Fastly, Inc. — Call Transcript 2026

In today's session with Fastly. My name is Jonathan Ho, and I'm the cybersecurity analyst for William Blair. Our speaker today is Richard Wong, who's the CFO of the company. Before we begin, I'm required to inform you that a complete list of research disclosures or conflicts of interest is available at our website at www.williamblair.com. As a reminder, the breakout session will be held in this room following the presentation. With that, I'll hand it over to Richard to do a brief overview of the company, and then we'll follow up with a brief fireside chat. Thank you. Great. Thank you for coming. I really appreciate it. I think we're the last presentation for the day, so really appreciate you sitting through this. As mentioned, Richard Wong, the Chief Financial Officer. I've been with Fastly since August of last year. Very excited to be here. I had spent my career in tech. Had been a two-time CFO before this and then had done some time across Wall Street, investment banking, and a number of other companies. Before we open, I do have the forward-looking statements disclosure. I'm not going to read this here, but I just want to make sure that it's available and you guys take the time to read it at your leisure if you want to fall asleep. Before I begin, I thought maybe I'd start with a high level about Fastly and what we do. Fastly, we are an edge cloud platform company. We serve from the edge. Our mission is to really make the internet a better place where all experiences for users are fast, safe, and engaging. I just think that the edge plays a very unique spot in terms of delivering internet traffic across the world, and we play in this role at the edge. Some of the stats about us. We have last 12-month revenue of $653 million, with the most recent quarter growing revenues at 20% year-on-year. This revenue growth and this revenue number is across three different business product lines that we disclose. We have a delivery services revenue, we have security revenue, and then we also call other, which is a combination of our compute plus observability. We play in a very large TAM. We talk about a $22 billion TAM in 2026 for those three business lines. We also have over 600+ customers that we define as large customers. Large customers is defined as customers with over $100,000 annualized revenue in the quarter. We have a pretty global employee base of 1,100 employees around the world. A last 12-month NRR of 113%. We're very proud of the last box on the bottom. This is some of the customer stats around what we do for our customers. We do it with a 95%+ CSAT score, processing over five trillion average daily request served. If you look at performance from a business perspective, we outperform our competitors with a 32% faster average time to first byte than other CDN providers. We play in, as mentioned, the $22 billion market. We believe it's a large and growing addressable market. We have a unified platform. Whether we're serving delivery traffic or we're doing security on our network or we're doing compute on our network, it's one network that we support. We think that having that unified platform makes us better from a technology perspective. It makes our customers have a much better customer experience. We're seeing some pretty good tailwinds with internet traffic and especially with AI trends that are happening in the industry. I think that the combination of continued traffic growth, more moving to live streaming events, as well as more transactions processed on the internet, as well as the AI tailwinds that we're seeing out there provides a unique opportunity for the edge. We are mission-critical to a lot of our customers. We are very vital for what they do on a day-to-day basis, whether it's their monetization strategy, whether it's their consumer experience or enterprise experience. We are mission-critical to our customers. I think what's really important is that we have multiple levers for continued growth in our business. If you look at us versus our competitors, we are a clear market leader with a differentiated technology. We win where performance matters. Our customers choose us because of performance requirements. Definitely something that we're very proud of. I mentioned on the tailwinds that are supporting us, I think you started first with the first box here where there is more traffic growing on the internet today, greater coverage, a lot of service affordability out there, 4K TV dominance. You start seeing a lot of more access and more pixels going across the internet. You combine it with what we see around peak events, downloads. You see big gaming platforms doing downloads that are big, massive files, a lot more live events. More and more, the market and traffic is transitioning from what we've seen in the past to more AI-generated content, AI queries, et cetera. We think this growth plays in our favor. We think that 2025 traffic growth was in the order of 15.4% year-over-year, and we reached almost 33 exabytes per day. Definitely good tailwinds on the traffic growth and the reasons why traffic is growing on the internet. For those who are not as familiar with the story, this will help position with the edge cloud. I mentioned that we are an edge cloud platform company. You see us playing in the middle between the central cloud and the end users. Think of the central cloud as where the hyperscalers play. They have big, massive data centers. Those big, massive data centers are in remote locations where power is cheap and space is cheap. They're not close to the end users. For people to hit the internet and hit those hyperscaler data centers, they leverage technology that us edge cloud providers provide. We started first with the content delivery network, where we cache big files on the edge, then more and more you see security moving to the edge where we're the first points of entry to the traffic, and we can block and provide more intelligence to that traffic. Security plays a big role in that, then more and more compute will happen. If you look at the central cloud and the edge cloud, we're synergistic. We partner with the central cloud players, the big hyperscalers because those are far remote locations and the customers need a better user experience. We also help lower costs for our customers. Because those customers save on egress traffic that goes to the central cloud. If the central clouds are far away, there's a lot of bandwidth costs that end up happening, and if we're caching the content or providing more security and blocking that traffic to even entering the central cloud, we're saving our customers lots of money. The edge cloud plays this unique role that helps improve the user experience from an end user experience, and then it also saves the customer a lot of money from egress traffic. If you think about what's better done at the edge, now that you see how the edge plays with the central cloud, the first use case of the edge cloud was the content delivery network. Content and application delivery. That was the first use case. That was where a lot of time was spent. Years later, they've realized that, hey, all the traffic is going through the edge cloud. If we can layer in intelligence and provide security at the edge, that's an even better value proposition. More and more companies have moved from just purely content delivery into security. I think that with agentic and where things are moving towards, compute will also be done at the edge. I do think that it's still very nascent and very early, but it is a good tailwind and another better use of the edge cloud. Because you're managing traffic as it comes into the internet, there's a lot of observability tools that can be used as well. I think that from a use case perspective, these are the four big use cases of the edge. This is how we divide up our business. When we disclose our revenues, we disclose it as delivery services, security, we put compute and observability as other. The reason why these are really strong use cases for the edge is because speed matters a lot. Customers do not have the patience to wait to load pages, and they don't want to make transactions or make purchases where speed is slow. I think what else matters is that in this world of real live news updates, think The New York Times on election nights. You need very fast purging technology which allows more personalized dynamic content being displayed. These content delivery networks like us, you need really good technology because the content is very dynamic. In the world of social media, in the world of personalized content across the web, If you're going on a shopping site, you're going to get recommendations on what else to buy, and so everyone needs personalized experiences. Having an edge provider who can provide configurability is really important. I think that the reason the edge is being used is because of resiliency and mission control. When you have a central cloud that houses all your data center information back there, if you're under a DDoS attack or you're under different events, having multiple POPs at the edge and blocking traffic and providing more resiliency because you're distributing your content across multiple POPs is a much better experience. People choose the edge for resiliency and mission control. I talked about enforcement and security. If you can enforce security at the edge, even better. It's a much better experience. You're blocking information or you're letting in the right players. I also talked about lower cost. Being at the edge allows a lot of the customers that we have, save them from egress traffic. Our footprint today, we have 167 POPs throughout the world delivering 578 terabits per second. If you compare us versus our competitors, what you will notice is that we have fewer POPs, but much more powerful POPs. The powerful POPs enables us to have better performance. Our POPs are very software configurable and very programmable using off-the-shelf products. It is a very much more capital efficient and better way to run the network versus our competitors. We were formed 15 years ago based on a very modern architecture. I think we were founded by a chief technology officer. Artur Bergman came as the CTO of Wikia. He has always been very focused on the customer experience and on being technology first. As a result of that, we are recognized by analysts and investors as our customers, as one of the better products out there. We are constantly listed as a leader in the spaces we play in. We've won Customers' Choice Award seven years in a row. Across a different number of categories, we tend to win awards because we do have a higher performance and better product out there. We are recognized by industry analysts and experts. When you think about the revenues that we have, it cuts across the three kind of circles that you see here, where Network Services is 73% of our revenue. That's the content delivery side of the business. That's growing 11% year-over-year. Our security has been kind of the bright spot, 22% of our total revenues. That's growing 47% year-on-year. That's also the fifth consecutive quarter of accelerating revenues in our business. 18-24 months ago, we had one security product, and now you see the five security products we have today. That's really evolved and definitely helped see continued acceleration across our security products. Other is a little bit more nascent. I mentioned compute and observability. That's about 5% of our business, and that's growing the fastest at 67% year-over-year. That continues to also grow on a year-over-year basis. We're definitely, for me, continue to invest in our core business, which is Network Services, but we have growth drivers across security, and then we have areas that we're playing with because in the future, we do think that compute will play a bigger part. I mentioned some of our growth drivers, but being a platform play is definitely very helpful and nice. I think starting with content delivery, layering in having five security products has helped us gain momentum across our business, where we are delivering 20% year-over-year growth again. We have accelerated our R&D momentum. I mentioned 18-24 months ago, having one security product with a WAF. We now have kind of the full suite of five edge security products, launching DDoS, bot management, API security, and client-side protection. You see across our businesses, we're growing faster than the market, in all three of our businesses. You see that because we are doing competitive takeouts with our customers. We are winning where performance matters, and we have a better go-to-market sales execution motion than we've had in the past. I think with the other area that we're investing is international markets. I think that if you look at what we've been doing, especially in 2026, we've invested a lot in our APAC region. We have a new leader who's in Singapore. Prior to her joining, we were supporting Asia from our London office. You can imagine that experience being not as where it should be. Now having more feet on the ground in Asia-Pacific region, I think that is a definite opportunity to see that. We're investing in POPs internationally, and so in that slide around our POPs, you've seen some purple circles where we're investing in, for example, Latin America this year because World Cup is going on. We are continuing to invest internationally. I went through some of the financial highlights. Here, you see the same numbers kind of repeated. I would say that if you focus on the bottom box, because the first three we've talked about, our record gross margin last quarter was 65%. We had record margins and gross margins there. If you look at what we've done on a last 12-month basis, we've actually had incremental flow-through on a gross margin perspective of 89%. Every dollar of incremental revenue that we've generated, we've flown 89% through to gross margins. We're working really hard to increase customer commitments. Yes, Delivery Services is a consumption-based business, but it doesn't mean that we can't have RPO. You'll see our RPO growing 63% year-on-year, last quarter to $369 million. I think the last one is we had $42 million of the last 12-month cash flow positive. If you look at the last five quarters, we've really turned a corner. We've had now five consecutive quarters of free cash flow generation. Very proud of that. If you look at full year 2025, we have had record gross margins and operating income. Going to this page here, you'll see our gross margins at 61% really picking up, and then I mentioned last quarter in Q1, we had 65.1% gross margins. Definitely very proud of the momentum, not only on the revenue growth that we're seeing, But also on the gross margin flow-through and the gross margin contribution that we are having. If you look at the OpEx leverage over time, we're definitely doing that by making sure that we are judicious. We're investing in R&D. We talked about R&D velocity, but yet, we were able to still reduce costs and still deliver continued product innovation around security products. We were able to deliver incremental sales with lower sales and marketing expense in 2025. Very proud of the operating expense leverage we had. As a result of this, what you're seeing is the blue and dark blue boxes moving positive. We've had a full year in 2025 of operating profits, and we had a full year of free cash flow positivity. If you look at the quarterly box, It's five consecutive quarters of free cash flow generation, and we have continued operating income momentum across the board. Very proud of what we've done as a company and really excited about what's to come going forward, especially in the opportunities around traffic growth, the agentic opportunity, the compute opportunity, and the security opportunity in front of us. With that Yeah. Let's go into the fireside chat. Richard, thank you for giving us that overview in quite a bit of depth. One thing I think that investors really want to understand is just the strength that you've seen within the security business. What's maybe driving that, and what capabilities have you added to allow Fastly to achieve that stronger security growth? I would say that security growth would probably be a few factors, right? One is that I talked about the product velocity, right? Once you start going from one single security product, which is the web application firewall, and going to launch the full suite at five, right, and getting to parity with your competitors, I think that R&D velocity opens up doors. When you only have one product, you get shut out of RFPs because customers will say, "Can I scale with you?" If you only have one product, it's hard to scale with you. Having the five products was very key because across the edge security, now we are at parity with our peers. I think that's number one. I would say number two is that we really revamped our go-to-market execution, right? Scott Lovett had joined mid-2024. Prior to Scott, we didn't really have a security selling motion. Scott came from Akamai, but he also spent time at Imperva, where he was doing security sales. He brought in sales leaders who knew how to sell security. Selling security is a very different kind of motion than selling content delivery. Having the know-how and then changing comp plans to be able to do cross-sell opportunities and kickers is really key. I think that if you couple product velocity with go-to-market changes, that's kind of the two biggest drivers. I would say the other big driver is the proliferation of the complexity of traffic over the internet, right? The complexity is happening, more DDoS attacks, more bot management, more bots scraping the traffic. I think just having the right products at the right time with the right kind of products is definitely a good tailwind in our favor. I would say two, executional one, and then the market dynamic has been helpful. Excellent. In terms of AI, this has clearly been a top-of-mind discussion area. Where does Fastly potentially benefit from agentic AI traffic, and where does that maybe show up in the P&L? Which business units do you typically see that in? I'd start first at the highest level, which is, how does agentic impact traffic flows across the internet, across the edge? I would say agentic use cases are still early, I do think that it's going to increase traffic on the internet in general. It won't increase on a gigabyte basis because AI traffic is going to probably be small bits compared to streaming or video. On a requests per second basis, on a number of times it's pinging the internet, it's going to be massive. The growth is going to be so much faster, I think that that's going to be big. How does that impact our revenue lines? Starting first with security, that's where we're seeing the majority of the impact from AI right now. With the proliferation of AI, you're seeing more DDoS attacks, more bot management. If you're a customer and you're creating content, let's say you're The New York Times, if AI traffic is scraping your content, you're losing eyeballs, which means less ad revenues or less subscription revenues. Your monetization model is kind of at risk. There's definitely a need for bot management. What are good bots? What are bad bots? Fastly, help me block the bad bots who are scraping my content but not paying me for it. With Fastly, we've adopted what we call, it's the RSL, the Real Simple Licensing standard. We're actually helping drive a lot of that, too. I think we're seeing the initial, on the security side, definitely more of the AI traffic and how it kind of provides tailwinds. I do think that compute is very early days. I think that right now, a lot of the AI is more inference. Inference is going back to the central cloud. The hyperscalers are building big, massive GPU data centers, and a lot of that is actually more about information gathering. Information gathering does not require as much workload from the edge. As you move to agentic, you go away from information gathering, and you go towards execution. When you go through execution, there's going to be orchestration that is required, right? You're going to need to have perhaps 10 agents or five agents working on your behalf. These agents will sit in different hyperscalers in different locations. Orchestrating that work has to be done in a location, and I think the edge is perfectly situated to really orchestrate that work across agentic, right? It's still early days. How many companies really have agentic apps out there, right? I do think that when you start saying, "Hey, tell me what to do in New York for two days," and you're doing information gathering, that's not orchestration. That's just information gathering. That's the large language models, the frontier models. When you get to, "Hey, work with a United agent to book my ticket, and work with an Uber agent to pick me up," there's going to be agents working on your behalf and doing execution. That orchestration needs to happen somewhere. I believe that it should happen at the edge. I think the edge is the right place to do it because you need to be efficient about how traffic is moving around the internet. Then I think on the last piece, we have network services, like how does agentic impact our network services revenue? I think that right now, a lot of us in the space, we price on a per gig basis. I do think that there's opportunities to think through how we think about pricing and how we think about the impacts there. Is that more on a request per second basis? How do we do that? I think overall, network traffic is going to increase because of agentic. How do we take advantage of the opportunity? I think that's still kind of, we're not there yet. Yeah. That makes a ton of sense. I think around the AI topic, the other major concern here is what's going to happen with Mythos in particular. There seems to be a lot of talk about significant increases in known vulnerabilities that are going to be out there. Not all of those vulnerabilities can be patched. So what role can your WAF products play in maybe that opportunity? Yeah. I think that we are big believers on even AI and how we can use AI to identify vulnerabilities. I do think that we've been very good about making sure that we have internal technology to identify correlation and traffic flows and figure out which ones are bad. I think that there's opportunity to continue to leverage AI in that front. Mythos would be a great example of how do we leverage AI to really identify vulnerabilities ahead of time. You have to couple with the knowhow that we also have in seeing traffic flows. I think that because we sit at the edge and we see a lot of traffic before it even hits other places, we're in a very good position to combine our knowhow with the AI and learning models to really identify those vulnerabilities for our customers. That's part of the reason why our security products continue to win awards, because we're taking the best of both. We're seeing the traffic up front, and we're combining our knowhow with the tools that are out there. Excellent. Just one last one. Do you need to make more incremental investments in compute or infrastructure, particularly on the GPU capability side? Are there opportunities to partner with some of the larger frontier models that are out there? Good question. I think we get this a lot. In terms of how are we doing compute today, right? Compute is still a pretty nascent market for us. I showed you our other number. We are doing a lot of that compute with our existing CPUs, right? We have a bunch of servers that are sitting in our POPs. They have CPU capacity, and we're able to process it through the CPUs that we have. I think that we are continuing to co-innovate with our customers. That co-innovation means what do you need from a customer perspective? How do we solve that problem? We're working with them on how do we solve that the best, and we find that right now we continue to solve their problems through existing compute resources. We are ready to do GPUs if our customers need it, but we're not in a position to want to put GPUs in the edge if there's no need for it, right? Once you start deploying it, one, they depreciate pretty quickly, especially with the iterations that are launching. If they sit idle, that's a gross margin impact. I think that co-innovation with our customers is actually really key because that co-innovation allows us to have leading views on that. Now, the second part of your question is, are there opportunities to partner with the frontier models? I think absolutely, right? I think that we welcome and we work with the different players out there, and depending on the use cases that they see, we're always working with a lot of players out there across all different types, including the frontier models. Excellent. We're going to take one question from the audience, then we'll break for the breakout session. Anyone? All right. Go ahead. Imagine on the orchestration layer. 11% of growth we see is related as the orchestration comes to agentic AI. Yeah, There's even growth- Could you repeat the question? The question in the room was that there was an 11% growth rate for our delivery services revenue. As we see the orchestration layer happening on agentic AI, where should we see that? Would we see it on the 11% pickup on delivery services? I think the orchestration layer ends up happening across a number of areas. I do think that we should see it on the compute side, right? On the compute side, we're going to need to be able to orchestrate and do computations around, like, "Hey, this person's asking me these things. These are their three criteria. I need to work with 10 different agents to go out there." You need that compute to happen so that you can send out instructions. I think that every compute needs to have some storage and some caching information, and so there might be some pickup in the delivery services as well. I do think that having multiple lines of businesses enables us to play together in that orchestration layer that needs to happen. It's still early days. I don't want to get people too excited about it, but I do think that from an agentic world, it's going to change the way the edge plays, and we need to be ready for that. Perfect. We're going to take a quick five-minute recess, and then we'll continue the discussion

