Company: FSLY
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001517413-25-000218
Chunk: 363

Company: Fastly, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 363
---
)%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 the six months ended June 30, 2024, an increase of $6.3 million, or 9%. The increase was primarily due to a $4.4 million decrease in capitalized software development costs, a $2.3 million increase in stock-based compensation expenses and a $1.2 million increase in software costs. The increase was partially offset by a $0.8 million decrease in personnel-related costs, a $0.3 million decrease in write-offs of internal-use software and a $0.2 million decrease in professional service fees.

Sales and marketing

Sales and marketing expenses were $51.1 million for the three months ended June 30, 2025 compared to $53.0 million for the three months ended June 30, 2024, a decrease of $1.9 million, or 4%. The decrease was primarily due to a $2.5 million decrease in personnel-related costs including commission expense. The decrease was partially offset by a $1.1 million increase in stock-based compensation expenses.

45

Sales and marketing expenses were $100.4 million for the six months ended June 30, 2025 compared to $102.6 million for the six months ended June 30, 2024, a decrease of $2.2 million, or 2%. The decrease was primarily due to a $2.5 million