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Fourth Quarter 2025 Investor Supplement
Product Innovation and Developments
•Expanded our API Security offering with API Inventory, enabling customers to review, catalog and manage intended APIs to quickly identify those needing security attention.
•Released a beta of AI Assistant, a context-aware, in-console helper designed to improve accessibility to Fastly services for less experienced developers, by providing step-by-step guidance and personalized recommendations.
•Extended Custom Dashboards and Alerts to all customers by default, providing deeper, on-demand insights to enable faster decision making and actions without requiring an Observability package.
•Enhanced Adaptive Threat Engine, the core technology behind our DDoS Protection offering to further improve our accuracy, time to mitigate, and our ability to detect and block short-lived, “bursty” attacks.
•Rolled out several Compute performance enhancements, including Early Hints, which speeds up page load times, and a beta C++ SDK to support customers’ performance-critical applications.
Customer Highlights
•A Fortune 500 restaurant chain migrated to Fastly to deliver front-end application traffic for its superior performance and to streamline its online checkout and architectural design.
•One of the world’s largest home retailers selected Fastly to reduce the time and cost associated with implementing and managing complex traffic controls.
•A leading cloud observability and security provider expanded their use of the Fastly Platform to include Fastly Compute and Fastly’s security portfolio.
•A leading print-on-demand marketplace that sells personalized products added Fastly’s bot management capabilities to improve the purchasing process for its customers.
Calculations of Key and Other Selected Metrics – Quarterly (unaudited)
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Revenue by Product (in millions):
Network Services Revenue$106.0$104.2$107.4$110.1$113.3$114.9$118.8$130.8
Security Revenue$24.6$25.4$26.2$26.9$26.4$29.3$34.0$35.4
Other Revenue$2.9$2.8$3.6$3.6$4.8$4.5$5.4$6.4
Total Revenue$133.5$132.4$137.2$140.6$144.5$148.7$158.2$172.6
Key Metrics:
Enterprise Customer Count(6)
577 601 576 596 595 622 627 628 
Enterprise Customer Revenue %91 %91 %92 %93 %93 %94 %94 %94 %
Total Customer Count(1)
3,290 3,295 3,638 3,061 3,035 3,097 3,223 3,092 
Top Ten Customer Revenue %38 %34 %33 %32 %33 %31 %32 %34 %
LTM Net Retention Rate (NRR)(2)
114 %110 %105 %102 %100 %104 %106 %110 %
Annual Revenue Retention Rate (ARR)(7)
— %— %— %99.0 %— %— %— %98.7 %
Remaining Performance Obligations (RPO)(1)
$221.6$220.2$231.1$227.6$225.9$247.1$268.0$353.8
Current RPO %(8)
78%78%78%79%69%76%77%70%

Corporate Highlights
•Raised $180 million in gross proceeds of 0% convertible notes due 2030, including exercise of a $20 million overallotment at a 32.5% conversion premium, and used $149 million to repurchase notes due 2026, significantly improving our liquidity to fund our growth capital needs.
•Named a 2025 Gartner® Peer Insights™ Customers’ Choice for Cloud Web Application and API Protection (WAAP). Fastly received one of the highest overall ratings and is the only vendor to earn this recognition for seven consecutive years.
•Published an AppSec study with IDC, analyzing responses from nearly 1,000 global security and technology leaders revealing a more than 3× improvement in business outcomes from modern application security programs.
Key Financial & Metrics Highlights
•Total revenue of $172.6 million, representing 23% year-over-year growth highlighted by security revenue growing 32% year-over-year and representing 20% of total revenue.
•Generated $8.6 million of positive free cash flow compared to $7.9 million of negative free cash flow in the fourth quarter of 2024.
•Remaining Performance Obligations (RPO)1 were $354 million, up 55% from $228 million in the fourth quarter of 2024.
•Last 12-month net retention rate (LTM NRR)2 increased to 110% in the fourth quarter from 106% in the third quarter of 2025.
First Quarter and Full Year 2026 Guidance
Q1 2026Full Year 2026
Total Revenue (millions)$168.0 - $174.0$700.0 - $720.0
Non-GAAP Operating Income (millions)(3)
$14.0 - $18.0$50.0 - $60.0
Non-GAAP Net Income per share(4)(5)
$0.07 - $0.10$0.23 - $0.29


