Fastly, Inc.FSLY
Fastly, Inc. Fair Value Disclosure
Investments and Fair Value Measurements
Fair Value of Financial Instruments
For certain of the Company’s financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
The Company measures its cash equivalents and marketable securities at fair value. The Company classifies its cash equivalents and marketable securities within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company classifies its investments, which are comprised of corporate notes and bonds, commercial paper, U.S. treasury securities, securities of deposit, and municipal securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments. Financial assets and liabilities are measured and recorded at fair value on a recurring basis.
The following table summarizes the Company’s cash and marketable securities' amortized cost, unrealized gains (losses), and fair value by significant investment category reported as cash and cash equivalents or marketable securities as of December 31, 2025 and 2024.
| As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
Reported as: | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Cash and cash equivalents | Marketable securities: | |||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||
Cash | $ | 87,743 | $ | — | $ | — | $ | 87,743 | $ | 87,743 | $ | — | ||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||
| Money market funds | 44,032 | — | — | 44,032 | 44,032 | — | ||||||||||||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||||||||||
| U.S. Treasury securities | 64,273 | 27 | — | 64,300 | 8,290 | 56,010 | ||||||||||||||||||||||||||||||||
| Corporate notes and bonds | 50,942 | 19 | — | 50,961 | 4,570 | 46,391 | ||||||||||||||||||||||||||||||||
| Commercial paper | 111,706 | 20 | (2) | 111,724 | 33,928 | 77,796 | ||||||||||||||||||||||||||||||||
| Municipal Securities | 1,600 | — | — | 1,600 | 1,600 | — | ||||||||||||||||||||||||||||||||
| Certificates of deposit | 1,399 | — | — | 1,399 | 400 | 999 | ||||||||||||||||||||||||||||||||
Total | $ | 361,695 | $ | 66 | $ | (2) | $ | 361,759 | $ | 180,563 | $ | 181,196 | ||||||||||||||||||||||||||
| As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||
Reported as: | ||||||||||||||||||||||||||||||||||||||
| Amortized Cost | Gross Unrealized Gain | Gross Unrealized Loss | Fair Value | Cash and cash equivalents: | Marketable securities: | |||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||
Cash | $ | 52,951 | $ | — | $ | — | $ | 52,951 | $ | 52,951 | $ | — | ||||||||||||||||||||||||||
Level 1: | ||||||||||||||||||||||||||||||||||||||
Money market funds | 233,224 | — | — | 233,224 | 233,224 | — | ||||||||||||||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||||||||||||
| Corporate notes and bonds | 6,005 | 3 | — | 6,008 | — | 6,008 | ||||||||||||||||||||||||||||||||
| Commercial paper | 3,699 | — | — | 3,699 | — | 3,699 | ||||||||||||||||||||||||||||||||
Total | $ | 295,879 | $ | 3 | $ | — | $ | 295,882 | $ | 286,175 | $ | 9,707 | ||||||||||||||||||||||||||
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the years ended December 31, 2025 and 2024.
There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive loss into other expense, net as of December 31, 2025 and December 31, 2024. For the years ended December 31, 2025, 2024 and 2023, the Company did not record any impairment charges for its marketable debt securities in its consolidated statements of operations. No impairment loss has been recorded on the securities as the Company does not intend to sell any impaired securities, nor is it more likely than not that the Company would be required to sell impaired securities before recovery of amortized cost basis.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 4, 2020 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.