Description

Fastly’s Hidden Growth Story — Net Retention Rebounds To 117%!

Fastly, Inc. reported strong results for the second quarter of 2026, driven by ongoing execution of its platform strategy, which emphasizes a unified solution encompassing network services, security, and compute capabilities. Revenue reached a record $183.3 million, marking a 23% year-over-year increase and exceeding guidance expectations. The company reported a gross margin of 65.8%, its highest to date, and operating income of $27 million with an operating margin of 14.7%, reflecting sustained operational discipline. This quarter reflected Fastly’s sixth consecutive quarter of positive free cash flow and its fifth consecutive quarter of improved net retention rate (NRR), which rose to 117%, the highest level in over three years. Revenue growth was broad-based, with Network Services revenue growing 17% year-over-year to $133.9 million, and Security revenue showing a robust 43% increase to $41.7 million, now representing 23% of total revenue.