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Key Metrics
1.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.
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.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.
4.Assumes weighted average diluted shares outstanding of 175.4 million in Q1 2026 and 179.0 million for the full year 2026.
5.Non-GAAP Net Income per share is calculated as Non-GAAP Net Income divided by weighted average diluted shares for 2026.
6.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.
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.
8.Current RPO % is calculated as RPO expected to be recognized over the next 12 months divided by total RPO. 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 current RPO for all prior periods presented to reflect the correction of this error.







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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 and ability to improve liquidity; 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 API Inventory, AI Assistant, Custom Dashboards and alerts, and the Adaptive Threat Engine update for Fastly DDoS Protection; 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 in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. 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)

Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Revenue$133,520 $132,371 $137,206 $140,579 $144,474 $148,709 $158,223 $172,612 
Cost of revenue(1)
60,286 59,470 62,466 65,516 67,676 67,593 65,894 66,652 
Gross profit73,234 72,901 74,740 75,063 76,798 81,116 92,329 105,960 
Operating expenses:
Research and development(1)
38,248 35,106 31,884 32,742 37,429 42,221 41,421 41,591 
Sales and marketing(1)
49,607 52,959 45,994 50,050 49,313 51,100 49,998 51,023 
General and administrative(1)
31,639 28,433 27,173 26,154 28,235 24,323 29,698 28,436 
Impairment expense— 3,137 559 448 — 415 — — 
Restructuring charges
— — 9,720 — — — — — 
Total operating expenses119,494 119,635 115,330 109,394 114,977 118,059 121,117 121,050 
Loss from operations(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)(28,788)(15,090)
Net gain on extinguishment of debt— — — 1,365 — — — 941 
Interest income3,848 3,937 3,819 3,267 2,975 3,084 3,080 3,151 
Interest expense(579)(464)(473)(1,231)(3,173)(3,164)(3,161)(3,201)
Other income (expense), net
(89)193 (317)(815)(80)39 (55)(625)
Loss before income tax expense (benefit)
(43,080)(43,068)(37,561)(31,745)(38,457)(36,984)(28,924)(14,824)
Income tax expense (benefit)347 661 455 1,141 691 557 559 681 
Net loss$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)
Net loss per share attributable to common stockholders, basic and diluted$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)$(0.10)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted134,587 137,444 139,237 141,085 143,284 145,780 148,129 150,324 
__________
(1)Includes stock-based compensation expense as follows:
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Cost of revenue$2,779 $2,044 $1,911 $1,910 $1,939 $2,573 $2,861 $2,764 
Research and development10,323 7,983 7,378 7,922 8,893 11,755 11,915 11,890 
Sales and marketing7,843 7,058 7,113 7,047 6,693 8,176 8,754 9,348 
General and administrative10,876 9,063 8,614 8,066 8,057 3,831 9,599 8,275 
Total$31,821 $26,148 $25,016 $24,945 $25,582 $26,335 $33,129 $32,277 