Speaker 1: In today's session with Fastly. My name is Jonathan Ho, and I'm the cybersecurity analyst for William Blair. Our speaker today is Richard Wong, who's the CFO of the company. Before we begin, I'm required to inform you that a complete list of research disclosures or conflicts of interest is available at our website at www.williamblair.com. In today's session with Fastly. in today's session with fastly My name is Jonathan Ho, and I'm the cybersecurity analyst for William Blair. my name is jonathan ho and i'm the cybersecurity analyst for william blair Our speaker today is Richard Wong, who's the CFO of the company. our speaker today is richard wong who's the cfo of the company Before we begin, I'm required to inform you that a complete list of research disclosures or conflicts of interest is available at our website at www.williamblair.com. before we begin i'm required to inform you that a complete list of research disclosures or conflicts of interest is available at our website at www.williamblair.com As a reminder, the breakout session will be held in this room following the presentation. With that, I'll hand it over to Richard to do a brief overview of the company, and then we'll follow up with a brief fireside chat. Thank you. As a reminder, the breakout session will be held in this room following the presentation. as a reminder the breakout session will be held in this room following the presentation With that, I'll hand it over to Richard to do a brief overview of the company, and then we'll follow up with a brief fireside chat. with that i'll hand it over to richard to do a brief overview of the company and then we'll follow up with a brief fireside chat Thank you. thank you

