Q2 FY2026
Filed Aug 5, 2026Fastly reported Q2 2026 total revenue of $183.3 million, up 23% year over year, led by 43% Security revenue growth, while guiding Q3 2026 revenue to $184.0 - $190.0 million.
Revenue grew 23% year over year, Security revenue grew 43% year over year, LTM NRR reached 117%, and operating cash flow was $39.3 million. The filing also reports positive free cash flow and revenue and non-GAAP operating-income guidance for Q3 2026 and full-year 2026.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenueGAAP | $183.3 million | – | 23% |
| Network Services RevenueGAAP | $133.9 million | – | – |
| Security RevenueGAAP | $41.7 million | – | 43% |
| Other RevenueGAAP | $7.7 million | – | – |
| Security Revenue as a Percentage of Total Revenueother | 23% | – | – |
| Large Customer Countother | 624 | – | – |
| Large Customer Revenue %other | 94% | – | – |
| Top Ten Customer Revenue %other | 37% | – | – |
| LTM Net Retention Rate (NRR)other | 117% | – | – |
| Remaining Performance Obligations (RPO)other | $340.9 million | – | 38% |
| Current RPO %other | 79.0% | – | – |
| Operating Cash FlowGAAP | $39.3 million | – | – |
| Free Cash Flownon-GAAP | $3.6 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Network ServicesNetwork Services Revenue was reported in the quarterly revenue-by-product table. | $133.9 million | – | – |
| SecuritySecurity revenue represented 23% of total revenue. Customer activity cited in the filing included Bot Management, DDoS Protection, and Next-Gen WAF selections and expansion. | $41.7 million | – | 43% |
| OtherOther Revenue was reported in the quarterly revenue-by-product table. | $7.7 million | – | – |
Q3 2026 and Full Year 2026 outlook
- RevenueQ3 2026: $184.0 - $190.0 million; Full Year 2026: $732.0 - $746.0 million
- NoteNon-GAAP Operating Income: Q3 2026: $20.0 - $24.0 million; Full Year 2026: $88.0 - $96.0 million
- NoteNon-GAAP Net Income per share: Q3 2026: $0.11 - $0.13; Full Year 2026: $0.50 - $0.54
- NoteAssumes weighted average diluted shares outstanding of 181.4 million in Q3 2026 and 180.3 million for the full year 2026.
What drove it
- Total revenue of $183.3 million represented 23% year-over-year growth.
- Security revenue grew 43% year over year and represented 23% of total revenue.
- LTM NRR increased to 117% in the second quarter from 113% in the first quarter of 2026.
- The filing cites a multi-year, multi-million dollar commitment from a UK health and beauty retailer that expanded use of Fastly’s platform.
- The filing cites customer selections of Bot Management, DDoS Protection, and Next-Gen WAF.
- Fastly released a C++ SDK for Fastly Compute and announced a Skyfire partnership for trusted commerce at the edge.
Concerns
- Free cash flow was $3.6 million compared to $10.9 million in the second quarter of 2025.
- Large Customer Count was 624, compared to 634 in Q1 2026.
- RPO was $340.9 million, compared to $368.7 million in Q1 2026.
- Top Ten Customer Revenue % was 37%, compared to 34% in Q1 2026.
What to watch
- Execution against Q3 2026 total revenue guidance of $184.0 - $190.0 million.
- Execution against Q3 2026 non-GAAP operating income guidance of $20.0 - $24.0 million.
- Whether LTM NRR remains above the reported 117%.
- Security revenue growth and Security revenue as a percentage of total revenue.
- RPO, Current RPO %, Large Customer Count, and Top Ten Customer Revenue %.
Balance sheet and cash flow
- Generated $39.3 million of operating cash flow compared to $25.8 million of operating cash flow in the second quarter of 2025.
- Generated $3.6 million of positive free cash flow compared to $10.9 million in the second quarter of 2025.
Analysis
Fastly reported Q2 2026 total revenue of $183.3 million, representing 23% year-over-year growth. Security revenue was $41.7 million, grew 43% year over year, and represented 23% of total revenue. Network Services Revenue was $133.9 million and Other Revenue was $7.7 million. The filing positions security offerings, including Bot Management, DDoS Protection, and Next-Gen WAF, as important customer-use cases.
Customer metrics showed LTM NRR of 117%, up from 113% in Q1 2026. Large Customer Revenue % was 94%, while Top Ten Customer Revenue % was 37%. Large Customer Count was 624. The filing also describes a multi-year, multi-million dollar platform commitment by a UK health and beauty retailer and multiple security-related customer deployments.
RPO was $340.9 million, while the filing's financial highlights describe RPO as $341 million and up 38% from $247 million in the second quarter of 2025. Current RPO % was 79.0%. The supplement states that RPO for all prior periods presented was recast after the company identified an error during the third quarter of 2025 involving certain contracts with a termination-for-convenience clause.
Cash generation included $39.3 million of operating cash flow, compared with $25.8 million in the second quarter of 2025. Free cash flow was positive $3.6 million, compared with $10.9 million in the second quarter of 2025. The supplied filing text does not provide cash, debt, capital expenditures, repurchases, or dividends.
For Q3 2026, Fastly guided total revenue to $184.0 - $190.0 million, non-GAAP operating income to $20.0 - $24.0 million, and non-GAAP net income per share to $0.11 - $0.13. Full-year 2026 guidance calls for total revenue of $732.0 - $746.0 million, non-GAAP operating income of $88.0 - $96.0 million, and non-GAAP net income per share of $0.50 - $0.54. No prior outlook was supplied, so a comparison with prior guidance is not available.
Not in the filing
stated, not guessed- GAAP gross profit and GAAP gross margin for Q2 2026
- Non-GAAP gross profit and non-GAAP gross margin for Q2 2026
- GAAP operating income or loss for Q2 2026
- Non-GAAP operating income or loss for Q2 2026
- GAAP net income or loss for Q2 2026
- Non-GAAP net income or loss for Q2 2026
- GAAP basic and diluted EPS for Q2 2026
- Non-GAAP basic and diluted EPS for Q2 2026
- Operating expenses for Q2 2026, including research and development, sales and marketing, and general and administrative expense
- Adjusted EBITDA for Q2 2026
- Cash and cash equivalents
- Debt balance
- Capital expenditures
- Share repurchases
- Dividends
- Q3 2026 and full-year 2026 gross-margin guidance
- Q3 2026 and full-year 2026 operating-expense guidance
- Q3 2026 and full-year 2026 tax-rate guidance
- Previous-release outlook or prior guidance for comparison
- Named executive commentary or executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.