Fastly 2025 Q2 Earnings Losses Narrow but Remain Deep

Fastly reported its Q2 2025 earnings on August 7, 2025. The company narrowly its losses and exceeded revenue expectations, raising full-year guidance. Despite the improvement, the stock faced mixed post-earnings performance, and the company remains unprofitable for the 8th consecutive year.

Revenue
Fastly’s total revenue for Q2 2025 reached $148.71 million, reflecting a 12.3% year-over-year increase. The majority of this growth came from enterprise customers, who contributed $139.26 million. In contrast, non-enterprise customers accounted for a smaller portion of the total, adding $9.45 million in revenue. This breakdown underscores the company’s continued dependence on its enterprise segment for the majority of its income.

Earnings/Net Income
Fastly’s losses improved slightly, with a net loss of $37.54 million for Q2 2025, a 14.2% reduction compared to $43.73 million in the same quarter the previous year. On a per-share basis, the loss narrowed to $0.26 from $0.32, representing an 18.8% improvement. However, the company has now reported losses for eight consecutive years in this fiscal quarter, indicating ongoing financial challenges.

Price Action
During the most recent trading day, Fastly’s stock declined by 0.93%. However, the stock gained 9.87% over the previous full trading week and rose 2.05% month-to-date.

Post-Earnings Price Action Review
The earnings event tested a 30-day holding strategy for Fastly, which delivered a disastrous -91.25% return, significantly underperforming the benchmark by 177.45%. The strategy’s maximum drawdown of 0% and a Sharpe ratio of -0.51 indicate an extremely high-risk profile with minimal upside, suggesting that post-earnings trading in FSLY carries substantial volatility and limited potential for profit.

CEO Commentary
CEO Kip Compton highlighted the company’s strong Q2 performance, including record revenue of $148.7 million, which surpassed both revenue and operating loss guidance. He credited the go-to-market transformation for boosting customer acquisition and market share, while record Remaining Performance Obligations (RPO) signaled growing customer commitments. Compton expressed optimism about the company’s momentum and its path to positive free cash flow in 2025.

Guidance
Fastly raised its full-year 2025 revenue guidance to $594.0–$602.0 million and expects non-GAAP operating income (loss) of ($9.0)–($3.0) million. For Q3 2025, the company forecasts revenue of $149.0–$153.0 million, with non-GAAP operating income (loss) ranging from ($1.0)–$3.0 million. Non-GAAP net income (loss) per share is projected to range from ($0.02)–$0.02 in Q3 and ($0.10)–($0.04) for the full year.

Additional News
On August 7, 2025, Fastly announced a raised 2025 revenue guidance to $594M–$602M, signaling confidence in its business model and strategic initiatives. While no direct M&A activity or C-level changes were disclosed in the available public domain, the company’s upward revision reflects a strategic pivot and operational improvements. Fastly did not announce any new dividend or share buyback plans during this period.