Speaker 2: Great. Thank you for coming. I really appreciate it. I think we're the last presentation for the day, so really appreciate you sitting through this. As mentioned, Richard Wong, the Chief Financial Officer. I've been with Fastly since August of last year. Very excited to be here. I had spent my career in tech. Had been a two-time CFO before this and then had done some time across Wall Street, investment banking, and a number of other companies. Great. great Thank you for coming. thank you for coming I really appreciate it. i really appreciate it I think we're the last presentation for the day, so really appreciate you sitting through this. i think we're the last presentation for the day so really appreciate you sitting through this As mentioned, Richard Wong , the Chief Financial Officer. as mentioned richard wong the chief financial officer I've been with Fastly since August of last year. i've been with fastly since august of last year Very excited to be here. very excited to be here I had spent my career in tech. i had spent my career in tech Had been a two-time CFO before this and then had done some time across Wall Street, investment banking, and a number of other companies. had been a two-time cfo before this and then had done some time across wall street investment banking and a number of other companies Before we open, I do have the forward-looking statements disclosure. I'm not going to read this here, but I just want to make sure that it's available and you guys take the time to read it at your leisure if you want to fall asleep. Before I begin, I thought maybe I'd start with a high level about Fastly and what we do. Before we open, I do have the forward-looking statements disclosure. before we open i do have the forward-looking statements disclosure I'm not going to read this here, but I just want to make sure that it's available and you guys take the time to read it at your leisure if you want to fall asleep. i'm not going to read this here but i just want to make sure that it's available and you guys take the time to read it at your leisure if you want to fall asleep Before I begin, I thought maybe I'd start with a high level about Fastly and what we do. before i begin i thought maybe i'd start with a high level about fastly and what we do Fastly, we are an edge cloud platform company. We serve from the edge. Our mission is to really make the internet a better place where all experiences for users are fast, safe, and engaging. I just think that the edge plays a very unique spot in terms of delivering internet traffic across the world, and we play in this role at the edge. Fastly, we are an edge cloud platform company. fastly we are an edge cloud platform company We serve from the edge. we serve from the edge Our mission is to really make the internet a better place where all experiences for users are fast, safe, and engaging. our mission is to really make the internet a better place where all experiences for users are fast safe and engaging I just think that the edge plays a very unique spot in terms of delivering internet traffic across the world, and we play in this role at the edge. i just think that the edge plays a very unique spot in terms of delivering internet traffic across the world and we play in this role at the edge Some of the stats about us. We have last 12-month revenue of $653 million, with the most recent quarter growing revenues at 20% year-on-year. This revenue growth and this revenue number is across three different business product lines that we disclose. We have a delivery services revenue, we have security revenue, and then we also call other, which is a combination of our compute plus observability. Some of the stats about us. some of the stats about us We have last 12-month revenue of $653 million, with the most recent quarter growing revenues at 20% year-on-year. we have last 12-month revenue of $653 million with the most recent quarter growing revenues at 20% year-on-year This revenue growth and this revenue number is across three different business product lines that we disclose. this revenue growth and this revenue number is across three different business product lines that we disclose We have a delivery services revenue, we have security revenue, and then we also call other, which is a combination of our compute plus observability. we have a delivery services revenue we have security revenue and then we also call other which is a combination of our compute plus observability We play in a very large TAM. We talk about a $22 billion TAM in 2026 for those three business lines. We also have over 600+ customers that we define as large customers. Large customers is defined as customers with over $100,000 annualized revenue in the quarter. We have a pretty global employee base of 1,100 employees around the world. A last 12-month NRR of 113%. We play in a very large TAM. we play in a very large tam We talk about a $22 billion TAM in 2026 for those three business lines. we talk about a $22 billion tam in 2026 for those three business lines We also have over 600+ customers that we define as large customers. we also have over 600+ customers that we define as large customers Large customers is defined as customers with over $100,000 annualized revenue in the quarter. large customers is defined as customers with over $100,000 annualized revenue in the quarter We have a pretty global employee base of 1,100 employees around the world. we have a pretty global employee base of 1,100 employees around the world A last 12-month NRR of 113%. a last 12-month nrr of 113% We're very proud of the last box on the bottom. This is some of the customer stats around what we do for our customers. We do it with a 95%+ CSAT score, processing over five trillion average daily request served. If you look at performance from a business perspective, we outperform our competitors with a 32% faster average time to first byte than other CDN providers. We're very proud of the last box on the bottom. we're very proud of the last box on the bottom This is some of the customer stats around what we do for our customers. this is some of the customer stats around what we do for our customers We do it with a 95%+ CSAT score, processing over five trillion average daily request served. we do it with a 95%+ csat score processing over five trillion average daily request served If you look at performance from a business perspective, we outperform our competitors with a 32% faster average time to first byte than other CDN providers. if you look at performance from a business perspective we outperform our competitors with a 32% faster average time to first byte than other cdn providers We play in, as mentioned, the $22 billion market. We believe it's a large and growing addressable market. We have a unified platform. Whether we're serving delivery traffic or we're doing security on our network or we're doing compute on our network, it's one network that we support. We think that having that unified platform makes us better from a technology perspective. It makes our customers have a much better customer experience. We play in, as mentioned, the $22 billion market. we play in as mentioned the $22 billion market We believe it's a large and growing addressable market. we believe it's a large and growing addressable market We have a unified platform. we have a unified platform Whether we're serving delivery traffic or we're doing security on our network or we're doing compute on our network, it's one network that we support. whether we're serving delivery traffic or we're doing security on our network or we're doing compute on our network it's one network that we support We think that having that unified platform makes us better from a technology perspective. we think that having that unified platform makes us better from a technology perspective It makes our customers have a much better customer experience. it makes our customers have a much better customer experience We're seeing some pretty good tailwinds with internet traffic and especially with AI trends that are happening in the industry. I think that the combination of continued traffic growth, more moving to live streaming events, as well as more transactions processed on the internet, as well as the AI tailwinds that we're seeing out there provides a unique opportunity for the edge. We are mission-critical to a lot of our customers. We're seeing some pretty good tailwinds with internet traffic and especially with AI trends that are happening in the industry. we're seeing some pretty good tailwinds with internet traffic and especially with ai trends that are happening in the industry I think that the combination of continued traffic growth, more moving to live streaming events, as well as more transactions processed on the internet, as well as the AI tailwinds that we're seeing out there provides a unique opportunity for the edge. i think that the combination of continued traffic growth more moving to live streaming events as well as more transactions processed on the internet as well as the ai tailwinds that we're seeing out there provides a unique opportunity for the edge We are mission-critical to a lot of our customers. we are mission-critical to a lot of our customers We are very vital for what they do on a day-to-day basis, whether it's their monetization strategy, whether it's their consumer experience or enterprise experience. We are mission-critical to our customers. I think what's really important is that we have multiple levers for continued growth in our business. We are very vital for what they do on a day-to-day basis, whether it's their monetization strategy, whether it's their consumer experience or enterprise experience. we are very vital for what they do on a day-to-day basis whether it's their monetization strategy whether it's their consumer experience or enterprise experience We are mission-critical to our customers. we are mission-critical to our customers I think what's really important is that we have multiple levers for continued growth in our business. i think what's really important is that we have multiple levers for continued growth in our business If you look at us versus our competitors, we are a clear market leader with a differentiated technology. We win where performance matters. Our customers choose us because of performance requirements. Definitely something that we're very proud of. I mentioned on the tailwinds that are supporting us, If you look at us versus our competitors, we are a clear market leader with a differentiated technology. if you look at us versus our competitors we are a clear market leader with a differentiated technology We win where performance matters. we win where performance matters Our customers choose us because of performance requirements. our customers choose us because of performance requirements Definitely something that we're very proud of. definitely something that we're very proud of I mentioned on the tailwinds that are supporting us, i mentioned on the tailwinds that are supporting us I think you started first with the first box here where there is more traffic growing on the internet today, greater coverage, a lot of service affordability out there, 4K TV dominance. You start seeing a lot of more access and more pixels going across the internet. I think you started first with the first box here where there is more traffic growing on the internet today, greater coverage, a lot of service affordability out there, 4K TV dominance. i think you started first with the first box here where there is more traffic growing on the internet today greater coverage a lot of service affordability out there 4k tv dominance You start seeing a lot of more access and more pixels going across the internet. you start seeing a lot of more access and more pixels going across the internet You combine it with what we see around peak events, downloads. You see big gaming platforms doing downloads that are big, massive files, a lot more live events. More and more, the market and traffic is transitioning from what we've seen in the past to more AI-generated content, AI queries, et cetera. We think this growth plays in our favor. We think that 2025 traffic growth was in the order of 15.4% year-over-year, and we reached almost 33 exabytes per day. You combine it with what we see around peak events, downloads. you combine it with what we see around peak events downloads You see big gaming platforms doing downloads that are big, massive files, a lot more live events. you see big gaming platforms doing downloads that are big massive files a lot more live events More and more, the market and traffic is transitioning from what we've seen in the past to more AI-generated content, AI queries, et cetera. more and more the market and traffic is transitioning from what we've seen in the past to more ai-generated content ai queries et cetera We think this growth plays in our favor. we think this growth plays in our favor We think that 2025 traffic growth was in the order of 15.4% year-over-year, and we reached almost 33 exabytes per day. we think that 2025 traffic growth was in the order of 15.4% year-over-year and we reached almost 33 exabytes per day Definitely good tailwinds on the traffic growth and the reasons why traffic is growing on the internet. For those who are not as familiar with the story, this will help position with the edge cloud. I mentioned that we are an edge cloud platform company. You see us playing in the middle between the central cloud and the end users. Definitely good tailwinds on the traffic growth and the reasons why traffic is growing on the internet. For those who are not as familiar with the story, this will help position with the edge cloud. definitely good tailwinds on the traffic growth and the reasons why traffic is growing on the internet. for those who are not as familiar with the story this will help position with the edge cloud I mentioned that we are an edge cloud platform company. i mentioned that we are an edge cloud platform company You see us playing in the middle between the central cloud and the end users. you see us playing in the middle between the central cloud and the end users Think of the central cloud as where the hyperscalers play. They have big, massive data centers. Those big, massive data centers are in remote locations where power is cheap and space is cheap. They're not close to the end users. For people to hit the internet and hit those hyperscaler data centers, they leverage technology that us edge cloud providers provide. Think of the central cloud as where the hyperscalers play. think of the central cloud as where the hyperscalers play They have big, massive data centers. they have big massive data centers Those big, massive data centers are in remote locations where power is cheap and space is cheap. those big massive data centers are in remote locations where power is cheap and space is cheap They're not close to the end users. they're not close to the end users For people to hit the internet and hit those hyperscaler data centers, they leverage technology that us edge cloud providers provide. for people to hit the internet and hit those