Smartkarma's AI Co-Pilot, Smartkarma

αSK

Smartkarma's AI Co-Pilot

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
  <li>Fastly is a specialized edge cloud platform provider transitioning from a high-growth, unprofitable Content Delivery Network (CDN) to a more balanced model focused on profitability and higher-margin security and edge compute services.</li>
  <li>Financial performance is showing a significant inflection point, with accelerating revenue growth, expanding gross margins, and the company achieving its first full year of positive free cash flow in 2025. This demonstrates improved operational discipline.</li>
  <li>The company operates in a highly competitive landscape, facing larger rivals like Akamai and Cloudflare. Its success hinges on its ability to innovate in high-growth areas like AI-driven traffic and security, and to continue its expansion into the enterprise market.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  Fastly is a specialized edge cloud platform provider transitioning from a high-growth, unprofitable Content Delivery Network (CDN) to a more balanced model focused on profitability and higher-margin security and edge compute services.
  Financial performance is showing a significant inflection point, with accelerating revenue growth, expanding gross margins, and the company achieving its first full year of positive free cash flow in 2025. This demonstrates improved operational discipline.
  The company operates in a highly competitive landscape, facing larger rivals like Akamai and Cloudflare. Its success hinges on its ability to innovate in high-growth areas like AI-driven traffic and security, and to continue its expansion into the enterprise market.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul>
<li>Fastly, an edge cloud platform company, reported strong financial results for the third quarter of 2025, marking a continuation of its upward trajectory in both revenue and profitability.</li>
<li>The company reported a record revenue of $158.2 million, a 15% year-over-year increase, which surpassed the high end of its guidance and reflected an acceleration in growth compared to the previous quarter.</li>
<li>The company’s gross margins improved significantly, reaching 62.8%, exceeding guidance by 330 basis points, largely driven by revenue upside and a moderation in pricing declines.</li>
</ul>


Fastly, an edge cloud platform company, reported strong financial results for the third quarter of 2025, marking a continuation of its upward trajectory in both revenue and profitability.
The company reported a record revenue of $158.2 million, a 15% year-over-year increase, which surpassed the high end of its guidance and reflected an acceleration in growth compared to the previous quarter.
The company’s gross margins improved significantly, reaching 62.8%, exceeding guidance by 330 basis points, largely driven by revenue upside and a moderation in pricing declines.


Fastly: How Is Its One-Stop Platform Strategy Turning Security Into a Powerful Moat?

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><ul><li>Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow.</li><li>Last month (ending 3/31), the WTR AI Index was down 5.5% M/M versus the S&amp;P 500 Index (down 5.1%), the Russell 2000 Index (down 5.2%), and the Nasdaq Index (down 4.9%).</li><li>All sectors, with the exception of Internet and Data Services, were down M/M; Software, while still down M/M, was not down as much as other sectors. </li></ul></div>

Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow.Last month (ending 3/31), the WTR AI Index was down 5.5% M/M versus the S&amp;P 500 Index (down 5.1%), the Russell 2000 Index (down 5.2%), and the Nasdaq Index (down 4.9%).All sectors, with the exception of Internet and Data Services, were down M/M; Software, while still down M/M, was not down as much as other sectors. 

AI Flow Index : Sailing a Sea of Companies in AI - 2 April 2026

<ul>
<li>Fastly Inc.'s earnings report for the first quarter of 2025 highlighted several key aspects of the company's financial performance and strategic direction, presenting both opportunities and challenges for investors to consider.</li>
<li>Positively, Fastly reported revenues of $144.5 million, surpassing their guidance range.</li>
<li>This represents an 8% increase year-over-year, suggesting positive momentum in their revenue growth, notably higher compared to the previous quarter's 2% growth.</li>
</ul>


Fastly Inc.'s earnings report for the first quarter of 2025 highlighted several key aspects of the company's financial performance and strategic direction, presenting both opportunities and challenges for investors to consider.
Positively, Fastly reported revenues of $144.5 million, surpassing their guidance range.
This represents an 8% increase year-over-year, suggesting positive momentum in their revenue growth, notably higher compared to the previous quarter's 2% growth.


Fastly Ignites 64% Growth in Emerging Products as Edge Compute Takes Center Stage...

<div><ul><li>Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow. Last month (ending 2/28), the WTR AI Index was down 0.6% M/M versus the S&amp;P 500 Index (down 0.9%), the Russell 2000 Index (up 0.2%), and the Nasdaq Index (down 2.3%).</li><li>Within the WTR AI Flow Index, declines in Software, Internet &amp; Data Services, and Other Industries were not completely offset by gains in Semiconductor and Other Tech.</li><li>Software (22% of the index) was down 12.0%, while Semiconductor (17% of the index) was up 13.9%, Internet and Data Services (7% of the index) was down 12.8%, Other Tech (24% of the index) was up 13.0%, and Other Industries (30% of the index) was down 5.3%.</li></ul></div>

Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow. Last month (ending 2/28), the WTR AI Index was down 0.6% M/M versus the S&amp;P 500 Index (down 0.9%), the Russell 2000 Index (up 0.2%), and the Nasdaq Index (down 2.3%).Within the WTR AI Flow Index, declines in Software, Internet &amp; Data Services, and Other Industries were not completely offset by gains in Semiconductor and Other Tech.Software (22% of the index) was down 12.0%, while Semiconductor (17% of the index) was up 13.9%, Internet and Data Services (7% of the index) was down 12.8%, Other Tech (24% of the index) was up 13.0%, and Other Industries (30% of the index) was down 5.3%.

AI Flow Index : Sailing a Sea of Companies in AI - 2 March 2026

United States

Fastly, Inc. provides infrastructure software. The Company offers cloud computing, image optimization, security, edge computer technology, and streaming solutions. Fastly serves customers in the United States.

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Fastly Inc (FSLY US)

Primer: Fastly Inc (FSLY US) - Feb 2026

Fastly is a specialized edge cloud platform provider transitioning from a high-growth, unprofitable Content Delivery Network (CDN) to a more...

αSK

Fastly: How Is Its One-Stop Platform Strategy Turning Security Into a Powerful Moat?

Fastly, an edge cloud platform company, reported strong financial results for the third quarter of 2025, marking a continuation of its upward...

Baptista Research

AI Flow Index : Sailing a Sea of Companies in AI - 2 April 2026

Last month (ending 3/31), the WTR AI Index was down 5.5% M/M versus the S&P 500 Index (down 5.1%), the Russell 2000 Index (down 5.2%), and the...

Water Tower Research

Fastly Ignites 64% Growth in Emerging Products as Edge Compute Takes Center Stage...

This represents an 8% increase year-over-year, suggesting positive momentum in their revenue growth, notably higher compared to the previous...

Baptista Research

AI Flow Index : Sailing a Sea of Companies in AI - 2 March 2026

Water Tower AI Flow Index. We monitor ~400 public companies across tech and AI for performance and AI-related news flow. Last month (ending 2/28)...

Water Tower Research

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