Fastly 2025 Q3 Earnings Narrows Net Loss by 22.4% Amid 15.3% Revenue Growth

Fastly (FSLY) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with revenue rising 15.3% year-over-year to $158.22 million, exceeding expectations. The company narrowed its net loss by 22.4% to $29.48 million and raised Q4 revenue guidance to $159–$163 million, reflecting improved operational efficiency and strategic focus on growth.

Revenue

Total revenue reached $158.22 million, a 15.3% increase from $137.21 million in 2024 Q3. The growth was driven by strong demand for edge computing solutions and a 30% surge in security revenue to $34 million, underscoring the segment’s strategic importance. Network services revenue also rose 11% to $118.8 million, highlighting the company’s ability to scale core offerings.

Earnings/Net Income

Fastly reduced its per-share loss to $0.20 from $0.27 in the prior year, marking a 25.9% improvement. Despite ongoing losses, the 22.4% reduction in net loss to $29.48 million demonstrates progress in cost optimization and operational leverage. While the company has posted losses for eight consecutive years in this quarter, the narrowing margin reflects disciplined financial management.

Post-Earnings Price Action Review

The stock surged 15% in premarket trading following the earnings beat, with further gains of 26.7% over 30 days, validating market confidence. Institutional investor Y Intercept Hong Kong Ltd added $557,000 in shares, signaling optimism. Analysts raised price targets, including Royal Bank of Canada’s $9.00 target, despite negative net margins. The 30-day holding strategy appears robust, supported by improved guidance and institutional backing.

CEO Commentary

CEO Matthew Prince emphasized resilience amid macroeconomic challenges, citing growth in edge computing and enterprise adoption. Strategic priorities include expanding cloud-native solutions and strengthening partnerships. Prince noted, “We’re navigating a dynamic landscape but confident in our ability to deliver sustainable growth through product differentiation and operational discipline.”

Guidance

Fastly projects Q4 2025 revenue between $159–$163 million and non-GAAP EPS of $0.04–$0.08, reflecting optimism about high-margin offerings and geographic expansion. CAPEX is expected to rise 10% year-over-year, aligning with a “prudent yet aggressive” capital allocation strategy.

Additional News

1. Price Target Hike: Piper Sandler raised Fastly’s target to $10.00 from $7.50, maintaining a “neutral” rating.

2. Institutional Investment: Y Intercept Hong Kong Ltd invested $557,000 in 78,960 shares, signaling institutional confidence.

3. Insider Selling: Key insiders, including CTO Artur Bergman and Scott Lovett, sold shares totaling $4.8 million in the past three months, raising concerns about insider sentiment.

The stock closed at $10.09 on Nov 6, up 25.1% for the day, with trading volume surpassing the 30-day average. Analysts remain divided, with one “Buy” rating, eight “Hold” ratings, and one “Sell” rating, reflecting cautious optimism. Fastly’s market cap stands at $1.63 billion, with a P/E ratio of -11.53, highlighting its speculative growth profile.