hyperscaler data centers they leverage technology that us edge cloud providers provide We started first with the content delivery network, where we cache big files on the edge, then more and more you see security moving to the edge where we're the first points of entry to the traffic, and we can block and provide more intelligence to that traffic. Security plays a big role in that, then more and more compute will happen. If you look at the central cloud and the edge cloud, we're synergistic. We started first with the content delivery network, where we cache big files on the edge, then more and more you see security moving to the edge where we're the first points of entry to the traffic, and we can block and provide more intelligence to that traffic. we started first with the content delivery network where we cache big files on the edge then more and more you see security moving to the edge where we're the first points of entry to the traffic and we can block and provide more intelligence to that traffic Security plays a big role in that, then more and more compute will happen. security plays a big role in that then more and more compute will happen If you look at the central cloud and the edge cloud, we're synergistic. if you look at the central cloud and the edge cloud we're synergistic We partner with the central cloud players, the big hyperscalers because those are far remote locations and the customers need a better user experience. We also help lower costs for our customers. Because those customers save on egress traffic that goes to the central cloud. We partner with the central cloud players, the big hyperscalers because those are far remote locations and the customers need a better user experience. we partner with the central cloud players the big hyperscalers because those are far remote locations and the customers need a better user experience We also help lower costs for our customers. we also help lower costs for our customers Because those customers save on egress traffic that goes to the central cloud. because those customers save on egress traffic that goes to the central cloud If the central clouds are far away, there's a lot of bandwidth costs that end up happening, and if we're caching the content or providing more security and blocking that traffic to even entering the central cloud, we're saving our customers lots of money. The edge cloud plays this unique role that helps improve the user experience from an end user experience, and then it also saves the customer a lot of money from egress traffic. If the central clouds are far away, there's a lot of bandwidth costs that end up happening, and if we're caching the content or providing more security and blocking that traffic to even entering the central cloud, we're saving our customers lots of money. if the central clouds are far away there's a lot of bandwidth costs that end up happening and if we're caching the content or providing more security and blocking that traffic to even entering the central cloud we're saving our customers lots of money The edge cloud plays this unique role that helps improve the user experience from an end user experience, and then it also saves the customer a lot of money from egress traffic. the edge cloud plays this unique role that helps improve the user experience from an end user experience and then it also saves the customer a lot of money from egress traffic If you think about what's better done at the edge, now that you see how the edge plays with the central cloud, the first use case of the edge cloud was the content delivery network. Content and application delivery. That was the first use case. That was where a lot of time was spent. Years later, they've realized that, hey, all the traffic is going through the edge cloud. If you think about what's better done at the edge, now that you see how the edge plays with the central cloud, the first use case of the edge cloud was the content delivery network. if you think about what's better done at the edge now that you see how the edge plays with the central cloud the first use case of the edge cloud was the content delivery network Content and application delivery. content and application delivery That was the first use case. that was the first use case That was where a lot of time was spent. that was where a lot of time was spent Years later, they've realized that, hey, all the traffic is going through the edge cloud. years later they've realized that hey all the traffic is going through the edge cloud If we can layer in intelligence and provide security at the edge, that's an even better value proposition. More and more companies have moved from just purely content delivery into security. I think that with agentic and where things are moving towards, compute will also be done at the edge. I do think that it's still very nascent and very early, but it is a good tailwind and another better use of the edge cloud. If we can layer in intelligence and provide security at the edge, that's an even better value proposition. if we can layer in intelligence and provide security at the edge that's an even better value proposition More and more companies have moved from just purely content delivery into security. more and more companies have moved from just purely content delivery into security I think that with agentic and where things are moving towards, compute will also be done at the edge. i think that with agentic and where things are moving towards compute will also be done at the edge I do think that it's still very nascent and very early, but it is a good tailwind and another better use of the edge cloud. i do think that it's still very nascent and very early but it is a good tailwind and another better use of the edge cloud Because you're managing traffic as it comes into the internet, there's a lot of observability tools that can be used as well. I think that from a use case perspective, these are the four big use cases of the edge. This is how we divide up our business. When we disclose our revenues, we disclose it as delivery services, security, we put compute and observability as other. Because you're managing traffic as it comes into the internet, there's a lot of observability tools that can be used as well. because you're managing traffic as it comes into the internet there's a lot of observability tools that can be used as well I think that from a use case perspective, these are the four big use cases of the edge. i think that from a use case perspective these are the four big use cases of the edge This is how we divide up our business. this is how we divide up our business When we disclose our revenues, we disclose it as delivery services, security, we put compute and observability as other. when we disclose our revenues we disclose it as delivery services security we put compute and observability as other The reason why these are really strong use cases for the edge is because speed matters a lot. Customers do not have the patience to wait to load pages, and they don't want to make transactions or make purchases where speed is slow. I think what else matters is that in this world of real live news updates, think The New York Times on election nights. The reason why these are really strong use cases for the edge is because speed matters a lot. the reason why these are really strong use cases for the edge is because speed matters a lot Customers do not have the patience to wait to load pages, and they don't want to make transactions or make purchases where speed is slow. customers do not have the patience to wait to load pages and they don't want to make transactions or make purchases where speed is slow I think what else matters is that in this world of real live news updates, think The New York Times on election nights. i think what else matters is that in this world of real live news updates think the new york times on election nights You need very fast purging technology which allows more personalized dynamic content being displayed. These content delivery networks like us, you need really good technology because the content is very dynamic. In the world of social media, in the world of personalized content across the web, You need very fast purging technology which allows more personalized dynamic content being displayed. you need very fast purging technology which allows more personalized dynamic content being displayed These content delivery networks like us, you need really good technology because the content is very dynamic. these content delivery networks like us you need really good technology because the content is very dynamic In the world of social media, in the world of personalized content across the web, in the world of social media in the world of personalized content across the web If you're going on a shopping site, you're going to get recommendations on what else to buy, and so everyone needs personalized experiences. Having an edge provider who can provide configurability is really important. I think that the reason the edge is being used is because of resiliency and mission control. If you're going on a shopping site, you're going to get recommendations on what else to buy, and so everyone needs personalized experiences. if you're going on a shopping site you're going to get recommendations on what else to buy and so everyone needs personalized experiences Having an edge provider who can provide configurability is really important. having an edge provider who can provide configurability is really important I think that the reason the edge is being used is because of resiliency and mission control. i think that the reason the edge is being used is because of resiliency and mission control When you have a central cloud that houses all your data center information back there, if you're under a DDoS attack or you're under different events, having multiple POPs at the edge and blocking traffic and providing more resiliency because you're distributing your content across multiple POPs is a much better experience. People choose the edge for resiliency and mission control. I talked about enforcement and security. When you have a central cloud that houses all your data center information back there, if you're under a DDoS attack or you're under different events, having multiple POPs at the edge and blocking traffic and providing more resiliency because you're distributing your content across multiple POPs is a much better experience. when you have a central cloud that houses all your data center information back there if you're under a ddos attack or you're under different events having multiple pops at the edge and blocking traffic and providing more resiliency because you're distributing your content across multiple pops is a much better experience People choose the edge for resiliency and mission control. people choose the edge for resiliency and mission control I talked about enforcement and security. i talked about enforcement and security If you can enforce security at the edge, even better. It's a much better experience. You're blocking information or you're letting in the right players. I also talked about lower cost. Being at the edge allows a lot of the customers that we have, save them from egress traffic. Our footprint today, we have 167 POPs throughout the world delivering 578 terabits per second. If you can enforce security at the edge, even better. if you can enforce security at the edge even better It's a much better experience. it's a much better experience You're blocking information or you're letting in the right players. you're blocking information or you're letting in the right players I also talked about lower cost. i also talked about lower cost Being at the edge allows a lot of the customers that we have, save them from egress traffic. being at the edge allows a lot of the customers that we have save them from egress traffic Our footprint today, we have 167 POPs throughout the world delivering 578 terabits per second. our footprint today we have 167 pops throughout the world delivering 578 terabits per second If you compare us versus our competitors, what you will notice is that we have fewer POPs, but much more powerful POPs. The powerful POPs enables us to have better performance. Our POPs are very software configurable and very programmable using off-the-shelf products. It is a very much more capital efficient and better way to run the network versus our competitors. We were formed 15 years ago based on a very modern architecture. If you compare us versus our competitors, what you will notice is that we have fewer POPs, but much more powerful POPs. if you compare us versus our competitors what you will notice is that we have fewer pops but much more powerful pops The powerful POPs enables us to have better performance. the powerful pops enables us to have better performance Our POPs are very software configurable and very programmable using off-the-shelf products. our pops are very software configurable and very programmable using off-the-shelf products It is a very much more capital efficient and better way to run the network versus our competitors. it is a very much more capital efficient and better way to run the network versus our competitors We were formed 15 years ago based on a very modern architecture. we were formed 15 years ago based on a very modern architecture I think we were founded by a chief technology officer. Artur Bergman came as the CTO of Wikia. He has always been very focused on the customer experience and on being technology first. As a result of that, we are recognized by analysts and investors as our customers, as one of the better products out there. We are constantly listed as a leader in the spaces we play in. I think we were founded by a chief technology officer. i think we were founded by a chief technology officer Artur Bergman came as the CTO of Wikia. artur bergman came as the cto of wikia He has always been very focused on the customer experience and on being technology first. he has always been very focused on the customer experience and on being technology first As a result of that, we are recognized by analysts and investors as our customers, as one of the better products out there. as a result of that we are recognized by analysts and investors as our customers as one of the better products out there We are constantly listed as a leader in the spaces we play in. we are constantly listed as a leader in the spaces we play in We've won Customers' Choice Award seven years in a row. Across a different number of categories, we tend to win awards because we do have a higher performance and better product out there. We are recognized by industry analysts and experts. When you think about the revenues that we have, it cuts across the three kind of circles that you see here, where Network Services is 73% of our revenue. We've won Customers' Choice Award seven years in a row. we've won customers' choice award seven years in a row Across a different number of categories, we tend to win awards because we do have a higher performance and better product out there. across a different number of categories we tend to win awards because we do have a higher performance and better product out there We are recognized by industry analysts and experts. we are recognized by industry analysts and experts When you think about the revenues that we have, it cuts across the three kind of circles that you see here, where Network Services is 73% of our revenue. when you think about the revenues that we have it cuts across the three kind of circles that you see here where network services is 73% of our revenue That's the content delivery side of the business. That's growing 11% year-over-year. Our security has been kind of the bright spot, 22% of our total revenues. That's growing 47% year-on-year. That's also the fifth consecutive quarter of accelerating revenues in our business. 