Fastly (FSLY) 47th Annual Raymond James Institutional Investor Conference summary

Edge cloud platform evolution and industry trends

• Edge cloud platforms focus on metro-area data centers, offering performance gains and cost savings by reducing reliance on central cloud egress traffic.

• The platform has evolved from content delivery (CDN) to security at the edge, and now to compute and inference at the edge, enhancing performance and enabling new use cases.

• Increasing complexity in edge traffic, especially with AI and security, is creating higher barriers to entry and supporting a healthier pricing environment.

Financial performance and operational improvements

• Achieved fourth consecutive quarter of revenue re-acceleration, with overall revenue growth in the 23% range and record gross margins of 64%.

• All business lines—network services, security, and compute/observability—showed strong year-on-year growth, with security up 32% and compute/observability up 78%.

• Delivered 15% year-over-year revenue growth in 2025 while reducing sales and marketing expenses, reflecting improved operational efficiency.

• Free cash flow positive for all four quarters, with a strengthened balance sheet and over $350 million in cash.

Strategic initiatives and product expansion

• Broadened product portfolio from one to five security products in the past two years, supporting cross-selling and improved RFP competitiveness.

• Revamped go-to-market strategy and commission plans to incentivize cross-selling, resulting in accelerated growth in both top 10 and non-top 10 customer cohorts.

• Security-first customers span various sizes and verticals, with the web application API protection market remaining under-penetrated.