UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________________ FORM 10-K ____________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 (Registrant's telephone number, including area code) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-38897 ____________________________ FASTLY, INC. (Exact name of reg ...

Group 1 - Fastly's revenue increased by 23% year-over-year, with security revenue growing by 32% due to AI traffic solutions [2] - The company projects 2026 revenue to be between $700 million and $720 million, exceeding Wall Street's prior estimates [2] - Fastly's stock is currently trading 74.8% above its 20-day simple moving average (SMA) and 96.4% above its 100-day SMA, indicating strong momentum [3] Group 2 - Fastly shares have surged 154.55% over the past 12 months, nearing their 52-week highs [3] - The Relative Strength Index (RSI) is at 77.17, indicating overbought conditions, while the MACD shows bullish momentum [4] - Analyst consensus gives Fastly a Hold rating with an average price target of $12.40, with recent target increases from various analysts [5]

As of Feb. 20, 2026, two stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, acc ...

Core Viewpoint - Fastly (FSLY) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism regarding Fastly's earnings prospects is driving higher estimates, which is expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $0.08 per share, reflecting a year-over-year increase of +260.0% [5]. - For the full year, the earnings estimate is projected at $0.26 per share, indicating a +100.0% change from the previous year [6]. Estimate Revisions - Over the past 30 days, the Zacks Consensus Estimate for Fastly has increased by 31.08%, with four estimates raised and no negative revisions [5]. - For the current year, five estimates have been revised upward, contributing to a 23.03% increase in the consensus estimate [6][7]. Zacks Rank - Fastly has achieved a Zacks Rank 2 (Buy) due to favorable estimate revisions, indicating strong potential for outperformance [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Stock Performance - Fastly shares have increased by 101.1% over the past four weeks, suggesting strong investor confidence in the company's earnings growth prospects [9].

Core Insights - The recent release of Anthropic's Claude Cowork and Claude Opus 4.6 has triggered a "repricing mode" across various sectors, leading to significant market volatility [1][4] - Companies that were previously valued highly are now facing skepticism regarding their future cash flows and competitive advantages, resulting in a reassessment of their valuations [5][10] - The market is questioning the sustainability of high margins and economic moats for many firms, particularly in the software and data sectors, as they transition towards more commoditized offerings [5][18] Market Dynamics - The market's reaction to new information often leads to either over-optimism or excessive pessimism, complicating investment decisions [2][3] - Companies like ZoomInfo, Fastly, and Teledoc have seen their valuations decline significantly compared to their peaks in 2020, raising concerns about their long-term viability [3][4] - The shift in market dynamics suggests that previously high-growth companies may need to adapt their business models to remain competitive [5][12] Valuation Considerations - High valuations based on future cash flows are now under scrutiny, as the market reassesses the ability of these companies to maintain their operating margins [5][10] - The transition from high-margin, asset-light models to more asset-heavy structures could negatively impact key financial metrics such as ROIC, ROA, and ROE [10][22] - Historical data indicates that companies undergoing significant asset growth often experience stock price declines, suggesting a need for caution in investment strategies [10][24] Sector Performance - A list of software and data companies has shown significant year-to-date declines, with some experiencing drawdowns of over 30% [21][22] - The performance of these companies contrasts sharply with their perceived economic moats just a few years ago, indicating a shift in investor sentiment [21][22] - The current market environment may favor asset-heavy companies that are less affected by the recent volatility and uncertainty [22][23] Long-term Trends - The article highlights the importance of recognizing that market trends can last longer or shorter than anticipated, emphasizing the need for adaptive investment strategies [24] - Valuation remains a critical factor in long-term investment success, with fewer companies demonstrating consistent quality over time [24][25] - The evolving landscape suggests that investors may need to reassess their portfolios to account for changing market dynamics and emerging opportunities [18][19]

Core Viewpoint - Fastly is experiencing a shift towards becoming a key infrastructure provider for AI-driven models, which has positively influenced investor sentiment and market confidence [2][3]. Financial Performance - Fastly reported quarterly revenue of $172.6 million, reflecting a 23% year-over-year increase, with earnings per share significantly exceeding analyst estimates [2]. - The company provided 2026 revenue guidance of $700 million to $720 million, surpassing Wall Street expectations [3]. - Security revenue grew by 32%, driven by products designed to address the challenges posed by AI-driven traffic [3]. Stock Performance - Fastly's stock is currently trading 2.7% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, indicating short-term weakness [4]. - Over the past 12 months, Fastly shares have increased by 118.60%, positioning them closer to their 52-week highs than lows [4]. - At the time of publication, Fastly shares were down 4.00% at $17.53, near their 52-week high of $19.14 [6]. Technical Indicators - The Relative Strength Index (RSI) is at a neutral level, suggesting the stock is neither overbought nor oversold [5]. - The Moving Average Convergence Divergence (MACD) is below its signal line, indicating bearish pressure on the stock [5]. Analyst Ratings and Price Targets - The stock carries a Hold Rating with an average price target of $10.91 [6]. - Recent analyst actions include Citigroup raising its target to $13.00, RBC Capital to $12.00, and Piper Sandler to $14.00, all maintaining a neutral stance [7].

If any investors are looking at the so-called "SaaSpocalypse" and are afraid that once growth stocks lose momentum they can never recover, Fastly, Inc. ( FSLY ) is a great example of the opposite. The content delivery network (CDN) was one of the hottestWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has bee ...

If any investors are looking at the so-called "SaaSpocalypse" and are afraid that once growth stocks lose momentum they can never recover, Fastly, Inc. ( FSLY ) is a great example of the opposite. The content delivery network (CDN) was one of the hottestWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has bee ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FSLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any i ...

Company Performance - Fastly (FSLY) has seen a significant increase in its stock price, rising 102.2% over the past month and reaching a new 52-week high of $19.14 [1] - Year-to-date, Fastly's stock has gained 79.4%, outperforming the Zacks Computer and Technology sector, which is down 2.6%, and the Zacks Internet - Software industry, which has declined by 12.1% [1] Earnings and Revenue Expectations - Fastly has a strong track record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters [2] - For the current fiscal year, Fastly is projected to report earnings of $0.17 per share on revenues of $711.06 million, reflecting a 30.77% increase in EPS and a 13.95% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $0.26 per share on revenues of $786.99 million, indicating a year-over-year change of 57.84% in EPS and 10.68% in revenues [3] Valuation Metrics - Fastly's current valuation metrics show a Price-to-Earnings (P/E) ratio of 110.7X for the current fiscal year, significantly higher than the peer industry average of 19.2X, suggesting a premium valuation [6] - The stock has a Value Score of F, while its Growth and Momentum Scores are A and A, respectively, resulting in a VGM Score of B [6] Zacks Rank - Fastly holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further growth [7] - The recommendation for investors is to consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, which Fastly meets [7] Industry Comparison - The Internet - Software industry is performing well, ranking in the top 37% of all industries, providing favorable conditions for both Fastly and its peer, Karooooo Ltd. (KARO) [10] - Karooooo Ltd. also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, having beaten consensus estimates by 11.36% last quarter [9]