18-24 months ago, we had one security product, and now you see the five security products we have today. That's the content delivery side of the business. that's the content delivery side of the business That's growing 11% year-over-year. that's growing 11% year-over-year Our security has been kind of the bright spot, 22% of our total revenues. our security has been kind of the bright spot 22% of our total revenues That's growing 47% year-on-year. that's growing 47% year-on-year That's also the fifth consecutive quarter of accelerating revenues in our business. 18- 24 months ago, we had one security product, and now you see the five security products we have today. that's also the fifth consecutive quarter of accelerating revenues in our business 18- 24 months ago we had one security product and now you see the five security products we have today That's really evolved and definitely helped see continued acceleration across our security products. Other is a little bit more nascent. I mentioned compute and observability. That's about 5% of our business, and that's growing the fastest at 67% year-over-year. That continues to also grow on a year-over-year basis. That's really evolved and definitely helped see continued acceleration across our security products. that's really evolved and definitely helped see continued acceleration across our security products Other is a little bit more nascent. other is a little bit more nascent I mentioned compute and observability. i mentioned compute and observability That's about 5% of our business, and that's growing the fastest at 67% year-over-year. that's about 5% of our business and that's growing the fastest at 67% year-over-year That continues to also grow on a year-over-year basis. that continues to also grow on a year-over-year basis We're definitely, for me, continue to invest in our core business, which is Network Services, but we have growth drivers across security, and then we have areas that we're playing with because in the future, we do think that compute will play a bigger part. I mentioned some of our growth drivers, but being a platform play is definitely very helpful and nice. We're definitely, for me, continue to invest in our core business, which is Network Services, but we have growth drivers across security, and then we have areas that we're playing with because in the future, we do think that compute will play a bigger part. we're definitely for me continue to invest in our core business which is network services but we have growth drivers across security and then we have areas that we're playing with because in the future we do think that compute will play a bigger part I mentioned some of our growth drivers, but being a platform play is definitely very helpful and nice. i mentioned some of our growth drivers but being a platform play is definitely very helpful and nice I think starting with content delivery, layering in having five security products has helped us gain momentum across our business, where we are delivering 20% year-over-year growth again. We have accelerated our R&D momentum. I mentioned 18-24 months ago, having one security product with a WAF. We now have kind of the full suite of five edge security products, launching DDoS, bot management, API security, and client-side protection. I think starting with content delivery, layering in having five security products has helped us gain momentum across our business, where we are delivering 20% year-over-year growth again. i think starting with content delivery layering in having five security products has helped us gain momentum across our business where we are delivering 20% year-over-year growth again We have accelerated our R&D momentum. we have accelerated our r&d momentum I mentioned 18- 24 months ago, having one security product with a WAF. i mentioned 18- 24 months ago having one security product with a waf We now have kind of the full suite of five edge security products, launching DDoS, bot management, API security, and client-side protection. we now have kind of the full suite of five edge security products launching ddos bot management api security and client-side protection You see across our businesses, we're growing faster than the market, in all three of our businesses. You see that because we are doing competitive takeouts with our customers. We are winning where performance matters, and we have a better go-to-market sales execution motion than we've had in the past. I think with the other area that we're investing is international markets. You see across our businesses, we're growing faster than the market, in all three of our businesses. you see across our businesses we're growing faster than the market in all three of our businesses You see that because we are doing competitive takeouts with our customers. you see that because we are doing competitive takeouts with our customers We are winning where performance matters, and we have a better go-to-market sales execution motion than we've had in the past. we are winning where performance matters and we have a better go-to-market sales execution motion than we've had in the past I think with the other area that we're investing is international markets. i think with the other area that we're investing is international markets I think that if you look at what we've been doing, especially in 2026, we've invested a lot in our APAC region. We have a new leader who's in Singapore. Prior to her joining, we were supporting Asia from our London office. You can imagine that experience being not as where it should be. Now having more feet on the ground in Asia-Pacific region, I think that is a definite opportunity to see that. I think that if you look at what we've been doing, especially in 2026, we've invested a lot in our APAC region. i think that if you look at what we've been doing especially in 2026 we've invested a lot in our apac region We have a new leader who's in Singapore. we have a new leader who's in singapore Prior to her joining, we were supporting Asia from our London office. prior to her joining we were supporting asia from our london office You can imagine that experience being not as where it should be. you can imagine that experience being not as where it should be Now having more feet on the ground in Asia-Pacific region, I think that is a definite opportunity to see that. now having more feet on the ground in asia-pacific region i think that is a definite opportunity to see that We're investing in POPs internationally, and so in that slide around our POPs, you've seen some purple circles where we're investing in, for example, Latin America this year because World Cup is going on. We are continuing to invest internationally. I went through some of the financial highlights. Here, you see the same numbers kind of repeated. We're investing in POPs internationally, and so in that slide around our POPs, you've seen some purple circles where we're investing in, for example, Latin America this year because World Cup is going on. we're investing in pops internationally and so in that slide around our pops you've seen some purple circles where we're investing in for example latin america this year because world cup is going on We are continuing to invest internationally. we are continuing to invest internationally I went through some of the financial highlights. i went through some of the financial highlights Here, you see the same numbers kind of repeated. here you see the same numbers kind of repeated I would say that if you focus on the bottom box, because the first three we've talked about, our record gross margin last quarter was 65%. We had record margins and gross margins there. If you look at what we've done on a last 12-month basis, we've actually had incremental flow-through on a gross margin perspective of 89%. Every dollar of incremental revenue that we've generated, we've flown 89% through to gross margins. I would say that if you focus on the bottom box, because the first three we've talked about, our record gross margin last quarter was 65%. i would say that if you focus on the bottom box because the first three we've talked about our record gross margin last quarter was 65% We had record margins and gross margins there. we had record margins and gross margins there If you look at what we've done on a last 12-month basis, we've actually had incremental flow-through on a gross margin perspective of 89%. if you look at what we've done on a last 12-month basis we've actually had incremental flow-through on a gross margin perspective of 89% Every dollar of incremental revenue that we've generated, we've flown 89% through to gross margins. every dollar of incremental revenue that we've generated we've flown 89% through to gross margins We're working really hard to increase customer commitments. Yes, Delivery Services is a consumption-based business, but it doesn't mean that we can't have RPO. You'll see our RPO growing 63% year-on-year, last quarter to $369 million. I think the last one is we had $42 million of the last 12-month cash flow positive. If you look at the last five quarters, we've really turned a corner. We're working really hard to increase customer commitments. we're working really hard to increase customer commitments Yes, Delivery Services is a consumption-based business, but it doesn't mean that we can't have RPO. yes delivery services is a consumption-based business but it doesn't mean that we can't have rpo You'll see our RPO growing 63% year-on-year, last quarter to $369 million. you'll see our rpo growing 63% year-on-year last quarter to $369 million I think the last one is we had $42 million of the last 12-month cash flow positive. i think the last one is we had $42 million of the last 12-month cash flow positive If you look at the last five quarters, we've really turned a corner. if you look at the last five quarters we've really turned a corner We've had now five consecutive quarters of free cash flow generation. Very proud of that. If you look at full year 2025, we have had record gross margins and operating income. Going to this page here, you'll see our gross margins at 61% really picking up, and then I mentioned last quarter in Q1, we had 65.1% gross margins. Definitely very proud of the momentum, not only on the revenue growth that we're seeing, We've had now five consecutive quarters of free cash flow generation. we've had now five consecutive quarters of free cash flow generation Very proud of that. very proud of that If you look at full year 2025, we have had record gross margins and operating income. if you look at full year 2025 we have had record gross margins and operating income Going to this page here, you'll see our gross margins at 61% really picking up, and then I mentioned last quarter in Q1, we had 65.1% gross margins. going to this page here you'll see our gross margins at 61% really picking up and then i mentioned last quarter in q1 we had 65.1% gross margins Definitely very proud of the momentum, not only on the revenue growth that we're seeing, definitely very proud of the momentum not only on the revenue growth that we're seeing But also on the gross margin flow-through and the gross margin contribution that we are having. If you look at the OpEx leverage over time, we're definitely doing that by making sure that we are judicious. We're investing in R&D. We talked about R&D velocity, but yet, we were able to still reduce costs and still deliver continued product innovation around security products. But also on the gross margin flow-through and the gross margin contribution that we are having. but also on the gross margin flow-through and the gross margin contribution that we are having If you look at the OpEx leverage over time, we're definitely doing that by making sure that we are judicious. if you look at the opex leverage over time we're definitely doing that by making sure that we are judicious We're investing in R&D. we're investing in r&d We talked about R&D velocity, but yet, we were able to still reduce costs and still deliver continued product innovation around security products. we talked about r&d velocity but yet we were able to still reduce costs and still deliver continued product innovation around security products We were able to deliver incremental sales with lower sales and marketing expense in 2025. Very proud of the operating expense leverage we had. As a result of this, what you're seeing is the blue and dark blue boxes moving positive. We've had a full year in 2025 of operating profits, and we had a full year of free cash flow positivity. If you look at the quarterly box, We were able to deliver incremental sales with lower sales and marketing expense in 2025. we were able to deliver incremental sales with lower sales and marketing expense in 2025 Very proud of the operating expense leverage we had. very proud of the operating expense leverage we had As a result of this, what you're seeing is the blue and dark blue boxes moving positive. as a result of this what you're seeing is the blue and dark blue boxes moving positive We've had a full year in 2025 of operating profits, and we had a full year of free cash flow positivity. we've had a full year in 2025 of operating profits and we had a full year of free cash flow positivity If you look at the quarterly box, if you look at the quarterly box It's five consecutive quarters of free cash flow generation, and we have continued operating income momentum across the board. Very proud of what we've done as a company and really excited about what's to come going forward, especially in the opportunities around traffic growth, the agentic opportunity, the compute opportunity, and the security opportunity in front of us. With that It's five consecutive quarters of free cash flow generation, and we have continued operating income momentum across the board. it's five consecutive quarters of free cash flow generation and we have continued operating income momentum across the board Very proud of what we've done as a company and really excited about what's to come going forward, especially in the opportunities around traffic growth, the agentic opportunity, the compute opportunity, and the security opportunity in front of us. very proud of what we've done as a company and really excited about what's to come going forward especially in the opportunities around traffic growth the agentic opportunity the compute opportunity and the security opportunity in front of us With that with that

