The company has successfully pivoted toward a "Land and Expand" strategy, with a robust security segment (Web Application Firewalls) that now commands higher margins and stickier enterprise contracts. The company ended 2025 with 628 enterprise customers, with an average spend of nearly $900,000 per year.
Cyborg Score Rationale
Fastly achieved its first full year of non-GAAP net income ($19.7 million) and generated $45.8 million in positive free cash flow. The stock surged nearly 42% in a single month in February 2026, with strong institutional backing and an emerging AI tailwind positioning it well for 2026.
Top Insights
Fastly's focus is on upselling its Compute@Edge services, transforming it from a simple "pass-through" pipe for data into a powerful distributed computer
Fastly projects 2026 revenue between $700M-$720M, easily shattering the FactSet consensus estimate of $667.8M
Institutional ownership has climbed to 84%, with notable increased positions from Vanguard and BlackRock
The recent launch of Fastly's edge storage solution allows developers to build entire databases at the edge, a move that could significantly increase the company's Addressable Market