Fastly (FSLY) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of $173M, up 23% year-over-year, and full-year revenue of $624M, marking the highest annual growth in over three years.

• Delivered record gross margin of 64% and all-time high operating margin and income, resulting in the first profitable fiscal year.

• Security revenue growth accelerated to 32% year-over-year, with new product launches and cross-sell momentum driving multi-product adoption.

• AI-related traffic and workloads are increasing, positioning the platform to benefit from the rise of agentic AI and edge intelligence.

• Recognized as a leader in edge delivery and security by major industry analysts and customers.

Financial highlights

• Q4 revenue: $172.6M, up 23% year-over-year; annual revenue: $624M, up 15% from 2024.

• Q4 gross margin: 64%, up 650 bps year-over-year; full-year gross margin: 60.9%.

• Q4 operating income: $21.2M; Q4 net profit: $20.1M ($0.12/diluted share) vs. net loss prior year.

• Q4 adjusted EBITDA: $35M; full-year adjusted EBITDA: $77.4M.

• Q4 free cash flow: $8.6M; full-year free cash flow: $45.8M, a swing of $81.6M year-over-year.

Outlook and guidance

• Q1 2026 revenue guidance: $168M–$174M (18% annual growth at midpoint); gross margin: 64% ±50 bps.

• Full-year 2026 revenue guidance: $700M–$720M (14% annual growth at midpoint); gross margin: 63% ±50 bps.

• 2026 non-GAAP operating profit: $50M–$60M (8% margin midpoint); non-GAAP EPS: $0.23–$0.29; free cash flow: $40M–$50M.

• Infrastructure CapEx for 2026 expected at 10%–12% of revenue, up from 5% in 2025, with spend front-loaded due to supply chain constraints.

• Q1 2026 non-GAAP net income per share: $0.07–$0.10.