Company: FSLY
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001517413-25-000299
Chunk: 358

Company: Fastly, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 358
---
.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 3,696 (89)%Restructuring charges— 9,720 100 %— 9,720 100 %Total operating expenses$121,117 $115,330 5 %$354,153 $354,459 — %Percentage of revenue:Research and development26 %23 %3 %27 %26 %1 %Sales and marketing32 %34 %(2)%33 %37 %(4)%General and administrative19 %20 %(1)%18 %22 %(4)%Impairment expense— %— %— %— %1 %(1)%Restructuring charges— %7 %(7)%— %2 %(2)%

Research and Development

Research and development expenses were $41.4 million for the three months ended September 30, 2025 compared to $31.9 million for the three months ended September 30, 2024, an increase of $9.5 million, or 30%. The increase was primarily due to a $4.5 million increase in stock-based compensation expenses, a $2.7 million increase in personnel-related costs and a $2.3 million decrease in capitalized software development costs.

Research and development expenses were $121.1 million for the nine months ended September 30, 2025 compared to $105.2 million for the nine months ended September 30, 2024, an increase of $15