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๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ
โข Non-GAAP EPS: $0.17 (Est. $0.12) โ , vs. $0.07 YoY.
โข Revenue: $190.2M (Est. $187.80M) โ , +20% YoY.
โข GAAP EPS: -$0.07 (vs. -$0.20 YoY).
โข Non-GAAP Gross Margin: 65.8%, +300 bps YoY.
โข GAAP Gross Margin: 63.3%, +490 bps YoY.
โข Non-GAAP Operating Income: $31.2M (vs. $11.6M YoY).
โข Non-GAAP Operating Margin: 16.4%, +910 bps YoY.
โข Free Cash Flow: $25.2M, +39% YoY.
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๐ฏ ๐๐ฎ๐ข๐๐๐ง๐๐
โข Q4 Revenue: $198Mโ$202M, midpoint $200M (Est. $196.89M) โ .
โข Q4 Non-GAAP EPS: $0.16โ$0.18, midpoint $0.17 (Est. $0.13) โ .
โข FY2026 Revenue: $744Mโ$748M, midpoint $746M (Est. $741.02M) โ .
โข FY2026 Non-GAAP EPS: $0.61โ$0.63, midpoint $0.62 (Est. $0.53) โ .
โข FY2026 Non-GAAP Operating Income: $107Mโ$111M.
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๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข Q3 adjusted EPS beat consensus by ~41.7%, while revenue exceeded estimates by ~1.3%.
โข Network Services revenue increased 16% YoY to $138M.
โข Security revenue surged 32% YoY to $44.7M, significantly outpacing overall growth.
โข Non-GAAP gross margin reached a record 65.8%, while operating margin expanded 910 bps YoY.
โข Last-twelve-month net retention rate rose to 119%, its highest level since 2022.
โข Remaining Performance Obligations increased 24% YoY to $334M.
โข Multiproduct adoption among large customers reached 74% for two or more product suites, while adoption of four or more surged to 34%.
โข Top 10 customers accounted for 39% of revenue, up from 32% YoY, indicating increased customer concentration.
โข Expanded AI portfolio with AI Firewall, AI Runtime Control and new API Security capabilities.
โข Partnered with Comcast to integrate Fastly software into its nationwide network for low-latency delivery and edge AI services.
โข FY2026 EPS guidance midpoint stands ~17% above consensus.
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๐ฌ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐๐ซ๐ฒ
โDelivering record revenue and free cash flow demonstrates our value proposition as we help customers achieve critical business outcomes and build for AI scale.โ