Fastly (FSLY) Citi’s 2026 Global TMT Conference summary

Business transformation and financial performance

• Achieved significant business transformation over the past 13 months, including accelerated revenue growth and a reset in operational strategy.

• Reported $183 million in quarterly revenue, up 23.3% year-over-year, with all three business lines growing rapidly.

• Delivery services grew 17%, security 43%, and compute/other 69% year-over-year.

• Achieved record gross margins of 65.8%, four consecutive quarters of profitability, and six quarters of free cash flow positivity.

• Strong discipline in OpEx and headcount management, with a focus on capital ROI and robust partnership across business functions.

Revenue mix, product evolution, and growth drivers

• Delivery services comprise 73% of revenue, security 23%, and compute/other the remainder, with security and compute growing fastest.

• Security business expanded from a single product to a full suite, driving strong RFP wins and customer adoption.

• Compute is the fastest-growing segment, benefiting from AI and personalization trends, and is expected to become a larger part of the business.

• Security and compute together are approaching a $50 million run rate, growing over 50% year-over-year.

• The business mix is expected to gradually shift toward security and compute, with continued investment in all three segments.

Guidance, forecasting, and management changes

• Guidance philosophy emphasizes close partnership with business units and confidence in forecasts, using both top-down and bottom-up modeling.

• Management changes, including a new CEO and internal promotions, have strengthened alignment and execution.

• Multi-product adoption is a key strategy, with plans to share more multi-product metrics in the future.