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

Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Gross Profit
GAAP gross Profit$73,234$72,901$74,740$75,063$76,798$81,116$92,329$105,960
Stock-based compensation2,7792,0441,9111,9101,9392,5732,8612,764
Amortization of capitalized stock-based compensation - cost of revenue(1)
1,1551,1841,3381,3711,6411,5811,6641,662
Amortization of acquired intangible assets2,4752,4752,4752,4752,4752,4752,475—
Non-GAAP gross profit79,64378,60480,46480,81982,85387,74599,329110,386
GAAP gross margin54.8%55.1%54.5%53.4%53.2%54.5%58.4%61.4%
Non-GAAP gross margin59.6%59.4%58.6%57.5%57.3%59.0%62.8%64.0%
Research and development
GAAP research and development38,24835,10631,88432,74237,42942,22141,42141,591
Stock-based compensation(10,323)(7,983)(7,378)(7,922)(8,893)(11,755)(11,915)(11,890)
Executive transition costs——————(326)(221)
Non-GAAP research and development27,92527,12324,50624,82028,53630,46629,18029,480
Sales and marketing
GAAP sales and marketing49,60752,95945,99450,05049,31351,10049,99851,023
Stock-based compensation(7,843)(7,058)(7,113)(7,047)(6,693)(8,176)(8,754)(9,348)
Amortization of acquired intangible assets(2,300)(2,301)(2,300)(2,299)(2,301)(2,279)(2,159)(2,159)
Non-GAAP sales and marketing39,46443,60036,58140,70440,31940,64539,08539,516
General and administrative
GAAP general and administrative31,63928,43327,17326,15428,23524,32329,69828,436
Stock-based compensation(10,876)(9,063)(8,614)(8,066)(8,057)(3,831)(9,599)(8,275)
Executive transition costs————(335)—(643)—
Gain on modification of lease
—————736——
Non-GAAP general and administrative20,76319,37018,55918,08819,84321,22819,45620,161
Operating income (loss)
GAAP operating loss(46,260)(46,734)(40,590)(34,331)(38,179)(36,943)(28,788)(15,090)
Stock-based compensation31,82126,14825,01624,94525,58226,33533,12932,277
Amortization of capitalized stock-based compensation - cost of revenue(1)
1,1551,1841,3381,3711,6411,5811,6641,662
Restructuring charges
——9,720—————
Executive transition costs————335—969221
Gain on modification of lease—————(736)——
Amortization of acquired intangible assets4,7754,7764,7754,7744,7764,7544,6342,159
Impairment expense
—3,137559448—415——
Non-GAAP operating income (loss)
(8,509)(11,489)818(2,793)(5,845)(4,594)11,60821,229
Net income (loss)
GAAP net loss(43,427)(43,729)(38,016)(32,886)(39,148)(37,541)(29,483)(15,505)
Stock-based compensation31,82126,14825,01624,94525,58226,33533,12932,277
Amortization of capitalized stock-based compensation - cost of revenue(1)
1,1551,1841,3381,3711,6411,5811,6641,662
Restructuring charges
——9,720—————
Executive transition costs————335—969221
Gain on modification of lease—————(736)——
Amortization of acquired intangible assets4,7754,7764,7754,7744,7764,7544,6342,159
Net gain on extinguishment of debt ———(1,365)———(941)
Impairment expense—3,137559448—415——
Amortization of debt issuance costs354349358318217217216257
Non-GAAP net income (loss)
$(5,322)$(8,135)$3,750$(2,395)$(6,597)$(4,975)$11,129$20,130
GAAP net loss per common share — basic and diluted
$(0.32)$(0.32)$(0.27)$(0.23)$(0.27)$(0.26)$(0.20)$(0.10)
Non-GAAP net income (loss) per common share — basic
$(0.04)$(0.06)$0.03$(0.02)$(0.05)$(0.03)$0.08$0.13
Non-GAAP net income (loss) per common share — diluted
$(0.04)$(0.06)$0.03$(0.02)$(0.05)$(0.03)$0.07$0.12
Weighted average basic common shares134,587 137,444 139,237 141,085 143,284 145,780 148,129 150,324 
Weighted average diluted common shares
134,587 137,444 143,415 141,085 143,284 145,780 161,229 164,074 

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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)

Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Reconciliation of GAAP to Non-GAAP diluted shares:
GAAP diluted shares134,587 137,444 139,237 141,085 143,284 145,780 148,129 150,324 
Other dilutive equity awards— — 4,178 — — — 13,100 13,750 
Non-GAAP diluted shares134,587 137,444 143,415 141,085 143,284 145,780 161,229 164,074 
Non-GAAP diluted net income (loss) per share(0.04)(0.06)0.03 (0.02)(0.05)(0.03)0.07 0.12 

Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Adjusted EBITDA
GAAP net loss$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)
Stock-based compensation31,821 26,148 25,016 24,945 25,582 26,335 33,129 32,277 
Amortization of capitalized stock-based compensation - cost of Revenue(1)
1,155 1,184 1,338 1,371 1,641 1,581 1,664 1,662 
Gain on modification of lease— — — — — (736)— — 
Depreciation and other amortization13,400 13,443 13,781 13,911 13,650 13,505 14,101 13,725 
Amortization of acquired intangible assets4,775 4,776 4,775 4,774 4,776 4,754 4,634 2,159 
Amortization of debt discount and issuance costs354 349 358 318 217 217 216 257 
Net gain on extinguishment of debt— — — (1,365)— — — (941)
Impairment expense— 3,137 559 448 — 415 — — 
Executive transition costs— — — — 335 — 969 221 
Restructuring charges— — 9,720 — — — — — 
Interest income(3,848)(3,937)(3,819)(3,267)(2,975)(3,084)(3,080)(3,151)
Interest expense225 115 115 913 2,956 2,947 2,945 2,944 
Other (income) expense, net89 (193)317 815 80 (39)55 625 
Income tax expense
347 661 455 1,141 691 557 559 681 
Adjusted EBITDA$4,891 $1,954 $14,599 $11,118 $7,805 $8,911 $25,709 $34,954 
(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)
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Revenue$133,520 $132,371 $137,206 $140,579 $144,474 $148,709 $158,223 $172,612 
Cost of revenue(1)(2)(3)
53,877 53,767 56,742 59,760 61,621 60,964 58,894 62,226 
Gross profit(1)(2)
79,643 78,604 80,464 80,819 82,853 87,745 99,329 110,386 
Operating expenses:
Research and development(1)(4)
27,925 27,123 24,506 24,820 28,536 30,466 29,180 29,480 
Sales and marketing(1)(3)
39,464 43,600 36,581 40,704 40,319 40,645 39,085 39,516 
General and administrative(1)(4)(5)
20,763 19,370 18,559 18,088 19,843 21,228 19,456 20,161 
Total operating expenses(1)(2)(3)(4)(5)(6)(7)
88,152 90,093 79,646 83,612 88,698 92,339 87,721 89,157 
Income (loss) from operations(1)(2)(3)(4)(5)(6)(7)
(8,509)(11,489)818 (2,793)(5,845)(4,594)11,608 21,229 
Interest income3,848 3,937 3,819 3,267 2,975 3,084 3,080 3,151 
Interest expense(8)
(225)(115)(115)(913)(2,956)(2,947)(2,945)(2,944)
Other income (expense), net(89)193 (317)(815)(80)39 (55)(625)
Income (loss) before income tax expense (benefit)(1)(2)(3)(4)(5)(6)(7)(8)(9)
(4,975)(7,474)4,205 (1,254)(5,906)(4,418)11,688 20,811 
Income tax expense
347 661 455 1,141 691 557 559 681 
Net income (loss)(1)(2)(3)(4)(5)(6)(7)(8)(9)
$(5,322)$(8,135)$3,750 $(2,395)$(6,597)$(4,975)$11,129 $20,130 
Net income (loss) per share attributable to common stockholders, basic
$(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)$0.08 $0.13 
Net income (loss) per share attributable to common stockholders, diluted
$(0.04)$(0.06)$0.03 $(0.02)$(0.05)$(0.03)$0.07 $0.12 
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, basic134,587137,444139,237141,085143,284145,780148,129150,324
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders, diluted134,587137,444143,415141,085143,284145,780161,229164,074

