**Bullish Points:**
1. **Revenue Growth:** Fastly, Inc. reported a 15% increase in revenue for 2025, reaching $624.0 million, driven by increased adoption of its platform and products.
2. **Net Loss Improvement:** The net loss improved to $121.7 million in 2025 from $158.1 million in 2024, attributed to increased revenue and better cost management.
3. **Gross Margin Improvement:** Gross margin increased to 57% in 2025 from 54% in 2024, indicating efficient cost management relative to revenue growth.
4. **Security Revenue Growth:** Security product revenue grew by 21% to $125.1 million, driven by the Next-Gen WAF product.
5. **Other Revenue Growth:** Revenue from Compute and Observability solutions increased by 64% to $21.2 million.
6. **Cash Flow Improvement:** Operating cash flow improved significantly to $94.4 million from $16.4 million in 2024, due to higher revenue and better working capital management.
7. **RPO Increase:** Remaining Performance Obligations increased to $353.8 million, indicating strong future revenue commitments.
8. **Customer Metrics:** Enterprise customer count grew, contributing 94% of total revenue, and the LTM Net Retention Rate improved to 110.1%.
9. **Impairment and Restructuring:** Impairment expenses decreased significantly, and no restructuring charges were incurred in 2025.
**Bearish Points:**
1. **Operating Expenses Increase:** Operating expenses increased by 2% to $475.2 million, primarily due to higher research and development costs.
2. **Interest Expense Increase:** Interest expense increased significantly to $12.7 million due to new debt issuances.
3. **Debt Management:** The company repurchased $150.0 million of its 2026 convertible notes and issued $180.0 million of 2030 convertible notes, increasing long-term debt.
4. **Cash and Cash Equivalents Decrease:** Cash, cash equivalents, and restricted cash decreased to $180.6 million from $286.2 million in 2024.
5. **Stock-Based Compensation Increase:** Stock-based compensation expense increased to $117.3 million from $107.9 million in 2024.
**Summary:**
Fastly, Inc. demonstrated strong revenue growth and improved net loss figures in 2025, driven by increased adoption of its platform and products, particularly in security and observability solutions. The company also showed improvements in gross margin and operating cash flow, alongside a significant increase in remaining performance obligations, indicating strong future revenue potential. However, the increase in operating expenses, particularly in research and development, and the rise in interest expenses due to new debt issuances are areas of concern. Additionally, the decrease in cash reserves and the increase in stock-based compensation expenses may impact financial flexibility. Overall, while Fastly shows promising growth and improved financial metrics, careful management of expenses and debt is crucial for sustaining this positive trajectory.
For more information, you can read the original text of Fastly, Inc.(FSLY)'s financial report .
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