Speaker 1: Yeah. Let's go into the fireside chat. Richard, thank you for giving us that overview in quite a bit of depth. One thing I think that investors really want to understand is just the strength that you've seen within the security business. What's maybe driving that, and what capabilities have you added to allow Fastly to achieve that stronger security growth? Yeah. yeah Let's go into the fireside chat. let's go into the fireside chat Richard, thank you for giving us that overview in quite a bit of depth. One thing I think that investors really want to understand is just the strength that you've seen within the security business. richard thank you for giving us that overview in quite a bit of depth. one thing i think that investors really want to understand is just the strength that you've seen within the security business What's maybe driving that, and what capabilities have you added to allow Fastly to achieve that stronger security growth? what's maybe driving that and what capabilities have you added to allow fastly to achieve that stronger security growth

Speaker 2: I would say that security growth would probably be a few factors, right? One is that I talked about the product velocity, right? Once you start going from one single security product, which is the web application firewall, and going to launch the full suite at five, right, and getting to parity with your competitors, I think that R&D velocity opens up doors. When you only have one product, you get shut out of RFPs because customers will say, "Can I scale with you?" I would say that security growth would probably be a few factors, right? i would say that security growth would probably be a few factors right One is that I talked about the product velocity, right? one is that i talked about the product velocity right Once you start going from one single security product, which is the web application firewall, and going to launch the full suite at five, right, and getting to parity with your competitors, I think that R&D velocity opens up doors. once you start going from one single security product which is the web application firewall and going to launch the full suite at five right and getting to parity with your competitors i think that r&d velocity opens up doors When you only have one product, you get shut out of RFPs because customers will say, "Can I scale with you?" when you only have one product you get shut out of rfps because customers will say "can i scale with you?" If you only have one product, it's hard to scale with you. Having the five products was very key because across the edge security, now we are at parity with our peers. I think that's number one. I would say number two is that we really revamped our go-to-market execution, right? Scott Lovett had joined mid-2024. If you only have one product, it's hard to scale with you. if you only have one product it's hard to scale with you Having the five products was very key because across the edge security, now we are at parity with our peers. having the five products was very key because across the edge security now we are at parity with our peers I think that's number one. i think that's number one I would say number two is that we really revamped our go-to-market execution, right? i would say number two is that we really revamped our go-to-market execution right Scott Lovett had joined mid-2024. scott lovett had joined mid-2024 Prior to Scott, we didn't really have a security selling motion. Scott came from Akamai, but he also spent time at Imperva, where he was doing security sales. He brought in sales leaders who knew how to sell security. Selling security is a very different kind of motion than selling content delivery. Prior to Scott, we didn't really have a security selling motion. prior to scott we didn't really have a security selling motion Scott came from Akamai, but he also spent time at Imperva, where he was doing security sales. scott came from akamai but he also spent time at imperva where he was doing security sales He brought in sales leaders who knew how to sell security. he brought in sales leaders who knew how to sell security Selling security is a very different kind of motion than selling content delivery. selling security is a very different kind of motion than selling content delivery Having the know-how and then changing comp plans to be able to do cross-sell opportunities and kickers is really key. I think that if you couple product velocity with go-to-market changes, that's kind of the two biggest drivers. I would say the other big driver is the proliferation of the complexity of traffic over the internet, right? The complexity is happening, more DDoS attacks, more bot management, more bots scraping the traffic. Having the know-how and then changing comp plans to be able to do cross-sell opportunities and kickers is really key. having the know-how and then changing comp plans to be able to do cross-sell opportunities and kickers is really key I think that if you couple product velocity with go-to-market changes, that's kind of the two biggest drivers. i think that if you couple product velocity with go-to-market changes that's kind of the two biggest drivers I would say the other big driver is the proliferation of the complexity of traffic over the internet, right? i would say the other big driver is the proliferation of the complexity of traffic over the internet right The complexity is happening, more DDoS attacks, more bot management, more bots scraping the traffic. the complexity is happening more ddos attacks more bot management more bots scraping the traffic I think just having the right products at the right time with the right kind of products is definitely a good tailwind in our favor. I would say two, executional one, and then the market dynamic has been helpful. I think just having the right products at the right time with the right kind of products is definitely a good tailwind in our favor. i think just having the right products at the right time with the right kind of products is definitely a good tailwind in our favor I would say two, executional one, and then the market dynamic has been helpful. i would say two executional one and then the market dynamic has been helpful

