Company: FSLY
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001517413-25-000218
Chunk: 299

Company: Fastly, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 299
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 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)%Percentage of revenue:Research and development28 %27 %1 %27 %28 %(1)%Sales and marketing34 %40 %(6)%34 %39 %(5)%General and administrative16 %21 %(5)%18 %23 %(5)%Impairment expense— %2 %(2)%— %1 %(1)%

Research and development

Research and development expenses were $42.2 million for the three months ended June 30, 2025 compared to $35.1 million for the three months ended June 30, 2024, an increase of $7.1 million, or 20%. The increase was primarily due to a $3.8 million increase in stock-based compensation expenses, a $2.5 million decrease in capitalized software development costs, a $0.6 million increase in personnel-related costs as well as a $0.5 million increase in software costs. 

Research and development expenses were $79.7 million for the six months ended June 30, 2025 compared to $73.4 million for