Fastly (FSLY) Q2 Earnings: Analysts Expect 9.6% Revenue Growth

Fastly (FSLY) is expected to report a year-over-year increase in earnings on higher revenues for Q2 2025. The consensus EPS estimate has remained unchanged over the last 30 days, while revenues are expected to be $145.07 million, up 9.6% from the year-ago quarter. Investors should keep an eye on the direction of estimate revisions and the company's guidance on its earnings call.

Fastly, Inc. (FSLY), a leading provider in the edge cloud platform sector, is poised to report a year-over-year increase in earnings for the second quarter of 2025. The company is anticipated to generate revenues of $145.07 million, representing a 9.6% increase from the same period last year. This expected growth is driven by the company's focus on enhancing its digital experience delivery solutions.

The consensus earnings per share (EPS) estimate has remained unchanged over the past 30 days, indicating a cautious yet optimistic outlook among analysts. Fastly's ability to generate free cash flow, totaling approximately $51.95 million, provides financial flexibility for growth initiatives and innovation [1].

Technical indicators suggest a mixed market sentiment. Fastly's stock is currently trading near its 50-day moving average of $7.31 but remains below the 200-day moving average of $7.73. The Relative Strength Index (RSI) of 30.00 indicates that the stock is in oversold territory, potentially signaling a buying opportunity for risk-tolerant investors. However, the Moving Average Convergence Divergence (MACD) indicator at 0.00 and a signal line of -0.05 offer mixed signals, emphasizing the need for cautious analysis [1].

Investor sentiment is largely conservative, with zero buy ratings, ten hold ratings, and one sell rating, reflecting a cautious stance on Fastly's immediate prospects. The average target price of $6.79 suggests limited upside potential in the near term without significant operational improvements or market shifts [1].

Fastly's financial profile is characterized by robust revenue growth of 8.20% but continues to face challenges in achieving profitability, as evidenced by negative EPS of -1.09 and a return on equity of -15.78%. The company's valuation metrics further complicate its investment narrative, with a Forward P/E of -534.41 indicating that the company is not currently profitable [1].

Investors should closely monitor Fastly's earnings call for any guidance on its earnings trajectory and estimate revisions. As the company continues to refine its edge cloud platform and expand its service offerings, it must navigate the complex path to profitability. Market trends, technological advancements, and operational milestones will be critical factors influencing Fastly's future performance.

References:
[1] https://www.directorstalkinterviews.com/fastly-inc-fsly-stock-analysis-navigating-potential-upside-with-caution-amid-challenging-metrics/4121209091