Speaker 1: Excellent. In terms of AI, this has clearly been a top-of-mind discussion area. Where does Fastly potentially benefit from agentic AI traffic, and where does that maybe show up in the P&L? Which business units do you typically see that in? Excellent. excellent In terms of AI, this has clearly been a top-of-mind discussion area. in terms of ai this has clearly been a top-of-mind discussion area Where does Fastly potentially benefit from agentic AI traffic, and where does that maybe show up in the P&L? where does fastly potentially benefit from agentic ai traffic and where does that maybe show up in the p&l Which business units do you typically see that in? which business units do you typically see that in

Speaker 2: I'd start first at the highest level, which is, how does agentic impact traffic flows across the internet, across the edge? I would say agentic use cases are still early, I do think that it's going to increase traffic on the internet in general. It won't increase on a gigabyte basis because AI traffic is going to probably be small bits compared to streaming or video. On a requests per second basis, on a number of times it's pinging the internet, it's going to be massive. I'd start first at the highest level, which is, how does agentic impact traffic flows across the internet, across the edge? i'd start first at the highest level which is how does agentic impact traffic flows across the internet across the edge I would say agentic use cases are still early, I do think that it's going to increase traffic on the internet in general. i would say agentic use cases are still early i do think that it's going to increase traffic on the internet in general It won't increase on a gigabyte basis because AI traffic is going to probably be small bits compared to streaming or video. it won't increase on a gigabyte basis because ai traffic is going to probably be small bits compared to streaming or video On a requests per second basis, on a number of times it's pinging the internet, it's going to be massive. on a requests per second basis on a number of times it's pinging the internet it's going to be massive The growth is going to be so much faster, I think that that's going to be big. How does that impact our revenue lines? Starting first with security, that's where we're seeing the majority of the impact from AI right now. With the proliferation of AI, you're seeing more DDoS attacks, more bot management. The growth is going to be so much faster, I think that that's going to be big. the growth is going to be so much faster i think that that's going to be big How does that impact our revenue lines? how does that impact our revenue lines Starting first with security, that's where we're seeing the majority of the impact from AI right now. starting first with security that's where we're seeing the majority of the impact from ai right now With the proliferation of AI, you're seeing more DDoS attacks, more bot management. with the proliferation of ai you're seeing more ddos attacks more bot management If you're a customer and you're creating content, let's say you're The New York Times, if AI traffic is scraping your content, you're losing eyeballs, which means less ad revenues or less subscription revenues. Your monetization model is kind of at risk. There's definitely a need for bot management. What are good bots? What are bad bots? If you're a customer and you're creating content, let's say you're The New York Times, if AI traffic is scraping your content, you're losing eyeballs, which means less ad revenues or less subscription revenues. if you're a customer and you're creating content let's say you're the new york times if ai traffic is scraping your content you're losing eyeballs which means less ad revenues or less subscription revenues Your monetization model is kind of at risk. your monetization model is kind of at risk There's definitely a need for bot management. there's definitely a need for bot management What are good bots? what are good bots What are bad bots? what are bad bots Fastly, help me block the bad bots who are scraping my content but not paying me for it. With Fastly, we've adopted what we call, it's the RSL, the Real Simple Licensing standard. We're actually helping drive a lot of that, too. I think we're seeing the initial, on the security side, definitely more of the AI traffic and how it kind of provides tailwinds. I do think that compute is very early days. I think that right now, a lot of the AI is more inference. Fastly, help me block the bad bots who are scraping my content but not paying me for it. fastly help me block the bad bots who are scraping my content but not paying me for it With Fastly, we've adopted what we call, it's the RSL, the Real Simple Licensing standard. with fastly we've adopted what we call it's the rsl the real simple licensing standard We're actually helping drive a lot of that, too. we're actually helping drive a lot of that too I think we're seeing the initial, on the security side, definitely more of the AI traffic and how it kind of provides tailwinds. i think we're seeing the initial on the security side definitely more of the ai traffic and how it kind of provides tailwinds I do think that compute is very early days. i do think that compute is very early days I think that right now, a lot of the AI is more inference. i think that right now a lot of the ai is more inference Inference is going back to the central cloud. The hyperscalers are building big, massive GPU data centers, and a lot of that is actually more about information gathering. Information gathering does not require as much workload from the edge. As you move to agentic, you go away from information gathering, and you go towards execution. When you go through execution, there's going to be orchestration that is required, right? Inference is going back to the central cloud. inference is going back to the central cloud The hyperscalers are building big, massive GPU data centers, and a lot of that is actually more about information gathering. the hyperscalers are building big massive gpu data centers and a lot of that is actually more about information gathering Information gathering does not require as much workload from the edge. information gathering does not require as much workload from the edge As you move to agentic, you go away from information gathering, and you go towards execution. as you move to agentic you go away from information gathering and you go towards execution When you go through execution, there's going to be orchestration that is required, right? when you go through execution there's going to be orchestration that is required right You're going to need to have perhaps 10 agents or five agents working on your behalf. These agents will sit in different hyperscalers in different locations. Orchestrating that work has to be done in a location, and I think the edge is perfectly situated to really orchestrate that work across agentic, right? It's still early days. How many companies really have agentic apps out there, right? You're going to need to have perhaps 10 agents or five agents working on your behalf. you're going to need to have perhaps 10 agents or five agents working on your behalf These agents will sit in different hyperscalers in different locations. these agents will sit in different hyperscalers in different locations Orchestrating that work has to be done in a location, and I think the edge is perfectly situated to really orchestrate that work across agentic, right? orchestrating that work has to be done in a location and i think the edge is perfectly situated to really orchestrate that work across agentic right It's still early days. it's still early days How many companies really have agentic apps out there, right? how many companies really have agentic apps out there right I do think that when you start saying, "Hey, tell me what to do in New York for two days," and you're doing information gathering, that's not orchestration. That's just information gathering. That's the large language models, the frontier models. When you get to, "Hey, work with a United agent to book my ticket, and work with an Uber agent to pick me up," there's going to be agents working on your behalf and doing execution. I do think that when you start saying, "Hey, tell me what to do in New York for two days," and you're doing information gathering, that's not orchestration. i do think that when you start saying "hey tell me what to do in new york for two days," and you're doing information gathering that's not orchestration That's just information gathering. that's just information gathering That's the large language models, the frontier models. that's the large language models the frontier models When you get to, "Hey, work with a United agent to book my ticket, and work with an Uber agent to pick me up," there's going to be agents working on your behalf and doing execution. when you get to "hey work with a united agent to book my ticket and work with an uber agent to pick me up," there's going to be agents working on your behalf and doing execution That orchestration needs to happen somewhere. I believe that it should happen at the edge. I think the edge is the right place to do it because you need to be efficient about how traffic is moving around the internet. Then I think on the last piece, we have network services, like how does agentic impact our network services revenue? That orchestration needs to happen somewhere. that orchestration needs to happen somewhere I believe that it should happen at the edge. i believe that it should happen at the edge I think the edge is the right place to do it because you need to be efficient about how traffic is moving around the internet. i think the edge is the right place to do it because you need to be efficient about how traffic is moving around the internet Then I think on the last piece, we have network services, like how does agentic impact our network services revenue? then i think on the last piece we have network services like how does agentic impact our network services revenue I think that right now, a lot of us in the space, we price on a per gig basis. I do think that there's opportunities to think through how we think about pricing and how we think about the impacts there. Is that more on a request per second basis? How do we do that? I think overall, network traffic is going to increase because of agentic. How do we take advantage of the opportunity? I think that's still kind of, we're not there yet. I think that right now, a lot of us in the space, we price on a per gig basis. i think that right now a lot of us in the space we price on a per gig basis I do think that there's opportunities to think through how we think about pricing and how we think about the impacts there. i do think that there's opportunities to think through how we think about pricing and how we think about the impacts there Is that more on a request per second basis? is that more on a request per second basis How do we do that? how do we do that I think overall, network traffic is going to increase because of agentic. i think overall network traffic is going to increase because of agentic How do we take advantage of the opportunity? how do we take advantage of the opportunity I think that's still kind of, we're not there yet. i think that's still kind of we're not there yet

Speaker 1: Yeah. That makes a ton of sense. I think around the AI topic, the other major concern here is what's going to happen with Mythos in particular. There seems to be a lot of talk about significant increases in known vulnerabilities that are going to be out there. Not all of those vulnerabilities can be patched. So what role can your WAF products play in maybe that opportunity? Yeah. yeah That makes a ton of sense. that makes a ton of sense I think around the AI topic, the other major concern here is what's going to happen with Mythos in particular. i think around the ai topic the other major concern here is what's going to happen with mythos in particular There seems to be a lot of talk about significant increases in known vulnerabilities that are going to be out there. there seems to be a lot of talk about significant increases in known vulnerabilities that are going to be out there Not all of those vulnerabilities can be patched. not all of those vulnerabilities can be patched So what role can your WAF products play in maybe that opportunity? so what role can your waf products play in maybe that opportunity