(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)
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Assets
Current assets:
Cash and cash equivalents$150,809 $147,196 $217,514 $286,175 $125,484 $82,487 $113,131 $180,563 
Marketable securities178,677 164,569 90,733 9,707 181,808 238,721 229,780 181,196 
Accounts receivable, net107,517 113,878 116,800 115,988 119,035 117,318 109,184 118,029 
Prepaid expenses and other current assets23,207 25,312 28,011 28,325 26,243 26,137 27,689 26,921 
Total current assets460,210 450,955 453,058 440,195 452,570 464,663 479,784 506,709 
Property and equipment, net177,574 177,058 180,288 179,097 177,876 181,770 182,896 186,785 
Operating lease right-of-use assets, net54,420 52,451 47,700 50,433 48,802 54,001 53,050 52,067 
Goodwill670,356 670,356 670,356 670,356 670,356 670,356 670,356 670,356 
Intangible assets, net57,576 52,676 47,776 42,876 37,976 32,814 28,055 25,771 
Marketable securities, non-current1,743 — — — — — — — 
Other assets84,044 79,176 72,576 68,402 61,665 59,573 56,461 57,789 
Total assets$1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 $1,499,477 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$5,485 $5,532 $11,354 $6,044 $9,802 $13,344 $10,829 $17,612 
Accrued expenses35,555 34,445 40,854 41,622 37,165 45,282 60,421 70,669 
Long-term debt, current portion
— — — — 187,871 188,051 188,232 38,557 
Finance lease liabilities11,974 8,178 4,882 2,328 617 80 — — 
Operating lease liabilities22,580 25,399 23,857 25,155 26,988 23,673 23,676 24,427 
Deferred revenue
— — — — — — — 35,234 
Other current liabilities44,633 35,748 33,261 29,307 38,442 42,373 45,757 7,499 
Total current liabilities120,227 109,302 114,208 104,456 300,885 312,803 328,915 193,998 
Long-term debt, current
343,837 344,167 344,498 337,614 149,874 149,883 149,893 323,282 
Finance lease liabilities, non-current
440 — — — — — — — 
Operating lease liabilities, non-current
46,857 44,634 40,565 39,561 36,615 48,577 47,106 43,921 
Other long-term liabilities2,756 3,382 3,029 4,478 4,848 9,267 7,723 8,698 
Total liabilities514,117 501,485 502,300 486,109 492,222 520,530 533,637 569,899 
Stockholders’ equity:
Common stock
3 3 3 3 3 3 3 3 
Additional paid-in capital1,870,503 1,903,374 1,929,397 1,958,157 1,989,108 2,012,312 2,035,956 2,044,103 
Accumulated other comprehensive loss(521)(282)(22)(100)(130)(169)(12)(41)
Accumulated deficit(878,179)(921,908)(959,924)(992,810)(1,031,958)(1,069,499)(1,098,982)(1,114,487)
Total stockholders’ equity991,806 981,187 969,454 965,250 957,023 942,647 936,965 929,578 
Total liabilities and stockholders’ equity$1,505,923 $1,482,672 $1,471,754 $1,451,359 $1,449,245 $1,463,177 $1,470,602 $1,499,477 







