Fastly presented its latest financial and operational results Wednesday at Citigroup's 2026 Global TMT Conference ahead of a scheduled investor day on September 22 at the Nasdaq MarketSite in New York City.
The edge-cloud provider reported total revenue of $183 million for its most recent quarter, representing 23.3% year-over-year growth. Gross margin reached a record 65.8%, while operating margin came in at approximately 15%. Fastly has posted operating profit for four consecutive quarters and positive free cash flow for six straight quarters.
"We've really hit a reset on the business, a lot of transformation," CFO Rich Wong said. "We've accelerated revenue growth."
Gross margin flow-through over the trailing twelve months was 96%, according to Wong. The company's capital spending ranges from 10% to 12% of revenue, with absolute capex up 40% to 45% year-over-year.
Net revenue retention stood at 117%, which Wong described as a three- to four-year high for the company. The top 10 customers account for 37% of revenue; Wong noted that their net revenue retention rate likely exceeds the companywide figure.
Revenue by segment showed Delivery Services — Fastly's network services platform — generating $133.6 million, or 73% of total revenue, up 17% year-over-year. Security revenue reached $42.1 million (23% of total), growing 43% year-over-year. Other and Compute contributed $7.3 million (4%), up 69% year-over-year, with a quarterly run rate scaling to approximately $7 million. Combined security and other revenue represents a $49.4 million run rate growing north of 50%.
Remaining performance obligations rose 38% year-over-year, with current RPO up 44%. The company holds a current ratio of 3.36 and a debt-to-equity ratio of 0.4.
Fastly operates 166 points of presence globally. Its security portfolio has expanded from one product two years ago — a web application firewall — to five: WAF, DDoS protection, bot management, API security, and client-side protection. The company also launched ContentGuard, a tool aimed at helping publishers control access to and monetize traffic from AI-driven content scrapers and bots.
Machine-generated traffic, including AI and bot requests, increased sixfold on a request basis. Delivery pricing has remained broadly stable over the past three to four quarters, declining mid- to high-single digits year-over-year and offset by volume growth.
Per InvestingPro data cited at the conference, Fastly's stock had returned 181% over the past year, trading at $21.49 with a market capitalization of $3.42 billion. Eleven analysts have revised earnings estimates upward.
The conference also featured leadership transitions: Kip, formerly chief product officer, now serves as CEO; Scott Lovett took over as president of go-to-market, replacing his role as CRO; Kelly Shortridge was promoted internally to chief product officer; and Hossein was promoted internally to head of engineering. Vern Essi remains head of investor relations.