Speaker 2: Yeah. I think that we are big believers on even AI and how we can use AI to identify vulnerabilities. I do think that we've been very good about making sure that we have internal technology to identify correlation and traffic flows and figure out which ones are bad. I think that there's opportunity to continue to leverage AI in that front. Mythos would be a great example of how do we leverage AI to really identify vulnerabilities ahead of time. Yeah. yeah I think that we are big believers on even AI and how we can use AI to identify vulnerabilities. i think that we are big believers on even ai and how we can use ai to identify vulnerabilities I do think that we've been very good about making sure that we have internal technology to identify correlation and traffic flows and figure out which ones are bad. i do think that we've been very good about making sure that we have internal technology to identify correlation and traffic flows and figure out which ones are bad I think that there's opportunity to continue to leverage AI in that front. i think that there's opportunity to continue to leverage ai in that front Mythos would be a great example of how do we leverage AI to really identify vulnerabilities ahead of time. mythos would be a great example of how do we leverage ai to really identify vulnerabilities ahead of time You have to couple with the knowhow that we also have in seeing traffic flows. I think that because we sit at the edge and we see a lot of traffic before it even hits other places, we're in a very good position to combine our knowhow with the AI and learning models to really identify those vulnerabilities for our customers. You have to couple with the knowhow that we also have in seeing traffic flows. you have to couple with the knowhow that we also have in seeing traffic flows I think that because we sit at the edge and we see a lot of traffic before it even hits other places, we're in a very good position to combine our knowhow with the AI and learning models to really identify those vulnerabilities for our customers. i think that because we sit at the edge and we see a lot of traffic before it even hits other places we're in a very good position to combine our knowhow with the ai and learning models to really identify those vulnerabilities for our customers That's part of the reason why our security products continue to win awards, because we're taking the best of both. We're seeing the traffic up front, and we're combining our knowhow with the tools that are out there. That's part of the reason why our security products continue to win awards, because we're taking the best of both. that's part of the reason why our security products continue to win awards because we're taking the best of both We're seeing the traffic up front, and we're combining our knowhow with the tools that are out there. we're seeing the traffic up front and we're combining our knowhow with the tools that are out there

Speaker 1: Excellent. Just one last one. Do you need to make more incremental investments in compute or infrastructure, particularly on the GPU capability side? Are there opportunities to partner with some of the larger frontier models that are out there? Excellent. excellent Just one last one. just one last one Do you need to make more incremental investments in compute or infrastructure, particularly on the GPU capability side? do you need to make more incremental investments in compute or infrastructure particularly on the gpu capability side Are there opportunities to partner with some of the larger frontier models that are out there? are there opportunities to partner with some of the larger frontier models that are out there

Speaker 2: Good question. I think we get this a lot. In terms of how are we doing compute today, right? Compute is still a pretty nascent market for us. I showed you our other number. We are doing a lot of that compute with our existing CPUs, right? We have a bunch of servers that are sitting in our POPs. They have CPU capacity, and we're able to process it through the CPUs that we have. Good question. good question I think we get this a lot. i think we get this a lot In terms of how are we doing compute today, right? in terms of how are we doing compute today right Compute is still a pretty nascent market for us. compute is still a pretty nascent market for us I showed you our other number. i showed you our other number We are doing a lot of that compute with our existing CPUs, right? we are doing a lot of that compute with our existing cpus right We have a bunch of servers that are sitting in our POPs. we have a bunch of servers that are sitting in our pops They have CPU capacity, and we're able to process it through the CPUs that we have. they have cpu capacity and we're able to process it through the cpus that we have I think that we are continuing to co-innovate with our customers. That co-innovation means what do you need from a customer perspective? How do we solve that problem? We're working with them on how do we solve that the best, and we find that right now we continue to solve their problems through existing compute resources. I think that we are continuing to co-innovate with our customers. i think that we are continuing to co-innovate with our customers That co-innovation means what do you need from a customer perspective? that co-innovation means what do you need from a customer perspective How do we solve that problem? how do we solve that problem We're working with them on how do we solve that the best, and we find that right now we continue to solve their problems through existing compute resources. we're working with them on how do we solve that the best and we find that right now we continue to solve their problems through existing compute resources We are ready to do GPUs if our customers need it, but we're not in a position to want to put GPUs in the edge if there's no need for it, right? Once you start deploying it, one, they depreciate pretty quickly, especially with the iterations that are launching. If they sit idle, that's a gross margin impact. I think that co-innovation with our customers is actually really key because that co-innovation allows us to have leading views on that. We are ready to do GPUs if our customers need it, but we're not in a position to want to put GPUs in the edge if there's no need for it, right? we are ready to do gpus if our customers need it but we're not in a position to want to put gpus in the edge if there's no need for it right Once you start deploying it, one, they depreciate pretty quickly, especially with the iterations that are launching. once you start deploying it one they depreciate pretty quickly especially with the iterations that are launching If they sit idle, that's a gross margin impact. if they sit idle that's a gross margin impact I think that co-innovation with our customers is actually really key because that co-innovation allows us to have leading views on that. i think that co-innovation with our customers is actually really key because that co-innovation allows us to have leading views on that Now, the second part of your question is, are there opportunities to partner with the frontier models? I think absolutely, right? I think that we welcome and we work with the different players out there, and depending on the use cases that they see, we're always working with a lot of players out there across all different types, including the frontier models. Now, the second part of your question is, are there opportunities to partner with the frontier models? now the second part of your question is are there opportunities to partner with the frontier models I think absolutely, right? i think absolutely right I think that we welcome and we work with the different players out there, and depending on the use cases that they see, we're always working with a lot of players out there across all different types, including the frontier models. i think that we welcome and we work with the different players out there and depending on the use cases that they see we're always working with a lot of players out there across all different types including the frontier models

Speaker 1: Excellent. We're going to take one question from the audience, then we'll break for the breakout session. Anyone? All right. Go ahead. Excellent. excellent We're going to take one question from the audience, then we'll break for the breakout session. we're going to take one question from the audience then we'll break for the breakout session Anyone? anyone All right. all right Go ahead. go ahead

Speaker 3: Imagine on the orchestration layer. 11% of growth we see is related as the orchestration comes to agentic AI. Imagine on the orchestration layer. 11% of growth we see is related as the orchestration comes to agentic AI . imagine on the orchestration layer 11% of growth we see is related as the orchestration comes to agentic ai

Speaker 2: Yeah, Yeah, yeah

Speaker 3: There's even growth- There's even growth- there's even growth-

Speaker 1: Could you repeat the question? Could you repeat the question? could you repeat the question

Speaker 2: The question in the room was that there was an 11% growth rate for our delivery services revenue. As we see the orchestration layer happening on agentic AI, where should we see that? Would we see it on the 11% pickup on delivery services? I think the orchestration layer ends up happening across a number of areas. The question in the room was that there was an 11% growth rate for our delivery services revenue. the question in the room was that there was an 11% growth rate for our delivery services revenue As we see the orchestration layer happening on agentic AI, where should we see that? as we see the orchestration layer happening on agentic ai where should we see that Would we see it on the 11% pickup on delivery services? would we see it on the 11% pickup on delivery services I think the orchestration layer ends up happening across a number of areas. i think the orchestration layer ends up happening across a number of areas I do think that we should see it on the compute side, right? On the compute side, we're going to need to be able to orchestrate and do computations around, like, "Hey, this person's asking me these things. These are their three criteria. I need to work with 10 different agents to go out there." You need that compute to happen so that you can send out instructions. I do think that we should see it on the compute side, right? i do think that we should see it on the compute side right On the compute side, we're going to need to be able to orchestrate and do computations around, like, "Hey, this person's asking me these things. on the compute side we're going to need to be able to orchestrate and do computations around like "hey this person's asking me these things These are their three criteria. these are their three criteria I need to work with 10 different agents to go out there." You need that compute to happen so that you can send out instructions. i need to work with 10 different agents to go out there." you need that compute to happen so that you can send out instructions I think that every compute needs to have some storage and some caching information, and so there might be some pickup in the delivery services as well. I do think that having multiple lines of businesses enables us to play together in that orchestration layer that needs to happen. It's still early days. I don't want to get people too excited about it, but I do think that from an agentic world, it's going to change the way the edge plays, and we need to be ready for that. I think that every compute needs to have some storage and some caching information, and so there might be some pickup in the delivery services as well. i think that every compute needs to have some storage and some caching information and so there might be some pickup in the delivery services as well I do think that having multiple lines of businesses enables us to play together in that orchestration layer that needs to happen. i do think that having multiple lines of businesses enables us to play together in that orchestration layer that needs to happen It's still early days. it's still early days I don't want to get people too excited about it, but I do think that from an agentic world, it's going to change the way the edge plays, and we need to be ready for that. i don't want to get people too excited about it but i do think that from an agentic world it's going to change the way the edge plays and we need to be ready for that

Speaker 1: Perfect. We're going to take a quick five-minute recess, and then we'll continue the discussion Perfect. perfect We're going to take a quick five-minute recess, and then we'll continue the discussion we're going to take a quick five-minute recess and then we'll continue the discussion