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

Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Cash flows from operating activities:
Net loss$(43,427)$(43,729)$(38,016)$(32,886)$(39,148)$(37,541)$(29,483)$(15,505)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense13,277 13,318 13,656 13,786 15,167 14,962 15,639 15,263 
Amortization of intangible assets4,899 4,900 4,900 4,900 4,900 4,878 4,759 2,284 
Non-cash lease expense5,556 5,800 5,463 5,655 5,655 5,694 5,476 5,620 
Amortization of debt discount and issuance costs354 349 358 316 217 217 216 256 
Amortization of deferred contract costs4,573 4,531 4,773 4,746 4,850 4,847 4,869 4,803 
Stock-based compensation31,821 26,148 25,016 24,945 25,582 26,335 33,129 32,277 
Deferred income taxes
228 333 339 893 422 327 289 395 
Provision for credit losses953 393 1,054 1,434 946 1,048 1,236 951 
(Gain) loss on disposals of property and equipment399 45 — 96 — (43)— 229 
Accretion of discounts on investments
(1,158)(1,244)(1,064)(507)(626)(1,356)(1,305)(1,416)
Impairment of operating lease right-of-use assets— — 371 — — — — — 
Impairment expense— 3,137 559 448 — 415 — — 
Net gain on extinguishment of debt— — — (1,365)— — — (941)
Other adjustments(259)(178)520 (897)376 (84)(189)446 
Changes in operating assets and liabilities:
Accounts receivable12,028 (6,754)(3,976)(622)(3,993)669 6,898 (9,796)
Prepaid expenses and other current assets(2,700)(2,131)(2,589)(207)2,216 121 (1,526)768 
Other assets(1,814)(3,210)(2,705)(4,140)(2,095)(6,076)(4,820)(6,554)
Accounts payable101 (341)4,754 (3,903)2,575 3,446 (2,741)1,209 
Accrued expenses(8,760)1,911 2,707 1,220 (3,383)1,577 1,339 20 
Operating lease liabilities(7,606)(4,406)(7,329)(7,200)(5,556)(2,332)(5,774)(7,045)
Other liabilities2,667 (3,820)(3,789)(1,492)9,183 8,694 912 (830)
Net cash provided by (used in) operating activities11,132 (4,948)5,002 5,220 17,288 25,798 28,924 22,434 
Cash flows from investing activities:
Purchases of marketable securities(56,948)(60,249)(37,902)— (179,486)(93,440)(79,136)(37,775)
Sales of marketable securities— — — — — — 18,128 7,808 
Maturities of marketable securities99,080 77,597 113,032 81,480 7,969 37,836 71,417 79,954 
Advance payment for purchase of property and equipment— (790)— — — — — — 
Purchases of property and equipment
(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)(6,046)(10,191)
Proceeds from sale of property and equipment— 24 — — — 44 — — 
Capitalized internal-use software(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)(4,707)(3,645)
Net cash provided by (used in) investing activities
33,684 7,991 66,316 70,909 (178,885)(69,954)(344)36,151 
Cash flows from financing activities:
Proceeds from issuance of convertible notes
— — — — — — — 180,000 
Payments of issuance costs for convertible notes
— — — (5,729)— — — (5,924)
Cash paid for debt extinguishment
— — — — — — — (148,875)
Payments for purchase of capped calls
— — — — — — — (18,162)
Repayments of finance lease liabilities (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 options111 180 19 805 408 279 71 286 
Proceeds from employee stock purchase plan2,881 1,034 2,168 161 2,131 1,240 2,106 1,529 
Net cash provided by (used in) financing activities
(1,880)(6,793)(1,109)(7,317)828 982 2,097 8,854 
Effects of exchange rate changes on cash, cash equivalents, and restricted cash(48)(13)109 (151)78 177 (33)(7)
Net increase (decrease) in cash, cash equivalents, and restricted cash42,888 (3,763)70,318 68,661 (160,691)(42,997)30,644 67,432 
Cash, cash equivalents, and restricted cash at beginning of period108,071 150,959 147,196 217,514 286,175 125,484 82,487 113,131 
Cash, cash equivalents, and restricted cash at end of period$150,959 $147,196 $217,514 $286,175 $125,484 $82,487 $113,131 $180,563 


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Free Cash Flow
(in thousands, unaudited)
Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025
Net cash provided by (used in) operating activities$11,132 $(4,948)$5,002 $5,220 $17,288 $25,798 $28,924 $22,434 
Capital expenditures(1):
Purchases of property and equipment(1,603)(1,762)(1,996)(4,969)(2,605)(9,852)(6,046)(10,191)
Proceeds from sale of property and equipment— 24 — — — 44 — — 
Capitalized internal-use software(6,845)(6,829)(6,818)(5,602)(4,763)(4,542)(4,707)(3,645)
Repayments of finance lease liabilities(4,872)(4,236)(3,296)(2,554)(1,711)(537)(80)— 
Advance payment for purchase of property and equipment(2)
— (790)— — — — — — 
Free Cash Flow$(2,188)$(18,541)$(7,108)$(7,905)$8,209 $10,911 $18,091 $8,598 
__________
(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 twelve months ended December 31, 2025, we received $9.2 million of capital equipment that was prepaid prior to the current year, as reflected in the supplemental disclosure of our statement of cash flows.