Fastly, Inc. (FSLY)
Vertical SaaSSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Fastly’s financial trajectory shows a notable acceleration in top-line growth, with trailing revenue reaching $0.62B in Q1 2026, up from $0.59B in Q3 2025. Year-over-year growth stabilized at 14.8% in the last two quarters, a significant improvement from the 8.3% rate seen in Q3 2025, indicating a successful re-acceleration of the business. Gross margins, however, have compressed slightly, declining from 60.5% in Q3 2025 to 57.4% by Q1 2026—likely reflecting a mix shift toward higher-volume, lower-margin services. Free cash flow (FCF) margins have been volatile; after reaching 11.2% in Q3 2025, they dropped sharply to 3.2% in Q1 2026, suggesting increased capex or working capital outlays that warrant close monitoring for sustainability.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score—a combined measure of growth and profitability—has fluctuated, moving from 19.4 in Q3 2025 to 25.3 in Q4 2025, before settling at 18.0 in Q1 2026. This decline is driven by the aforementioned FCF margin deterioration, highlighting that while growth has picked up, it has come at a cost to cash efficiency. Net revenue retention (NRR) and CAC payback metrics are not disclosed, making it difficult to fully assess unit economics and customer expansion dynamics. R&D reinvestments appear to be yielding returns given the growth acceleration, but the lack of retention data leaves a gap in evaluating long-term customer value creation.
Market Valuation & Sentiment
Fastly’s enterprise value-to-revenue multiple has contracted from 7.4x in Q3 2025 to 5.5x in Q1 2026, reflecting market skepticism despite improving revenue growth. Insider activity shows a net selling trend of approximately -$3.9M over the last 10 filings, with zero insider purchases, signaling a lack of conviction from management at current levels. Wall Street analysts maintain a Hold consensus (5 Buys, 11 Holds, 1 Sell) with an average price target of $23.43, suggesting the stock is fairly valued relative to its current operational metrics. The combination of declining margins, volatile cash flow, and insider selling likely tempers bullish sentiment, even as top-line growth re-accelerates.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
Fastly, Inc. (FSLY) is a Vertical SaaS SaaS company with a market cap of $3.2B as of Q2 2026. The company trades at 5.8x EV/Revenue and has delivered +22.0% revenue growth year-over-year. With a gross margin of 60% and FCF margin of 3.0%, Fastly, Inc. scores 25 on the Rule of 40 — placing it in the median range of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
EV/Revenue is 5.8x (sector median: 5.2x) — trading at a premium of 0.6x relative to peers.
Rule of 40 is 25.0% (sector median: 32.8%) — underperforming peers by 7.8%.
Revenue Growth is 22.0% (sector median: 18.4%) — outperforming peers by 3.6%.
Gross Margin is 59.9% (sector median: 73.7%) — underperforming peers by 13.8%.
FCF Margin is 3.0% (sector median: 11.9%) — underperforming peers by 8.9%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 17 sell transactions (totaling $10.7M) with zero buys. Last activity on Sep 2, 2026.
Analyst Ratings
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