Fastly Set to Report Q2 Earnings: How Should You Play the Stock?

Fastly FSLY is set to report its second-quarter 2025 results on Aug. 6.

For the second quarter of 2025, FSLY expects revenues in the range of $143 and $147 million, up 10% year-over-year at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $145.1 million, indicating a 9.6% increase from the year-ago quarter’s reported figure.

FSLY expects a non-GAAP loss between 4 and 8 cents per share. The consensus mark for loss is pegged at 5 cents per share, unchanged over the past 30 days and narrower than the loss of 7 cents reported in the year-ago quarter.

Fastly, Inc. Price and EPS Surprise

Fastly, Inc. price-eps-surprise | Fastly, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note Ahead of FSLY’s Q2 Results

Fastly’s content delivery and edge computing platform are expected to have benefited from go-to-market transformation efforts in the to-be-reported quarter. This along with packaging improvements are anticipated to have helped the company win deals, while revenue growth is expected to maintain a steady pace.

Enterprise demand for advanced digital experiences and security solutions is likely to have provide support to top-line growth in the to-be-reported quarter. The Security segment is anticipated to have benefited from ongoing portfolio enhancements. Adoption of edge computing solutions, particularly for dynamic content and AI-driven workloads, has been a key catalyst. Traditional content delivery is likely to have remained the primary revenue driver, with security and compute offerings helping diversify the mix.

Newer security capabilities, including advanced DDoS protection and bot mitigation, remain in the early stages of adoption and are expected to have a limited revenue impact in second quarter. 

However, industry pricing remains competitive, which may keep gross margin expansion constrained. Profitability is likely to stay closely tied to operating discipline. Macroeconomic uncertainty and ongoing regulatory factors tied to specific customer relationships is expected to have negatively impacted second-quarter results.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.

FSLY has an Earnings ESP of -53.13% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

CommScope COMM has an Earnings ESP of +19.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CommScope shares are up 49.6% year to date. CommScope is set to report its second-quarter 2025 results on Aug. 7.

AvePoint AVPT has an Earnings ESP of +5.88% and a Zacks Rank #2. AvePoint shares are up 8.8% year to date. AvePoint is set to report its second-quarter 2025 results on Aug. 7.

Lumentum LITE has an Earnings ESP of +5.12% and a Zacks Rank #1. Lumentum shares are up 27% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on August 12.

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This article originally published on Zacks Investment Research (zacks.com).

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