Fastly CFO Cites 23.3% Revenue Growth, Record 65.8% Gross Margin

EarningsAnalyst
โดย MarketBeat·US·Read original
Summary · why it matters

Fastly CFO Rich Wong said the edge cloud provider has accelerated revenue growth, expanded margins and generated positive free cash flow as management reshaped operating processes during his first 13 months at the company. Speaking at Citi's TMT Conference, Wong said Fastly reported $183 million in revenue in its most recent quarter, up 23.3% year over year, with delivery revenue up 17%, security revenue up 43% and the company's other segment, which includes compute and observability, up 69%. Fastly posted record gross margin of 65.8% in the quarter along with about 15% operating margin, and has now delivered four consecutive profitable quarters and six straight quarters of positive free cash flow. Network services, the delivery business, represented 73% of quarterly revenue, security accounted for about 23%, and the remainder came from the other category, with security and other revenue combined at nearly $50 million and growing more than 50% year over year, while compute was about $7 million and remains the fastest-growing product area. Wong also said remaining performance obligations grew 38% year over year and current remaining performance obligations rose 44%, net retention rate was 117% in the most recent quarter, and Fastly expects capital expenditures equal to 10% to 12% of revenue, an approximately 40% to 45% year-over-year increase in spending.

Impact on stocks 2

Cloud & Digital Infrastructure▲ · 1 stocks
Fastly, Inc. Class A Common Stock
FSLY
▲ PositiveCapitalrelevance

Fastly reported 23.3% revenue growth, record 65.8% gross margin, four straight profitable quarters and positive free cash flow.

Cybersecurity & Digital Trust▲ · 1 stocks

Theme Impact 3

Related news

Qualcomm Joins WEDA Edge AI Ecosystem, Signs Vietnam Agreements

Qualcomm has joined Advantech and other partners in the new WEDA edge AI ecosystem, an alliance aimed at supporting scalable deployments across varied hardware by standardising tools and reference designs for industrial and enterprise use cases. Qualcomm is also participating in up to 29 cross-sector agreements between US and Vietnamese firms announced during a recent state visit. The company develops and licenses wireless technologies that underpin mobile devices and connected equipment, and the moves tie its core wireless IP to new industrial and enterprise computing uses. Whether the WEDA ecosystem projects and Vietnam partnerships turn into disclosed design wins or revenue targets in segments like industrial IoT and AI edge devices over the next few reporting periods, rather than staying at the memorandum of understanding stage, remains to be seen.
QCOM ▲2395.TW ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure
Simply Wall St·2hRead more →
▲impact 4

Cloudflare Says AI Agent Traffic Tops 50% as Q2 Revenue Jumps 36%

Cloudflare said more than 50% of the traffic flowing across its network was nonhuman in the second quarter of 2026, reflecting rapid growth in AI agents and machine-to-machine traffic. The company ended the quarter with more than 7.4 million developers on its Workers platform, adding nearly two million in the quarter alone, and management said Workers remains one of the fastest-growing parts of its business. Cloudflare also introduced Monetization Gateway, Wallets and cloudflare.pay during the quarter to support transactions between AI agents, businesses and content providers. Second-quarter revenues increased 36% year over year, while dollar-based net retention reached 120%, and management said its total addressable market has expanded to more than $300 billion from $30 billion at the time of its IPO. The Zacks Consensus Estimate points to Cloudflare revenue growth of 32.5% in 2026 and 28.6% in 2027, with 2026 earnings estimated at $1.26 per share, up 35.5% from the prior year.
NET ▲
Cloud & Digital Infrastructure ▲Artificial Intelligence ▲
Zacks Investment Research·16hRead more →
▲

Xeal Launches Laitent, World's First Edge Inference Compute Network Using Idle EV Charging Capacity

Xeal launched Laitent, which it calls the world's first edge inference compute network using idle EV charging capacity, tapping more than 200MW of permitted, installed electrical infrastructure across 1,600+ properties. Xeal, a member of NVIDIA Inception, plans to deploy over 100,000 NVIDIA GPUs alongside EV charging infrastructure, and has secured partnerships with Rafay Systems for AI infrastructure orchestration, Spectrum Business for dedicated enterprise-grade fiber, dozens of real estate and property managers, and a Tier 1 inference provider for up to 5MW of compute. The first Laitent Pod will be brought online with partner JVM Realty by the end of 2026. Each Laitent Pod is about the size of one parking space, contains up to 48 NVIDIA Hopper or Blackwell Ultra GPUs, requires no water hookup, and runs quiet at less than 65 decibels, offering sub-20ms latency in metro areas. Xeal said EV charging sites typically operate at less than 10% of permitted capacity, and it taps the remaining 90% for compute, with property owners able to add as much as $1m in property value for little-to-no upfront investment. Looking beyond the initial 200MW of installed charging capacity, Xeal plans to unlock over 1GW of existing headroom across real estate and EV charging deployments.
CHTRNVDA
Artificial Intelligence ▲Electrification & Mobility ▲Cloud & Digital Infrastructure ▲
Business Wire·17hRead more →
© 2026 MarketDXNews