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Third Quarter 2025 Investor Supplement
Product Innovation and Developments
•Released API Discovery, which continuously identifies and organizes API traffic across edge services to enhance API security.
•Launched a new deception capability in our Next-Gen WAF designed to mislead attackers and bots, while generating higher-quality threat intelligence.
•Introduced DDoS Precise Defense, allowing rule behavior to be adjusted with a click, eliminating common concerns over unintentionally blocking legitimate traffic.
•Launched the Fastly Model Context Protocol (MCP) Server, an open-source tool enabling AI assistants to manage Fastly services.
Customer Highlights
•A major retailer in the LATAM region migrated from a multi-vendor approach to Fastly’s platform to unify its edge security, delivery and bot management.
•A weekly news magazine wanted to relaunch its app on a tight timeline and chose Fastly based upon internal champions using Fastly at prior companies, demonstrating our customer advocacy flywheel.
•A leading APJ specialty retailer consolidated its delivery and security onto the Fastly platform, replacing a multi-vendor strategy.
•An American streaming media company selected Fastly’s platform due to its plug and play capabilities relative to competitive offerings, significantly reducing its operational and engineering costs.
•A sports digital media publisher seamlessly migrated to the Fastly platform due to our strong engineering support and ease of use in the onboarding process.

Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue by Product (in millions):
Network Services Revenue$109.8$106.0$104.2$107.4$110.1$113.3$114.9$118.8
Security Revenue$25.8$24.6$25.4$26.2$26.9$26.4$29.3$34.0
Other Revenue$2.2$2.9$2.8$3.6$3.6$4.8$4.5$5.4
Total Revenue$137.8$133.5$132.4$137.2$140.6$144.5$148.7$158.2
Key Metrics:
Enterprise Customer Count(1)
578 577 601 576 596 595 622 627 
Enterprise Customer Revenue %92 %91 %91 %92 %93 %93 %94 %94 %
Total Customer Count(1)
3,243 3,290 3,295 3,638 3,061 3,035 3,097 3,223 
Top Ten Customer Revenue %40 %38 %34 %33 %32 %33 %31 %32 %
LTM Net Retention Rate (NRR)(2)
113 %114 %110 %105 %102 %100 %104 %106 %
Annual Revenue Retention Rate (ARR)(7)
99.2 %— %— %— %99.0 %— %— %— %
Remaining Performance Obligations (RPO)(3)
$211.3$221.6$220.2$231.1$227.6$225.9$247.1$268.0

Corporate Highlights
•Introduced a Sustainability Dashboard that gives customers clear visibility into the environmental impact of their Fastly usage.
•Published Fastly’s Q2 Threat Insights Report on AI bot traffic, highlighting how AI bots are reshaping web traffic and what organizations need to do to stay in control.
Key Financial & Metrics Highlights
•Total revenue of $158.2 million, representing 15% year-over-year growth highlighted by security revenue growing 30% year-over-year and representing 21% of total revenue.
•Generated $18.1 million of positive free cash flow compared to $7.1 million of negative free cash flow in the third quarter of 2024.
•Enterprise customer count1 was 627 in the third quarter, up 51 from the third quarter of 2024. Total customer count1 was 3,223 in the third quarter, down 415 from the third quarter of 2024.
•Last 12-month net retention rate (LTM NRR)2 increased to 106% in the third quarter from 104% in the second quarter of 2025.
•Remaining Performance Obligations (RPO)3 were $268 million, up 16% from $231 million in the third quarter of 2024.
Fourth Quarter and Full Year 2025 Guidance
Q4 2025Full Year 2025
Total Revenue (millions)$159.0 - $163.0$610.0 - $614.0
Non-GAAP Operating Income (millions)(4)
$8.0 - $12.0$9.0 - $13.0
Non-GAAP Net Income per share(5)(6)
$0.04 - $0.08$0.03 - $0.07

