Fastly reported record results for the third quarter of 2026, highlighted by 20% revenue growth and a return to non-GAAP profitability. Growth was anchored by the highest net retention rate since 2022 and record non-GAAP gross margins of 65.8%.
Key Highlights
- Total revenue reached $190.2 million, up 20% year-over-year, driven by strong demand for security and edge cloud solutions.
- Security revenue surged 32% year-over-year to $44.7 million, significantly outpacing core network services growth of 16%.
- LTM Net Retention Rate improved to 119% from 117% in the previous quarter, indicating successful upsell momentum within the enterprise base.
- Multiproduct adoption among large customers deepened, with 34% now using four or more product suites, up from 19% a year ago.
- The company generated $25.2 million in positive free cash flow, representing a 39% increase over the $18.1 million generated in the prior year's period.