Fastly (FSLY) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $158.2 million, up 15% year-over-year, surpassing guidance high end.

• Gross margin improved to 62.8% non-GAAP and 58.4% GAAP, both up year-over-year.

• Free cash flow reached $18.1 million, a significant turnaround from negative free cash flow a year ago.

• Enterprise customer count rose to 627, accounting for 94% of Q3 revenue.

• Raised full-year guidance for revenue, profitability, and free cash flow due to strong Q3 performance.

Financial highlights

• Revenue grew 15% year-over-year to $158.2 million, above guidance.

• Gross margin was 62.8% non-GAAP (up from 58.6%) and 58.4% GAAP (up from 54.5%).

• Operating income was $11.6 million; net profit was $11.1 million non-GAAP, while GAAP net loss narrowed to $29.5 million.

• Adjusted EBITDA was $25.7 million, up from $14.6 million a year ago.

• Cash, equivalents, and investments totaled $343 million, up $22 million sequentially.

Outlook and guidance

• Q4 2025 revenue expected at $159M-$163M, with non-GAAP operating profit of $8M-$12M.

• Full-year 2025 revenue guidance raised to $610M-$614M; non-GAAP operating profit $9M-$13M; free cash flow $25M-$35M.

• Cash CapEx for 2025 expected at 10%-11% of revenue.

• Management expects continued investment in platform innovation, sales, and international expansion.