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Key Metrics
1.Our number of customers is calculated based on the number of separate identifiable operating entities with which we have a billing relationship in good standing, from which we recognized revenue during the current quarter. Our enterprise customers are defined as those with annualized current quarter revenue in excess of $100,000. This is calculated by taking the revenue for each customer within the quarter and multiplying it by four.
2.We calculate LTM Net Retention Rate by dividing the total customer revenue for the prior twelve-month period (“prior 12-month period”) ending at the beginning of the last twelve-month period (“LTM period”) minus revenue contraction due to billing decreases or customer churn, plus revenue expansion due to billing increases during the LTM period from the same customers by the total prior 12-month period revenue. We believe the LTM Net Retention Rate is supplemental as it removes some of the volatility that is inherent in a usage-based business model.
3.Remaining Performance Obligations include future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. During the third quarter of 2025, we identified an error in RPO calculations from certain contracts with a termination-for-convenience clause. We recast the presentation of RPO for all prior periods presented to reflect the correction of this error.
4.For a reconciliation of non-GAAP financial measures to their corresponding GAAP measures, please refer to the reconciliation table at the end of this supplement.
5.Assumes weighted average diluted shares outstanding of 167.8 million in Q4 2025 and 160.4 million for the full year 2025.
6.Non-GAAP Net Income per share is calculated as Non-GAAP Net Income divided by weighted average diluted shares for 2025.
7.Annual Revenue Retention rate is calculated by subtracting the quotient of the Annual Revenue Churn from all of our Churned Customers divided by our annual revenue of the same calendar year from 100%. Our “Annual Revenue Churn” is calculated by multiplying the final full month of revenue from a customer that terminated its contract with us (a “Churned Customer”) by the number of months remaining in the same calendar year.







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Forward-Looking Statements

This investor supplement contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance and shareholder returns, including our outlook and guidance; our ability to acquire new customers, expand cross-sell opportunities, and grow market share; our ability to enrich our revenue mix with platform enhancements; the performance of our existing and new platform enhancements; the performance, capabilities, and expectations regarding customer experiences with Fastly Next-Gen WAF, Fastly API Discovery, Fastly DDoS Precise Defense, Fastly Model Context Protocol (MCP) Server, Fastly Image Optimizer, and the Sustainability Dashboard; and Fastly's strategies, platform, and business plans. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including those more fully described in Fastly's Annual Report on Form 10-K for the year ended December 31, 2024. Additional information will also be set forth in Fastly’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, and other filings and reports that Fastly may file from time to time with the SEC. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses the following non-GAAP measures of financial performance: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss), non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, free cash flow and adjusted EBITDA. The presentation of this additional financial information is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In addition, these non-GAAP financial measures may be different from the non-GAAP financial measures used by other companies. These non-GAAP measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within our earnings releases.
Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net income (loss) and non-GAAP basic and diluted net income (loss) per common share, non-GAAP research and development, non-GAAP sales and marketing, and non-GAAP general and administrative differ from GAAP in that they exclude stock-based compensation expense, amortization of capitalized stock-based compensation - cost of revenue, amortization of acquired intangible assets, executive transition costs, net gain on extinguishment of debt, impairment expense, and amortization of debt discount and issuance costs.
Adjusted EBITDA: excludes stock-based compensation expense, amortization of capitalized stock-based compensation - cost of revenue, gain on modification of lease, depreciation and other amortization expenses, amortization of acquired intangible assets, net gain on extinguishment of debt, impairment expense, executive transition costs, restructuring charges, interest income, interest expense, including amortization of debt discount and issuance costs, other income (expense), net, and income taxes.
Amortization of Acquired Intangible Assets: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases and acquisitions. Management considers its operating results without this activity when evaluating its ongoing non-GAAP performance and its adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and acquisitions and may not be reflective of our core business, ongoing operating results, or future outlook.
Amortization of Debt Discount and Issuance Costs: consists primarily of amortization expense related to our debt obligations. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook. These are included in our total interest expense.
Capital Expenditures: consists of cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.

