Fastly (FSLY) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $183.3M, up 23% year-over-year, with strong growth in Security and Compute solutions and increased usage from existing customers.

• Gross margin reached a record 65.8% non-GAAP and 63.3% GAAP, both significantly higher than last year.

• Non-GAAP net income was $26.2M, reversing a non-GAAP net loss of $5.0M in Q2 2025; GAAP net loss narrowed to $15.6M from $37.5M.

• LTM revenue reached $687M, with net retention rate at 117% and large customer count at 624.

• Platform strategy, innovation, and operational discipline drove growth, profitability, and market leadership.

Financial highlights

• Network Services revenue grew 17% to $133.9M; Security revenue surged 43% to $41.7M; Compute/Other revenue rose 69% to $7.7M.

• Adjusted EBITDA was $38.1M (21% of revenue), up from $8.9M (6%) a year ago.

• Cash, cash equivalents, and marketable securities totaled $337.5M as of June 30, 2026.

• Free cash flow was $3.6M in Q2 2026; LTM free cash flow was $34M.

• RPO increased 38% year-over-year to $341M.

Outlook and guidance

• Q3 2026 revenue guidance: $184M–$190M (18% YoY growth at midpoint); non-GAAP net income per share: $0.11–$0.13.

• Full-year 2026 revenue guidance: $732M–$746M (18% growth at midpoint); non-GAAP net income per share: $0.50–$0.54.

• Gross margin expected at 65% ±50 bps; operating profit $88M–$96M (12% margin midpoint).

• Free cash flow guidance for 2026: $40M–$50M.

• Continued investment in platform, network, and international expansion to drive long-term growth.