## 1) A real operating inflection (not just “a beat”) Fastly is explicitly framing Q4 as a step-change: “record revenue, gross margin, and operating profit,” which matters because it signals a transition from a turnaround narrative to an operating-leverage narrative. ["inflection in Fastly’s growth"](0001517413-26-000026|1) ["record revenue, gross margin, and operating profit"](0001517413-26-000026|1) ## 2) Mix shift toward Security is quietly rewriting the quality of revenue Security is no longer a rounding error—management highlights 32% Y/Y security growth and shows it at ~20% of total revenue, implying improving product mix and a potentially better durability/attach story versus pure delivery/CDN. ["security revenue growing 32%"](0001517413-26-000026|2) ["representing 20% of total revenue"](0001517413-26-000026|2) ## 3) RPO + retention: the “forward indicators” are improving at the same time The combination of record RPO ($353.8 million, +55% Y/Y) and an uptick in LTM net retention to 110% suggests not only more contracted demand, but also better expansion dynamics inside the installed base—i.e., backlog growth and customer economics moving in the right direction concurrently. ["Record RPO of $353.8 million grew 55%"](0001517413-26-000026|1) ["LTM NRR… increased to 110%"](0001517413-26-000026|1) ## 4) Guidance implies momentum is expected to persist—and with profitability embedded The company guided to FY2026 revenue of $700–$720 million and non-GAAP operating income of $50–$60 million, which is the more “between-the-lines” message: they’re not just forecasting growth, they’re forecasting scaled profitability alongside it. ["Full Year 2026"](0001517413-26-000026|1) ["Total Revenue… $700.0 - $720.0"](0001517413-26-000026|1) ["Non-GAAP Operating Income… $50.0 - $60.0"](0001517413-26-000026|1) ## 5) Liquidity/financing actions reduce near-term constraints (and can fund the next leg) Fastly raised $180 million of 0% converts due 2030 and used $149 million to repurchase notes due 2026—an underappreciated enabler if the market is pricing a “self-funded growth” phase rather than a balance-sheet overhang. ["Raised $180 million"](0001517413-26-000026|1) ["used $149 million to repurchase notes due 2026"](0001517413-26-000026|1)

## 1) A real operating inflection (not just “a beat”) Fastly is explicitly framing Q4 as a step-change: “record revenue, gross margin, and operating profit,” which matters because it signals a transition from a turnaround narrative to an operating-leverage narrative. ["inflection in Fastly’s growth"](0001517413-26-000026|1) ["record revenue, gross margin, and operating profit"](0001517413-26-000026|1) ## 2) Mix shift toward Security is quietly rewriting the quality of revenue Security is no longer a rounding error—management highlights 32% Y/Y security growth and shows it at ~20% of total revenue, implying improving product mix and a potentially better durability/attach story versus pure delivery/CDN. ["security revenue growing 32%"](0001517413-26-000026|2) ["representing 20% of total revenue"](0001517413-26-000026|2) ## 3) RPO + retention: the “forward indicators” are improving at the same time The combination of record RPO ($353.8 million, +55% Y/Y) and an uptick in LTM net retention to 110% suggests not only more contracted demand, but also better expansion dynamics inside the installed base—i.e., backlog growth and customer economics moving in the right direction concurrently. ["Record RPO of $353.8 million grew 55%"](0001517413-26-000026|1) ["LTM NRR… increased to 110%"](0001517413-26-000026|1) ## 4) Guidance implies momentum is expected to persist—and with profitability embedded The company guided to FY2026 revenue of $700–$720 million and non-GAAP operating income of $50–$60 million, which is the more “between-the-lines” message: they’re not just forecasting growth, they’re forecasting scaled profitability alongside it. ["Full Year 2026"](0001517413-26-000026|1) ["Total Revenue… $700.0 - $720.0"](0001517413-26-000026|1) ["Non-GAAP Operating Income… $50.0 - $60.0"](0001517413-26-000026|1) ## 5) Liquidity/financing actions reduce near-term constraints (and can fund the next leg) Fastly raised $180 million of 0% converts due 2030 and used $149 million to repurchase notes due 2026—an underappreciated enabler if the market is pricing a “self-funded growth” phase rather than a balance-sheet overhang. ["Raised $180 million"](0001517413-26-000026|1) ["used $149 million to repurchase notes due 2026"](0001517413-26-000026|1)