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Depreciation and Other Amortization Expense: consists of non-cash charges that can be affected by the timing and magnitude of asset purchases. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because these charges are non-cash expenses that can be affected by the timing and magnitude of asset purchases and may not be reflective of our core business, ongoing operating results, or future outlook.
Executive Transition Costs: consists of one-time cash charges recognized with respect to changes in our executive’s employment status. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Free Cash Flow: calculated as net cash used in operating activities less purchases of property and equipment, net of proceeds from sale of property and equipment, principal payments of finance lease liabilities, capitalized internal-use software costs and advance payments made related to capital expenditures. Management specifically identifies adjusting items in the reconciliation of GAAP to non-GAAP financial measures. Management considers non-GAAP free cash flow to be a profitability and liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that can possibly be used for investing in Fastly's business and strengthening its balance sheet, but it is not intended to represent the residual cash flow available for discretionary expenditures. The presentation of non-GAAP free cash flow is also not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity.
Gain on Modification of Lease: consists of a one-time non-cash charge recognized with respect to the modification of our leases. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results, or future outlook.
Impairment Expense: consists of charges related to our long-lived assets. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Income Taxes: consists primarily of expenses recognized related to state and foreign income taxes. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Expense: consists primarily of interest expense related to our debt instruments, including amortization of debt discount and issuance costs. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Interest Income: consists primarily of interest income related to our marketable securities. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Net Gain on Debt Extinguishment: relates to net gain on the partial repurchase of our outstanding convertible debt. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Other Income (Expense), Net: consists primarily of foreign currency transaction gains and losses. Management considers its operating results without this activity when evaluating its ongoing adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Restructuring Charges: consists primarily of employee-related severance and termination benefits related to management's restructuring plan that resulted in a reduction in our workforce. Management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance because it is not believed by management to be reflective of our core business, ongoing operating results or future outlook.
Stock-Based Compensation Expense: consists of expenses for stock options, restricted stock units, performance awards, restricted stock awards and Employee Stock Purchase Plan ("ESPP") under our equity incentive plans. Although stock-based compensation is an expense for the Company and is viewed as a form of compensation, management considers its operating results without this activity when evaluating its ongoing non-GAAP net income (loss) performance and its adjusted EBITDA performance, primarily because it is a non-cash expense not believed by

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management to be reflective of our core business, ongoing operating results, or future outlook. In addition, the value of some stock-based instruments is determined using formulas that incorporate variables, such as market volatility, that are beyond our control.
Amortization of Capitalized Stock-Based Compensation - Cost of Revenue: in order to reflect the performance of our core business, ongoing operating results, or future outlook, and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies, similar to stock-based compensation, management considers it appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures.
Management believes these non-GAAP financial measures and adjusted EBITDA serve as useful metrics for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods and to those of peer companies, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors' overall understanding of our current financial performance.
In the financial tables below, the Company provides a reconciliation of the most comparable GAAP financial measure to the historical non-GAAP financial measures used in this investor supplement.


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Consolidated Statements of Operations – Quarterly
(unaudited, in thousands, except per share amounts)

Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue$137,777 $133,520 $132,371 $137,206 $140,579 $144,474 $148,709 $158,223 
Cost of revenue(1)
62,003 60,286 59,470 62,466 65,516 67,676 67,593 65,894 
Gross profit75,774 73,234 72,901 74,740 75,063 76,798 81,116 92,329 
Operating expenses:
Research and development(1)
38,270 38,248 35,106 31,884 32,742 37,429 42,221 41,421 
Sales and marketing(1)
48,662 49,607 52,959 45,994 50,050 49,313 51,100 49,998 
General and administrative(1)
31,426 31,639 28,433 27,173 26,154 28,235 24,323 29,698 
Impairment expense— — 3,137 559 448 — 415 — 
Restructuring charges
— — — 9,720 — — — — 
Total operating expenses118,358 119,494 119,635 115,330 109,394 114,977 118,059 121,117 
Loss from operations(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)(28,788)
Net gain on extinguishment of debt15,656 — — — 1,365 — — — 
Interest income4,584 3,848 3,937 3,819 3,267 2,975 3,084 3,080 
Interest expense(744)(579)(464)(473)(1,231)(3,173)(3,164)(3,161)
Other income (expense), net
(763)(89)193 (317)(815)(80)39 (55)
Loss before income tax expense (benefit)
(23,851)(43,080)(43,068)(37,561)(31,745)(38,457)(36,984)(28,924)
Income tax expense (benefit)(465)347 661 455 1,141 691 557 559 
Net loss$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)
Net loss per share attributable to common stockholders, basic and diluted$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted131,843 134,587 137,444 139,237 141,085 143,284 145,780 148,129 
__________
(1)Includes stock-based compensation expense as follows:
Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Cost of revenue$3,278 $2,779 $2,044 $1,911 $1,910 $1,939 $2,573 $2,861 
Research and development12,019 10,323 7,983 7,378 7,922 8,893 11,755 11,915 
Sales and marketing8,060 7,843 7,058 7,113 7,047 6,693 8,176 8,754 
General and administrative12,090 10,876 9,063 8,614 8,066 8,057 3,831 9,599 
Total$35,447 $31,821 $26,148 $25,016 $24,945 $25,582 $26,335 $33,129 



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Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly
(unaudited, in thousands, except per share amounts)

Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Gross Profit
GAAP gross Profit$75,774$73,234$72,901$74,740$75,063$76,798$81,116$92,329
Stock-based compensation3,2782,7792,0441,9111,9101,9392,5732,861
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,0221,1551,1841,3381,3711,6411,5811,664
Amortization of acquired intangible assets2,4752,4752,4752,4752,4752,4752,4752,475
Non-GAAP gross profit82,54979,64378,60480,46480,81982,85387,74599,329
GAAP gross margin55.0%54.8%55.1%54.5%53.4%53.2%54.5%58.4%
Non-GAAP gross margin59.9%59.6%59.4%58.6%57.5%57.3%59.0%62.8%
Research and development
GAAP research and development38,27038,24835,10631,88432,74237,42942,22141,421
Stock-based compensation(11,728)(10,323)(7,983)(7,378)(7,922)(8,893)(11,755)(11,915)
Executive transition costs(385)——————(326)
Non-GAAP research and development26,15727,92527,12324,50624,82028,53630,46629,180
Sales and marketing
GAAP sales and marketing48,66249,60752,95945,99450,05049,31351,10049,998
Stock-based compensation(8,060)(7,843)(7,058)(7,113)(7,047)(6,693)(8,176)(8,754)
Amortization of acquired intangible assets(2,300)(2,300)(2,301)(2,300)(2,299)(2,301)(2,279)(2,159)
Non-GAAP sales and marketing38,30239,46443,60036,58140,70440,31940,64539,085
General and administrative
GAAP general and administrative31,42631,63928,43327,17326,15428,23524,32329,698
Stock-based compensation(12,090)(10,876)(9,063)(8,614)(8,066)(8,057)(3,831)(9,599)
Executive transition costs—————(335)—(643)
Gain on modification of lease
——————736—
Non-GAAP general and administrative19,33620,76319,37018,55918,08819,84321,22819,456
Operating income (loss)
GAAP operating loss(42,584)(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)(28,788)
Stock-based compensation35,15631,82126,14825,01624,94525,58226,33533,129
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,0221,1551,1841,3381,3711,6411,5811,664
Restructuring charges
———9,720————
Executive transition costs385————335—969
Gain on modification of lease——————(736)—
Amortization of acquired intangible assets4,7754,7754,7764,7754,7744,7764,7544,634
Impairment expense
——3,137559448—415—
Non-GAAP operating income (loss)
(1,246)(8,509)(11,489)818(2,793)(5,845)(4,594)11,608
Net income (loss)
GAAP net loss(23,386)(43,427)(43,729)(38,016)(32,886)(39,148)(37,541)(29,483)
Stock-based compensation35,15631,82126,14825,01624,94525,58226,33533,129
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,0221,1551,1841,3381,3711,6411,5811,664
Restructuring charges
———9,720————
Executive transition costs385————335—969
Gain on modification of lease——————(736)—
Amortization of acquired intangible assets4,7754,7754,7764,7754,7744,7764,7544,634
Net gain on extinguishment of debt (15,656)———(1,365)———
Impairment expense——3,137559448—415—
Amortization of debt issuance costs456354349358318217217216
Non-GAAP net income (loss)
$2,752$(5,322)$(8,135)$3,750$(2,395)$(6,597)$(4,975)$11,129
GAAP net loss per common share — basic and diluted
$(0.18)$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)
Non-GAAP net income (loss) per common share — basic
$0.02$(0.04)$(0.06)$0.03$(0.02)$(0.05)$(0.03)$0.08
Non-GAAP net income (loss) per common share — diluted
$0.02$(0.04)$(0.06)$0.03$(0.02)$(0.05)$(0.03)$0.07
Weighted average basic common shares131,843134,587137,444139,237141,085143,284145,780148,129
Weighted average diluted common shares
141,162134,587137,444143,415141,085143,284145,780161,229

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(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.

