Company: FSLY
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001517413-25-000218
Chunk: 362

Company: Fastly, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 362
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Gross Profit and Gross MarginThree months ended June 30,Six months ended June 30,20252024% Change20252024% Change(in thousands)(in thousands)Gross profit$81,116 $72,901 11 %$157,914 $146,135 8 %Gross margin55 %55 %— %54 %55 %(1)%

Gross profit was $81.1 million for the three months ended June 30, 2025 compared to $72.9 million for the three months ended June 30, 2024, an increase of $8.2 million, or 11%. Gross margin was 55% for both the three months ended June 30, 2025 and June 30, 2024. Our flat gross margin was driven by consistent revenue growth during the three months ended June 30, 2025 with comparable increases in the costs incurred to support the growth of our network. 

Gross profit was $157.9 million for the six months ended June 30, 2025 compared to $146.1 million for the six months ended June 30, 2024, an increase of $11.8 million, or 8%. Gross margin was 54% for the six months ended June 30, 2025 compared to 55% for the six months ended June 30, 2024, a decrease of 1%. The decrease in gross margin was driven by increases in bandwidth costs, an increase in depreciation and amortization expense, an increase in software costs as well as an increase in colocation costs.

Operating Expenses

Three months ended June 30,Six months ended June 30,20252024% Change20252024% Change(in thousands)(in thousands)Research and development$42,221 $35,106 20 %$79,650 $73,354 9 %Sales and marketing51,100 52,959 (4)%100,413 102,566 (2)%General and administrative24,323 28,433 (14)%52,558 60,072 (13)%Impairment expense415 3,137 (87)%415 3,137 (87)%Total operating expenses$118,059 $119,635 (1)%$233,036 $239,129 (3