Fastly, Inc. announced robust financial results for the second quarter of 2025, with revenue reaching $148.7 million, marking a 12% increase year-over-year and surpassing Wall Street expectations. This represents a continued acceleration in the company's top-line growth.
The company demonstrated significant operating leverage, with its gross margin improving to 59%, a 170 basis point gain quarter-over-quarter, driven by higher revenue and improved network efficiency. Fastly also reported a non-GAAP operating loss of $4.6 million, outperforming its guidance.
Fastly generated $25.8 million in cash flow from operations, a substantial improvement from a negative $4.9 million in the prior year's quarter. The Last-Twelve Months Net Retention Rate (NRR) increased to 104% from 100%, and Remaining Performance Obligations (RPO) reached a record high of $315.1 million, growing 41% year-over-year.
For the third quarter of 2025, Fastly expects revenue between $149 million and $153 million, representing 10% annual growth at the midpoint, and anticipates a non-GAAP operating result ranging from a $1 million loss to a $3 million profit.
The company raised its full-year 2025 revenue guidance to a range of $594 million to $602 million, reflecting 10% annual growth at the midpoint. Fastly now explicitly anticipates delivering operating profit during the second half of 2025.
A critical highlight of the revised guidance is the expectation for positive free cash flow for the full year 2025, projected to be between breakeven and $10 million. This represents a substantial $41 million improvement year-over-year at the midpoint, underscoring the company's successful strategic pivot towards profitability.
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