Company: FSLY
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001517413-25-000111
Chunk: 285

Company: Fastly, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 285
---
 in interest rates and investment balance.

Interest expense

Three months ended March 31,20252024% Change(in thousands)Interest expense$3,173 $579 448 %

Interest expense was $3.2 million for the three months ended March 31, 2025 compared to $0.6 million for the three months ended March 31, 2024, an increase of $2.6 million, or 448%. Interest expense increased primarily due to the coupon interest of the 2028 Notes issued in December 2024.

Other expense, net

Three months ended March 31,20252024% Change(in thousands)Other expense, net$80 $89 (10)%

Other expense, net remained relatively flat at less than $0.1 million for both the three months ended March 31, 2025 and March 31, 2024. The changes were mainly driven by our foreign currency transaction gains and losses between the periods.

41

Income Taxes

Three months ended March 31,20252024% Change(in thousands)Income tax expense $691 $347 99 %

Income tax expense was $0.7 million for the three months ended March 31, 2025 compared to $0.3 million for the three months ended March 31, 2024, an increase of $0.4 million. The Company continues to maintain a full valuation allowance in the U.S. and the tax expense for the periods were primarily due to foreign tax expense.

Liquidity and Capital Resources

As of March 31, 2025, we had cash, cash equivalents, marketable securities, and restricted cash totaling $307.3 million. Our cash, cash equivalents, and marketable securities primarily consisted of money market funds, investment-grade commercial paper, corporate notes and bonds, U.S. treasury securities, municipal bonds, and certificates of deposit. As of March 31, 2025, we did not have any marketable securities classified as non-current.

To date, we have financed our operations primarily through equity issuances, payments received from customers, the net proceeds we received through sales of our debt securities, and proceeds from our convertible notes. Our principal uses of cash in the near term have primarily been around funding our operations, capital expenditures, business acquisitions, and investments, and fulfilling our debt and contractual commitments. We have also entered into longer term commitments to support our operations, including arrangements to directly