Is Fastly’s (FSLY) Leadership Shakeup and New Share Plan Shifting the Investment Case?

• Fastly announced its second-quarter 2025 earnings, updated guidance, key executive appointments, including a new CFO, and a shelf registration for US$12.76 million in Class A shares for an employee stock plan.
• The consolidation of marketing and revenue under a new President, alongside leadership changes and fresh capital strategies, marks an important expansion of operational focus and corporate direction.
• We'll explore how Fastly's leadership realignment and updated guidance may influence the company's investment case and future outlook.

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Fastly Investment Narrative Recap

To own Fastly, an investor has to believe in its ability to carve out sustainable growth in the crowded CDN and edge computing market, where hyperscalers exert significant pricing pressure. The latest quarterly update, including improved revenue and narrower net loss, offers incremental clarity but does not fundamentally change the most important short-term catalyst: execution on cross-sell and upsell within the existing customer base. The biggest risk, volatile revenue from a concentrated customer set, remains material after this quarter.

Among recent announcements, Fastly's updated full-year revenue guidance is most relevant. Projected revenue between US$594 million and US$602 million provides visibility for 2025, aligning with analysts’ expectations and supporting near-term growth efforts. However, this also puts additional scrutiny on Fastly’s ability to manage customer retention, which remains critical to both upside and downside scenarios.

In contrast, investors should be aware of continued revenue concentration risk and how a shift in just one major customer relationship could...

Read the full narrative on Fastly (it's free!)

Fastly's outlook anticipates $697.5 million in revenue and $43.0 million in earnings by 2028. This scenario assumes a 6.9% annual revenue growth rate and a $190.6 million increase in earnings from the current level of -$147.6 million.

Uncover how Fastly's forecasts yield a $7.67 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range widely from US$0.32 to US$15.89 per share. With customer concentration risk still a major concern, there is plenty of reason to compare perspectives and consider how future results may affect Fastly’s position.

Explore 4 other fair value estimates on Fastly - why the stock might be worth less than half the current price!

Build Your Own Fastly Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fastly research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Fastly research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fastly's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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