Fastly 2025 Q3 Earnings Beats Expectations with 15.3% Revenue Growth and 25.9% Narrowed Loss

Fastly(FSLY), ranking by market capitalization, reported its fiscal 2025 Q3 earnings on Nov 08th, 2025. The company’s results exceeded expectations, with revenue rising 15.3% year-over-year to $158.22 million and a 25.9% improvement in loss per share. Fastly also raised its full-year 2025 guidance, signaling confidence in sustained growth despite ongoing financial challenges.

Revenue

Revenue surged 15.3% year-over-year to $158.22 million, driven by robust performance across segments. Network services revenue climbed 11% to $118.8 million, while security revenue surged 30% to $34 million, accounting for 21% of total revenue. This growth reflects strategic cross-sell initiatives and expanding demand for security solutions.

Earnings/Net Income

Fastly narrowed its loss per share to $0.20 in Q3 2025 from $0.27 in Q3 2024, a 25.9% improvement. Net losses decreased by 22.4% to $29.48 million compared to $38.02 million in the prior year. However, the company has posted losses for eight consecutive quarters, underscoring persistent financial pressures. The EPS improvement is a positive step, but the company remains unprofitable.

Price Action

Fastly’s stock price surged 39.45% during the most recent full trading week, with a 34.73% month-to-date increase. The stock’s post-earnings rally reflects investor optimism about the company’s revised guidance and security segment momentum, though long-term profitability remains uncertain.

Post-Earnings Price Action Review

The stock’s sharp post-earnings surge—jumping 8.04% in a single trading day and 39.45% weekly—underscores market confidence in Fastly’s revised guidance and security growth. This momentum aligns with the company’s improved operating margins and raised revenue forecasts, though skepticism persists over its ability to sustain profitability.

CEO Commentary

Fastly’s CEO, Matthew Prince, emphasized resilience amid macroeconomic challenges, stating, “We’re navigating macroeconomic headwinds but remain focused on long-term value creation.” He highlighted growth in security solutions as a key driver, reflecting the segment’s 30% year-over-year increase.

Guidance

Fastly raised its Q4 2025 revenue guidance to $159–$163 million and full-year 2025 revenue to $610–$614 million, up from previous estimates. The company also projected adjusted earnings per share (EPS) of $0.04–$0.08 for Q4 and $0.03–$0.07 for the full year.

Additional News

Recent developments include a $557,000 investment by Y Intercept Hong Kong Ltd, increasing institutional ownership to 79.71%. Analysts at Piper Sandler raised Fastly’s price target to $10.00 from $7.50, while Craig Hallum upgraded the stock to “buy.” Additionally, Fastly’s security revenue growth has attracted attention, with analysts highlighting its potential to diversify revenue streams.

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A line graph illustrating Fastly’s Q3 2025 revenue growth (15.3%), security segment performance (30% YoY), and stock price surge (39.45% weekly).

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