Reconciliation of GAAP to Non-GAAP Financial Measures - Quarterly (Continued)
(unaudited, in thousands, except per share amounts)

Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares131,843 134,587 137,444 139,237 141,085 143,284 145,780 148,129 
Other dilutive equity awards9,319 — — 4,178 — — — 13,100 
Non-GAAP diluted shares141,162 134,587 137,444 143,415 141,085 143,284 145,780 161,229 
Non-GAAP diluted net income (loss) per share0.02 (0.04)(0.06)0.03 (0.02)(0.05)(0.03)0.07 

Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Adjusted EBITDA
GAAP net loss$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)
Stock-based compensation35,156 31,821 26,148 25,016 24,945 25,582 26,335 33,129 
Amortization of capitalized stock-based compensation - Cost of revenue(1)
1,022 1,155 1,184 1,338 1,371 1,641 1,581 1,664 
Gain on modification of lease— — — — — — (736)— 
Depreciation and other amortization13,727 13,400 13,443 13,781 13,911 13,650 13,505 14,101 
Amortization of acquired intangible assets4,775 4,775 4,776 4,775 4,774 4,776 4,754 4,634 
Amortization of debt discount and issuance costs456 354 349 358 318 217 217 216 
Net gain on extinguishment of debt(15,656)— — — (1,365)— — — 
Impairment expense— — 3,137 559 448 — 415 — 
Executive transition costs385 — — — — 335 — 969 
Restructuring charges— — — 9,720 — — — — 
Interest income(4,584)(3,848)(3,937)(3,819)(3,267)(2,975)(3,084)(3,080)
Interest expense288 225 115 115 913 2,956 2,947 2,945 
Other (income) expense, net763 89 (193)317 815 80 (39)55 
Income tax (benefit) expense(465)347 661 455 1,141 691 557 559 
Adjusted EBITDA$12,481 $4,891 $1,954 $14,599 $11,118 $7,805 $8,911 $25,709 
(1)Similar to stock-based compensation, we believe it is also appropriate to exclude amortization of capitalized stock-based compensation from our non-GAAP financial measures in order to reflect the performance of our core business and to be consistent with the way many investors evaluate our performance and compare our operating results to peer companies. However, we have not historically done so. In order to continue to improve the usefulness of our non-GAAP financial measures to the investors, starting with the quarter ended March 31, 2025, we are excluding amortization of capitalized stock-based compensation from our non-GAAP financial measures and we have accordingly recast the presentation for all prior periods presented to reflect this change. Refer to Non-GAAP Financial Measures definition for further details.









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Non-GAAP Consolidated Statements of Operations - Quarterly
(unaudited, in thousands, except per share amounts)
Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue$137,777 $133,520 $132,371 $137,206 $140,579 $144,474 $148,709 $158,223 
Cost of revenue(1)(2)(3)
55,228 53,877 53,767 56,742 59,760 61,621 60,964 58,894 
Gross profit(1)(2)
82,549 79,643 78,604 80,464 80,819 82,853 87,745 99,329 
Operating expenses:
Research and development(1)(4)
26,157 27,925 27,123 24,506 24,820 28,536 30,466 29,180 
Sales and marketing(1)(3)
38,302 39,464 43,600 36,581 40,704 40,319 40,645 39,085 
General and administrative(1)(4)(5)
19,336 20,763 19,370 18,559 18,088 19,843 21,228 19,456 
Total operating expenses(1)(2)(3)(4)(5)(6)(7)
83,795 88,152 90,093 79,646 83,612 88,698 92,339 87,721 
Income (loss) from operations(1)(2)(3)(4)(5)(6)(7)
(1,246)(8,509)(11,489)818 (2,793)(5,845)(4,594)11,608 
Interest income4,584 3,848 3,937 3,819 3,267 2,975 3,084 3,080 
Interest expense(8)
(288)(225)(115)(115)(913)(2,956)(2,947)(2,945)
Other income (expense), net(763)(89)193 (317)(815)(80)39 (55)
Income (loss) before income tax expense (benefit)(1)(2)(3)(4)(5)(6)(7)(8)(9)
2,287 (4,975)(7,474)4,205 (1,254)(5,906)(4,418)11,688 
Income tax expense (benefit)
(465)347 661 455 1,141 691 557 559 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)(9)
$2,752 $(5,322)$(8,135)$3,750 $(2,395)$(6,597)$(4,975)$11,129 
Net income (loss) per share attributable to common stockholders, basic
$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)$0.08 
Net income (loss) per share attributable to common stockholders, diluted
$0.02 $(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)$0.07 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic131,843134,587137,444139,237141,085143,284145,780148,129
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted141,162134,587137,444143,415141,085143,284145,780161,229

(1)Excludes stock-based compensation. See GAAP to Non-GAAP reconciliations.
(2)Excludes amortization of capitalized stock-based compensation - cost of revenue. See GAAP to Non-GAAP reconciliations.
(3)Excludes amortization of acquired intangible assets. See GAAP to Non-GAAP reconciliations.
(4)Excludes executive transition costs. See GAAP to Non-GAAP reconciliations.
(5)Excludes gain on modification of lease. See GAAP to Non-GAAP reconciliations.
(6)Excludes impairment expense. See GAAP to Non-GAAP reconciliations.
(7)Excludes restructuring charges. See GAAP to Non-GAAP reconciliations.
(8)Excludes amortization of debt discount and issuance costs. See GAAP to Non-GAAP reconciliations.
(9)Excludes net gain on extinguishment of debt. See GAAP to Non-GAAP reconciliations.



