Company: FSLY
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001517413-25-000299
Chunk: 296

Company: Fastly, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 296
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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 $15.9 million, or 15%. The increase was primarily due to a $7.0 million decrease in capitalized software development costs, a $6.9 million increase in stock-based compensation expenses, a $1.9 million increase in personnel-related costs and a $1.4 million increase in software costs. The increase was offset by a $0.4 million decrease in corporate costs. 

45

Sales and Marketing

Sales and marketing expenses were $50.0 million for the three months ended September 30, 2025 compared to $46.0 million for the three months ended September 30, 2024, an increase of $4.0 million, or 9%. The increase was primarily due to a $2.4 million increase in personnel-related costs including commission expense, a $1.6 million increase in stock-based compensation expenses, as well as a $0.7 million increase in marketing expenses. The increase was partially offset by a $0.3 million