Fastly (FSLY) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $190.2M, up 20% YoY; LTM NRR was 118.9%, its highest level since 2022.

• Non-GAAP operating income was $31.2M and free cash flow was $25.2M; GAAP net loss narrowed to $11.3M from $29.5M.

• Configurable edge platform strategy spans delivery, security, compute and observability, with cross-selling and broader adoption as growth levers.

Financial highlights

• Q3 revenue was $190.2M versus $158.2M a year earlier; nine-month revenue was $546.5M versus $451.4M.

• GAAP gross margin was 63.3% versus 58.4%; non-GAAP gross margin was 65.8% versus 62.8%.

• GAAP operating loss was $11.3M versus $28.8M; non-GAAP operating income was $31.2M versus $11.6M, with a 16.4% margin.

• Non-GAAP net income was $31.6M and diluted EPS was $0.17; GAAP diluted loss per share was $0.07 versus $0.20.

• Operating cash flow was $40.0M versus $28.9M; free cash flow was $25.2M versus $18.1M.

Outlook and guidance

• Q4 revenue guidance is $198M–$202M, with 16% YoY growth at midpoint; non-GAAP operating income is $30M–$34M and EPS is $0.16–$0.18.

• FY2026 revenue guidance is $744M–$748M, with 20% growth at midpoint; non-GAAP operating income is $107M–$111M and EPS is $0.61–$0.63.

• Q4 and FY2026 adjusted gross margin guidance is 65.5%, ±50 bps.

• FY2026 infrastructure CapEx outlook declined to ~10% of revenue from 10%–12%; FY free cash flow guidance rose to $50M–$60M.

• Forward non-GAAP guidance has no GAAP reconciliation due to uncertainty around potentially material expenses, including stock compensation, litigation and impairment.