Company: FSLY
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001517413-25-000218
Chunk: 298

Company: Fastly, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 298
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 three months ended June 30, 2025 compared to $59.5 million for the three months ended June 30, 2024, an increase of $8.1 million, or 14%. The increase was primarily due to a $4.0 million increase in bandwidth costs, a $1.7 million increase in depreciation and amortization expense as a result of increased investments in our platform, as well as a $1.2 million increase in software costs. The increase was also due to a $1.0 million increase in colocation costs and a $0.5 million increase in stock-based compensation expense. The increase was partially offset by a $0.5 million decrease in personnel-related costs.

Cost of revenue was $135.3 million for the six months ended June 30, 2025 compared to $119.8 million for the six months ended June 30, 2024, an increase of $15.5 million, or 13%. The increase was primarily due to a $10.0 million increase in bandwidth costs, a $3.7 million increase in depreciation and amortization expense as a result of increased investments in our platform, a $2.2 million increase in software costs as well a $1.2 million increase in colocation costs. The increase was partially offset by a $1.6 million decrease in personnel-related costs.

44

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,