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Consolidated Balance Sheets - Quarterly
(unaudited, in thousands)
Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Assets
Current assets:
Cash and cash equivalents$107,921 $150,809 $147,196 $217,514 $286,175 $125,484 $82,487 $113,131 
Marketable securities214,799 178,677 164,569 90,733 9,707 181,808 238,721 229,780 
Accounts receivable, net120,498 107,517 113,878 116,800 115,988 119,035 117,318 109,184 
Prepaid expenses and other current assets20,455 23,207 25,312 28,011 28,325 26,243 26,137 27,689 
Total current assets463,673 460,210 450,955 453,058 440,195 452,570 464,663 479,784 
Property and equipment, net176,608 177,574 177,058 180,288 179,097 177,876 181,770 182,896 
Operating lease right-of-use assets, net55,212 54,420 52,451 47,700 50,433 48,802 54,001 53,050 
Goodwill670,356 670,356 670,356 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net62,475 57,576 52,676 47,776 42,876 37,976 32,814 28,055 
Marketable securities, non-current6,088 1,743 — — — — — — 
Other assets90,779 84,044 79,176 72,576 68,402 61,665 59,573 56,461 
Total assets$1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,611 $5,485 $5,532 $11,354 $6,044 $9,802 $13,344 $10,829 
Accrued expenses61,818 35,555 34,445 40,854 41,622 37,165 45,282 60,421 
Current debt— — — — — 187,871 188,051 188,232 
Finance lease liabilities15,684 11,974 8,178 4,882 2,328 617 80 — 
Operating lease liabilities24,042 22,580 25,399 23,857 25,155 26,988 23,673 23,676 
Other current liabilities40,539 44,633 35,748 33,261 29,307 38,442 42,373 45,757 
Total current liabilities147,694 120,227 109,302 114,208 104,456 300,885 312,803 328,915 
Long-term debt
343,507 343,837 344,167 344,498 337,614 149,874 149,883 149,893 
Finance lease liabilities, non-current
1,602 440 — — — — — — 
Operating lease liabilities, non-current
48,484 46,857 44,634 40,565 39,561 36,615 48,577 47,106 
Other long-term liabilities4,416 2,756 3,382 3,029 4,478 4,848 9,267 7,723 
Total liabilities545,703 514,117 501,485 502,300 486,109 492,222 520,530 533,637 
Stockholders’ equity:
Common stock
3 3 3 3 3 3 3 3 
Additional paid-in capital1,815,245 1,870,503 1,903,374 1,929,397 1,958,157 1,989,108 2,012,312 2,035,956 
Accumulated other comprehensive loss(1,008)(521)(282)(22)(100)(130)(169)(12)
Accumulated deficit(834,752)(878,179)(921,908)(959,924)(992,810)(1,031,958)(1,069,499)(1,098,982)
Total stockholders’ equity979,488 991,806 981,187 969,454 965,250 957,023 942,647 936,965 
Total liabilities and stockholders’ equity$1,525,191 $1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 







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Consolidated Statements of Cash Flows – Quarterly
(unaudited, in thousands)

Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Cash flows from operating activities:
Net loss$(23,386)$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense13,587 13,277 13,318 13,656 13,786 15,167 14,962 15,639 
Amortization of intangible assets4,899 4,899 4,900 4,900 4,900 4,900 4,878 4,759 
Non-cash lease expense5,451 5,556 5,800 5,463 5,655 5,655 5,694 5,476 
Amortization of debt discount and issuance costs456 354 349 358 316 217 217 216 
Amortization of deferred contract costs4,295 4,573 4,531 4,773 4,746 4,850 4,847 4,869 
Stock-based compensation35,447 31,821 26,148 25,016 24,945 25,582 26,335 33,129 
Deferred income taxes
(900)228 333 339 893 422 327 289 
Provision for credit losses714 953 393 1,054 1,434 946 1,048 1,236 
(Gain) loss on disposals of property and equipment— 399 45 — 96 — (43)— 
Accretion of discounts on investments
(990)(1,158)(1,244)(1,064)(507)(626)(1,356)(1,305)
Impairment of operating lease right-of-use assets156 — — 371 — — — — 
Impairment expense— — 3,137 559 448 — 415 — 
Net gain on extinguishment of debt(15,656)— — — (1,365)— — — 
Other adjustments905 (259)(178)520 (897)376 (84)(189)
Changes in operating assets and liabilities:
Accounts receivable(22,590)12,028 (6,754)(3,976)(622)(3,993)669 6,898 
Prepaid expenses and other current assets4,107 (2,700)(2,131)(2,589)(207)2,216 121 (1,526)
Other assets(6,868)(1,814)(3,210)(2,705)(4,140)(2,095)(6,076)(4,820)
Accounts payable(876)101 (341)4,754 (3,903)2,575 3,446 (2,741)
Accrued expenses(1,603)(8,760)1,911 2,707 1,220 (3,383)1,577 1,339 
Operating lease liabilities(5,137)(7,606)(4,406)(7,329)(7,200)(5,556)(2,332)(5,774)
Other liabilities612 2,667 (3,820)(3,789)(1,492)9,183 8,694 912 
Net cash provided by (used in) operating activities(7,377)11,132 (4,948)5,002 5,220 17,288 25,798 28,924 
Cash flows from investing activities:
Purchases of marketable securities(59,142)(56,948)(60,249)(37,902)— (179,486)(93,440)(79,136)
Sales of marketable securities24,850 — — — — — — 18,128 
Maturities of marketable securities5,642 99,080 77,597 113,032 81,480 7,969 37,836 71,417 
Advance payment for purchase of property and equipment— — (790)— — — — — 
Purchases of property and equipment
(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)(6,046)
Proceeds from sale of property and equipment— — 24 — — — 44 — 
Capitalized internal-use software(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)(4,707)
Net cash provided by (used in) investing activities
(37,245)33,684 7,991 66,316 70,909 (178,885)(69,954)(344)
Cash flows from financing activities:
Payments of debt issuance costs— — — — (5,729)— — — 
Cash paid for debt extinguishment(113,606)— — — — — — — 
Repayments of finance lease liabilities(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)(537)(80)
Payment of deferred consideration for business acquisitions— — (3,771)— — — — — 
Proceeds from exercise of vested stock options161 111 180 19 805 408 279 71 
Proceeds from employee stock purchase plan1,550 2,881 1,034 2,168 161 2,131 1,240 2,106 
Net cash provided by (used in) financing activities
(117,827)(1,880)(6,793)(1,109)(7,317)828 982 2,097 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash70 (48)(13)109 (151)78 177 (33)
Net increase (decrease) in cash, cash equivalents, and restricted cash(162,379)42,888 (3,763)70,318 68,661 (160,691)(42,997)30,644 
Cash, cash equivalents, and restricted cash at beginning of period270,450 108,071 150,959 147,196 217,514 286,175 125,484 82,487 
Cash, cash equivalents, and restricted cash at end of period$108,071 $150,959 $147,196 $217,514 $286,175 $125,484 $82,487 $113,131 


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Free Cash Flow
(in thousands, unaudited)
Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Net cash provided by (used in) investing activities
$(7,377)$11,132 $(4,948)$5,002 $5,220 $17,288 $25,798 $28,924 
Capital expenditures(1):
Purchases of property and equipment(2,693)(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)(6,046)
Proceeds from sale of property and equipment— — 24 — — — 44 — 
Capitalized internal-use software(5,902)(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)(4,707)
Repayments of finance lease liabilities(5,932)(4,872)(4,236)(3,296)(2,554)(1,711)(537)(80)
Advance payment for purchase of property and equipment(2)
— — (790)— — — — — 
Free Cash Flow$(21,904)$(2,188)$(18,541)$(7,108)$(7,905)$8,209 $10,911 $18,091 
__________
(1)Capital expenditures are defined as cash used for purchases of property and equipment, net of proceeds from sale of property and equipment, capitalized internal-use software and payments on finance lease obligations, as reflected in our statement of cash flows.
(2)In the nine months ended September 30, 2025, we received $9.2 million of capital equipment that was prepaid prior to the current quarter, as reflected in the supplemental disclosure of our statement of cash flows.

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