Fastly, Inc. (FSLY) Stock Price & How to Invest

Fastly operates an edge cloud platform, a global network of high-throughput points of presence that sit between end users and its customers' origin servers. Its core business is a content delivery network (CDN) that caches and accelerates websites, apps, streaming, and APIs, prized by performance-driven customers for low latency and developer flexibility. On top of delivery, Fastly has built two faster-growing legs: a security suite (DDoS protection, bot management, and web-application firewall) and Compute, a developer-centric edge-compute product built on WebAssembly (Wasm) that runs code close to users, now supporting persistent key-value storage at the edge. Fastly typically wins on raw performance benchmarks and programmability rather than on price or breadth.

The investment story in 2025 and 2026 is a turnaround. After years of net losses, decelerating growth, and reliance on a handful of very large customers, Fastly has been reaccelerating. Recent quarterly results showed roughly 20% year-over-year revenue growth (up from mid-teens the prior year), a record quarter, and raised full-year guidance. Security grew strongly, Compute posted its largest-ever sequential revenue increase (helped by AI and agentic workloads), and remaining performance obligations rose sharply, pointing to future demand. Crucially, profitability inflected: non-GAAP gross margin expanded materially, adjusted EBITDA improved, and the company reported a GAAP net profit versus a prior-year loss. Fastly has also worked to broaden its customer base (hundreds of customers now spend over $100,000 a year) and reduce single-customer concentration below 10% of revenue. The bet is that this momentum holds while Fastly competes against far larger, better-capitalized rivals.

Fastly is a small player competing against far larger, better-capitalized rivals: Cloudflare, which has a much broader platform and far larger revenue, and Akamai, the long-standing CDN incumbent, plus the hyperscalers (AWS, Google Cloud, Microsoft Azure) that bundle CDN and edge services. Core content delivery is increasingly commoditized, pressuring pricing on the legacy business. Historically, Fastly relied on a handful of very large customers, so even with concentration now reportedly below 10% of revenue, the loss or reduced usage of a big customer can swing results, as it has in the past. The stock has been volatile and can trade on rich forward multiples that price in continued reacceleration, leaving little room for disappointment. Profitability is recent and still thin, so any growth stumble, margin reversal, or renewed competition could quickly change the story.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Fastly, Inc.'s investor relations page or your broker.

• Revenue (annual): Full-year 2026 revenue guided to roughly $710 million to $725 million, with recent quarterly growth around 20% year over year
• Profitability: Recently inflected to profit: non-GAAP gross margin expanded materially and the company reported a GAAP net profit versus a prior-year loss; profitability is still relatively new and thin
• Growth mix: Security and Compute growing much faster than legacy delivery; remaining performance obligations up sharply, pointing to future demand
• Customer base: Hundreds of customers spending over $100,000 a year; single-customer concentration reportedly reduced below 10% of revenue
• Valuation multiple: Trades as a growth software name; multiple can look rich and prices in continued reacceleration, leaving little room for disappointment
• Analyst sentiment: Mixed to improving as the turnaround shows results; bulls cite security and compute momentum, bears cite competition and a full multiple

These figures are approximate and tied to the asOf date; verify live numbers before acting. Fastly's profitability is recent and relatively thin, so its valuation leans heavily on continued revenue reacceleration and margin expansion rather than on established earnings. Always check the latest reported results, guidance, and any updates on customer concentration before making any decision.

There are three common ways to get FSLY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so FSLY sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where FSLY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

Fastly is a smaller, performance-focused edge cloud and CDN player showing real turnaround signs: reaccelerating revenue, expanding margins, and swinging to profitability, led by security and compute. It is a higher-risk bet on that momentum continuing against much larger rivals Cloudflare and Akamai, and on reducing customer concentration.