Fastly's Third-Quarter Growth Eases After a Record Quarter

The Tip Desk · November 11, 2026 · 2 min read

Revenue reached a record $190.2 million, up 20% from a year earlier, as non-GAAP operating income reached $31.2 million.

Fastly, Inc. (FSLY), a provider of global edge cloud platforms, reported record third-quarter revenue of $190.2 million, up 20% from a year earlier after 23% year-over-year growth in the second quarter.

The company said the results reflected continued customer adoption and deeper use of its platform. Chief executive Kip Compton said record revenue and free cash flow demonstrated the value proposition as customers built for AI scale.

Network Services, which includes solutions for websites, apps, APIs and digital media, generated $138.0 million, up 16% from a year earlier. Security revenue was $44.7 million, up 32%. Other revenue, which includes Compute and Observability, was $7.4 million, up 37%.

GAAP gross margin held at a record 63.3% and non-GAAP gross margin at a record 65.8%, matching the prior quarter’s record levels. GAAP loss from operations narrowed to $11.3 million, or 5.9% of revenue, from a $14.4 million GAAP operating loss in the second quarter. Non-GAAP income from operations was $31.2 million, or 16.4% of revenue, compared with $27.0 million in the prior quarter.

GAAP net loss was $11.3 million, or $0.07 a share. Non-GAAP net income was $31.6 million, or $0.20 a share on a basic basis and $0.17 a share on a diluted basis.

Operating cash flow was $40.0 million. Positive free cash flow was $25.2 million, compared with $3.6 million in the second quarter.

Last 12-month net retention rate rose to 119%, the highest level since 2022, from 117% in the second quarter. Multiproduct adoption among large customers reached 74% for two or more product suites and 34% for four or more product suites. Remaining performance obligations were $334 million. Top ten customers accounted for 39% of revenue.

The company launched AI Runtime Control, AI Firewall and new API Security capabilities and partnered with Comcast to integrate Fastly software into Comcast’s nationwide network for edge delivery and AI services.

For the fourth quarter of 2026, Fastly guides total revenue of $198.0 million to $202.0 million, non-GAAP income from operations of $30.0 million to $34.0 million, and non-GAAP net income per share of $0.16 to $0.18. Full-year 2026 revenue is guided at $744.0 million to $748.0 million.