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📊 𝐑𝐞𝐬𝐮𝐥𝐭𝐬
• Non-GAAP EPS: $0.17 (Est. $0.12) ✅, vs. $0.07 YoY.
• Revenue: $190.2M (Est. $187.80M) ✅, +20% YoY.
• GAAP EPS: -$0.07 (vs. -$0.20 YoY).
• Non-GAAP Gross Margin: 65.8%, +300 bps YoY.
• GAAP Gross Margin: 63.3%, +490 bps YoY.
• Non-GAAP Operating Income: $31.2M (vs. $11.6M YoY).
• Non-GAAP Operating Margin: 16.4%, +910 bps YoY.
• Free Cash Flow: $25.2M, +39% YoY.
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🎯 𝐆𝐮𝐢𝐝𝐚𝐧𝐜𝐞
• Q4 Revenue: $198M–$202M, midpoint $200M (Est. $196.89M) ✅.
• Q4 Non-GAAP EPS: $0.16–$0.18, midpoint $0.17 (Est. $0.13) ✅.
• FY2026 Revenue: $744M–$748M, midpoint $746M (Est. $741.02M) ✅.
• FY2026 Non-GAAP EPS: $0.61–$0.63, midpoint $0.62 (Est. $0.53) ✅.
• FY2026 Non-GAAP Operating Income: $107M–$111M.
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📌 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬
• Q3 adjusted EPS beat consensus by ~41.7%, while revenue exceeded estimates by ~1.3%.
• Network Services revenue increased 16% YoY to $138M.
• Security revenue surged 32% YoY to $44.7M, significantly outpacing overall growth.
• Non-GAAP gross margin reached a record 65.8%, while operating margin expanded 910 bps YoY.
• Last-twelve-month net retention rate rose to 119%, its highest level since 2022.
• Remaining Performance Obligations increased 24% YoY to $334M.
• Multiproduct adoption among large customers reached 74% for two or more product suites, while adoption of four or more surged to 34%.
• Top 10 customers accounted for 39% of revenue, up from 32% YoY, indicating increased customer concentration.
• Expanded AI portfolio with AI Firewall, AI Runtime Control and new API Security capabilities.
• Partnered with Comcast to integrate Fastly software into its nationwide network for low-latency delivery and edge AI services.
• FY2026 EPS guidance midpoint stands ~17% above consensus.
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💬 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐂𝐨𝐦𝐦𝐞𝐧𝐭𝐚𝐫𝐲
“Delivering record revenue and free cash flow demonstrates our value proposition as we help customers achieve critical business outcomes and build for AI scale.”
