Company: FSLY
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001517413-25-000299
Chunk: 266

Company: Fastly, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 266
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 valuation technique of quoted prices in dealer markets under the market approach that resulted in a debt premium of $5.7 million. Transaction costs of $5.8 million incurred related to the issuance of the 2028 Notes, partially offset by the aforementioned premium, were recorded as contra-liability and represents the difference between the principal and the carrying amount of the 2028 Notes, which is amortized to interest expense using the effective interest method over the term of the 2028 Notes.As of September 30, 2025, the conversion conditions had not been met and therefore the 2028 Notes were not yet convertible.

25

The following table reflects the carrying values of the long-term debt as of September 30, 2025 and December 31, 2024:As of September 30, 2025As of December 31, 2024(in thousands)(in thousands)Convertible Senior notes (effective interest rate of 0.38% for the 2026 Notes and an effective interest rate of 7.77% for the 2028 Notes)Principal amount$338,594 $338,594 Less: unamortized debt issuance costs(469)(980)Less: current portion of long-term debt(188,232)— Long-term debt, less current portion$149,893 $337,614 For the three months ended September 30, 2025 and 2024, interest expense related to the Company’s debt obligations was $3.2 million and $0.4 million, respectively. For the nine months ended September 30, 2025 and 2024, interest expense related to the Company’s debt obligations was $9.4 million and $1.2 million, respectively. As of September 30, 2025 and December 31, 2024, the total estimated fair value of the Notes was $338.4 million and $327.7 million, respectively.

9.     Commitments and Contingencies

Purchase CommitmentsAs of September 30, 2025, the Company had long-term commitments for cost of revenue related agreements (i.e., bandwidth usage, peering and other managed services with various networks, fixed asset vendors, Internet service providers and other third-party vendors). The Company also has non-cost of revenue long-term commitments for various non-cancelable agreements. Aside from the Company’s finance and operating lease commitments, including its colocation operating commitments, which have