's key strengths?
Claude: Strong revenue growth (14.8% YoY) with improving profitability trajectory (net loss improving 23% YoY, EPS improving 27.2% YoY). Excellent gross margins (62.5%) indicating strong unit economics, pricing power, and product/market fit typical of high-quality SaaS. ChatGPT: Revenue growth remains healthy, suggesting continued demand and customer expansion. Positive operating cash flow and free cash flow indicate improving cash conversion despite GAAP losses.
What are the risks of investing in FSLY?
Claude: Significant profitability gap with negative operating margin (-13.8%) and inability to cover interest expenses with operating income (interest coverage -7.2x), raising sustainability concerns. Negative returns on equity (-2.1%) and assets (-1.4%) indicating current value destruction despite positive cash flow. ChatGPT: Operating and net margins remain deeply negative, showing the business has not reached sustainable profitability. Interest coverage is negative, indicating current earnings do not support financing costs well.
What is FSLY's revenue and growth?
Fastly, Inc. reported revenue of $173.0M.
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 $-0.13.
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 May 2026, Fastly, Inc. has a HOLD rating with 74% 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 -2.1% (sector avg: 22%), net margin of -11.9% (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 $28.9M, with capital expenditures of $21.0M. FCF margin is 4.5%.
How does FSLY compare to other Technology stocks?
Vs Technology sector averages: Net margin -11.9% (avg: 18%), ROE -2.1% (avg: 22%), current ratio 3.00 (avg: 2.5).