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What Fastly (FSLY)'s Zero-Coupon Note Deal and NASDAQ Inclusion Mean For Shareholders

Simply Wall St · 2d ago
  • Earlier in December 2025, Fastly, Inc. completed a US$160,000,000 zero-coupon convertible senior notes offering due 2030 and was added to the NASDAQ Composite Index, while analysts highlighted its broadened security portfolio and new finance leadership.
  • These moves collectively point to Fastly sharpening its balance sheet, raising its profile with index inclusion, and leaning into higher-value security products as a core growth engine.
  • We’ll now examine how Fastly’s expanded security portfolio and recent financing shape the company’s existing investment narrative and risk profile.

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Fastly Investment Narrative Recap

To be in Fastly, you need to believe its edge cloud and expanding security suite can eventually offset losses and intense CDN competition, with security and compute driving a higher quality revenue mix. The zero coupon convertible notes and NASDAQ Composite inclusion may modestly support that near term catalyst by improving liquidity and financial flexibility, but the core risk around concentrated customers and pricing pressure in a commoditizing market remains very much in focus.

The US$160,000,000 zero coupon convertible senior notes due 2030 are the clearest recent development for this thesis, since they raise non dilutive capital today while pushing potential dilution and repayment out several years. For a company still posting net losses and funding ongoing R&D and network investment, this financing ties directly into the key question of whether Fastly can sustain product expansion in security and compute long enough to scale into a more durable earnings profile.

Yet investors also need to weigh how this added balance sheet flexibility interacts with Fastly’s reliance on a concentrated group of large customers and what that means if usage trends begin to...

Read the full narrative on Fastly (it's free!)

Fastly's narrative projects $694.5 million revenue and $44.3 million earnings by 2028. This requires 6.7% yearly revenue growth and a $191.9 million earnings increase from -$147.6 million today.

Uncover how Fastly's forecasts yield a $10.42 fair value, a 4% upside to its current price.

Exploring Other Perspectives

FSLY 1-Year Stock Price Chart
FSLY 1-Year Stock Price Chart

Seven Simply Wall St Community fair value estimates for Fastly range from US$0.32 to US$15.89, underscoring how far apart individual views can be. When you set that against Fastly’s still unprofitable profile and dependence on a relatively small group of large customers, it highlights why many market participants are scrutinizing revenue stability and customer concentration risk before committing fresh capital.

Explore 7 other fair value estimates on Fastly - why the stock might be worth as much as 59% more than the current price!

Build Your Own Fastly Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Fastly research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
  • Our free Fastly research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fastly's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.