Record first quarter revenue of $173 million grew 20% year over year
Record first quarter gross margin of 62.5% and record non-GAAP gross margin of 65.1%
Record RPO of $369 million grew 63% year over year
SAN FRANCISCO--(BUSINESS WIRE)--May 06, 2026--
Fastly, Inc. $(FSLY)$, a leader in global edge cloud platforms, today announced financial results for its first quarter ended March 31, 2026.
"Our first quarter performance demonstrates continued discipline and velocity as we delivered record revenue, gross margin, and RPO," said Kip Compton, CEO at Fastly. "Driven by an accelerated innovation roadmap, we delivered 47% year-over-year security revenue growth. This performance reflects expansion within our installed base and robust new business wins, enabling us to raise our 2026 guidance."
Three months ended
March 31,
----------------------
2026 2025
--------- -----------
Revenue $173,021 $144,474
Gross margin
GAAP gross margin 62.5 % 53.2 %
Non-GAAP gross margin(1) 65.1 % 57.3 %
Operating loss
GAAP operating loss $(23,895) $(38,179)
Non-GAAP operating income (loss)(1) $ 19,143 $ (5,845)
Net income (loss) per share
GAAP net loss per common share -- basic
and diluted $ (0.13) $ (0.27)
Non-GAAP net income (loss) per common
share -- basic(1) $ 0.15 $ (0.05)
Non-GAAP net income (loss) per common
share -- diluted(1) $ 0.13 $ (0.05)
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.
First Quarter 2026 Financial Summary
-- Total revenue of $173.0 million, representing 20% year-over-year
growth. Network Services revenue of $126.2 million, representing 11%
year-over-year growth. Security revenue of $38.8 million, representing
47% year-over-year growth. Other revenue of $8.0 million, representing
67% 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 $28.9 million of operating cash flow compared to $17.3
million of operating cash flow in the first quarter of 2025. Generated
$4.1 million of positive free cash flow compared to $8.2 million in the
first quarter of 2025.
-- GAAP gross margin of 62.5%, compared to 53.2% in the first quarter of
2025. Non-GAAP gross margin1 of 65.1%, compared to 57.3% in the first
quarter of 2025.
-- GAAP net loss of $20.5 million, compared to $39.1 million in the first
quarter of 2025. Non-GAAP net income1 of $22.9 million, compared to
non-GAAP net loss1 of $6.6 million in the first quarter of 2025.
-- GAAP net loss per basic and diluted share of $0.13, compared to $0.27
in the first quarter of 2025. Non-GAAP net income per basic share1 of
$0.15, compared to non-GAAP net loss per basic share1 of $0.05 in the
first quarter of 2025. Non-GAAP net income per diluted share1 of $0.13,
compared to non-GAAP net loss per diluted share1 of $0.05 in the first
quarter of 2025.
Key Metrics
-- Remaining Performance Obligations (RPO)2 were $369 million, up 63% from
$226 million in the first quarter of 2025.
-- Large customer count3 was 634 in the first quarter, up 39 from the
first quarter of 2025.
-- Fastly's top ten customers accounted for 34% of revenue in the first
quarter of 2026 compared to 33% in the first quarter of 2025. Revenue
from the top ten customers increased 25% year-over-year compared to
revenue growth of 17% year-over-year from customers outside the top ten.
-- Last 12-month net retention rate (LTM NRR)4 increased to 113% in the
first quarter from 110% in the fourth quarter of 2025.
First Quarter Business and Product Highlights
-- Fastly appointed Joan Jenkins as Chief Marketing Officer to help
accelerate global growth and strengthen its leadership in edge computing,
security, and AI, bringing the Fastly platform story to a global
audience.
-- Fastly was named a Leader in "The Forrester Wave$(TM)$: Edge Development
Platforms, Q1 2026 Report," receiving one of the highest overall
evaluation scores and was the only company to receive a "halo"
designation, indicating superior customer feedback.
-- Expanded Bot Management with Content Guard, securing the AI bot
landscape by blocking unauthorized AI agents to monetize IP and provide
publishers precise control through unmatched visibility into all
automated traffic.
-- Enhanced the API Security suite by adding prioritization tools, bulk
actions, and CI/CD integrations to API Discovery, enabling stronger
visibility of "shadow APIs" in enterprise ecosystems.
-- Enhanced our Compute & Security offerings by adding popular coding
languages to expand security layer utility across diverse developer use
cases.
-- Launched the Fastly Agent Toolkit, equipping AI coding agents with
Fastly-specific "skills" to accelerate the customer development lifecycle,
deployment and time-to-value on our platform.
Second Quarter and Full Year 2026 Guidance
Q2 2026 Full Year 2026
--------------- ---------------
Total Revenue (millions) $170.0 - $176.0 $710.0 - $725.0
Non-GAAP Operating Income (millions) $12.0 - $16.0 $58.0 - $68.0
Non-GAAP Net Income per share(5)(6) $0.05 - $0.08 $0.27 - $0.33
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, May 6, 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 improve liquidity; 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; the performance, capabilities, and expectations regarding customer experiences with Bot Management with Content Guard, the API Security suite, including API Discovery, Next-Gen WAF, Fastly Agent Toolkit and its ability to enable coding agents to work with Fastly, and Object Storage; 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 March 31, 2026, and other filings
(MORE TO FOLLOW) Dow Jones Newswires
May 06, 2026 16:05 ET (20:05 GMT)