Company: FSLY
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001517413-25-000299
Chunk: 295

Company: Fastly, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 295
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 The increase was partially offset by a $1.9 million decrease in personnel-related costs, a $0.7 million decrease in other network costs, as well as a $0.4 million decrease in maintenance costs.

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Gross Profit and Gross MarginThree months ended September 30,Nine months ended September 30,20252024% Change20252024% Change(in thousands)(in thousands)Gross profit$92,329 $74,740 24 %$250,243 $220,875 13 %Gross margin58 %54 %4 %55 %55 %— %

Gross profit was $92.3 million for the three months ended September 30, 2025 compared to $74.7 million for the three months ended September 30, 2024, an increase of $17.6 million, or 24%. Gross margin was 58% for the three months ended September 30, 2025 and 54% for the three months ended September 30, 2024. The increase in gross margin was driven by revenue growth during the three months ended September 30, 2025 outpacing the increases in the costs incurred to support the growth of our network. 

Gross profit was $250.2 million for the nine months ended September 30, 2025 compared to $220.9 million for the nine months ended September 30, 2024, an increase of $29.3 million, or 13%. Gross margin was 55% for both the nine months ended September 30, 2025 and 2024. Our flat gross margin was driven by consistent revenue growth during the nine months ended September 30, 2025 with comparable increases in the costs incurred to support the growth of our network. 

Operating Expenses

Three months ended September 30,Nine months ended September 30,20252024% Change20252024% Change(in thousands)(in thousands)Research and development$41,421 $31,884 30 %$121,071 $105,238 15 %Sales and marketing49,998 45,994 9 %150,411 148,560 1 %General and administrative29,698 27,173 9 %82,256 87,245 (6)%Impairment expense— 559 (100)%415 3,